Use of Data Science in Human Resources

Data science can be defined as the scientific approach used to derive knowledge and insight from the big and raw data to provide support for decision making. (Dhar, 2013, P.64) Henceforth, Data science is the application of various technological tools such as algorithms and artificial intelligence to make derive meaning out the huge amount of data which cannot be explored or analyzed by mere use of human intellect or basic technological software.

Human resource management (HRM or HR) is the strategic approach to the effective management of people in a company or organization such that they help their business gain a competitive advantage. It is designed to maximize employee performance in service of an employer’s strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems. HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and benefit systems. HR also concerns itself with organizational skills and industrial relations, or the balancing of organizational practices with requirements arising from collective bargaining and governmental laws. The overall purpose of human resources (HR) is to ensure that the organization is able to achieve success through people.

With the advancement of technologies and networks used by the organizations, the input of data and information has been of a huge load resulting in a necessity of enhancing its management. The chaotic state of raw data has been of a big struggle for the HR practitioners. The extraction and organization of data for decision-making or recruitment has been of a severe difficulty. For example, Resumes and Cover letters enclose a large amount of subjective and heterogeneous information, processing it by a mere human would certainly lead him or her to ambivalence and confusion. Data science has been really essential in different fields of management as it has to potential to assist in the prediction of employee behavior, supports the analysis of the workforce and Talent, provides evidence-based solutions for HR planning and overall business strategy. Nowadays, all decisions have become rather data-driven than past experience.

APPLICATION OF DATA SCIENCE IN HUMAN RESOURCES

Overcoming human weakness of biases

Computers overcome the human weakness of biases; henceforth, it enhances the fairness of the selection process. It also facilitates the analysis of thousands resume in a really short amount of time. The accuracy of selection is enhanced through the incorporation of algorithms and machine learning techniques. Henceforth, talent acquisition can become more cost-effective. The implementation of data science in the field of HR can produce a better insight into the current and future employees. Data science brings about a more robust and evidence-based way of decision making. Managers will rely more on tangible evidences rather than experience and gut feelings.

Employee Performance

The analysis of employee performance is one of the most important features of big data in HR. This system enables an organization to monitor all key performance indicators in real time and to evaluate each one of its workers separately. Big data analysis also detects potential mistakes and flaws in work, which is a valuable feedback that can be used to make things right in short notice.

This is essential because the Glassdoor’s research revealed that even the smallest increase in performance can grow company profit by almost $2.5 thousand each year.

Data science is especially helpful in retail operations since it has the power to analyze performance per each sales person or unit, territory, bricks-and-mortar store, online sales channels, etc. With such impressive tool in their hands, HR managers can dedicate more time to face-to-face communication with employees and get the first-hand impression on their work.

Don’t forget that the experience and intuition of HR professionals can never be fully replaced by new technologies.

Marketing

Strange as it may sound, many marketers don’t know how to calculate the return on investments, which basically means that they don’t know the final result of their marketing campaigns. In such circumstances, it is difficult to figure out if they are doing a good job. That’s also why HR units are having trouble analyzing the performance of marketing teams and each one of their members separately.

With its thorough analytical methodology and a bunch of digital information, data science is able to solve this problem easily. It measures the reach and influence of all marketing activities, especially the ones conducted through online advertising.

This type of business intelligence brings fresh blood to HR analytics and gives it the strength to control marketing teams, too.

Health and Injuries

If your employees often face some health issues, the company will surely reduce productivity and become less profitable.

Big data can help you to detect the most common health issues in your organization and to prepare for it properly. For instance, if your workers call in sick a lot during winter, you should warn them to pay attention or hire an additional workforce in order to prevent production or sales difficulties.

Conclusion

With its deep insights and accurate predictions, big data analytics became the new force in contemporary HR management.

Companies that use this HR model spend less time and resources on hiring decisions and increase employee engagement, productivity, and retention rates.

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