HR Tells The Strategic Story

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Once upon a time the Human Resources role had little to do with numbers, data, and analytics. The numbers used to be in the purview of the organizational finance function. Data analysis, in its early stages, may have been linked to finance, but was usually found in the Information Technology department. The Human Resources (HR) function was associated with making sure people entered and exited the organization based on the needs of other business units. As these other functions were presumed to have control over numbers and data, the HR role was not seen the active driver for organizational strategy.

This story has changed.

According to a recent global research project comparing past and present use of data and analytics in organizations, HR is now the ‘most analytics function in business.’

Click here to read the results of the global research project and HR’s role.

As noted in the results, HR respondents outpace those from the finance areas in the use of artificial intelligence, predictive, and prescriptive analytics. These areas are used to track, monitor, and forecast key HR strategic planning elements such as supply and demand for human capital, succession planning, change management, downsizing, and restructuring. All of these are the elements of our studies and provide the focus for the strategic role of HR within any organization.

The tools provided through the use of artificial intelligence, including predictive and prescriptive analytics, are rightly placed in the realm of the HR function. Through the use of analytics, HR is both the transformational agent for, and the storyteller of, the strategic organizational plan. It is HR’s role to collect and control data, translate that data into information and use that information to shape and tell the organizational story.

That story is the tale of where the organization was, where it is and where it is going, as told through the power of analytics and HR.

Discussion Questions:

  1. How does predictive analytics link to the forecasting of HR supply and demand?
  2. Why is it important for the HR and the Finance function to work collaboratively when analyzing workforce data?
  3. How can HR use predictive analytics to shape a pro-active succession planning model?
  4. What is the difference in predictive and prescriptive analytics? How can each be used for HR planning?

Putting Analytics First

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There are two components in the structure of the world of human resources. The first component is defined by the word ‘human’. The second component is defined by the word ‘resources’. The work we do as human resources practitioners is to manage the combination of both the human and the resource elements in any organization. Our job is to analyze and problem solve when that combination of both human and resource capacities become tangled in problematic inefficiencies or blockages that prohibit organizational decision making and growth.

There is an ever-increasing expectation that the HR practitioner will be the decision making problem solver. In order to do this, the HR practitioner must have the capacity to use facts and data to begin an analysis before even starting to solve a particular problem. Unfortunately, for many HR practitioners, the skills and techniques needed to enter into an analytical problem solving methodology are still in development.

As outlined in a recent article published by Queen’s IRC, the human resources practitioner must take concrete data-driven steps to analyze a problem before jumping to a resolution which may provide misleading results.

Click here to read the article

The author identifies three critical elements that lead to poor problem solving analysis on the part of the HR practitioner. To counter balance each of these, it is clear that in the study of human resource management, we develop expertise in the areas of problem definition, capacity for understanding numbers, and defining the depth and breadth of data to be used in order to facilitate organizational decisions.

It is interesting to note that not one of these three elements refers to the human side of the human resources equation. All three elements are focused on the resource side. What we must keep in mind is that the provision of expertise and support through the resources side allows for the human part of the equation to make data based decisions based on sound resource practices.

Discussion Questions:

  1. Based on the article, what steps will you implement, as the HR practitioner, in order to ensure the integrity of a data based project?
  2. What are the perceived ‘weaknesses’ that face the HR practitioner when dealing with data based decision making?
  3. How can the HR practitioner control the amount and type of data that organizations use for decision making?

Let the Data Tell the Story

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Trying to figure out where to begin for effective compensation planning is challenging. The end result of a good compensation plan is the alignment of the plan with the expectations of those who are going to use it. Before we can get to the end, however, we must understand, from the beginning, whom the plan intends to serve in order to design the plan to meet these expectations.

Who is in the target market?

Of course, part of analyzing the market will focus on the existing workforce within the organization. This provides us with a short-term view based on immediate workforce needs and expectations. However, the investment of time and resources used to build an effective organizational compensation strategy must look to the long-term goal for sustainable results.

Who in the target market will benefit from a long-term vision? We can find answers to this question through market surveys that shape and guide the path to the future.

A recent example of this type of market survey focuses on the value-based expectations of the millennial workforce.

Click here to read the article.

Click here to read the full report.

The data provided in this report is just that: data. The charts and graphs on their own provide the basis for analysis. Analysis comes from translating the data into meaningful information. In this case, the data is used as a base to build a compelling story that tells the tale of what the millennial worker expects from their future as a valued participant in the Canadian workforce. The results of this report should lead to a natural conclusion that the long-term vision for sound compensation planning must be based on the growing needs of the millennial workforce.

Data analysis and market surveys help anchor the development of compensation strategy at the beginning. It is up to the thoughtful compensation practitioner to use this information effectively in order to implement a sound compensation structure at the end.

Discussion Questions:

  1. Based on the survey data in the report, identify three effective elements of a compensation plan that will meet the needs of millennial workers.
  2. How can market surveys be used to provide short-term planning for compensation design?
  3. How would you use this report on the millennial workforce to shape the compensation plan in your current place of work?

Getting a Pulse on Employee Engagement

From the HR Practitioner’s perspective, it is very important to be able to assess and measure a range of employee activities.  The most common method of employee related data collection is through an annual employee engagement survey.

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Many of us spend a lot of time sending out the surveys; waiting for employee responses; sending out prompts to remind employees to respond; collecting the data; analyzing the data; writing reports about what we think the data means; and then, finally, coming up with recommendations that we hope will address the issues.  The process and the methodology for all of this is usually electronic and should be efficient; however, the reality and timing is not always on the mark.  When all of the data collection and report writing is complete, it is usually time for another annual survey and the process starts all over again.

Maybe it is time to pitch the long and drawn out annual employee engagement survey. If your organization is not doing annual employee surveys at all or if the annual surveys are stopped, how else can the HR practitioner assess and evaluate what employees are thinking about their workplace?

 

The Director of Customer Happiness at OfficeVibe was interviewed recently on the CBC radio network. He offers a short and sweet approach to employee engagement activities.

Click Here to Listen to the Interview.

It seems that sending out annual surveys could be a thing of the past if the future relies on constant and meaningful employee engagement strategies.

Discussion Questions:

  1. What are metrics?
  2. What are the specific metrics that provide good indicators for employee engagement?
  3. What are privacy concerns related to the collection of data from employees?
  4. Do you agree that a weekly ‘pulse’ survey would be an effective way to gauge employee engagement?
  5. Would you recommend a product like ‘OfficeVibe’ to your employer? Why or why not?
  6. What are some of the risks involved in employee engagement surveys?