Is HR getting pushed out of HR?
This may be a bit provocative, but I wonder if there is a certain push to get HR out of HR?
Here are the 3 aspects pointing in that direction.
- The fast development of analytics capabilities and new strategic demands on HR is slowed down by "HR professionals having been unused to working in a data-driven fashion." (Dahlbom et al.)
- Dahlbom et al. are contemplating which of the following is more likely?
- The evolution of HR into a strategic C-level role has fueled the demand for advanced HR analytics.
- The access to advanced analytics has paved the way for HR to sit at the C-level tables, enabling better analysis of the complexity in workforce-related decision making.
In either case, there are multiple challenges to get reliable data and analysis that often require skills not traditionally found in HR departments.
- The requirements for accurate HR Analytics may lead to that function being managed in another department with higher analytics maturity, but HR would still need to understand how the algorithms work.
As technology-savvy companies are vying for the HR services market, which is expected to more than double by 2027, algorithmic decision making is regularly compared to decisions made by humans.
These last two weeks, I have talked to three different persons with stakes in the digitalization of HR. These persons, in slightly different ways, put forth the recommendation of NOT going to HR to drive HR-digitalization initiatives.
This short 9 slide presentation from Cornell University professor John P. Hausknecht looks at the "Latest Developments of Workforce Analytics". (2015)
I watched the recording of the Hausknecht's webinar with the research paper from Dahlbom et al. in my hand, and could not help but feel that yes... in a way, HR is indeed getting pushed out of HR.
In the least, the HR function is evolving into something very different than it traditionally has been - requiring a whole new set of skills. Intuition and past experience are being replaced or complemented by HR data and analysis.
Dahlbom et al. do warn against an overly technical approach.
If sufficient awareness and understanding is lacking, the risk of ethical challenges materializing in overly technology-reliant HR is a very real and daunting prospect.
With that last sentence in mind, we might be able to predict that the foundational HR skills will still be very much in demand. The change both is and isn't fast. Getting the basics right, is essential. Without the experience, that may be easier said than done?
What a fascinating subject, isn't it?
I have no doubt new talent will get attracted to the increasingly digital and strategic HR world. Simultaneously, existing HR professionals have newfound ways to prove the value of their work, especially in the hybrid office/remote working place that now is gaining ground.
If the subject interests you, Pauli Dahlbom's paper is a must-read. If you are not a researcher and would like to read the full paper, look him up here on Linked and ask him for it. I am sure he would be happy to send you the pdf.
You will get valuable insights into the potential, challenges, and surprising state of HR Analytics and Big Data in some of the largest corporations in Finland.
Reseach paper, Pauli Dahlbom, Houston Analytics: Big Data and HR Analytics in the digital era (Dahlbom et al., 2019)
#hranalytics #strategy #humanresources #peopleanalytics #hra #hrm #digitalization #bigdata #employees #futureofwork
Human Resources Manager at The SPAR Group Ltd
4 年As an HR professional wanting to branch into hr data analytics... What, in your view, would be the best way to start, from a studies perspective and thereafter practical??
Leader- HR Transformation | HR Shared Services | HR Consulting
4 年Very insightful. I believe that what is going to change for HR- is not what they do, but rather how they do it. Lets not forget that all the raw data which is fed into HR analytics & Big data engines- has to be initially collected by a frontline HR. Analytics will definitely enable them to get better and more accurate insights- but turning those insights into customised actionables & then actually executing those actionables on ground will still need the traditional HR setup. Its like oil- you can have the best refineries in place- but someone still needs to find & dig the oil wells and then someone needs to ensure that the oil from refineries reach where the users are!
Henkil?st?tiedolla tuloksiin! Kanssani kehit?t tehokkuutta, tuottavuutta, inhimillisemp?? ty?el?m?? ja henkil?st?n sitoutumista | Henkil?st?analytiikan sanansaattaja | Interim People Analytics and Data-Inspired HR
4 年What an inspiring discussion! I agree with so many points already stated, I try not to repeat them but also add new. I feel HR as a function is still on the verge and midst (varies from country to country and organization to another one) of transformation. One crucial aspect of this is the ability to see and also finally invest in new HR competencies, traditionally overlooked ones. One such is tech-savvyness: being able to _and_ interested in keeping up with tech development as well what added value and possibilities it brings (such as RPA, AI, advanced analytics). At least in Finland, HR still in many places is the function where talent is driven to work among, with and for people issues. Traditionally data and tech (let alone analytics) have not intrigued these types. However this is shifting and I for one am trying my best to facilitate and speed up this change. What I always aim to emphasize in my trainings is: it's not analytics for the sake of analytics or even for the sake of the organization. It should be also to benefit the employees and employee experience and understanding. This is also at the heart of our upcoming book, first book in Finnish about people analytics! ?
Consultant, coach & author: increasing the impact of HR
4 年Your article is brilliant, Sakari - it raises, very concisely, a central question that's been worrying me for a while. I've noticed that stuff about HR Analytics - eg. articles, supplier case studies - doesn't seem to have HR, as a function, front and centre, and even that organisations have a separate function for this. This will dilute the cohesion of the overall people agenda and disempower HR if HR doesn't grab the leadership of HR data. Why do I find this so worrying? Great HR happens when the human experience of employees at work - the challenges faced by leaders, line managers and employees - is built into a stream of insight that flows upwards and informs strategy. Some of this insight comes from data, yes, but also a lot comes from HR professionals, managing difficult situations conversation by conversation. In turn, this strengthens HR's relationships and enables them to do the day-in-day-out influencing and coaching that actually delivers improved performance. Why wouldn't HR own HR data? This is a challenge to the influence and credibility of HR functions which, as Dave Ulrich knows, is our passion. Dave, I'd love to hear your thoughts on my response. You can see it really got me going! Thanks Sakari for a great contribution.