The value of data for human resources professionals - Rosslyn...

The value of data for human resources professionals

The value of datafor human resources professionals

Understand the value of the data in your HR organization and how to apply analytics to answer business critical questions.

[email protected] www.rosslynanalytics.com2

14% of organizations in the study with mature talent analytics capabilities, outpaced the S&P 500 by 30%.

30% HR analytics is powerfully valuable

The Value of Data

According to a Bersin by Deloitte study, organizations that deploy HR analytics achieved better talent outcomes in terms of leadership pipelines, talent cost reductions, efficiency gains and talent mobility. In business terms, the share prices of the 14% of organizations in the study with mature talent analytics capabilities, outpaced the S&P 500 by 30%.

In other words, the business case for analytics is irrefutable. Yet, 80% of HR teams rely on “gut feelings” to make decisions (Human Capital Institute survey). This is a concern considering the growing spectrum of responsibilities which covering everything from workforce readiness and operational excellence to succession planning, diversity and inclusion.

This paper has been written to help you understand the value of the data in your HR organization and how to apply analytics to answer business critical questions.

HR professionals are surrounded by many data types: core HR data (date of hire, age, experience, educational history); recruiting data (pre-hire assessment, interviews), performance data (ratings, job assignments); training data (program completion, certifications, scores); compensation data (salary benchmarks); and, leadership data (leadership skills and assessments). And there is more...

HR teams regularly rely on non-HR reporting systems to manually collect company-wide data such as financial, customer, product and supply chain information in order to answer more strategic questions about employees and their contribution to the business.


Recruitment and retention

Compliance reporting

Performance management

Compensation and benefits

Workforce planning

Organisational effectiveness

Why are people leaving?

Are we complying with local, state and federal regulations?

Who are our most profitable employees?

Where can compensation costs be saved?

How will turnover impact our future workforce?

Which business units have the highest / lowest goal achievement?

Where do I source my best talent?

Where should we focus our efforts to strengthen our compliance capabilities?

Which HR initiatives (i.e. training, recognition programs) will most impact the bottom line?

Do we have a consistent compensation program worldwide?

What training is most effective?

What is the average % of performance objectives achieved over the past years?

Are we retaining our best talent?

How can we reduce the cost and time of a compliance audit?

What factors lead to greater employee satisfaction and productivity?

Do we have a pay for performance culture?

What locations do we allocate people to support business objectives?

Which departments or clusters of employees are at risk of low productivity?

Who is at risk of leaving next?

How many of our employees have been trained?

What target-setting approach will best motivate performance?

How does our benefits plan compare to industry peers?

Where will my organization have a lack of skills in the future based on expected retirees?

What skillsets should we be looking for to support the business?

Savvy HR professionals also leverage a variety of external data sources. Data from social networks and external job sites is vital to understanding retention, engagement, and employee career needs. Unfortunately, all of this data is rarely centralized, connected and cleansed to make it ready for accurate analysis by HR decision-makers. This lack of visibility into employee performance and cost leads to misestimating workforce costs, which can erode profitability and competitiveness.

But, when data is available, HR professionals are able to uncover powerful insight that answers critical questions.

80% of HR teams rely on “gut feelings” to make decisions (Human Capital Institute survey).

80%

Value of data

HR data +Brand reputation data

=Be known for having the best employees and attract the best candidates

Value of data

HR data +Professional development data

=Improve employee loyalty and productivity

Questions that data can help you answer


Due to a number of factors including vision, requirements, capabilities and support, HR departments adopt analytics at diff erent rates. There is no right or wrong here as long as the journey has not only commenced but that it continues to deliver insight without being detrimental to the company.

HR Analytics Maturity Model

Time

Valu

e

HR Analytic ProjectInternal HR data used by an HR team

HR Analytic Project

HR Analytic Project

HR Department Wide Analytics

Just add data

to the RAPid platform for complete

visibility

Adoption of HR Analytics

HR should make serious investments in leveraging data to make decisions. HR analytics, a business technology strategy that has been evolving over the last several years, is proven to positively transform the eff ectiveness of HR professionals and deliver value to their organizations.

Internal HR data

Internal HR data

Internal HR data

+

+

+

+

+

Internal business data used by an HR team



External data used by more by than just one team

External data used by the entire HR team and other executives

HR Analytics as a ServiceInternal HR data + + Internal business data

used by an HR teamExternal data shared by HR employees


At each step in the journey, more data – from internal and external sources – needs to be available for analysis and reporting purposes. Commonly, the lack of straightforward access to this data, often held in siloes across different systems and spreadsheets, makes it impossible to get a true view of your workforce. Fortunately, the maturity of technology over the past few years has made analytics as easy to consume as using an iPhone or iPad. Simply login and visualize what you want to see. That said, the challenge to deploying analytics is not the design of pretty dashboards and reports. We all know that if the underlying data used in the visualization tool is not complete, accurate and up-to-date, the information you are viewing will not be worthwhile.

Based on our experience, every HR department is on a five-step analytics journey.

HR Analytic Project (Internal HR data) This project is driven by a specific member of the HR team who has a specific question to answer such as understanding who is leaving the company. The data required to answer this question is basic such as aggregating core HR data for instance employee name, date of hire and salary, to determine the attrition cost.

HR Analytics Project (Internal HR data + internal business data) The second step involves adding additional internal business data such as training and performance data to better learn the drivers as to why employees are leaving, for instance poor management. It’s here that employee survey data is often collected and connected to core HR data.

External Data Integration (Internal HR data + external data) The third step is where external data, such as from social media sites, is brought into the analytics project. It’s also here that insight generated is used by other HR colleagues to help go beyond stopping people from leaving, for example, how to more effectively recruit and motivate employees.

HR Department-Wide Analytics (All unified data) After successfully deploying analytics across a couple of HR work streams, the HR department has bigger plans of leveraging all sorts of data from within and outside the organization. HR has developed strong analytic capabilities to support its business goals.

HR Analytics as a Service (Data on-demand) The last step in the maturity model is for HR to deliver analytics as a service to the wider company. By establishing a center of analytics, and sharing its insight, HR has evolved into becoming a strategic, value added advisor to the business.

Five-step analytics journey

Five1

2

3

4

5

Value of data

HR data +Engagement data

=Avoid high staff turnover costs


Empower your HR team with self-service analytics

Contact us today to learn how Rosslyn Analytics can support you at [email protected]

Rosslyn Analytics is the software company behind the popular RAPid Cloud Analytics Platform powered by Microsoft Azure. RAPid is used by business decision-makers who need more than just visualization. Simply put, RAPid is a ready-to-use analytics resource center that provides you with all the necessary self-service tools and apps to quickly collect, integrate, cleanse and enrich data for visualization and analysis in real-time.

Start today here: www.rosslynanalytics.com

Value of data

HR data +Personal reviews data

=Rapidly move talent from entry level to senior leadership

Value of data

HR data +Recruitment and retention data

=Improve business performance and gain best value for money employees

The value of data for human resources professionals - Rosslyn...

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