Human Resources Directors are the holders of the most powerful data to effect organisational performance and change.
Why is HR Analytics important at the boardroom table?
Human Resources Directors are the holders of the most powerful data to effect organisational performance and change. This is because it is behavioural data, which is some of the most difficult data to obtain. Let’s compare the role of the CFO versus the HRD: the CFO has financial statements available which is tangible and combined with generally accepted accounting principles, create standard reporting practices. Such models and standard reporting principles are not currently available for HRD’s to report and discuss their results. This makes the role of the HRD extremely difficult at the board room table. The data that HRD’s have at their disposal can provide results that mitigate risks and be pre-emptive to increase the value of human capital within the organisation, resulting in a better financial bottom line. HRD’s have always struggled to provide insight that is quantifiable and important to other executives. This is largely due to the intangibility of the data HRD’s gather and possess. HR analytics can now empower HRD’s to be the most important executive at the table with the greatest insight as to what causes individuals, departments and organisations to perform optimally.
HR data can answer important questions that significantly impacts the organisations bottom line. Questions we have been asked by our clients include:
· What type of person performs best in sales?
· Why do our top performers quit?
· Which employees are likely to leave?
· Which candidates best fit our organisational culture?
· How many sick days can we expect during each month of the year?
These questions are answerable with HR data by being predictive and mitigating HR risks. Payroll data, performance data, organisational culture data, Applicant Tracking System data etc are all sources of data that could be used to build highly accurate behavioural models. This allows HRD’s to answer the difficult questions with clear, concise and in-depth metrics.
5 Analytics project your boardroom needs
Analytical models that could be developed with HR data throughout the employee’s life cycle includes:
1. Recruitment: CV Screening.
Internal Recruiters spend 38% of their time screening CV’s and sourcing candidates. AI algorithms can assess and evaluate thousands of applications to find applicants that best match your company’s roles. The more data the algorithms evaluate, the better they perform. This allows HR experts to spend more time with a smaller group of the most eligible applicants.
2. Selection: Competency assessment, gamification and AI personality matching.
Success in recruitment is not just about skills, but also about how well recruits fit into your company’s culture. Gamification entrenched with psychometric assessments can help HR experts uncover the personality type most suited for the job and culture in a fun and effortless way.
3. Performance: Continuous employee performance reviews with chatbots.
Open communication is important for employee engagement. AI tools such as human-like chatbots can create opportunities to make communication with your employees more interactive and fun. Chatbots driven by AI, can help improve performance reviews and identify patterns and behaviours that need to be addressed by management.
4. Development: AI predicting training and skills gaps before it happens.
By tracking onboarding; employee performance over time; employee turnover; and how employees react to rewards, AI can optimise training and development decisions. This ensures effective spend on the right kind of training at the right point in time.
5. Change Management: Understanding the power dynamics of the organisation.
With social network analysis, machine learning can spot who are the power players in the organisation. With AI, HR experts can identify the change agents in the organisation that will convince stakeholders to adapt to new organisational strategies.
Get to understand your data and the power it can unleash within your organisation and contact Cogo People Analytics for an exploratory meeting on how to leverage your data.
Jaen Beelders is an established Entrepreneur and founder of a number of companies specializing in the Behvaioural Sciences. He believes that greatest opportunity for the advancement of technology, such as AI and machine learning, is in the behavioural sciences. He is a well respected interpreter between highly technical teams and non-technical professionals.