Reporting analytics has had a dramatically positive impact on a wealth of businesses hailing from myriad industries in recent years, with many organizations deploying the solutions to tighten up accounting, decision-making and record-keeping processes. Certain departments are a bit better-suited to the implementation of reporting analytics solutions than others, at least when it comes to integration and getting the technology off the ground.
These tend to be the ones that involve the most labor-intensive data management and information governance processes, including accounting, marketing and sales. However, as big data becomes a more common goal and leaders gain a certain level of comfort with these tools, the doors to other applications and uses begin to open a bit wider, allowing firms to leverage advanced intelligence technology for a broadening range of purposes and targeted departments.
Human resources is an exceptional example of a department that most companies will have which could positively benefit from the deployment of a reporting analytics tool. In fact, more research and analysis is beginning to indicate that HR analytics is already a relatively popular pursuit among certain businesses and, considering the fact that human capital is among the most critical assets an organization has, becoming a bit more intelligent through these technologies is never a bad idea.
Words from the wise
The Association for Training and Development recently reported that the use of analytics in the HR department comes with the potential to help organizations strike a balance between "sustainably profitable and enlightened management of people." Not long after, the firm characterized this potential outcome of analytics as being a "big hairy audacious goal," but suggested that companies targeting the technology in this department should indeed have relatively lofty objectives right from the start.
Now, it is worth noting that the general objectives and goals for a technology investment do need to be within reason to ensure that the company is not disappointed when returns on investment are tallied up down the road. Additionally, failing to have reasonable expectations could distort the use of the technology at any given time, which can also come with several negative impacts. However, this might not be the case with analytics.
According to ATD, although C-suite executives are commonly looking for a relatively small pool of analytics insights within the HR department, the technology can actually provide far more than many would expect, and businesses ought to be striving to get the most out of the technology. In terms of the types of problems analytics might be useful in quelling, the association stated that talent, alignment, turnover, labor market, health and leadership risks can all be targeted by measurement processes to help the firm become more resilient.
Remember, the skills gap is becoming a more pressing issue for a wider breadth of industries as time goes on, and businesses ought to be doing everything in their power to mitigate this challenge, which can be done with analytics.
One of the greatest utilities of advanced intelligence tools is the ability to more quickly and accurately identify trends, setbacks or obstacles and get the insights necessary to overcome the issues in stride. In the HR department, leveraging a set of automation tools to cover the more mundane and repetitive tasks contained therein can free up professionals to think more strategically, look closely at analytics feedback and protect the business from human capital-based disruptions.
Additionally, reporting tools can help to streamline compliance requirements and general accounting, which will inherently tighten up the department and yield more efficient productivity.