John Sullivan, a respected consultant in the field of HR from Silicon Valley and current professor of management at San Francisco State University, offered the following ten reasons why HR should learn to use data better in an article on hrzone.com.
1. Predictive analytics means being better prepared
Being more able to foresee both future trends and potential problems enables better forward planning. Amongst other things, decision-makers will be aware of the need when it arises for changes in existing HR practices.
2. Numbers are persuasive
While many managers and executives may not always be enthusiastic about HR recommendations, they will take notice of hard data and are thus more likely to take action on that basis.
3. Guide to effectivity
An data-based approach enables you to see what is running well and where improvements need to be made.
4. Insights into problem sources
Rather than a mere factual reporting of what has happened, a data-driven approach will reveal more about what lies behind the events themselves. Having this information will add to your credibility in dealings with decision-makers at executive level.
5. Better allocation of resources
Data will reveal the highest business impact areas, which will allow you to allocate both financial and human resources accordingly.
6. Ongoing improvement
Data is an excellent indicator of progress: it highlights areas where improvement is possible and enables the rectification of previous shortcomings.
7. Increased efficiency of decision making
When it comes to talent management, a certain lack of consistency may appear especially in large organisations. Having data reports in electronic form will help better to standardise the process of people management.
8. Employee benefits
Top performers like accurate records of their achievements to be kept. Secondly, all employees will have an ongoing record of their performance, so are less likely to be caught off-guard by criticism out of the blue.
9. Scope for strategy
Strategy means looking ahead and making things happen. When your vision of the future can be supported by hard data, it will be much better received by those at executive level; thus you increase the probability of your ideas being incorporated into the overall business plan.
10. Increased profits
This is the be-all and end-all of success. The results of recent research suggest that proper use of analytics can increase profit levels by as much as two-thirds.
To sum up: HR has a major role to play in business success; however, in order to fulfil that role effectively, it needs to be more outward looking and take into account the work of those with various skills in other departments.
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