Can Big Data Reduce Employee Turnover?

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Big data is being discussed in many industries today with implications that predictive analytics can solve problems and provide insights for all the moving parts of businesses. Now, the idea is being applied to human capital. Can data improve productivity and reduce employee turnover? Maybe…but it depends.

Straight-line logic has its place, but it may not be applicable with big data. As discussed in “Predictive Analytics for Human Capital:  Think Outside the Lines,” posted by John Boudreau on, predictive analytics can be applied to develop insights with workforce planning, employee retention, and improved performance, but there’s more to it than just numbers.

A 2004 study by Kogut, MacDuffie and Rangin focused on evaluating automobile plant performance in the 1990s. They collected and analyzed data about the proportion of production that was automated, updated assembly designs and processes, inventory buffer stock, multi-skilled workers and team problem solving, and ‘high commitment’ human resources polices, such as training and incentive pay. After reviewing correlations and straight-line relationships, researchers discovered that each of these key attributes improved plant productivity. Digging deeper, they found productivity was only improved when certain conditions were met, particularly updated manufacturing processes and other automation. As a result, researchers found that human capital can be improved, but under certain conditions positively affected by updated processes and technology.

As suggested by the study, higher pay can reduce turnover, but only to a point. Big data can get you to the starting line, but when it comes to strengthening relationships with employees, you need the insight and guidance of other leaders, including human resources professionals, to truly get to the heart of the matter. In other words, consider non-linear data points in order to reduce turnover and improve employee job satisfaction.

In conclusion, businesses can improve their employee’s morale by providing them with the right tools. The right technology can make specific job tasks easier, which can make people productive and happier. Businesses can reduce redundant data entry and delays by deploying the business management solutions that can provide time-saving automation, workflows, and ease of use that not only streamline common daily activities, but also provide the control and insight you need to manage a growing business. Contact Integrity Data to learn about the powerful payroll and human resources solutions that can get you closer to your data, improve productivity, and keep employees happy.

By Integrity Data, a Microsoft Dynamics GP ISV out of Illinois

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