Data and analytics can teach us a lot if we can put them to good use and this is as true for human resource management as it is true for any other business process. From recruitment to training and development and performance management, there are a lot of activities in HRM that can benefit from adopting data-driven approaches, and to do so, organizations need to have the correct set of practices and the supporting tools.
Decision-making in HRM has traditionally been left to individuals with data playing only a supporting role. More often than not, these decisions are taken on the basis of ‘gut feeling’ rather than a comprehensive analysis of available data. Whether it is recruitment or succession planning, individual intuition is often given more weightage than data and facts. While there are several reasons for this, it is largely due to the non-availability of useful tools to collect data and perform analysis. The effort involved in collecting data acts as a barrier to the easy adoption of analytics and data-driven approaches. Silo-based working practices offer another effective barrier.
But the above is the case only if you are still using outdated manual practices to manage your HRM or if the tool you use doesn’t have analytics capabilities. Today’s HR software applications come equipped with the means to let you collect and collate data and analyze this data. There really are no excuses to not use a data-driven approach anymore.
The software does not follow the old centralized approach to business intelligence. Every functional manager can use the software to analyze his or her domain. The recruitment professional can run analytics to understand the quality or cost of a hire. The performance management professional can run analytics to understand the effectiveness of the year’s performance reviews. The same is the case with training and development professionals as well as personnel.
Online HR software gives the power of analytics to everyone without any limitations. So, given all this, are you putting your HRM data to good use yet?