In an industry where analysts will pore over vast amounts of market data to gather crucial evidence for investment decisions, and trading desks and IT functions will move heaven and earth to utilize that analysis and trade a few milliseconds faster than competitors, it seems anachronistic that HR functions still rely upon certain accepted truths and minimally-researched “best practices” to manage thousands of people and billions of pounds of costs.
This is the crux of the issue facing HR in banking today. HR can hope that certain people decisions will result in favorable outcomes, or they can take the levers at their disposal (hiring, developing, rewarding staff) and use them to be right at the forefront of the fight to achieve competitive advantage. Ultimately, strong evidence is more likely to lead to strong decision-making. Trended strong evidence is more likely to lead to strong predictive decision-making and through this evidence the investments in each of these HR levers will be outcome-led, appropriately-targeted and likely to achieve strong returns. Wherever your HR function is on the data-analysis spectrum (see graph below), there are steps that can be taken to develop the sophistication of your delivery and, crucially, ensure that evidence is at the heart of your processes. The evidence for evidence-based HR is clear – for the 21st century HR professional you cannot afford to be a “data hater” – if you need confirmation it’s in your workforce information.
If you recognize your own circumstance within some of the examples and trends outlined here and are looking to take action, take the opportunity to contact KPMG. We are ready and able to assist in developing a strategic review of your individual needs and how the latest advances in Evidence-based HR practices and platforms can be applied to your individual circumstances to realize maximum beneficial impact.