What is big data in Human Resources?

It’s not an overstatement to say that the current world works through technology. The digital world in which we live in generates a huge amount of data. That is due to the presence of the internet in our lives. By downloading a file, watching a video o just making a simple click we are creating information. Every little action we make generates data, which can be quantifiable, measurable and, from a business perspective, it can be capitalized. 

This is how we reach the age of big data in businesses. Of course, the world of Human Resources is no stranger to that technology and the vast array of opportunities it creates. In fact, the area of Human Resources is embracing big data in processes such as recruitment and talent management. 

Do you know what is big data and the way it works in the world of Human Resources? At T2W we have an extensive experience in Human Resources and we make extensive use of this technology in our recruitment service. In this article we will delve into the concept of big data in Human Resources. 

What is big data?

We can understand the concept of big data as an amount of information too large, complex and diverse to be managed directly by people or traditional tools. As we previously mentioned, the amount of data generated by people every day is huge and it can’t be measured and analyzed by the average data management software. It’s easier to understand all big data entails with the different V’s behind this concept. 

1. Volume 

As we mentioned, the amount of information we access with big data is huge. In this case, we are no longer thinking about gigabytes. Here, we are talking about petabytes. Keep in mind that one petabyte is made of 1000 terabytes.  

2. Variety 

Since the amount of data is voluminous, the information obtained with big data is diverse. We are talking about structured data, semi-structured data and unstructured data. The variety of types and formats in the information obtained is wide. 

3. Velocity 

We have a lot of information that is very diverse, it could take a lot of time to access all that data, isn’t it? Well, another of the qualities of big data is that the information is generated, collected and processes at a high speed, which makes it easier to use. 

It’s worth noting that recently others V’s have been added such as Veracity, which refers to the authenticity of the information received; and Value, which refers to the value generated with the data. While these are also important, the concept at its core can be described with the three initial V’s. 

Big data in Human Resources 

1. Optimizes talent management 

One of the first aspects that can be improved with big data is talent management. Keep in mind that today we can access a huge amount of data of employees inside the organization. Software such as Human Resources Information Systems (HRIS) can use big data and other technology to provide a better management of people in the company. 

In this case, using analytics and predictive models with big data it’s the best way to leverage this technology. Some of the tasks that can be managed more efficiently are record keeping, personnel data management, Human Resources planning, payroll management, among other functions. As a result, employee satisfaction improves and productivity increases in the organization. 

Additionally, big data not only offers benefits focused on employee wellbeing. People in charge of the Human Resources area also can assess the productivity of each employee individually. With big data and analytics it’s possible to identify the exact measure each employee contributes to business productivity and profitability. 

2. Turnover rate decreases 

How is the turnover rate at your organization? If it’s a recurrent factor, it could turn into a serious problem. Wouldn’t it be great to be able to identify this issue during its initial stages and solve it before it causes bigger problems? That can be done with the help of big data. 

Since you are able to control such a large amount of information, it’s possible to identify the patterns that employees more like to leave usually show. This way, you can identify the problem and look for a quick and effective solution. This is a great way to deal with the turnover rate.  

3. Improves the recruitment process. 

Another of the aspects that has a noticeable improvement thanks to big data in Human Resources is the recruitment process. Human resources professionals can use big data models to source, contact and evaluate talent. To achieve this, they can access different sources of information related to the candidates. 

Here we are talking about elements that can be basic or complex such as resumes, contacts, social media profile information, activity and interests, financial behavior, etc. As a result, you can avoid bias in recruitment, have a deeper analysis of candidates and connect the right applicant to the position available. In other words, you find the right fit. 

Now you have a deeper understanding of big data and the way it interacts with Human Resources. As you can see, this is a concept that can improve many aspects in this field, which is why it’s so important to integrate it to all the processes in this area. 

At Talent2Win, we strive to align your company’s business objectives with the best Talent Acquisition strategies available. If you want to learn more about the services we offer, do not hesitate to contact us.