In a VUCA organization, HR support possesses a vital key for the future of the business, which is a wealth of data and analytics about the workforce. This data can be used to create a wide variety of reports regarding the fundamentals of HR, ranging from recruiting to training and retention. However, in a VUCA world the traditional approach to using this data is no longer sufficient. Instead, HR must put this data to better uses, ultimately to build a responsive, agile and focused workforce. At the same time, the VUCA environment causes senior management to have an increasing need and desire to have the most up-to-date information about employees and connected external factors that can help power business decisions. Simply put, HR needs to provide more actionable information at a quicker rate to help keep the talent in line with the goals and strategies of the business.
Analytics Technology
One of the best ways to achieve this goal is through the use of analytics technology. Analytics technology will help HR analyze gargantuan amounts of data quickly to identify patterns and trends in workforce performance and behavior. Already, analytics has changed the scope of marketing and supply chain management by being able to project demands. In this volatile environment, it has the potential to revolutionize HR.
HR is empowered to do much more than simply track performance indicators. By using workforce analytics, predictive analytics, modeling and big data, HR can gain a better understanding of the workforce, discover what is happening, why it is happening, and use this information to determine the most profitable way to move forward.
Better Insights into the Workforce
The analytics tools of today are applied to a wide range of HR activities. For instance, analytics can be used to:
- Offer the necessary insights to keep employee education in line with the ever-changing skills requirements;
- Identify the high-potential employees;
- Determine which recruiting channels are providing the company with the best candidates;
- Support succession planning that delves deep into the organizational structure.
At the same time, analytics offer HR professionals the opportunity to learn how effective their actions are. For example, analysts can examine patterns in the data to help businesses reduce attrition or improve hiring, or locate areas where labor-related savings can be achieved. Businesses can realize a significant impact from having better insights that are responsible for driving performance and retention, considering the cost to replace a worker who leaves can be up to 300% of the employee’s annual salary. When you consider the value of correcting a poor hiring decision at the leadership level, it can easily run into the millions.
Supporting Training and Development with Analytics
These metrics can also be used to bolster training, development and various other activities that are related to individual employee needs. When this happens, employees will receive much more customized options, which can lead to higher levels of engagement. Simply put, analytics can be used to segment employees very similar to the way customers are segmented for marketing purposes.HR specialists can use analytics to group employees on a wide array of criteria, such as generation, role, or value to the company. Once these employees are segmented, they can effectively tailor people practices for each segment. As analytics and business intelligence advances, new and more powerful schemes can be developed to include criteria such as:
- Wellness profiles
- Personality
- Values
- Learning Styles
- Mobility
- Networking and Communication styles
- Behavioral patterns
When analytics are used for training and development, employee performance can be greatly bolstered along with retention and engagement.
What Are Predictive Analytics?
Analytics are important because they allow decision makers to better understand what is going on in the workforce. More and more companies are venturing into predictive analytics to help them understand what is projected to happen, which allows them to more effectively stay ahead of problems. Predictive analytics allow decision makers to think through the consequences of HR related actions before they are done, which can result in highly desirable and positive actions and outcomes.
Analytics can help predict turnover, retention, and satisfaction, which are all important in regards to the workforce. Systems can now assess a broad base of factors that are related to employee defection and satisfaction – such as job stagnation or not taking vacation – and then let HR know the performers that have a higher risk of leaving the organization. This type of information will allow management the opportunity to take preemptive action – such as a new title or job or even a bonus – to help ensure the employee stays engaged, satisfied, and with the firm.
Certain analytics allow HR to model hypothetical scenarios to assess an employee’s future actions. These types of systems allow HR to ask “if we offer a sales incentive or promotion, how will it affect the overall performance and morale of the other team members in the group?” Or analytics can be used to answer projected questions about the effects of reorganizing a department. Managers are empowered to test and run multiple scenarios, changing variables, to reach the desired action or optimum results.
HR Support is All About the Data, Big Data
The bigger the data pool, the more high quality and valuable the information attained. While talent management systems can benefit from pulling data from across HR processes, information from finance and other departments can be highly valuable as well. At the same time, external data about the competition’s recruiting, customer expectations, and compensation can prove to be highly valuable data.
Moving forward with a tech focus
According to Oracle’s Cara Capretta, “For the first time in HR, our profession is being told that we need to be a technology proponent. Technology is not just for the IT department anymore. It’s for the HR professionals.” Today, where the only constant is change, HR support must transform from a function of business into an information-feeding asset.
It’s important for your HR department to effectively implement technology to:
- simplify workforce management;
- find, develop and retain the right talent;
- predict changes and issues in the workforce;
- assist in forecasting and planning in line with the organizational goals;
- work strategically with senior executives.
In conclusion, it is now extremely important for the role of HR to become much more intimate with your business processes. With HR becoming more involved with the executive functions of an organization, HR’s role is to add value through intuitive business insights. Instead of HR support falling by the wayside, the right technologies must be combined to create a competitive advantage resulting in essential and profit driving measures.
Catherine oversees UBF's daily operations and client retention strategy. She has a background in mathematics, economics, and human resources. In her spare time, she enjoys spending time with her family, taking the dog on long walks, and caring for a small and unfruitful garden.