Imagine if you could link specific HR activities to business objectives. You could identify and learn from many insightful data points and analysis. Examples of opportunities for data driven analysis could include:
Clearly, there is much that evidence-based HR can offer banking organizations.
If people are a bank’s greatest assets – and we firmly believe that they are – then banks stand to gain significant value from applying more rigorous evidence-based HR approaches within their organizations.
Already, businesses of all shapes and sizes are finding that, by applying evidence-based HR, they are improving their understanding of their organizations and helping their businesses to achieve their objectives. And, as can be seen from the diagram below, the application and results of evidence- based HR are having an impact across all sectors and all parts of the employee lifecycle.
Ultimately, the benefits and value of evidence-based HR depend largely on the ability of the HR organization to align their strategies to the business’ wider objectives. As Jonathan Ferrar at IBM noted in a recent KPMG International report, “Evidence-based analysis is not just about determining how well people are performing. It can also calculate how the performance of the people links to the consumer brand, establishing and measuring that link between employee, customer and revenue.”
According to our survey, HR departments at banks are fairly good at demonstrating their ability to help advance the organization’s strategic goals. Where they are facing greater challenges is in demonstrating real correlations between their people management initiatives and the achievement of specific business outcomes.
When the Royal Bank of Canada (RBC) wanted to improve performance, they polled employees in hundreds of retail branches to discover their views about the company’s level of competitiveness in the marketplace and measure their belief in what they were offering to customers. When the results of this survey were placed alongside commercial data, the effect was striking.
“We discovered a major connection between the degree to which employees believed in our competitiveness and in our value proposition, and the performance of the relevant retail branch,” says Per Scott, Vice President of Human Resources for the company. “The more they believed in the company, the better the branch performed. Based on this clear evidence, we could then make appropriate interventions. We realized that we had to do more to convey our client value proposition to employees – what we can provide to our clients, what our key differentiators are.”