HR Analytics not Achieving Results Yet

Author: Adi Gaskell
Published: December 21, 2012 at 5:41 am

workplace analyticsWorkplace analytics has been one of the hot topics of 2012, with advocates believing that we will soon see Klout style scores hitting the workplace.

New research by i4cp explores the growth of analytics and its implications for the workplace.  The research, titled HR Analytics: Why We’re Not There Yet outlines five practices that separate the top performers from the laggards. 

  1. HPOs take a more calculated approach, using data for strategic, long-term planning over twice as much as LPOs (96% to 47%).  Nearly as many (91% to 59%) rigorously assess the payback of initiatives and programs.
  2. Turning data into information is the most pressing analytics challenge and HPOs are better equipped to meet it. A commonly repeated lament among HR practitioners is the difficulty in determining what the data gathered means. This was the top data collection obstacle for all survey respondents.
  3. HPOs take full advantage of processes, automation and standards to ensure data accuracy while LPOs rely mostly on manual checking. Twice as many HPOs report using company-wide standard definitions as a method for guaranteeing data accuracy. Both HPOs and LPOs check data reliability, but HPOs use automated processes (68% to 38%) to a greater extent which not only reduces errors but frees up employee time for more pressing tasks.
  4. HPOs have HR leaders highly engaged in using analytics to drive performance; LPOs are content to supply data to the executive team. More than twice as many HPOs have HR leaders receiving workforce data than LPOs (81% to 33%), which suggests a more robust, analytics savvy HR department in more successful companies.
  5. Predictive analytics are underused for human capital measures even by HPOs. Predictive analytics can reduce uncertainty and provide an evidence-based grounding to the decisions of both HR and the business.  Both HPOs and LPOs are still finding their way in developing the skills and technical capability to perform and use predictive analytics.

As with many social business projects, the key is proving the financial value in the project, and workplace analytics is no different.  This report provides clear evidence that this is a key factor separating the high performers from those lagging behind.


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Article Author: Adi Gaskell

A writer on management issues for publications such as Professional Manager, CMI, HRM Today, Business Works and Technorati. I also cover social media for Social Media Today, DZone and Social Business News.

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