Analytics as a Lifestyle Within HR
Usha Mirchandani
Partner,
Talent Insight & Analytics,
Aon Hewitt
Paul Rubenstein
Partner,
Leadership & Assessment,
Aon Hewitt
Robin Salk
Product Manager,
Talent Insight & Analytics,
Aon Hewitt
There is unprecedented excitement about big data and data analytics - everyone is talking about it, everyone has a view on it, and most organizations we know are working on it. Organizations are striving harder to use data and predictive analytics to make investment decisions on product strategies, expansion into new markets, capital maintenance, predicting consumer preferences, foretelling market tendencies and the likelihood of fraud. Within organizations, the finance, sales, marketing and supply chain areas have increasingly relied on data and analytics to enhance their effectiveness and drive robust decisions. Despite the vast advancement in tools, technologies, behavioral sciences and statistics, HR is the last function to use data for robust decision-making. 51% of HR organizations surveyed by the Harvard Business Review rarely or reactively use data to make critical decisions1. Our perspesctive is that driving value through human capital analytics will be a strategic imperative for HR over the next few years. In this article, we will first discuss the four critical trends that will precipitate this change for HR. We will then discuss four key principles on which organizations should focus as they adopt analytics as a lifestyle.
1. Focusing on Fact-Based Talent Decisions/ Investments
The pressure on HR is increasing, and the C-suite wants to make decisions on talent programs and investments based on facts and not HR's "hunch" or "intuition." HR leaders are also striving to create a niche for the HR function as a core part of the business strategy. So the question is, "Can we re-organize the HR portfolio and make investment decisions based on data?" For example, one of the most reputed brands in the information technology and consulting industry currently uses data, metrics, results and year-on-year trend analysis to enhance dramatically how it appoints, inducts and develops managers. This company is integrating data on manager education, experience and exposure to design the learning experiences that are most effective for a specific manager "persona" 2. Quantifying Business Impacts For decades, HR teams across the world have been talking about talent being a competitive differentiator for organizations. The need for better visibility into an organization's talent, and not leaving talent management to chance, has only increased over the past few years.For example, a large global multinational medical devices and pharmaceuticals firm has a robust assessment strategy supplemented by a vast range of data and analytics. One of its main assessment processes, known as the Integrated Executive Process, integrates several types of information experiences, competencies, styles and attitudes, and motivators and interests. This databased approach helps the company accelerate employee development through feedback and planning and address gaps in selection decisions.
3. Preparing for the Next Evolution of HR Transformation
Over the past few decades, HR has been steadily transforming through the implementation of newer technologies, setting up of shared services and realignment of roles. HR is driving value, and we see the next wave emerging from a radical change in the way HR Business Partners (HRBPs) use data and insights to consult with their business leaders. Moving from analyzing the impact of people-related decisions to knowing whether a decision makes good business sense is enabling HRBPs to add value to business leaders in a definitive way. Aon Hewitt's observation is that data and analytics are changing the dialogue between HR and the business by positioning HRBPs to be more strategic.
4. Expanding Technology Choices
The fourth trend is an increase in the number of organizations that have access to a vast array of business intelligence and analytic technology solutions. Field HR and business leaders need technology that is intuitive and requires little training. They are also looking for technology to provide immediate and relevant data to support decision-making processes. HRBPs need technology that they can bring to a meeting with a business leader that allows them to drill into details on the spot without having to take the time to pull data together and manually create the visualizations.
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