Creating a Culture of HR Data Addicts
When people make decisions, they are influenced by both rational and emotional drivers and emotion often prevails. This leads to decisions based purely on gut feel, rather than reliable and accurate data. What if we insert more data into the situation to help them make a more informed decision? As a consumer, you have more data than ever to drive buying decisions. As a manager of people, wouldn’t you want the same level of data and transparency related to your most important asset? As a consumer, you might even be addicted to data before you make a purchase. As a leader, the daily data you get from your non-HR functions like finance, customer, and ops is certainly compelling. Why should people data like top talent, high performers and critical roles be any different; data that drives decisions related to hiring, productivity, engagement, promotion, pay, succession and new market growth? So, how do organizations promote a culture of data-driven decision-making? How do you create a bunch of operational managers who are people data addicts?
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Director @ Levant Consulting | Operating Model | Change & Adoption | Transformation
9 年Hi Duke, I think you have touched on some really important issues for the HR profession. HR Analytics is rife with potential but implementation presents significant challenges. In my opinion these are related to the below: 1. HR transformation has not been achieved on a global scale. While many organisations have made the shift to delivering strategic value, others are still consumed by this journey. Getting started on HR Analytics (or even considering the value Analytics can deliver) is not front of mind when HR is still trying to move away from transactional services and the broader organisation is accustomed to this level of service. While this is not an excuse, I think it explains why the primary interest in HR Analytics tends to come from organisations with a certain level of HR maturity. 2. Historically, the HR profession has not always attracted data savvy practitioners. Data analysis is bread and butter for IT, Finance and marketing departments. While it can be seen as a gross generalisation (and annoyance of many HR professionals), people who work in HR generally have much stronger soft skills. Although, the ‘HR analyst’ has been around for some time and workforce planning capability is on the rise, HR Analytics from within HR requires significant capability development. This takes time and investment. 3. Shortages in HR Change leadership. I whole heartedly agree with you that senior leaders must drive the Analytics journey. Related to point 1, HR is only starting to come out of the transformational years and see a new line of leaders who ‘get it’. While these leaders do exist – they are a dime a dozen and not all (or many organisations) will be fortunate enough to have such leadership.
Mark and Marcus - thank you both for your comments. Mark - you are right, too much chatter and not enough action on deeper levels. We are seeing an increase in budget and interest across 60% of HR execs interviewed. And Marcus - we are on the same page - the next step is to document decisions/actions over a time series as a result of data to begin shaping prescriptive analytics. 4% of HR execs have reported doing anything predictive with data. That where the value chain begins to get the right actions in place. Look forward to seeing what happens this year. So many interested parties embarking on a journey with people data.