Data-driven HR strategy
Every department in a modern company, from marketing and
sales to operations, relies on data. HR is no exception, and how HR manages
employee relations data has changed dramatically in the last decade.HR used to
monitor a few key metrics with spreadsheets, but most organizations have
advanced well beyond that. They gather information from various sources and
analyze it in order to extract strategic insights.
Data-driven HR explores how data can lead to organizational
success by, among other things, optimizing procedures, driving efficiency, and
enhancing HR decision making. It covers all core elements of HR, including
recruiting, employee engagement, performance management, health, and training.
Depending on HR there are few examples for HR:
Shows how to tackle recruiting, participation, protection,
well-being, training, and performance management with a data-driven approach.
And HR professionals in analyzing large amounts of company data in order to
obtain actionable organizational knowledge and boost efficiency.
In Data driven HR strategy survive there are 4 foundation of
HR and ensure adequate data quality, three conditions must be met [1]:
· There is a requirement for good data governance.
· To transform data into insight, you'll need
enough analytical skills.
· To ensuring that those findings were actually
used to make informed decisions, the company must incorporate data as part of
its culture and decision-making process.
Figure 1:Conditions in data quality
A fourth fundamental aspect that seemed critical in allowing HR functions to develop their metrics and advanced analytics was a less apparent finding.
Organizations that did all of the above well devised a data
strategy that began at the end of the data cycle and operated backwards. This
entailed determining the most important audience, determining what decisions or
issues data should be applied to, determining the relevant measurements or data
points, and then stepping back through the data collection process.
To build up a data-driven HR ensure the 4 steps of list of
capabilities,
· Creating a solid People Analytics base
· How to have a productive business discussion
· Data-driven storytelling
· Using People Analytics to ensure you're adding
value
Conclusion
Until now, many organizations have taken a two-pronged
approach: increase HR analytics training and hire data scientists to form
cross-functional teams around HR analytics. HR will have a greater
understanding of their interests and will be able to offer better support to
all other company functions.
References
AIHR Analytics. 2019. 4
Foundations of Data-Driven HR | AIHR Analytics. [online] Available at: <https://www.analyticsinhr.com/blog/4-foundations-data-driven-hr/>
[Accessed 21 April 2019].
More than half of businesses surveyed in Asia Pacific (APAC) accelerated their digital transformation plans due to COVID-19. HR departments are working around the clock to ensure that the existing huge volumes of data collected are properly organized, analyzed, and processed. (https://www.peoplemattersglobal.com/article/hr-technology/developing-a-data-driven-remote-work-strategy-here-are-some-places-where-hr-leaders-can-start-29032)
ReplyDeleteFortunately, when everything in HR is digital, prioritized and managed with data, HR can show where and how much it directly impacts strategic business goals. For example, by designing more effective recruiting, employee retention and reward systems, HR can directly increase the revenue of the sales group.
ReplyDeleteIn addition, the widespread use of analytics will allow HR to understand the underlying root causes of talent problems and the factors that make effective people management programs work. With this knowledge, HR will have an improved capability to design new talent programs and processes that will measurably increase productivity, innovation, and revenue.
Good article. When Human Resources adds analytic capabilities it can clearly make an impact on business. Analysing IT, marketing, CRM, finance, supply chain are the key drivers of success. They all include data driven analytical decision making. The reasons to shift to data driven human resource are analytics increase business impact, increase productivity, increase adaptability, increase corporate innovation, influence managers, allows HR to funnel resources to business impact areas and identifies causes for problems.
ReplyDeleteGood article Isuru. Just as customer experience is driving brand loyalty, employee experience – their perception of the way your organization treats them – will become the employment differentiator in an increasingly competitive market for talent. If your HR team hasn’t prioritized technology that collects then analyzes employee data, how will you understand what your differentiators are?
ReplyDeleteThe technology already exists to help you analyze your workforce and plan for future needs. However, HR has been slower than other areas of a business to adapt to the digital age.
Technology has provided us with a dearth of information—statistics, metrics and data—that we can use in a variety of ways. The sales department has always relied heavily on numbers to build out strategy. As technology has improved, other departments have followed suit. The one holdout has been, and to some extent, continues to be human resources.
ReplyDeleteHR departments have spent the last decade working hard to move from administrative duties to a more strategic role. In doing this, HR has demonstrated its leadership qualities. But for HR to get better buy-in and more support from management and the C-Suite, it needs to make the shift to data-driven HR.
Building data-driven determinations are not just about looking at nice business intelligence dashboard dashboards. It’s more about a disciplined approach to expressing the difficulty, quantifying key points, and then catching up with the improvement and effects. Accurately implemented business frameworks, such as align the day-to-day work that everyone is doing with strategy. Prioritize projects, products, and services. Measure and monitor progress towards strategic targets or OKR, support data-driven decision-making “by design.”
ReplyDeleteNow, as our world turn into progressively ‘datafied’, HR teams have more chances than ever before to capture and analyze data, which has given rise to the terms ‘data-driven HR’ and ‘intelligent HR’.
ReplyDeleteWhen everything in HR is digital, prioritized and managed with data, HR can show where and how much it directly impacts strategic business goals. So, the most impactful component of data driven for decision making is the ability to predict trends and upcoming problems by reduce risks by alerting decision makers about upcoming problems without stop guessing about the future. Also knowing the root causes will enable HR to better understand what causes each people management problem that can be save a great deal of time and money because avoid wrong direction.
ReplyDelete