In today’s world where everything is more complicated than ever, HR Analytics is becoming more and more a hot topic for HR managers. The purpose of this post is to give a simple status up date and some personal references.
Bersin and associates have identified that measuring effectiveness of HR programs and developing workforce analytics are the HR skills most likely needed in the coming years, after having been neglected for a long time. Talent markets are out of balance, making it more important than ever to find the “right people”. The availability of Big Data with the likes of LinkedIn is emerging strongly in HR. Leadership, coaching, mobility, career development and employment branding are keys to build a highly engaged workforce.
Leading companies have always used a large range of analytical tools to support decision-making in HR matters. There is nothing new. I have been providing HR reports for nearly all my professional life. Already in 1988 I produced scatter diagrams with Excel to work out competitive salary benchmarking. An organisation usually measures staff engagement, performance ratings, compensation, retention, turnover, recruitment, onboarding, satisfaction with HR services, HR workload, effectiveness of learning and development, % of staff versus development plans, internal mobility, diversity of workforce, HR spending and levels of expertise.
Up to more recently reports were distributed to managers on paper. Then SAP HCM (Human Capital Management) or some other ERP systems were introduced. Managers were given the possibility to extract their own up to date data and build their own reports. So my role changed into training managers on how to run reports and automating reports to make them as easy as possible to extract.
The new frontier is bringing all the various reports into a dashboard with drill down functionalities, so that managers can find everything they need with a powerful visualisation. Integration has become the top priority for HR. Key to achieve success is to develop credibility, have patience to validate data before releasing them, have the ability to present findings in an easy understandable way, have skills in visual design and presentation and present reports that are detailed enough to allow managers to take decisions.
In conclusion HR Analytics is becoming a new business imperative. HR Analytics is not something that can be achieved in one go, it is long journey which require expertise and patience. The path may seem daunting, but most companies find it is well worth the effort. Integration of data is key. A new culture will emerge of data driven decision making.