Data - Driven Insights - Finding the Answer to the Puzzle
This article has been written in partnership with Bridgei2i
In the past decade, the HR function has undergone a significant transformation. It has evolved from being a support function to a strategic business driver. This has also significantly changed business' expectations from HR. The 2008 economic crisis also brought in fresh set of challenges for HR professionals. As custodians of one of the highest cost items, it was imperative for them to make prudent decisions on investments, to be able to deliver on a higher ROI. This challenge forced HR professionals to innovate and improve their decisioning process. They had to dig deeper into the existing data at hand and develop insights and identify true performance and reward the same. The analytics and the rigor behind rewards decisions have increased drastically. Let us examine the ITeS sector. Compensation in this sector is one of the highest cost items in the operating expenses. The sector has emerged strongly from the 2008 economic crisis and the business outlook has been far more positive, but the optimism has not translated into salary increases. In spite of the overall sector growing by more than 15% in the past two years, the salary increases provided have been stable around 10.2%. The greater focus on data has ensured that the HR professionals are able to identify and reward trueperformance, which is demonstrated by an increasing differentiation for top talent.
However, despite the salary increase efforts by the industry, compensation still remains one of the top reasons for attrition in the industry, especially for the key talent that the companies are trying to retain. Further analysis of engagement scores across the industry has indicated, that in spite of rigorous efforts by the HR teams in the sector, the average engagement levels on the rewards programs has seen no impact. We still continue to miss the mark. This highlights the need for further analysis and deeper understanding of the employee preferences. This need is further accentuated by the fact that organizations, in the current day, cannot drastically change their salary structures, and hence, are being forced to utilize levers other than compensation to dive engagement. There is a plethora of data available around employees: Just as we speak about a 360 degree view of customer lifecycle, data analytics
should now focus on getting a 360 degree view of employees across the employee lifecycle. There is a need to dive deeper to understand the differences in expectations across the various sub groups of employees. Though, we as professionals are extremely cognizant of the power of analytics, we would need to build a far more structured approach to the process.
The BRIDGEi2i Framework for Deeper Insights
BRIDGEi2i has created a framework that uses the available data to identify data-driven employee lifecycle analysis and improve business metrics.