Are today’s tight talent market conditions impacting your company’s ability to recruit and retain talent? If so, unleashing the power of HR data can give your organization the competitive advantage it needs to secure the right talent.
This process involves more than merely collecting data and tracking some KPIs. To achieve success in today’s highly competitive market, deep HR data analysis is essential. Only when transforming HR data into meaningful HR insights can you gain a competitive advantage and drive better outcomes.
With over 60 years of experience, Randstad understands the value HR analytics brings to talent acquisition and recruitment. We provide our clients with HR intelligence and help you combine these insights with your in-house data to develop effective HR strategies.
the importance of data-driven HR
Gone are the days when decisions were solely based on subjective opinions. With the rapid advancement of technology, businesses now have the capability to collect vast amounts of HR data at a minimal cost. By leveraging HR data and HR analytics, you can unlock a multitude of benefits, including:
- Acquire skilled talent
- Increase retention rates
- Fill hard-to-fill roles
- Overcome the skills gaps
- Cut recruitment costs
- Build a diverse workforce
- Forecast future talent needs
- Strengthen your employer brand
- Boost productivity rates
Despite the numerous advantages that HR analytics can bring, most organizations are still in the early stages of harnessing its full potential. A recent study by the Society of Human Resources Management (SHRM) revealed that while 71% of HR executives acknowledge the importance of HR analytics in their organization, only 4% have achieved an advanced maturity level.
Having access to HR data is just the first step. In order to fully tap into the power of HR data, it is crucial to invest in individuals who possess the necessary expertise. According to the same SHRM study, only 30% of respondents have an employee, department or division dedicated to this function. Since this can be a challenging task, collaborating with a talent expert who already has the relevant knowledge can prove to be highly beneficial.
In the next section, we'll explore how partnering with a talent specialist like Randstad can maximize your HR data's potential, making your HR team more effective and driving greater success for your company.
randstad’s data-driven approach
At Randstad, we are committed to harnessing the power of technology and our human expertise to deliver exceptional results for our clients. Our dedication lies in providing practical insights, expert guidance, and proven best practices to help you leverage data intelligently. For instance, with our intelligence platform, Randstad Marketing Insights (RMI), we track global labor market data from over 50,000 sources across 10 major markets. By seamlessly integrating these external insights with your internal data points, we offer the context needed for in-depth analysis and pave the way for your business growth.
Now, let's delve into a few examples that showcase how our data-driven approach empowers our clients:
benchmark against industry standards
When conducting an HR analysis, it’s important to establish benchmarks to measure your progress. Certainly, you can use your internal historical data to measure improvements within the company, but this won’t show how your organization truly measures up against the competition.
Before you can make this type of analysis, you must know what ‘good’ performance means within your specific industry. This is where Randstad can help. By leveraging our global talent data, we provide insights on how your company compares to industry and non-industry peers in key metrics such as salary, attrition, and internal mobility. This combination of internal data with our talent insights allows our clients to build effective HR strategies to help them stand out.
develop effective location strategies
With a skilled workforce being the backbone of any successful operation, it has become imperative for companies to have access to a pool of talent. Talent availability has emerged as a crucial factor in selecting the location for a company's new shared service center or factory.
At Randstad, we help clients with the necessary intelligence to make informed decisions based on the availability, competitiveness and cost of talent. By leveraging this valuable data, companies can strategically position their facilities in locations that not only will meet their talent requirements but also align with their strategic objectives.
set competitive compensation packages
Today’s highly competitive talent market has spurred an increase in workers’ expectations. While employee benefits, such as remote work options and career development, are important to today’s workers, salaries remain the number one motivator for choosing an employer.
To attract and retain talent, your organization must offer competitive salaries. Nonetheless, identifying the optimal compensation package can be a challenging task. You need to strike a balance where the salary offerings are high enough to attract and retain talent but not so high that it significantly impacts your budget.
Our teams at Randstad can help with this process too. By leveraging our talent data, we can advise your organization and help you identify the ideal compensation for talent in your specific industry and location. Offering the optimal salary package to your workers can have an immediate positive impact on your organization’s recruitment and workforce management efforts.
develop effective talent acquisition strategies
Offering the right salaries is a great first step, but workers' needs are constantly evolving. For example, nowadays, workers want more flexibility and job security from their employers. As an HR leader, it’s critical to understand what type of benefits your workers really want.
At Randstad, we provide the talent insights you need to identify the needs and expectations of your workers and potential candidates. Our annual Employer Brand Research and Randstad Workmonitor reports provide insights regarding today’s talent in over 30 markets.
Based on these insights and our talent expertise, we can advise your organization on how to adjust its talent acquisition strategy to match workers’ expectations and drive better HR results. For instance, we can help you determine which skills you might want to drop from your job requirements or what benefits to add to attract more candidates and fill your vacancies faster.
improve workplace diversity and inclusion
Business leaders across the world are increasingly making diversity and inclusion a priority — and for good reason. Companies with diverse workforces often achieve better hiring results, are more innovative and enjoy greater profits.
However, creating a diverse workforce is not as straightforward as it may seem. It requires a deep understanding of individual needs, offering suitable benefits, posting job descriptions in the appropriate channels, and cultivating an inclusive company culture. Randstad’s market insights can help you develop HR strategies for building and retaining a diverse workforce. For example, we provide valuable insights into the unique requirements and preferences of specific demographics such as women or millennials. Armed with this information, you can build a targeted recruitment strategy to attract more workers in these specific groups.
forecast future needs
Today’s labor market is being strongly impacted by the growing skills gap, which is expected to cost employers trillions of dollars by 2030. To tackle this challenge, it is essential to equip your workforce with the skills of the future. After all, merely hiring for your current needs can make it hard to stay ahead of your competition.
Instead, your company needs to invest in reskilling and upskilling programs. Randstad provides insight into the future of skills in various areas. With this forecasting data, we can help you identify current skills gaps and devise skilling strategies to bridge those gaps.
In conclusion, organizations must go beyond mere data collection and fully embrace the power of HR analytics. This means investing in the right resources or partnering with a talent expert like Randstad, who can help unlock the true potential of HR data. By doing so, organizations can achieve success in talent acquisition and drive business growth.