Data Analytics as a Service or DAaaS has revolutionized organizational approaches towards decision-making. By utilizing cloud-based platforms, DAaaS allows companies to collate and analyse data effectively. DAaaS can be especially useful for the HR department as analytics is indispensable for strategic planning, improving operational efficiency, and creating a data-driven culture.
In modern organizations, Human Resource Management Software (HRMS) play a crucial role in enabling DAaaS-based analytics. With robust data management capabilities, HRMS can act as the backbone of analytics, ensuring seamless data integration and insightful reporting.
Hence, let us understand how you can utilize your HRMS to implement Data Analytics as A Service for your organization.
What is Data Analytics as A Service?
Data Analytics as A Service DAaaS is the use of data analytics tools and services via cloud-based platforms to analyse and interpret huge amounts of data. It allows companies to analyse their data through powerful data processing tools, without requiring extensive in-house infrastructure.
DAaaS implementation transforms raw information gathered from the source into actionable data by utilizing advanced analytics technologies. Modern DAaaS implementations utilize artificial intelligence, machine learning, predictive modelling, statistical analysis, data visualization, etc. to provide users with in-depth insights into their data.
The core principles of DAaaS include:
- Scalability: DAaaS solutions can easily scale according to organizational growth, making it easier to tackle the increasing amount of data being generated.
- Accessibility: Being cloud-based systems, they can be easily accessed from anywhere using any device with an internet browser, providing 24/7 remote access options.
- Flexibility: Since DAaaS systems utilize cloud infrastructure, they can be easily tweaked to the organization’s specific requirements, ensuring maximum ROI.
Benefits of implementing DAaaS for HR
DAaaS implementation will enable your organization to adapt quickly to your evolving business requirements. It is especially relevant to the HR department as it offers numerous benefits, such as:
1. Better Decisions
DAaaS solutions provide actionable insights for recruitment, performance management, attendance, and other aspects of employee management, making the process easier. It also helps ensure that the decisions made remain effective by providing comparative data before and after the changes.
2. Reduced Costs
DAaaS also eliminates the need for extensive on-premises hardware for collating and analysing data. Since DAaaS infrastructure provides enhanced data analytics capabilities to the organization through cloud computing, it can undertake multiple complex calculations for a company through the software vendor’s servers, helping the company avoid the added overhead costs of deploying and maintaining these servers.
3. Real-time Analytics
Additionally, it also delivers in-depth real-time insights to help the HR team make strategic decisions based on the available data. For example, an HRMS integrated with DAaaS can analyse turnover trends, predict workforce needs, and identify skills gaps, helping HR professionals make proactive decisions.
Why Should You Implement DAaaS in Your Organization?
Implementing DAaaS in HR can transform organizational efficiency and improve employee engagement. Hence, you should effectively use modern analytical tools available in your HRMS, such as advanced Data Wizards to make the most of your available resources.
Implementing DAaaS in your organization has multiple benefits for different aspects of HR:
➔ Streamlined Recruitment Management
DAaaS enables you to undertake detailed analysis of recruitment data, helping you identify the most effective hiring channels, as well as optimize job descriptions. It reduces the time-to-hire, ensuring better overall candidate management.
➔ Optimized Performance Tracking
With DAaaS, you can track employee performance metrics to identify high performers, as well as create personalized development plans for underachievers. It will enable you to improve overall organizational productivity, resulting in better output and increased profits.
➔ Enhanced Predictive Analytics
With historical data analysis, DAaaS can also predict employee attrition risks and suggest interventions to enhance your employee retention rate. Predictive analytics can also prove helpful in special scenarios, such as suggesting you provide a holiday, when the majority of your staff are prone to taking leaves on a specific day.
➔ Improved Workforce Planning
DAaaS also helps you assess your workforce readiness to ensure that they work to the best of their capabilities. It helps you identify future skill requirements, and align training programs accordingly. Hence, by adopting DAaaS, your company can develop a proactive HR approach, ensuring alignment with business objectives.
How to Utilize Your HRMS to Implement Data Analytics as A Service (DAaaS)
To utilize your HRMS effectively as a means to enable DAaaS, you should follow the steps below:
1. Preparing HRMS for DAaaS Implementation
The first step in leveraging your HRMS for DAaaS implementation is to understand its capabilities. Here’s how to get started:
➔ Evaluate your HRMS
You should evaluate whether your HRMS supports advanced analytics, data integration, and scalability. Additionally, you should also check whether it can handle large volumes of data efficiently.
➔ Identify Data Sources
The next step is to locate key data points such as attendance, payroll, performance reviews, and training records, to ensure whether they can be used for analysis. You should also check whether it is possible to consolidate these data sources via your HRMS as it is essential for effective analytics.
➔ Ensure Data Accuracy and Security
Once you identify the data sources, you should validate the quality of your data and implement measures to safeguard sensitive information. Similarly, you should ensure compliance with regulations like the PDP Act, and other critical cyber laws.
2. Implementing DAaaS using HRMS
You should adopt a structured approach while implementing DAaaS through your HRMS. Since an HRMS is not primarily meant to be used as a DAaaS tool, you should consider the following factors while implementing DAaaS using your HRMS:
➔ Define Clear Objectives for HR Data Analytics
You should outline specific goals, such as improving recruitment efficiency, enhancing employee engagement, or reducing turnover rates, and check whether the analytics undertaken by your HRMS will be able to provide the insights to help you achieve these goals.
➔ Identify Key Stakeholders and Their Roles
Similarly, you should collaborate with the IT teams and external vendors to ensure seamless implementation. You should also let them know of your goals to ensure that they tweak your HRMS to your needs, making it act as a DAaaS tool along with its routine duties.
➔ Configure HRMS for Centralized Data Repository
Once the stakeholders are informed of the changes, you should set up automated processes to gather and consolidate data across HR functions. It will help you have a central data repository, enhancing the efficiency of your HRMS-based DAaaS implementation.
➔ Use Advanced Analytics Tools within Your HRMS
The next step is to leverage the built-in data analytics features of your HRMS, such as Data Wizards, report generation, etc. to gather insights. Alternatively, you can also integrate your HRMS with external reporting and analytical tools for deeper insights.
➔ Establish Continuous Monitoring and Feedback
Once all the aforementioned factors are set up, you should regularly review the analytics reports and adjust your strategies as needed to maximize their effectiveness. It will lead to the overall improvement of your employee productivity, resulting in accelerated growth.
Best Practices for Leveraging HRMS for DAaaS
Setting up your HRMS for DAaaS is the beginning of a long journey towards optimized employee management and enhanced engagement. However, for maximum effectiveness, you should follow certain best practices that enable you to gain the maximum out of your DAaaS implementation:
➔ Regular Training on Data Literacy
You should equip your HR professionals with the skills to interpret and act on data insights effectively. Since being tech-savvy is a necessity for modern HR, data literacy will also act as an add-on for their skillset.
➔ Periodic Evaluation of Outcomes
Similarly, you should continuously measure the impact of your analytics initiatives and refine your strategies based on outcomes. By constantly monitoring the changes, you can understand whether the data being collated is helpful and make any required changes.
➔ Collaborating with IT Team
Additionally, you should also develop cross-departmental collaboration to enhance data integration and analytics capabilities. By working with your IT department and HRMS vendor, you will be able to ensure that any changes are undertaken promptly, ensuring the success of DAaaS implementation.
➔ Staying Updated with Latest Trends
Finally, you should also stay updated with emerging technologies such as AI, machine learning, predictive analytics, etc. to stay ahead of your competition. It is imperative to do this as your competitors would also be utilizing the HRMS at their disposal for improving their employee management strategies through analytics.
Conclusion
HRMS is a powerful tool for implementing Data Analytics as a Service, as it enables organizations to make informed decisions and develop strategic initiatives. By utilizing the complete analytical capabilities of your HRMS, you can harness the full potential of DAaaS to optimize talent management, enhance employee experience, and achieve business goals.
