Sunday, January 2, 2011

HR Analytics: Learning the Language of the Business

We have been discussing HR Analytics over the last few weeks with such topics as "The 3 Most Important HR Measures" and "How to Introduce Analytics into the Organization."

I have been thinking about how to make sure HR Analytics are not only a part of the overall HR Strategy but that they produce information and insights that are actually USED.

So, like with any information that we have in our organizations, adoption really depends on a few things:

1) Ease of use
2) Access to the information
3) Understanding of the information
4) WIIFM-why should the end user care?

I believe when you embark on an analytics strategy you have to adapt the language of the business into your outputs. Reports, charts, graphs and studies need to address the following:

1) What is the business issue?
2) How does the issue relate to the current strategy?
3) Keep information simple
4) Don't show off math skills, show off a real understanding of the business issue while using cool analytic skills.
5) Show how solutions directly impact results by telling a data story not a data dump

HR Analytics are a hot topic right now. The actual analysis is only half the battle...the ultimate goal is that the organization can use the insight to:

1) Take action
2) Make better decisions
3) Decide between possible investments

How have you been successful in your communications of HR Analytics within your organization?

1 comment:

Unknown said...

I received the following question from Traci Cuthbertson

It’s not enough to just provide the right HR analytics. How do we equip & empower managers to do something with the info?

Well, again Traci thanks for the excellent question!

I wish I had the magic answer. Here is what we have found in our experience:

1) I believe if you make managers accountable for results, which are measured via metrics an analytics then that gets them motivated to do something different.

2) As far as the empowerment piece, if all functions have an understanding of the strategy and how to execute and measure that strategy, then you have a great start. Also, LEADERSHIP has to be willing to give their managers the authority to make decisions based on their experience and insights gained from the analytics.

3) HR's role can be one of facilitator during action planning meetings by making sure goals/objectives/metrics are tied tot eh appropriate results and the company has sound PM systems in place.

I know there are others....what have you seen?