Big Data in Human Resource Management
To understand the role of big data in human resource management, it’s essential first to define the term big data. Big data is a broad term used to describe the large and varied volumes of data that are now routinely collected and analyzed. It has been a game-changer across industries. I have previously written articles on the role of big data in other sectors such as insurance and agriculture. Ensure you go through all previous articles to understand the role big data has played in different sectors of the economy.
Human Resource Management is growing rapidly in this twenty-first century. The nature of the workplace has also evolved. Governments have enacted new laws have to protect workers against exploitation. In addition, professionals have realized the importance of rest and humane working conditions. Big data has been critical in enabling organizations to improve their work-spaces. This article provides an overview of big data in Human Resource Management, including statistics on its growth, current uses, trends, and prospects.
The Use of Big Data in Human Resource Management
The use of big data in Human Resource Management can be divided into three broad categories: recruitment, performance management, and learning and development.
Big data is being used increasingly in recruitment to identify potential candidates. For example, online search engines and social media platforms have created vast data stores on individuals, which companies can mine to identify potential recruits.
Recruiters can use big data to identify the best candidates for a given position by analyzing data on their skills, experience, and qualifications. In addition, recruiters can use big data to filter out potential employees who do not fit in with the company policies. Unfortunately, there have been numerous cases of individuals losing out on potential jobs because of their digital footprints.
A digital footprint describes the trail of data you leave behind online. This includes your previous social media posts and comments. Human resource professionals profile individuals through their social media posts. Therefore, big data has made it easier for HR professionals to identify a racist, misogynist, etc., through social media. Such individuals do not fit in with many companies’ policies as they create a toxic workspace.
Companies are also using big data to improve the performance of employees. For example, human Resource Management departments can use big data to track employee performance over time and identify areas where improvement is needed. Companies can then use this information to target training and development programs to help employees meet specific goals.
Learning and Development
Organizations are using big data to improve learning and development in organizations. For example, online learning platforms collect large amounts of data on employee learning behavior, which companies can then use to improve the design of training programs.
In addition, organizations are also using big data to identify the skills that employees need to be successful in their roles. After that, the company can develop training programs that address these needs.
The Growth of Big Data in Human Resource Management
The use of big data in HRM is increasing. The volume of collected and analyzed data is growing at a staggering rate. The following statistics provide a snapshot of the growth of big data in HRM:
- In 2013, companies used big data in 33 percent of all HRM initiatives. Experts project this figure to grow to 50 percent by 2017.
- The global market for big data services in HRM will grow from $1.2 billion in 2016 to $2.9 billion by 2021.
- The global market for big data hardware and software in HRM will grow from $4.8 billion in 2016 to $11.9 billion by 2021.
The role of big data in HRM is expanding rapidly, and its impact is likely to be even more significant in the future.
Big data will continue to be used in recruitment to identify potential candidates. Recruiters will use big data to determine the best candidates for a given position by analyzing data on their skills, experience, and qualifications. In addition, the evolution of the workspace to a remote workspace will result in a wider recruitment base for companies. As a result, there will be an increasing need for more data on employees outside the companies’ physical location.
In addition, cancel culture is increasingly becoming the norm. Whether that is a positive or negative development for society is up for discussion. However, companies are increasingly steering away from controversial individuals. Such individuals will smear the company’s brand due to their statements or actions outside the workplace. As a result, companies will need more information about an individual’s online footprint, associates, and behavior outside the office. The negative impact is that data privacy is at risk due to this cancel culture.
Big data will continue to be used to improve the performance of employees. Human Resource Management departments will use big data to track employee performance over time and identify areas where improvement is needed. Companies can then use this information to target training and development programs to help employees meet specific goals. In addition, the workspace is moving away from the physical office. Many experts predict a hybrid workspace as the future workspace. As a result, companies will need more data to track performance outside the workspace.
Learning and Development
Companies will continue to use big data to improve learning and development in organizations. Online learning platforms will continue to collect large amounts of data on employee learning behavior, which companies can use to improve the design of training programs. Organizations will also use big data to identify employees’ skills to be successful in their roles and develop training programs that address these needs.
Big data is playing an increasingly important role in Human Resource Management. Its impact is likely to become even more significant in the future. The use of big data is helping organizations to identify the best candidates for jobs, track employee performance, and improve learning and development. As big data becomes more sophisticated and robust, its role in Human Resource Management will expand even further.
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