What does ‘evidence-based’ HR mean in the banking sector?
When we talk to banking executives, one of the first challenges we often face is to define what is meant by ‘evidence-based HR’. How does it differ from traditional HR approaches? What exactly does it mean to be ‘evidence-based’ in the banking sector? Evidence-based HR uses data, analysis and research to understand the connection between people management practices and business outcomes such as profitability, customer satisfaction and quality.
What does evidence-based HR entail? As with any rapidly-emerging technology or business trend, there is still much to learn and understand about evidence-based HR. In its simplest form, evidence-based HR is about using the best available evidence to support people-related decision-making.
For some, this will mean applying some basic analytics approaches to their existing employee, performance and productivity data to uncover insights about the relationship between their people strategies and their business outcomes. For others, this may mean integrating new external data – such as academic research and social media – with their existing data and applying sophisticated analytics tools to reliably predict potential people-related challenges and opportunities.
Becoming more ‘evidence-based’ is not just about gathering more data and analyzing it. Equally important is the way that evidence is used by the HR function, how the decision-making process is designed and the strength of the capabilities within the organization to turn the evidence into practical action.
What is evidence-based HR? Evidence-based HR uses data, analysis and research to understand the connection between people management practices and business outcomes such as profitability, customer satisfaction and quality.