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.
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.
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.
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:
In core functions, HR can drive people performance using analytical by focusing on the following four:
Read also: The Potential of Cognitive Computing in HR