HR analytics still seem to be a mystery to some human resources professionals. Although more data is available than ever before due to technology, the HR field lags behind in predicting workforce trends, reducing risks, and increasing returns, according to a Cornell University study.
Is Common HR Analytics Useful?
The Cornell study reports that HR professionals commonly use metrics such as performance, retention, engagement, and compensation. However, this data merely presents current or past trends. The goal, according to the executive participants, should be to predict and analyze the future.
Yet, a 2014 post entitled, ‘Grab hold’ of analytics or get left behind, HR warned, suggests that the finance, supply chain, and operations functions are leaving human resources in the dust. In fact, Deloitte’s Global Human Capital Trends 2014 report notes that 86 percent of companies have no human resources analytics capabilities, while 67 percent say their skills using the data to make predictions are weak.
Thus proactively planning and forecasting, rather than merely reviewing data, becomes imperative for the human resources team. This requires access to real-time information, something few organizations appear to be able to provide.
Make HR Analytics Work for Your Organization
If you’re still scratching your head and wondering how to make HR analytics work in your organization, here are some factors to consider:
- It’s a nearly impossible task unless you have integrated data, including links to data from other sources such as finance, operations, and marketing.
- Consider educating yourself on how other business elements such as “leadership, operational efficiency, and customer/financial outcomes are interrelated.”
- Take time to provide field training for HR staff so they understand the data and how to use it.
- Build an organizational culture that thrives on the use of HR analytics. Managing the organization using fact-based decision making is a novel concept in many organizations.
Finally, be sure that you to allow for experimentation and testing hypotheses.
At KnowledgePay, we’re proud to be able to help organizations that are looking to get more data insights from their job data, employee data and the external marketplace. For more information on HR analytics review our website, read our blog, or contact us with your questions.