Using Data Analysis to Improve Employee Retention
Hiring employees is already a time-consuming process that frequently has to go on what's written on the candidate's resume, as well as a few references. While this is a standard used for decades, it's always been a risk. With tougher challenges in the workplace and workers needed to keep your company expectations high, playing risk just isn't a good idea.
Why take a gamble on new employee hires based on things not always provable? Using data analysis to improve employee retention is the smarter approach today to avoid a major crisis with excessive turnover.
Fortunately, data analysis is so much more thorough now thanks to big data becoming more prevalent and accessible to everyone. It's time to think about investing in good data programs to give you a thorough look at who you're hiring.
By doing so, you'll improve employee retention by knowing in advance whether a new hire can truly fit.
Let's take a look at data points to look at when interviewing new candidates, or immediately after hiring someone.
Examining Health Data
Healthcare is far more complex in the workplace, and it can factor into how much money you have to spend in buying insurance for your employees. Studying health data in your prospective employees is imperative to find out what this could cost you if you hire someone.
The employee may hide a health problem, and you may not have any way to find out unless studying data. Even so, you have to remember to adhere to HIPAA regulations since you don't want to invade their privacy.
Any employees you hire need to get on board with you studying their health data. By doing so, you'll give them better choices in how to handle their health and insurance options.
Predictive Analysis on Performance
Before you hire someone, you want to know what their potential performance is and whether they'll stick with you. You have a lot of options on how to calculate this.
Several years ago, Google devised an analytics system predicting who's most apt to get a promotion in a company. Created through Google's People Analytics team, it's a formula the company uses themselves in hiring people. Even they go beyond university grades now in candidates and into more complex territory like intellectual humility or learning ability to find the perfect employee.
Looking at Data From Past Results
Big data encompasses information over a long period of time, and even becomes real-time to make faster decisions. Don't ignore older data, because it helps you figure which employees best fit in your company.
Look back to successful employees you've had and study what their characteristics were in why you hired them. Also look back to where you found those candidates and how fast they became acclimated to your company surroundings.
Plus, figuring how long it took to find past candidates helps you measure how long your current search is going to take. However, if you have no data history, look at other industry data, including from your competitors to see what they do.
Looking at the Bigger Picture in a Candidate
It's best not to obsess over the small things in employee data and instead look at the bigger picture to see if a candidate best fits in. Looking at data details that might connote a few negative impressions of a potential employee could ruin hiring someone still committed to your company vision.
What's truly important in looking at employee data is to hire based on what's best for others on your team and your company's mission.