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6 Reasons Why HR Needs Data And People Analytics



In today's highly competitive business environment, the importance of human resources is self-evident. However, traditional management methods are no longer sufficient to meet current needs. Data and talent analytics have become essential in modern human resource management. (Read More: Empowering HR Innovations in Taiwan's Tech Landscape: Navigating and Fostering)


This article explores why data and talent analytics are necessary and provides six key reasons, including optimizing recruitment, fostering talent development, predicting talent turnover, enhancing employee engagement, optimizing compensation and benefits, and improving decision quality. Through these discussions, we aim to help businesses better understand the value of data and talent analytics to achieve successful talent management and organizational operations.


1. Optimizing the Recruitment Process: Data and talent analytics help businesses more accurately identify which candidates are best suited for specific positions. By analyzing past recruitment data, organizations can determine which recruitment channels are most effective and understand the traits and skills associated with successful performance. This helps improve recruitment efficiency and reduces the likelihood of hiring unsuitable candidates.


2. Talent Development and Promotion: By analyzing each employee's performance, training records, and learning progress, HR can identify individuals with the potential for promotion or assuming more responsibilities. Using data analysis to identify employees' strengths and weaknesses and evaluate their performance, personalized training and development opportunities can be provided, while objectively determining who should have promotion opportunities. This more accurately identifies and develops internal talent, reducing the instability caused by incorrect promotions.


3. Predicting Talent Turnover: Data analysis can assist organizations in predicting which employees are likely to leave, allowing the HR department ample time to take measures such as offering better benefits, promotion opportunities, or improving the work environment to retain key talents. It also helps understand talent movement between different departments, promoting knowledge sharing and collaboration, thereby strengthening overall organizational effectiveness and innovation.


4. Enhancing Employee Engagement: Data analysis provides a key tool for increasing employee engagement. It quantifies and assesses the level of employee engagement, helping organizations tailor engagement plans to meet employee needs. It provides real-time feedback and improvement mechanisms to ensure organizations can adjust strategies to increase engagement. It also establishes clear goals and assessment mechanisms to ensure that engagement plans align with organizational strategic objectives. These advantages enable organizations to effectively promote employee participation, enhance their engagement, and thereby contribute to the organization's success.


5. Compensation and Benefits Optimization: By analyzing employee compensation structures, benefit utilization, and market compensation trends, organizations can more accurately develop personalized compensation and benefits policies, providing employees with the specific well-being they need to increase satisfaction and enhance organizational attractiveness. Data analysis can also predict potential talent turnover, allowing organizations to take proactive measures, such as adjusting compensation or improving benefits, to retain key talents, further enhancing competitiveness and long-term sustainability.


6. Improving Decision Quality: Data and talent analytics provide objective foundations for human resources decisions, reducing the influence of subjective biases. Whether in recruitment, promotion, training, or addressing employee issues, data can offer decision-makers more comprehensive and accurate information, enabling them to make wiser decisions.


In conclusion, data and talent analytics play a critical role in human resource management, helping businesses manage talent more effectively, improve organizational performance, and ensure that talent strategies align with business objectives.


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