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Home > Blogs > Blogs > 5 Reasons Why HR Struggles With Big Data

5 Reasons Why HR Struggles With Big Data

  • By Kamlesh Ranjan
  • April 18, 2024
  • 4 mins read
reason hr struggles with big data
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    Managing and analyzing big data can be a challenging task, even HR professional struggles with it. In today’s business landscape, data has become a crucial factor in decision-making and optimizing HR processes. As a result, most companies gather employee data, which they use to plan and redesign their business structures. However, HR departments are currently facing difficulties in dealing with big data, which is hindering effective analysis. 

    Did you know that a 2021 study by Quantzig found that 73% of HR professionals have problems with data quality and accessibility, which hinders effective analysis? However, according to the  2020 HireVue report, only 33% of hiring managers believe they have the ability to analyze data. This is a major skills gap that prevents data from being effectively interpreted and used. Now, you must be thinking about why HR struggles with big data. So let’s answer your question and read the full article.

    Data literacy

    Data literacy is the primary pointer, and that is why HR struggles with big data. So, we all know that HR departments aim towards a data-driven future, but they face a significant challenge – a significant gap in skills and data literacy as well. As I mentioned earlier, Quantzig’s study claims that 73% of HR professionals lack the skills necessary for data analytics, such as having a nuanced understanding of statistical methods, data visualization, and interpretation. To unlock the full potential of HR data analytics, it is vital to equip the HR workforce with the necessary data acumen.

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    You can address this challenge by organizing comprehensive training programs, mentorship initiatives, and partnerships with educational institutions to enhance the data literacy of HR professionals. Additionally, promoting a culture of continuous learning and knowledge sharing can help transform HR into a data-savvy domain capable of confidently navigating the intricacies of analytics. 

    Enough Resources

    Organizations use a variety of HR analytics tools to collect, analyze, and derive insights from  HR data, including examples: HR information systems (HRIS), business intelligence (BI) tools, predictive analytics software, survey and feedback tools, text analytics software, etc. However, HR departments struggle with big data because many small and medium-sized businesses do not have the infrastructure to process the data. The most effective way to accomplish this goal is by seeking professional assistance. You may consider hiring experts who are well-versed in utilizing these tools. Another alternative is to engage in big data consulting services, which can help you bypass any HR challenges with big data. You can also develop a strategy based on their recommendations and select the most suitable tools.

    Privacy

    To achieve desired results, analytics demands the collection of a substantial amount of data from various reliable sources. When gathering data about employees or potential employees, human resources professionals must consider data protection, particularly from external sources. Because you are collecting personal information from employees, now it becomes very sensitive to keep them safe otherwise, it may lead to trouble for your company. 

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    Protecting large amounts of data is a challenging task when it comes to big data. Companies often prioritize understanding, storing, and analyzing data sets, delaying data security measures until a later stage. However, this approach is not recommended, as an unsecured data repository can attract malicious hackers. There are various ways to protect your data, such as hiring cybersecurity experts, implementing data encryption, segregation, identity, and access controls, endpoint security, real-time security monitoring, and utilizing big data security tools. These measures will help safeguard employee data and prevent any potential data breaches.

    Big And Messy Data

    One of the major challenges faced by HR departments is the management of big and messy data. Unlike financial data, HR data is often not accurate and pure. Job titles, department names, and other important details are sometimes mislabeled or abbreviated, which can create confusion. Moreover, records of promotions and previous positions within the same company are often mixed up, making it difficult to maintain an employee’s work history.

    Businesses and startups are investing more money into hiring skilled workers and providing training programs to help existing staff reach their full potential. However, another important step for companies to take is to invest in data analytics solutions based on artificial intelligence. These tools can be operated by professionals who may not be data science experts but have basic knowledge. This step can save companies a lot of money on recruitment and help them accurately organize their large datasets.

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    Human Recourse and Technology 

    Many human resources (HR) managers are hesitant to implement workforce analytics. They fear that relying on technology will lead to computers making hiring decisions instead of humans. However, it is important to remember that using all available tools, including technology, is ethical and can help companies make informed decisions about who to hire. In this way, companies can ensure they find the right people for the right jobs, benefiting everyone involved, including employees, shareholders, and society at large.

    Final Words

    Using data can enhance HR decisions and outcomes, but the process is not always seamless. And perhaps that is why we have discussed some points about why HR struggles with big data. Nevertheless, by tackling these obstacles and implementing a data-driven approach, HR departments can obtain useful insights and revolutionize their role within the organization. To cut it short, the essential aspect of being surrounded with big data is to keep learning and keep growing.

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