According to Deloitte’s “Global Human Capital Trends 2015, Leading in the New World of Work,” human resources (HR) is “stuck in neutral” with 69% of respondents reporting that they are “weak” when using HR data to predict workforce performance and improvement; 61% are “weak” when correlating HR data to business performance; 59% are “weak” when conducting multi-year workforce planning; and 53% are “weak” when utilizing HR and talent operational reporting and scorecards.
No matter how large or small your business, human capital is the most important asset. As leading organizations come to rely more on big data and the power of analytics as key drivers in making better business decisions, it’s troubling that over 80% of HR professionals score themselves low in their ability to analyze data!
While most business functions have seen continuous technology advances in their business process, HR is the one department across all industries that has yet to transform its way of doing business and making decisions. That said – now is the time for HR to get into the 21st century and start making data-driven decisions.
When businesses rely on paper-based analysis to understand its workforce, the resulting analysis is one dimensional and limited to whatever data set you are currently viewing. True business insights can only be gained when we start to understand how one data set impacts and informs our thinking on other seemingly unrelated data sets.
The key question we need to ask ourselves is –how does one set of data inform a separate set of data?
For example, when one looks at performance, retention and overtime worked, the insights gained will tell a complete story as opposed to analyzing just one aspect of the workforce, such as overtime worked. Through a holistic approach to analytics and business intelligence, HR is able to work on roadmaps to keep employees engaged. This is especially important for the millennials, the largest workforce entering the job market as this particular demographic requires the alignment of compensation with structured business goals.
In the quest to have HR start thinking analytics, here are five indicators that might reveal if your talent management team is using outdated processes.
1. HR is chasing down multiple data sources, approvals and spreadsheets to create even the most basic report. With a single unified source of company-wide data in the cloud, HR can present a holistic view of the company and understand what is happening in real-time while also streamlining processes and optimizing efficiency.
2. HR decisions are based on gut instinct rather than objective data. Businesses are faced with streams of data from diverse sources and often lack even the most rudimentary analysis reporting tools. And if you are not trained as a data scientist, the numbers and analysis may not always make sense.
Today, there are more “people” friendly solutions available, so that HR managers can easily understand what is going on with the workforce and then, take action on aligning HR and business goals.
3. HR believes in a straight and narrow career path. The idea of working for an employer for the duration of one’s career in most industries is simply not realistic, and the churn rate for millennials is higher than previous generations as they hop from one career to another. HR needs to adapt, if they want to remain relevant and retain top performers.
4. HR gives annual performance reviews. How HR provides feedback to employees must evolve with the changing workforce – this includes the outdated annual review. If you want to retain the millennial generation, HR needs to start by providing frequent feedback in real-time.
5. HR is about enforcing the rules. In today’s social and mobile world, happy employees are your best brand ambassadors. HR needs to continuously engage their employees and monitor sentiment in order to resolve potential issues before they become a problem.
Workforce automation and analytics are increasingly becoming top of mind for businesses of all sizes. Solutions like HigherUp enable HR to access a single unified source of data that inform analytics that enable them to understand what is happening with their workforce – in real time. HigherUp uses dashboards to present analytics useful to “real” people as opposed to just data scientists. With that kind of information on your side, you don’t have to rely on guesswork any more in making your HR-related business decisions.