HR TECHNOLOGY: Companies in Southeast Asia are feeling the heat from the talent war, especially when it comes to attracting valuable talents for their organisations.
On top of that, voluntary turnover rates are likely giving these HR professionals sleepless nights as well.
In 2021, it was found that countries such as Indonesia, Malaysia and Thailand had a hard time attracting and retaining talent.
The problem is particularly dire with mid-career professionals, as there’s a struggle in finding the right skills, for the right price.
This is where people analytics or HR analytics comes in. HR analytics is no different than companies using to make informed decisions on sales, marketing and budget.
While HR analytics is a fairly recent tool, if implemented correctly, it not only helps to hire the right people and keep employees in the company for longer, it could even predict the skills that will be necessary for the company before things get critical.
Companies would have more leeway to decide whether to hire externally or reskill existing employees, and if they choose the latter, will have time to polish those skills before they become critical for the business.
Employees that are given opportunities to learn and develop in line with shifting market needs are less likely to leave.
HR analytics is built on three key building blocks, information technology, HR data and data analytics. The most important impact of data analytics is the ability to identify short and long term trends over time.
It is also capable of unlocking trends in employee sentiment about the workplace, productivity, engagement, morale and even happiness.
The data collected can then reveal the reasons behind high turnover rates. Employees could be unhappy about uneven distribution of bonus and budget across teams, or they may be escaping bad managers, among other reasons.
HR analytics could provide these data to the employers so that they can in turn put in the effort to address these issues to improve employee happiness.
HR Tech Update, by Chief of Staff Asia's Technology Editor Ellia Pikri, appears every Thursday from 6:00am.