Majority (more than 85 percent) of companies in Asia are planning to build up their workforce analytics capabilities in the next two years, according to a newly released report by the Workforce Analytics Institute (WAI).
Today, HR leaders are driven to demonstrate return on investment on human capital due to several reasons such as high employee attrition and double digit, year-on-year compensation growth in Asia. This is one the main reasons for the committed focus on workforce analytics.
The report also highlights the need for support and participation of key stakeholders as it speeds up workforce analytics and enable evidence-based thinking to become embedded in the organisation.
"Organisations on every continent struggle to put advanced analytics in place. This report demonstrates how organisations in Asia can create an analytics culture in which business decisions are based on data rather than personal preferences or biases," said Rebecca L. Ray, Ph.D., executive vice president, Knowledge Organisation and Human Capital Practice Lead at The Conference Board, and one of the co-authors of the report.
Basic form of analytics
Findings of the report indicate that most Asian organisations are already employing basic forms of workforce analytics such as internal reports and workforce segmentation.
However, less than a quarter of participating companies are effectively utilising advanced analytics methods such as predictive modeling.
Good news is that this number will shoot up over the next couple of years, as companies in Asia continue to strengthen their workforce analytics capabilities.
WAI notes that workforce analytics practices should strongly emphasise quality data from valid and credible sources to deliver actionable business insights. The workforce analytics team can more readily gain organisational and stakeholder endorsement by working with good quality data.
"In recent years, organisations around the world have been building up their HR analytics capabilities and employers in Asia are no different. In a region with rapidly changing population demographics and a highly competitive economic climate, employers are now using workforce analytics to manage and understand employees in order to create lasting competitive advantage," said Dion Groeneweg, Partner and HR Transformation & Workforce Planning Leader for Growth Markets, Mercer.
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