28 Jul How Can HR Teams Adapt Their Strategy For A Data-Driven Future?
According to a survey of global CEOs, human capital remains the number one challenge for companies. As a result, there is a need for HR to become an impactful business function which means that using metrics is no longer a nice-to-have but a necessity.
As companies increasingly rely on data to make decisions, teams need to adapt their strategies to stay ahead of the curve. HR teams must learn to start making data-driven decisions in order for companies to remain competitive.
There are a few key ways that HR teams can use data to improve their decision-making:
1. Use Data to Identify Talent Gaps and Needs
By analyzing data on employee skills and performance, HR teams can identify areas where the company may be lacking in talent.
In the contemporary era, job roles are changing fast. There is a constant need for employees to be upskilled and for new hires to have the relevant skill set needed to perform at the best level.
There is a need to bridge the talent gap which can be done through targeted recruitment and training programs. To address the needs of businesses, HR needs to remain on its top game by making effective decisions.
2. Ease the Technical Part of the Hiring Process
For some roles, there is a need to conduct technical tests. HR teams may not have the technical skills to assess whether a candidate is suitable for the position. The traditional way HR teams function is by doing the initial assessment and then having a technical person conduct the interview.
This process is time-consuming and there is a better alternative.
An alternative is to use an automated test and use the data collected from it to gauge the performance of candidates. For instance, conducting a pre-employment power bi test could be useful when hiring data scientists, IT professionals, and BI consultants. The results from the tests can be tracked and used to fill up the roles in an efficient manner.
3. Use Data to Benchmark HR Performance
By comparing data across teams and internal organizations, HR can identify best practices and areas for improvement. In large organizations, some teams might have developed innovative processes to work.
Data can be used as a motivation. Numbers from the innovative team can be shown to other teams to help them improve their performance. It can also be used by HR when they are developing future policies.
In addition to that, data-driven HR teams can understand trends and patterns of absenteeism, attrition, and other employee data. This helps them predict future problems and take preventive measures.
For example, if the data shows that employees in a particular department are leaving the organization at a higher rate than others, HR can investigate the reasons and take corrective action.
The most common reasons for employees leaving are:
– Compensation (not being paid enough)
– Lack of career growth opportunities
– Poor management
– Work/life balance
By collecting and analyzing the data given by employees who leave the company, HR can identify these trends and take measures to improve employee satisfaction and reduce turnover.
4. Use Data to Improve Communication with Employees.
Data can be used to understand employee needs and concerns. Many times HR teams face difficulty in convincing senior-level managers to adapt to changes in policies.
However, they can use data to show the trends and how they will impact employees. Managers are usually convinced by statistics and figures, instead of just “advice from HR.” In this manner, it is easier to get the buy-in from all the relevant stakeholders.
Therefore, using HR teams that are data-driven can develop more effective communication strategies.
Summing Up The Ways HR Teams Can Adapt
To summarize, HR professionals can help their organizations make better decisions about where to allocate resources, hire the best talent, benchmark performance, and effectively communicate. In short, if companies understand how data can be used to improve HR decision-making, they can position themselves as key players in their niche and the overall market.
Osama Zahid is a technology content strategist who is passionate about content marketing and all things SEO. He has helped various companies rank their content on the first page of search engines. In his free time, Osama loves to play football and travel.