Evidence-based HR capitalizes on utilizing new technologies to access data from many sources and on employing new analytical techniques to develop predictive insights that will enhance an organization’s ability to manage their workforce assets and ultimately better deliver their key business strategies.
Early adopters are already achieving these benefits – using evidence to show connections between HR and business KPIs and opening doors into new processes and new people strategies that impact the bottom line of the organization. The following examples are cited in the 2015 KPMG report, Evidence-based HR: Thebridge between your people and delivering business strategy:
Just as importantly, the organization will have to change how it relates to HR. This means reconfiguring operating models so that HR and management can work together in ways that promote the generation and consumption of evidence tosupport strategic decisions about their people and broader business strategy.
By using an evidence-based approach, HR has an opportunity to transform its role within the organization, gaining profile and influence as a strategic business partner. Survey respondents point to a variety of ways that an evidence-based approach will help HR teams deliver more sophisticated, practical and fact-based insights and solutions that can result in real competitive advantage. But before these benefits can be realized, most organizations will need to increase their investments in the technologies and skills needed to successfully execute an evidence-based strategy.
Develop a clear understanding of workforce analytics and strategic potential to address specific skills shortages and talent management challenges and needs.
Ensure HR management understands, can clearly articulate and “sell” to executive management the full potential for workforce analytics to increase HR’s strategic value-add and ultimately play a greater role in helping the organization achieve its strategic goals.
Accelerate both HR’s adoption of workforce analytics capabilities, as well as, its efforts to educate business units and leadership on its potential. Work with business units to tailor its use to their needs, and convince them HR has the credentials to utilize it Develop a sound business and investment plan, supported by executives, to acquire the required HR skills and technical resources to exploit workforce analytics.
Investments in technology are urgently needed to address serious shortcomings that will impede the adoption of the evidence-based HR model. Respondents indicated that current systems are unable to connect people data with business data (55 percent), data and analytic capabilities are weak (53 percent), and different HR systems and modules lack integration (44 percent).
Focusing investment on acquiring the skills needed to harness and interpret the insights generated from the data and relating those insights to the organizations strategy is imperative. This means going beyond tracking basic HR metrics and truly accessing the different data sources (including data from business operations) that when analyzed can deliver predictive insights about how to optimize the organization’s human capital.
According to the survey, the top three most important skills HR personnel and organizations must possess to enable evidence-based people management are: