Since the 2008 recession, HR leaders are all too familiar with directives to do more with less. As the economy has slowly improved, many organizations have more resources available to develop their people, but the need to eliminate and avoid waste is still top of mind. In very simple terms, analytics shows you where your investments are working and where they aren’t. It’s critical intelligence for a budget of any size, in times of boom and bust. A.D. Detrick, formerly learning Measurement Consultant at Xerox Learning, is one of many forward-thinking practitioners using employee data to work smarter:
“By having granular data on both user demographics and user behavior, we can closely follow where institutional knowledge resides within an organization. We can identify clusters of skills and gaps in knowledge. We can foresee threats posed by generational shifts or technology changes and work to remedy them before they actually have an impact. And we can expand our reach instantly across the globe to enact that change.”
Multiple studies by Deloitte, i4cp and Bain have proven that the more advanced an organization’s analytics capabilities, the greater the margins by which they outperformed their competitors.
Suffice to say that HR analytics can directly impact a company’s bottom line.
You can generally assume that your employees want the tools, knowledge, and resources to do their jobs in the best way possible. It’s up to you to figure out how to equip them with exactly what they need. This is the crux of argument for analytics. If you can understand where your investments are working (and where they aren’t), you have targeted intelligence to give your people exactly what they need, when and where they need it, in a format that makes it as easy as possible for them to take advantage of it.
This subject, and many others, is explored in depth in my third book, released by Wiley.