How can HR data be used to its fullest potential? Lindsay Gallard is Chief People Officer of Six degrees and shares his insights.
We have a wide range of HR tools available to us, including dashboards and detailed metrics. It should be a joy to have so much emphasis on the measurement of HR processes and employees. The data that these tools generate has brought about some unexpected challenges, the biggest of which being information overload.
You may be like me and find that you don’t have enough time to review all the relevant data. How do you sort through data on employee engagement, L&D, and a thousand other factors in order to find the information that is most likely to impact business performance? How can you leverage that information to achieve HR and business goals?
Asking yourself if the HR core leadership team and C-suite have different views on performance metrics is a good place to start. Most of us, if we are being honest, already know the answer. It’s not just a gut instinct: A growing body evidence shows that most C-suite executives want HR to contribute more to commercial objectives. One study revealed that almost 70% of executives wanted their HR teams to be more aware of the business goals.
We’re going to run into problems when we try to align all of these HR metrics with the way they are perceived, communicated, and used. The same study shows that C-suite executives see HR as having an important future role and most would like to have a better grasp of what they do. There’s a real opportunity for both sides to learn and dialogue. Together, we can address any gaps.
What about a change in focus?
It makes sense to me that you think at the beginning about how HR metrics are used and which ones will give leaders of organisations the insights they seek. Data that measures performance is usually calculated using a financial lens, such as return on investment. If we want to unleash the potential of our people, we must change the company’s culture and attitude. We need to help the C Suite view its employees from a new perspective.
In order to achieve this, it is important that we promote people rather than resources. Metrics can be a powerful tool to convince stakeholders that we need to reevaluate our view of people. They’re the most effective way to convince C Suite leaders that it’s time to move away from traditional performance evaluation methods.
Should I find someone to help me or learn new skills?
Data quality is crucial to delivering the necessary insight. There’s also the issue of data analysis, visualisation, and presentation. These gaps can reduce the value of metrics to C-Suite executives. If you don’t know how to communicate the data effectively, even if it’s transformational, it’s not much good.
Ideal HR teams will be able combine data from different sources using analytical tools and strong skills. Not every HR professional has to be an PowerBI or excel superuser. The dashboards can be built by third parties or employees with an interest in numbers. We are still far behind where we should be in our profession, and need to fix this. Ironically, while HR teams are eager to assist colleagues in learning and training, we forget to take courses ourselves to improve our skills. What about doctors and healing?
It’s not a right or wrong way to go about it, but HR teams who are just starting out on their journey of better visualising and presenting data could benefit most from the support and help of a third party — at least for the short-term. It’s important to remember that, whichever path you choose, the impact on bridging the data gap, insight, and action, can be profound. We need to take the time to get it right, and if needed, find resources to assist us.
Measure for Measure
HR teams can now look at the bigger picture, beyond just numbers, and decide what is important. It can have amazing results, like when you stare at a autostereogram and learn how to refocus. You finally see the 3D image as everyone else. You will truly be able to see the image when you see it for yourself.
Time to hire, for example, is a useful and important metric. It is important to understand the relationship between who has what role, and if it meets company goals. The data on performance rating distribution is more powerful if an organisation understands the way top performers are managed, incentivised and targeted. diversity is best viewed in contexts such as hiring, L&D, pay, promotion and exit factors.
These nuanced insights can be extremely powerful. If you take employee satisfaction and happiness, as an example, how do you know who is happy? What factors are contributing to that feeling, and can it be replicated by others? While many organizations try to measure and analyze why employees leave their jobs, shouldn’t they also be able to determine why others remain?
Each organisation should ultimately use HR metrics to achieve its own unique business goals. To bridge the gap, you need to be able to reflect on what your strengths are as an HR professional. Ask yourself honestly: Are you using the right words and thinking outside of traditional HR? This is a critical question, because you will need to learn new skills to have an impact on your business. You’ll also need to know what you are missing in order for someone to help you.
