Analytics: responding to the performance needs of HR decision-makers

The HR function and the HRM business are shaken up by digital technology. Perhaps more than any other professions, because the use of data at the heart of human resources management is creating value in more ways than one. Here, we’ll examine why it’s a good idea to be data-driven.

According to the HRB Barometer 2018 published by ABV Group, Willis Towers Watson and RH&M, the five priorities for 2018 requires the intelligent use of data. It involves supporting the company’s growth (a priority for 85% of HR directors), employee commitment (82%), modernization and digitization of the HR function (42%), cost optimization (40%), and improvement of the remuneration policy (23%).

There is still a ways to go, however: a study by the EBG (Electronic Business Group), published at the end of 2017, highlighted the fact that one in two HRD’s are “not really” or “not all “satisfied with the IT tools used to develop their procedures, two out of three say that it is not possible in their organization to integrate data from their current IS to support the procedures they would like to put in place . Even worse still, one in three HRD’s still use files and manual data-entry to extrapolate data from the field.

Collect and Develop data

As far as we can see, the field of possibilities is immense; most notably thanks to a broader use of analytics (the extrapolation of data for purposes far beyond reporting or decision making) and a Core HR approach. Remember, Core HR is presented as a “Data lake” that presents and groups data common to all company employees. In other words, it’s a smart database granting you access to a plethora of information about recruitment, job profiles, evaluations, training and compensation. Essentially, Core HR is the foundation that fosters the development of analytics-based processes.

The use of technology by HRDs generally follows three phases:

• A need for automation
• The tools within a proper Talent Management software
• Analytics, which responds to a need for performance.

Although HRDs are relatively mature vis-à-vis the first two, especially in large companies, analytics gauging is still poor: three-quarters of HRDs follow fewer than ten indicators to steer their activities, according to an EBG study. At the same time, according to the firm Markess , they indicate (at 71%) strong HR data analysis needs.

10 Steps to follow for a Data-Driven HRD.

 An HRD would be wrong to deprive themselves of information: their goals help them better understand how to use the extrapolated data. Here, we will examine 10 things an HRD can focus on to ensure promising use and understanding of analytical technologies:

1. Measure HR performance: HRDs already have technical tools to measure the performance of HR itself. But with the help of analytical technology, they can go much farther. First, they are able to cover a much larger data scope than traditional indicators and then delve deeper: the inclusion of unstructured data (for example, the analysis of feelings) that helps drive performance.
2. Understand that learning and development is crucial for your organization: The training needs for the digital jobs of tomorrow: the more precise the analysis becomes, the more accurate your forecasting becomes. With an analytical approach, we do not just think one-dimensionally, we think globally.
3. Plan for Talent management: The major challenge in a world of skill shortages, is to succeed in attracting and retaining talent. Your turn-over can be greatly reduced thanks to predictive analysis, which will aggregate statistical and personal data, and identify weaknesses.
4. Get the full value out of your Talent Management Solution: these information systems accumulate a lot of data over time, which can sometimes not be easy to interpret. The data exists, so why not analyze it correctly and share the data amongst departments? Analytical technology can provide a lot of insight on the inner workings of any given company.
5. Evaluate and measure employee engagement: Gallup’s regular reviews show that approximately 85% of company employees are “disengaged”, impacting productivity, branding the work environment and performance. Analytical technologies help detect weaknesses and allow the implementation of solutions.
6. Build the employer brand: The Corporate image of a company’s values, its mission and social actions, whether it is in favor of sustainable development or gender equality, must be realistic. Nothing beats relevant and communicable indicators, according to the principle that “what is done on the inside is seen on the outside”!
7. Ensure mobility and intergenerational integration: analytical technologies can optimize the mobility process, which is very complex to manage manually or with basic tools. It is also one of Core HR’s strengths.
8. Define quality of life at work: With the analysis of unstructured data, such as “sentiment analysis” or approaches derived from the Net Promoter Score used in marketing, quality of life indicators at work become more important, relevant and participate in the prevention of negatives such as burn-outs or harassment.
9. Make yourself -the HRD become a business partner: if the HR department is transformed into a data provider for the business and no longer just a loiterer dedicated to recruitment and the administrative management of employees, it becomes a true business partner. This is also an asset of Core HR.
10. Properly value HR: This is essential, as employees often still have a distorted view. The radioscopy of HRD, published by Cegos , reveals that employees see them more as process managers than as local managers. While HRDs think exactly the opposite!

The proper use of analytical technology brings more than modernization, it is a valuable repositioning tool that is essential in the digital age. According to Markess , nearly two-thirds of HRDs believe that their function is mature vis-à-vis their digital tools; they were only 31% in 2015. The analytical technologies will help them gain an extra step.

Find out more about how to better manage your workforce from hire to retire, with a modern Talent Management Suite designed to fit your industry best practices.