18 Nov 2016
The Added Value of HR Analytics Roles
What kind of value do we add?
“INNOVATION IS CHANGE THAT UNLOCKS VALUE”
The economy as we know it is driven by innovation, technology and digitalization. Change has become a business model. Being an innovator means you are in business and are leading, competitors follow in stages as early adopters, early majority, late majority or laggards.
In the perception of many, HR has always been part of the last category: the laggards struggling with their role, identity and the question of ‘What kind of value do we add’?
The model of Dave Ulrich is a reference in how HR relates and defines itself in the context of an organization. This transformation and evolution of HR is continuously changing to manage and empower organizations' greatest assets, people.
The role of HR can exist in various business contexts (administrative expert, employee champion, change agent or strategic partner) to manage human resources.
Every role described above comes with specific competencies that make HR a credible performing and value-adding partner to the business.
Michigan Ross has published a report study, on these roles and competencies, where the business contexts and roles are linked and described as a reference.
It is (Big) Data that comes out of the Internet of Things that forms the key basis for innovation. By creating and combining big complex data sets, it becomes value enabled knowledge. It can be used in analysis to see patterns, trends and developments for strategic purposes.
For years, Finance, Sales and Marketing are all using data analytics to underline their importance and add value to the business.
From a recent Deloitte study in 2016, we can learn that organizations are getting ready to use and combine HR people analytics, from ERP and talent management systems, with other real-time business data.
Some facts and figures:
75% Think HR analytics is important
29% Are using HR-data
8% Consider themselves as strong performers in people analytics
We can use people analytics to get insights on:
- What makes/drives people to join the organization?
- Who performs well
- Who stays with the organization
- Who will likely be successful?
- Who will make the best leaders?
- Requirements for delivering high quality and innovation
Based on the above, we can conclude that the sense of urgency in setting up real-time people analytics is there. Yet, are organizations and HR really fully-equipped to set it up? To answer this question, we need to define analytics and how it is interpreted by organizations.
At Talent Peaks, we have experienced 3 types of organizations:
In general, the biggest risk of implementing analytics by HR is the lack of knowledge, expertise and affinity with data analytics. Natively, HR has a focus on people and real-time performance. Now is the time to take the next step by adding a focus of real-time people data performance.
Creating reports is the beginning, but the added value is understanding the context of data and translating it into actions.
HOW CAN TALENT PEAKS HELP?
For these organizations, types 1 and 2, Talent Peaks can offer guidance and consultancy by setting up workshops, demonstrating, designing and implementing.
We understand the businesses and have experience in setting up a data-minded organization with a focus on analytics. Our added value is that we can help you interpret and understand your data and put it in your specific context perspective so we can define your actions.
We go beyond consultancy and can act as your change agent or strategic partner with the competencies of an Analytics designer/interpreter and technology and media integrator.
“OF COURSE, CHANGE REQUIRES A CHANGE. UNTIL THERE IS A FELT NEED FOR CHANGE, IT IS ONLY AN EVENT NOT A PATTERN” JAMIE NOTTER