Reaching a Wall in HR Measurement
All types of business difficulties can be solved with the use of data and analytics. Many organisations already use data and analytics to learn more about how they are performing. They also employ mathematical models to identify realistic directions for improvement while monitoring the benefits of this fact-based approach to decision-making.
HR infrequently spearheads a strategic change, despite the fact that more and more data is obtained and more complex analysis is made possible.
“There is increasing sophistication in technology, data availability, and the capacity to report and disseminate HR information, but investments in HR data systems, scorecards and ERP fail to create strategic insights needed to drive organisational effectiveness. In short, many organisations are “hitting the wall” in HR measurement.”
Investing in People - Wayne Cascio, John Boudreau
It is obvious that upskilling and reskilling programmes are required. But how can businesses choose the most cost-efficient choices and measure their effectiveness when there are countless methods to approach employee skill development? Nearly as crucial as creating the programmes themselves is figuring out how to effectively measure the return on investment (ROI) of staff training.
In actuality, a large portion of HR-related analytics takes place in BI tools like SpotFire, Tableau, ClickView, or simply MS Excel. These are excellent at producing typical HR-related data and dashboards, but they do not offer the assistance needed, for instance, to identify the factors that influence employee satisfaction or direct proactive efforts to lower turnover. Predictive analytics capabilities are needed to locate such, which standard BI tools don't provide. Additionally, the ordinary dashboard user won't be able to apply these techniques effectively. A BI tool will facilitate analyses of subgroup KPIs and allow drill downs, but it won't explain why a subgroup has the reported scores.
Gaining support from leaders across the firm as well as potential stakeholders like board members requires an understanding of the ROI of training programmes. Division and unit leaders are more inclined to prioritise facilitating their group's involvement and to support the budgetary commitment if they are aware of the potential benefits of staff training.
It's crucial to take causation into account rather than just correlation. Given that there are frequently numerous external factors at work, it can be difficult to credibly link training programmes to important outcomes like productivity or retention. In order to measure internal perceptions of development, businesses should think about data-driven procedures such statistical significance tests on randomly chosen test and control groups.
Some key objectives to look into
Employee Engagement
Employee Retention
Productivity
Tech Implementation and Usage
Skills Development
Revenue Growth
Improved Margins
Innovation
Companies can focus investments in a way that maximises impact for both individuals and the organisation as a whole after they understand what works and what doesn't.
Additionally, HR teams must develop the proper analytical mindset and skills. Using advanced analytical techniques involves more than merely entering data into an analytics platform, pressing the run button, and accepting the result as the best solution. The ability to choose and use the appropriate analytical approach, as well as the ability to communicate results to corporate owners, are just as important as having access to analytical software.
Reference:
Program Course (Analytics for HR) Under - Dr. Gunjan Mohan Sharma
The Amazing Ways How Unilever Uses Artificial Intelligence To Recruit & Train Thousands Of Employees
Investing in People - Wayne Cascio, John Boudreau
