The disruptive forces in today’s economy have forced senior leaders to act. Generational shifts, the talent crunch and the impacts of the fourth industrial revolution are colliding to forever change the world of work. With companies losing an estimated $2.1 trillion of market value on failed organisation change initiatives over the past year, CEOs increasingly see an urgent need to get their talent resources aligned with their business strategy.
While the challenges are great, there are, as always, opportunities to be had. Forward-thinking companies need to develop a strategic view on managing talent in the new demographic landscape. This can only happen when HR leaders understand the business challenges that occur as a result of these disruptions, including the impact on the business strategy. But if you ask CHROs, it’s this business acumen that they see as the number one gap in their teams.
Today’s HR teams must offer insightful analysis to ground decisions that drive business outcomes. Leveraging the power of advanced talent analytics and management can bridge the gap between HR and business, positioning HR as a true business partner in the future of work.
It’s already happening...
Many organisations are already taking action. Companies are equipping their HR departments with the right tools, budgets, and systems to provide meaningful, proactive HR and talent data that’s fully integrated, scalable and automated.
Analytics can support decision making at each stage across the talent lifecycle, answering the most pressing talent questions, including:
- What does our talent “look” like? What are our strengths and opportunities?
- Who are our high potentials? Are they different from our high performers?
- How does our talent compare to external benchmarks?
- What are the key characteristics that drive leadership performance and engagement in our organisation?
...with immediate impact
Those organisations that have taken action are already seeing the impact of using HR data analytics to make objective decisions. These organisations are twice as likely to improve their recruiting and leadership pipeline, three times as likely to realise cost or efficiency gains and 3.5 times as likely to get the right people in the right jobs.
But many are missing out on the benefits
At its most advanced, HR analytics effectively offers CHROs an extra, AI-powered brain at their disposal, willing and able to answer their most provocative questions. In truth, most organisations are nowhere near this point. In a recent Korn Ferry survey only two-thirds of CHRO respondents believed they have a strong HR data analytics function integrated into their business planning process.
Integration is the key word. To get value from data analytics - value that will ultimately differentiate the organisation from its competition - HR teams must step out of their siloes. Rather than reacting to business requests, HR can collaborate with the business to understand and anticipate their needs with better insights from data.
Five leading practices to get the most out of HR data analytics
Whether your organisation is just beginning to build its data capability or is already gathering detailed analytics, Melissa Swift, Korn Ferry’s Global Leader for Digital Solutions, identifies five leading practices to get the most out of HR analytics:
- Invest in well-functioning systems but understand that systems are no substitute for a business-driven understanding of the situation.
- Get the right HR analytics talent in place but do not forget to utilise knowledge of the organisation to drive context.
- Learn from data from the outside world but have a strong view on your own environment and context first.
- Benchmark but know where your organisation is unique.
- Delve into complex issues but keep outputs simple.
Learn more about Korn Ferry’s data analytics services here.