The amount of data available to HR professionals today is incredible, but it is of no use unless applied intelligently. Can your hiring managers, recruiters and the ATS collate all the available resumes in the database (existing and incoming) at the same time and analyze them for the best hires? They are probably pulling out resumes with keyword searches based on some language from job descriptions. This is simple matching, not real analysis.
HR data is by nature unstructured, i.e., resumes formats and job descriptions come in inconsistent formats, which makes it very difficult to be quantified. They don’t follow any specific format and could be of any file type – text files, docs, pdfs, audio, video, etc. So how do we expect a machine to make real sense from this inconsistent data, let alone quantify skills proficiencies?
Top CXOs depend largely on data to make decisions. Thereby, to make HR a significant contributor to top line strategies, companies need advanced talent analytics which can be enabled by using contextual technology. The words in resumes, job descriptions and applications become revelations when given ‘context’.
Exploration and analysis of Big Data in HR is the nearest future and to add to this - 90% of unstructured HR data to reckon with.
Gartner, a market research and advisory firm, predicts that the market for big data and analytics will reach into the trillions, and Forbes contributor Josh Bersin cites it as a big opportunity for HR.
Bersin gives the example of a financial services company which used analytics to understand their hiring practices vis-à-vis hired employees, their performances and employee retention. The company found 6 effective factors that correlated with successful employee performance, factors that it wasn’t accounting for in its recruiting practices. So the company changed its processes by including the insights gained from analytics. This is the power of analytics. The power to recognize gaps and limitations in existing practices and understand what to change to see real improvement in real-time.
HR technology needs to evolve to relieve HR professionals of clunky applicant tracking systems and outdated reporting. The trend is towards contextualizing; intelligent analytics-based platforms and ERP systems which are capable of applying human-like intelligence while discerning HR data. Future-ready HR professionals and companies must take advantage of it.
Contextual technology gives meaning to the otherwise incomprehensible ocean of data which cannot be deciphered correctly by commonly available HR automation systems since most of them perform mere keyword searches and often only a human can discern the quality of a resume by reading it first-hand. Contextualizing mimics this action, thereby making a recruiter’s life easier. Also it brings the power of machine computing in the form of speed and accuracy to deal with huge volumes of data. Two in one!
Contextual intelligence will soon replace the ‘gut feeling’ that hiring managers rely on with solid dependable talent analytics to not only hire the best, save costs/time and take optimized recruiting decisions, but also to make HR a significant contributor to company strategy.