Workforce Insights: HR Functions and Data Code

July 16, 20203:38 pm807 views
Workforce Insights: HR Functions and Data Code
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Workforce insights, as defined in KPMG Future of HR 2020, is about using data from different sources to address challenges related to the workforce and generating what might happen and actions needed to address emerging and predicted issues. Technology is the main fuel of this activity but is unlikely to be based solely on out-of-the-box Human Capital Management (HCM) system capabilities. Other attributes are also needed, including evidence-based decision making within HR, storytelling leveraging insights, and driving a narrative in the organization that turns the insight into action. 

The power of data 

According to Robert Bolton, Head of Global People and Change Center of Excellence KPMG, in the absence of an explicit model of how data brings value, HR has often rushed to the latest fads and fashions and has limited itself by doing the analytics. The way to break out of this vicious cycle is to bring predictive insight and evidence to the people issues of an organization. It’s time to understand the business in a more scientifically sophisticated way — one that enables HR to operate as an equal member of the leadership team and to bring as much evidence about what will happen as the chief marketing and finance officers.

See also: The Trends of Machine Learning in Human Resources

The study found that 56 percent of pathfinding HR organisations identified enhancing analytics capabilities as among the top three reasons for their investment in HR technology. As a result of the investments, they are zeroing in on the importance of needing dedicated, skilled analytics resources, either within HR or at least dedicated to HR. Almost half ranked data modeller/scientist within their top three roles to invest in within the next 2–3 years. 

HR’s next frontier

In order to realize the true value of data analytics, HR teams need to experiment with new technologies and integrate them into their day-to-day practices. Yet, HR is still far from achieving this goal and when compared with other functions, HR is probably the furthest from being digitally dexterous. 

When it comes to utilizing data analytics within the workplace, the Pathfinding HR organizations are ahead of the game. They reported higher proficiency levels in the use of advanced data and analytics. On average, they were 5x more likely to rank their use of more advanced analytics as “very proficient,” such as follows: 

  • Identifying root causes of attrition in specific populations 
  • Differentiating behaviours of high versus low performers 
  • Spotting burn-out and disengagement 
  • Tracking data beyond the traditional HR system to understand patterns of behaviour via email, chat, calendar, social media, etc. 

In core functions, HR can drive people performance using analytical by focusing on the following four: 

  1. Investing in both technology and capability within the HR function. This extends beyond the basic out-of-the-box technology functionality from cloud HCM vendors to include thinking about data visualization, sophisticated analytics, and integration of HCM data with business metrics such as customer experience, productivity, and collaboration. 
  2. Building insights from integrating and analyzing data in real-time across different data sources to understand the signals that point to emerging issues and opportunities. This includes combining data from the HR function, from the broader organization and from external data sources. 
  3. Taking a hypothesis-driven approach by working with the leadership team to use data to answer critical business issues and questions such as: which capabilities will drive competitive advantage? Which teams create sustainable performance along with team member wellbeing? What leadership factors drive innovation in our business? 
  4. Adopting an evidence-based mindset so that common and best practices are subject to a rigorous evaluation of validity and relevance.

Read also: The Potential of Cognitive Computing in HR