Software services or BPO companies might be the largest private sector employers in the country, but here?s a little known fact about most of them: traditionally, their human resource (HR) departments have relied on judgments, anecdotal information or even gut feel when it comes to reducing the hiring cost, encouraging employee engagement, planning promotions or curbing attrition. Not surprising, the net result is on predictable lines?alarming attrition levels which bog down the top management with such mundane tasks, instead of dedicating their efforts towards business growth.
Winds of change are however blowing across the tech industry and companies like Accenture, Infosys, WNS Global Services and Sapient are showing the way. They are betting on business intelligence, data analytics and HRM tools to keep their flock together. Such tools are also helping them achieve their human capital objectives. In short, they are adopting a scientific approach to track and retain their employees. Good news is that even mid-sized tech firms have started using data analytics to keep their employee base intact.
It is an amusing fact that now it possible to combine illustrative records of an employees? absenteeism, leadership scores, professional qualifications and personal information. And it is this data that helps them in human resources management. Here?s a classic example: Why aren?t there enough women in the leadership position in an organisation? Companies use data to find out why it is not happening and actually what kind of women are making it.
Accenture research confirms that high-performance businesses are five times more likely to use analytics strategically compared with low performers. In this elastic world, high performance hinges on the ability to gain insights from data and deliver improved business outcomes across the enterprise.
Himanshu Tambe, partner and lead, service line capability, Accenture feels, ?One of the big things that is happening in HR
today is that companies are using data analytics to derive insights. Traditionally companies relied on judgments, anecdotal information, gut feel. But, now the available data is being used to derive insights and interventions.?
Accenture, that employs 50,000 people in India is an interesting example to study as the consulting firm eats its own cooked food. Raj Ramachandran, senior manager with the Talent & Organisational Performance, at Accenture says, ?As a service to our clients, we are focusing on data analytics in the last couple of years. We have a large analytics group in Gurgaon, where the workforce is doing analytics for our clients.? He further explains that Accenture as a company has been using HR data analytics for themselves since a long time.
Benefits derived
Noting the adoption of data analytics tools by large Indian IT companies, a spokesperson from Infosys, the country?s second largest software exporter employing 1,15,000 odd people, believes that HR is a critical decision
maker at Infosys and everyday several decisions are made which impact the organisation?s bottomline. ?Analytics helps us ensure that these decisions are well informed and backed by credible data. Also considering the scale at which we operate, analytics helps us to take faster decisions with lesser risk of failure. Be it hiring decisions, forecasting workforce needs, promotions or career planning,? he says.
Even industries like BPO that are known for high attrition rates believe in adopting analytics.
Keshav R Murugesh, Group CEO at WNS Global Services, the country?s second largest pure play BPO agrees: ?A trend analysis of our attrition helps us determine where we need to improve by running focused programmes. Our lens has a clear focus on attrition, compensation, variable pay etc. These are managed through the analytics we get.?
The trend is also followed by mid-sized global companies like Sapient engaging 7,000 employees. Manika Awasthi Menon, senior manager, People Success at the company has her goals clear: ?Analysing the data helps us in
increasing retention and reducing hiring costs by monitoring the workforce cost against budget, conducting detailed attrition reporting?both current attrition and projected attrition.?
Even employee engagement is enhanced by conducting various surveys and then interpreting the same data. This seems to be a tested strategy of the learning and development heads. ?The data we have helps us in determining key factors that drive employee productivity by means of rolling out and analysing the employee engagement survey data,? informs Menon from Sapient.
Even WNS conducted an online survey called ESAT to have employee feedback on the policies and processes of the company. The BPO firm is currently going through the action planning phase based on the outcome of the survey.
The dark side
Industry analysts feel that the the major barrier that prevents companies from focusing on analytics varies between a lack of data on employees in their HR systems to having multiple systems that do not speak to each other. Hence it is very important for organisations to realise the importance of capturing the right set of data as well as investing in the right integrated system.
Organisations need to understand the complex interaction between recruiting, staffing, profiles of people and compensation structures to help them maximise their return on human capital. The answer to today?s challenges is in data analytics.
Thus, large IT companies continue to leverage the advantages from data analytics tools in HR. On the other hand, majority of mid-sized and small organisations still believe in traditional methods or gut feel to retain talent?as lesser employees are easier to track.
HR analytics
* Accenture, Infosys, WNS and Sapient are leveraging data analytic tools in HR
* Large IT & BPO firms are five times more likely to use analytics strategically compared to smaller ones
* Analytics helps in curbing attrition, hiring decisions, forecasting workforce needs, promotions or career planning
* Employee engagement is enhanced by conducting various surveys and then interpreting the same data