Technology is no more the sole property of IT departments – the role of technology and data in HR is increasing from a steady pace. This has led to the rise of many fancy technical and analytical terms in HR departments as well. Therefore, in order to survive through this cycle of change every HR manager must be aware of these technical terms. So here we’re going to define five such terms for you:
HR Analytics Terms Every HR Manager Must Know
Data Mining in HR Analytics
Looking for needles in the haystack – that’s the crux of data mining. In this age of big data, a gigantic amount of data is created every day. It’s not possible to analyze all of it even if the whole population of earth is engaged in the herculean task. So, data mining aims to look for data that has some meaning (aka patterns) in a huge amount of raw data, and then present that data with its patterns in a meaningful manner.
Machine Learning (ML)
This branch of Artificial Intelligence helps in making use of data analyzed from data mining. It focuses on developing computer programs and systems that can learn from the data patterns that emerged from data mining. The programs learn themselves, grow continuously and adapt themselves according to situations and requirements when continuously exposed to new data patterns.
Cost Modeling
This is the art and science of understanding HR-driven costs. It helps in understanding many things, including:
- Hiring costs
- The time required for an employee to reach full productivity
- The ratio of salaries and individual productivity
- Overall employee productivity
- Employee turnover costs
- And other HR related costs.
These costs are estimated on the basis of data by computer algorithms, and then utilized in financial planning and business models by executives.
Hiring Channel Mix Modeling
Recruiting is no more limited to advertisements and career sites alone – in last few years many more channels have also come into play, which include references, social media, recruitment consultants etc. In such a situation, there must be some way of identifying which channels are working the best. Hiring channel mix modeling is that way – by analyzing data related to every channel for some time it can tell you which channels work the best for your business.
People Analytics
Data can also help you predict various workplace problems in your office they become worse. People Analytics is aimed at doing just that. By analyzing all data related to your employees it can predict serious problems related to productivity, engagement, attrition and customer satisfaction before they become serious.
Final Thoughts
So, this was our short list of top 5 HR analytics terms every HR manager must know to survive. If you know any other such terms, please feel free to describe them in comments.