Over the years, there's been a large amount of criticism levied at the use of software in the human resources field, but the growth of enterprise performance management algorithms is changing the opinions of many who previously believed that digital technology would simply reduce people to bits of data. EPM technology can help model forecasts, provide analytics and report on the talent acquisition process within an organization. This can, in turn, help HR department staffers to identify problem areas that need additional personnel.
Rather than putting people out of work through automation, a few tech industry insiders have predicted that using EPM could potentially increase the chances of the right person landing a job. Considering that 51 percent of transformation efforts actually come out of growth opportunities, it certainly seems that EPM software is helping to connect talent with those who want to acquire it.
Recruitment in a Decentralized World
As more work gets accomplished online, it's become increasingly difficult for managerial staff to look over potential prospects. At the same time, larger organizations might not always know exactly where their biggest needs are. Some firms have evolved to a point where they're essentially operating as more than one business under the same umbrella. This creates a situation where firms might have research and development branches that operate independently of other productive branches. Some of these might hire individual managers like a development or cybersecurity lead in order to manage that individual department. To further complicate matters, it's likely that potential hires are scattered over a wide geographical area, especially if a particular firm or public agency has now qualms about hiring remote workers.
By deploying an EPM system, these disparate parts can all start to work together. Analytic engines that come bundled with this technology look for situations where at least one or more departments are short of staff. While some might examine these suggestions and opt for an automatic solution, EPM technology could also theoretically look through public listings and applications to find candidates who are attractive for a particular position.
Many of these solutions include modules designed to implement integrated business planning solutions in order to make it even easier to calculate operational resource requirements. Collectively known as IBP technology, it's helped to change the conversation on long-term planning.
Acquiring Talent Over the Long Term
Chances are that most businesses don't know what their personnel needs are going to look like in 5-10 years. By analyzing sales records, employee data, time sheets and many other types of input, business planning algorithms can provide reasonable forecasts that will at least give some general idea about how many people a growing company will need in the coming quarters. Current cash flow levels as well as overall costs and revenues can also help to determine the best path for growth.
As soon as department heads are given their recommendations, they'd of course be free to change them to meet real-world goals. However, it seems that more and more organizations that adopt this kind of strategy are hiring additional individuals to help fulfill needs that they might not have even realized they had to begin with. A little under 73 percent of employers have reported having some difficulty finding skilled candidates, but this number would jump drastically if companies weren't even sure of what talents they needed going into the acquisition process.
The use of data-driven decision-making workflows is also making the process more equitable in many ways. A properly coded algorithm doesn't have the biases that would be inherent in a human who was searching through a list of prospects. Organizations who are seeking to improve diversity and find individuals with a wide range of skills will certainly appreciate this. Since prospects would be matched to jobs based around purely objective criteria, it could even lead to a situation where people are hired in a way that improves their work-life balance.
Skeptical individuals might even be sold on it by way of cost analysis.
Reducing Costs When Hiring Talent
Most organizations will be likely to hold onto talent that they acquire in this way, since the odds of any given individual being successful at a particular job and enjoying it go up drastically when the right data enters the equation. Some estimates suggest that a bad hire could cost more than $125,000 in certain situations. This is especially true of larger enterprise-level operations.
This would suggest that nearly any tool that helps administrators to make better decisions could potentially reduce costs by a substantial amount. Numbers like these are making many rethink the possibility of using such technology in their workplace, which in turn is likely to help individuals who might never have otherwise been paired with the kind of positions that they're ready to excel in the most.