Let’s Talk About Insights

During the last two decades, HR functions have made a concerted effort to collect, clean, and track as much talent data as possible. The world of analytics is filled with platforms, software packages, and the need to focus on human capital analytics and a digital strategy. Human Resources has been successful; there is more data about people than ever before. We can track hiring and retention, demographics, performance and talent history, movement, engagement scores, and even time on the computer and other productivity measures. A lack of data is no longer a problem.

The intention behind collecting data is twofold. First, data can help us better understand our employees and the impact of the processes, systems, and culture on individuals. This includes understanding who is getting promoted, what performance conversations are happening, the overall sense of engagement in the business, and whether we have strong talent pipelines. Second, we can use data to measure the impact and business relevance of HR initiatives. In other words, are the investments we are making in our people worthwhile, do they drive business outcomes, and are we seeing the shifts in leadership and culture that are necessary to deliver business results?

Many HR functions, especially those with dedicated resources, have a great deal of data. The ones that do not, are at an advantage. They have an opportunity to design the digital and analytics strategy from the ground up, by learning from the market and attending the limitations and challenges of more established programs. Although the quantity of data has been king; quality, accuracy, and integration will drive what organizations need next. This includes the ability to predict talent and culture challenges, to ensure leadership is developing and demonstrating the behaviors that are required for the future, and to ensure the resources devoted to talent and culture are delivering impact.

What approach should an organization consider to developing an analytics strategy, regardless of whether they have data?

First, start with the end in mind. Many organizations begin with the process of how to collect data, because data is key to ROIs. Starting with the end in mind allows HR functions to plan around outcomes and business objectives, as well as simplify the experiences, processes, and systems to align with the analytics strategy.

Next, stop creating boundaries around HR data. Insight will come from integrating data from various functions within HR and gaining insight from the analytics. Data on individual performance and organizational culture will provide great insight on how the experience of employees is enabling business results. Linking succession and development data, such as leadership 360s, will provide insight into the impact of both your talent-planning processes and your leadership experiences.

Finally, focus on quality, not quantity. We do not need to know what every employee is doing in order to come up with impactful and targeted solutions. In fact, more in-depth and diverse data from smaller populations, or even pilots, will tell us a great deal about what our employees need. Mounds of data tend to overwhelm leaders and hinder progress because of an inability to action “everything.” With analytics—just the right amount of data linked to the right outcome measure—sharing insights will take your succession strategy and business results further.

At RHR, we believe analytics is about delivering the best and most outcome driven solutions. Our goal is not to measure everything but to capture the right things and deliver very focused and impactful solutions for your talent.

– Cristina Jimenez