Why Company Data is Becoming an Intrinsic Tool for all HR Departments
Statistical data and balance sheets are no longer being used by Accountants within a company; one observer from the National Council of Social Services stated that such data is fundamentally valuable to Human Resource practitioners too; and should be used in order to assess what approach to best structure the company using people, departments and team leaders.
However, Nobel Peace Prize-winning Economist, Mr Ronald Coase famously scrutinised the usefulness of numerical data stating “torture it for long enough and it will surely confess to anything!” This is an interesting place to start discussing the usefulness of data within the HR department in any company; and how it has particularly huge potential for making integral recruitment, retention and progression-related decisions.
So, what’s the real truth? Can data hinder rather than help a company? If used correctly, of course it can be a huge guidance for the company.
How HR Managers Can Effectively Use Data
Paying for performance has always been an intrinsic system that Managers in most company’s follow; however, research shows that bonuses do not produce the anticipated work harder behavior, and motivator pay models having little correlation with future business results.
For example, HR departments can look at data-driven insights on the most proficient methods to oversee, delegate and manage; motivating individuals in the company to work hard.
In any case, HR examination ought not be left just to information researchers. Every HR specialist should be equipped with hands-on ways to deal with HR approaches and policies to business execution, which include the capacity to:
- Review key factual and fiscal concepts in a way that can track performance and make it meaningful to company benefits; monetary compensation for all staff members; productivity and clear or foreseeable insights.
- Understand and apply fundamental ideas including information investigation, information administration and modelling; including theoretical building and testing.
- Model HR related questions on existing data for areas within the company such as workforce planning; enlisting and training new staff, holiday planning, even including promotions and lowering turnover rates.
The Importance of Analysing Data Correctly
HR experts need to grasp the analytical side of running a successful company, including talking its business language. Most Top Managers talk in numbers; if HR wants to be taken seriously, it should put HR arguments into business language; meaning using data that links HR decisions to business outcomes will support the argument, getting company’s key decision makers on board.
HR Managers with a better understanding of analytics are situated to answer business development-related enquiries from top management, for example, what the profile of an organisation’s sales force that will assist team members to effectively identify growth revenue patterns.
They can then utilise HR analytical devices in order to enhance company procedures for employees; for example, if they are able to understand can assess which company benefits or flexi-work programmes engages and motivates staff members. Finally, the most well-known misconstructions about analytical data is that if you look hard enough at information, you will discover new insights and bits of knowledge.
Alternatively you can arrange a no obligation, free demonstration of the software, contact us.