“The HR Director does not want accurate data and reporting in case they don’t like the answers…”
“We know our current data is really poor but we don’t know where to start…”
“Our head is in the sand…”
These are just three snippets from recent conversations I’ve had with Talent Acquisition professionals working for FTSE 25O companies.
Have I just been unlucky or is this a wider pandemic of the unknown? Have I dramatically got it wrong?
So let’s look at some data. It is not the ‘all seeing eye’ but the Deloitte Global Human Capital Trend Report (2016) is a great place to start and showed that only 16% of companies’ HR functions (globally) are using data analytics. This was up by only 2% from 14% in their 2014 report.
Compare this to 77% of companies’ Operations, 58% of Sales and 56% of Marketing functions that use data analytics, and it really highlights to me where HR are on the curve.
Is this why Talent Acquisition leaders struggle to get the budget for reporting and analytics platforms that actually work?
Then it struck me, and I may be wrong (I am about a lot of things, just ask my lovely wife!). Is it that HR Ds don’t want accurate data, reporting and analytics, as they simply don’t understand what to do with it?
Could this be the case? The fear of the unknown…
If my four and seven year old kids are learning something new at school, and to begin with struggle with it, they tend not to like it. Once they begin to master it they begin to like it. I think this simple human behaviour is a factor.
My advice to HR Directors, HR leaders or Talent Acquisition leaders wanting to start their HR analytics journey is:
1) Focus on two or three data points the business care about
a) Attrition is a great starting point – The Harvard Business Review 2015 stated 89% attrition is due to the lack of cultural fit
b) Gender is on most CEO’s radars. This year’s Female FTSE Report, by academics at Cranfield School of Management, City University London and Queen Mary University London, shows the percentage of new female appointments at board level is the lowest since September 2011
If you then overlay these two metrics against salary levels, locations, business units and performance scores (once you’re comfortable with the data) I’d expect it to highlight areas that need your focus.
2) Concentrate on outputs
To get this data look at the outputs rather than the inputs when assessing your current or any new platforms and systems. Make sure you have a clear reporting strategy in place which tells you the specific data points you need from your platforms.
3) Ask your current vendors for data, reporting and analytics
Most vendors who supply selection, L&D etc. platforms have better data than their customers. Use this data as a starting point but validate it before you communicate it.
4) Scale up
Start with a small part of your business that is already data led. Sales is a great place as you can easily evidence the impact an empty seat has on the bottom line.