Data-driven Practices are Fundamental for HR Strategy
Data-driven HR practices have become a top priority of organizations as they have started recognizing their benefits. More than90% of the Fortune 1000 companies are increasingly investing in data initiatives, and by the end of2023, the data analytics market is projected to be worth over$100 billion.
Research states that the leading companies in people analytics have clarified that data analytics are essential to their HR strategy. According to analytics, 74% of companies want to be data-driven, but only 29% can connect analytics to action.In his article published in Gallup, Nate Dvorak argues that one of the organization's most popular data types,Employee Net Promoter Score(eNPS), is also very shallow and not worth acting upon. It only shows something is going on and needs to clarify the how and the why, which poses more questions than providing a solution.
Why Is Data Important?
Data is considered as a critical asset for any organization. The rapidly growing importance of data has started to change the nature of competition in the business world. It allows organizations toanalyze trends, establish baselines, find benchmarks set performance goals, and find solutions for business problems.When it comes to data collection, HR practitioners need more skills and tech knowledge to gather data from multiple sources and generate strategic insights. While it is impossible to predict the future accurately, good data can lead to high employee engagement, increased performance,andretention. Here are some useful ideas that can help organizations collect actionable data points and make the most of them:
When it comes to business, employers need employees who are eager to play hard and win. On the other hand, employees look for companies that offer great workplace satisfaction with mental well-being and material benefits.Employee Promoter Score is a kind of temperature check that offers certain information about employee satisfaction, but it needs to provide meaningful insights for companies to take action.In the article mentioned above, Nate Dvorak proposed that organizations should pay more attention to"employee engagement." When employee engagement is higher, employees will feel motivated to come to work and naturally seek new creative ways to improve productivity at work. As a result, they are more likely to advocate for their company in front of others. Dvorak also mentioned specific workplace experiences that can make employees soar in engagement metrics:
- Employees are recognized and admired for their exceptional performance.
- Employees are offered regular opportunities to learn new skills and grow.
- Employees receive frequent feedback on their progress.
In the hybrid work model, it can be difficult for companies to keep track of the presence of employees in the office. Different employees have different work schedules, and other teams or even members of the same team can choose to come to the office on different days.Many employees tend to come to the office on the same days as their manager does to give them a positive impression, and managers might get the wrong impression about the employees who come in on other days and consider them less productive. The attendance data can help managers get a clear picture of which employees are following the hybrid guidelines, haveearly 'warning signs'when employees start to disengage, and make more informed and unbiased decisions regarding employees in the performance reviews.
Many employees go to the office to socialize with their colleagues and bosses, so creating a sense of belonging is one of the most critical factors in improving employee experience and retention. Companies can collect data and classify employees based on similar interests or backgrounds, and managers can use that information to create unique community-specific content and events.
Employees' Attitudes & Feelings
Companies from around the world have been using Pulse surveys to improve the course of their organization.Pulse Surveyis a fast and frequent survey system designed to track employees' attitudes and get quick insight into the company's health.Pulse surveys are conducted weekly or every few weeks and provide the most actionable data companies can act on. Using customized data sets, pulse surveys helped the organizations get insights to understand the employee's needs and feelings and provide them with the appropriate support with maximum impact.Adopting this kind of survey to collect data about employees' opinions about their workplace and overall experience can help companies better grasp the areas that need improvements.
Companies can collect all the data they want, but the primary goal is to know how to use it and take advantage of it. If you're going to change your organization for the best, you need to ask questions that managers can act upon. Tracking whether the organization is headed in the right direction and creating meaningful employee experiences that build brand advocates should be the ultimate goal of the all-data collections.
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