Businesses are attempting to use technology and big data to gather as much objective information as possible.
Despite frequent claims that “trusting your instincts” can be a good thing, the reality is that the best business decisions are ones built on objective data and logical reasoning. Objective reasoning remains a hallmark of good business planning because it filters out hidden biases, uncertainties, unforeseen variables, and even random chance. To consistently improve performance here, businesses are attempting to use technology and big data to gather as much objective information as possible about their business and environments.
Your HR department is one of the most powerful branches of your company. How can you quantify its efficiency and change it for the better?
HR poses a unique problem in the field of business analytics because its bottom-line goals involve a degree of subjectivity.
Three major areas of HR measurement stand out as common metrics:
- Worker satisfaction.
- Productivity and performance.
- Turnover and retention.
Still, there are some significant challenges in reducing everything in HR down to objective data points. For example, consider the following dimensions of what makes a “good” worker:
- Moods and atmosphere.
- Social interaction.
- Intangible qualities.
Data management and analytics are vital fields for businesses, but that doesn’t mean they’re without challenges and limitations. As we produce more sophisticated technology, it may become possible to quantify previously unquantifiable dimensions of human resources, but my guess is there will always be some degree of uncertainty and subjectivity with the “human” dimensions of worker productivity and satisfaction. Until then, gather what data you can, use it to make the most objective decisions possible, and don’t be afraid to evaluate your workers as people, rather than just data points.
Read full article here: Can You Quantify Your Human Resources Department?