Today, nearly 75% of enterprises in the US are struggling with skills gaps and talent shortages in crucial IT positions. The Bureau of Labor Statistics reveals the shortage of IT engineers in the country will exceed 1.2 million by the year 2026. HR departments can leverage the power of HR data analytics to derive actionable insights that help attract IT talent and improve IT employee retention rates. Data analytics also helps HR leaders to make decisions designed to create better work environments and maximize employee productivity. This blog focuses on IT talent issues and how HR data analytics can help attract, retain and develop IT talent.
What’s causing the most pain?
The following are some of the top challenges companies face when scouting for IT talent:
Demand outweighs available tech talent
There is an acute shortage of available tech talent even as demand for these professionals grows daily. Recruiters with more positions to fill than qualified people face myriads of challenges in meeting their goals. Some of the top IT talent, particularly in high demand today, includes software and web developers, cyber security professionals, and employees with experience in big data and analytics.
Increased IT recruiting costs
Compensation demands for IT positions have grown exponentially in recent years due to the rising market competition for IT talent. Studies reveal that IT wages in the country went up 1.2% in the past year alone, even with specific markets experiencing higher wage increases. The increasing wage demands are driving up already high recruiting costs for companies.
High turnover rates
Too many competing offers for IT professionals are driving high turnover rates in the industry. IT candidates with strong technical skills are often presented with multiple offers, each one as attractive as the next. These offers tempt employees enough to start considering job changes at will.
Challenges getting noticed by IT candidates
Given the fact IT candidates have myriads of options to consider when it comes to employment opportunities, it has become a challenge for recruiters and companies to catch their attention, especially when it comes to passive candidates.
Generation Z is now entering the workforce while baby boomers are yet to retire. This results in a unique work environment where each generation has its own workplace values, settings, expectations, and leadership styles. IT recruiters should look beyond a technical skills match and focus more on what each individual candidate wants and how to align candidate expectations with the unique aspects of a company, position, and department.
How data analytics can help solve these challenges
IT professionals today are being particularly choosy about the companies to work with. Recruiters and companies should look beyond offering competitive salaries and get more innovative in what they are offering. Today, factors such as culture, benefits, perks, and future growth opportunities play a crucial role in attracting talent, improving morale, and retaining tech talent. The HR department can leverage HR data analytics to understand the existing situation and develop practical solutions to solve IT talent issues. The following are the benefits of HR analytics:
Identify outstanding talent: An HR analytics dashboard can help HR departments adopt a strategic approach when scouting for new IT talent. With high turnover rates, hiring new IT talent has become a recurring responsibility, and companies need to identify potential candidates for the right job using the least number of resources. HR professionals can leverage HR analysis reports to determine the talent gap within the organization and identify the ideal candidates for the open positions.
Improve retention rates: One of the essential purposes of using HR analytics is to improve retention rates and reduce attrition rates. HR departments can use data from exit interviews and employee feedback to understand why IT professionals are switching jobs with growing frequency. HR data is often confidential, sensitive, and located in multiple systems. Unless you have the right platform and metrics in place, it is not easy to gather and analyze the data. HR analytics systems can help in this area, thereby empowering teams to access information that drives valuable insights to develop workforce strategies that improve job satisfaction and increase employee retention rates. A single platform such as Power BI reporting can help ensure all relevant information and institutional knowledge is collected and accessed 24/7. Once the data is made available, HR teams have an easier time spotting recurring issues and identifying potential high-risk areas that may cause a decrease in retention.
Create a positive work environment: HR analytics reporting helps HR teams understand how to improve workforce productivity through an employee-friendly work environment. It also helps cultivate a data-driven mindset that ensures each business decision you make is best for both business and employees. From talent acquisition to talent management, HR analytics can help the organization set talent goals, enhance diversity and inclusion and create a positive work environment that meets the unique expectations of each employee. HR data analytics also help organizations conduct surveys and gauge the happiness of their employees. The HR department will be better positioned to learn the different frustrations employees experience with diverse aspects of the business.
Gauge employee work experience: HR analytics can help the HR team improve employee work experiences by analyzing their reactions and approaches to organizational policies and decisions. With such data, companies can make necessary changes to create a healthy workspace within the enterprise. The HR team can also use reports to convince the top management of the need for policy change.
Is Power BI useful for HR?
Power BI Report Scheduler (PBRS) by ChristianSteven delivers reports based on the Microsoft Power BI data-gathering software suite of applications and processes used to gather, process, store, and analyze data in real-time.
The Power BI HR analytics dashboard is designed to be customizable and user-friendly and can be accessed through several options, including mobile phones, desktop servers, and web browsers. Power BI comes with several features to gain valuable insights about your employees, the business processes, and how these processes affect your workforce. It also analyzes data on skills gaps, runs performance ad hoc analysis, and more. You can leverage Power BI to create multiple dashboards with specific individualized factors. Some of the great features of the Power BI HR analytics dashboard include a performance grid, employee retention dashboard, employee turnover dashboard, employee attrition prediction and analysis, training analysis, and more.
Make data-driven HR decisions
Recruiting and retaining IT talent is quite challenging. The competition for the best talent is getting fiercer each day, and finding and retaining ideal candidates with the desirable mix of skills and experiences is a tough call for most HR departments. Data analytics in HR can provide the solution by helping the HR team create a data-driven model for spotting, recruiting, and retaining IT talent.