Since the pandemic to our current state of concerns on economic growth, the fires HR are called to put out have become more taxing and intricate. They need everything in their toolbelt to help them be a service to the employees and provide real value to business leaders. Applying data to the many pain points, HR professionals face in today's work environment gives them an edge over their competitors and delivers better results.

HR Data is Solving the Biggest Pain Points

The best way to solve any pain point is to look at the data. Data can deliver business value to many of the challenges companies face in today's tight labour market and make the daily lives of CHROs, HRBPs and business leaders easier. And this is a populous opinion among Human resources professionals. According to our 2021 People Analytics Trends report, almost 90% of CHROs concluded that data and analytics are essential, so much so that many leading companies are investing more in people analytics, with a 61% growth from last year.

1. The Great Resignation and Employee Retention

The great resignation became the wake-up point for employees and employers alike. Employee concerns are paramount as many have expressed that they wanted more from their jobs than just a paycheck. They desired more work/life balance, employee benefits, flexibility, and greater avenues for career progression. Many employees realised there were potentially better options that compliment their personal circumstances, and they did not have to be satisfied with the status quo.

Since employees have the power to leave, the average tenure for employees has dropped to under three years. This puts a significant burden on the HR department to invest more time into a costly hiring process and training effort. So, for companies, the competition to retain talent is more competitive than ever.

By collecting data from various sources such as stay and exit interviews and pulse surveys, CHROs and business leaders can provide insight into why employees are leaving or staying with a company to address or enhance those issues. Also, touching base with employees one-on-one and tracking those findings within the employee life cycle can assist in creating a company culture that people want to remain at. 

2. Poor Employee Experience at the Organisation

EX has become a growing focus with employers as they realise their employees' assets and the significant influence their hired talent has over the company's competitiveness in a competitive labour market. It has been found that positive EX and employee relations improve employee engagement and improves productivity. Understanding that EX is an employee's overall experience and is built on their perspective has been a challenge and one major concern in managing a constructive EX.

Creating surveys that measure employees' feelings about everything from how easy their jobs are to their dealings with managers provides CHROs, HRBPs and business leaders insight into what is working and what needs improvements. Just be weary about some of the myths about using employee surveys to improve EX. By collecting the data from employee listening and actively responding to the concerns brought up by employees, this pain point can be managed successfully and can encourage employees to see their company differently.

3. Difficulties Managing Remote Staff

Once employers learned that having a remote staff was possible but profitable and desired by their employees, it became a reality. But there are many challenges to having staff spread out across many locations or the world. There are issues with communication, team collaboration and employee engagement that can put additional stress on the HR team.

Data can give CHRO, HRBPs and business leaders insight into how their remote employees are faring in productivity, employee engagement and employee wellbeing. Data collected from polls and pulse surveys can inform the HR department of what practices work for remote staff and elements that need attention.

4. Challenges Identifying Employee Skills

The nature of work and skills has seen a considerable change due to the pandemic and the growth of remote work staff. Because of the shift, many jobs have become obsolete, and many new jobs and career paths are forming. Due to these changes, there is a significant labour shortage. Many employees do not have the skills needed, or their skills will soon be inapplicable and are in growing urgency of updating.

Data analytics can assist with the barriers that stand in the way of building critical skills with employees. By first researching the trends in the business industry, business leaders and HRBPs can strategically create workforce planning that addresses current and future needs. Skills and jobs can be evaluated and matched through data, and systems can be put into places such as AI learning or talent marketplace to train individuals with specific talents. This not only assists the company with productivity but will also keep employees more engaged, promoting a more robust human resource management landscape.

5. Obstacles to Increasing Diversity and Inclusion Through the HR Department

Awareness of the lack of diversity and inclusion in organisations became more prominent during the social unrest in recent years. Organisations have learned that it is not only right to give voice and opportunities to everyone in the company, but diversity and inclusion provide businesses with the benefits of attracting top talent, being more innovative and having a competitive edge over their competition. As a result, HR plays a significant role in creating a diverse and inclusive organisation.

But though it was common knowledge that many groups were underrepresented at companies and had fewer growth opportunities, it was not addressed as it should be. There is pushback from efforts or lack of concern. By collecting the proper data, HRBPs can bring this information to stakeholders and show from stats and evidence why a diversity program needs to be a top priority and the means to accomplish that goal.

How to Become a More Data-Driven Human Resources department

As is clear with any element of business, without the facts and stats in front of the right person, decisions are, at best, like throwing a hook into a stream and hoping to catch a fish. And yes, you see the fish and your goal. And yes, at times, a fish will bite the hook. But there must be planning based on data to have tangible results. So, to provide business value, HR departments need to focus on data and become data-driven.

To develop a data-driven Human Resource team, the HR professional must understand how to utilise data fully. To make use of the information, they not only need to see and comprehend what happened in the past but can act on it in a manner that improves the company's overall bottom line. To do this, there are three skills to develop.

Analytical Thinking 

Analytical thinking allows the HR professionals to see things as they are, see how the company would like things to be and deduce ways of accomplishing the goals with an effective HR strategy. Analytical thinking is also a crucial element to having effective data-focused conversations with the business.

Data Analysis 

Data analysis means that the HRBP can interpret the collected HR data and statistics and make reasonable conclusions from what they see. By analysing the data effectively, they can make educated conclusions that support or refute their hypothesis.

Workforce Planning 

Workforce planning is the ability to act on the information gathered and analysed and implement it to benefit the company's current and future goals. With benefits utilised through workforce planning, the HRBP can save and make the company money by deciphering what type of employees a business needs, the skills needed from those employees and how many they may need at any particular time.

Key Takeaway

The biggest concern for HR professionals is the worry that the longer they struggle to solve the largest pain points in people management, the more likely they could succumb to burnout themselves. But by incorporating data into creating strategic solutions to the many HR challenges, CHROs, HRBPs, and People Analytics teams can improve business, enhance their daily lives, and avoid the potential of HR burnout.

Learn From the Collective Power of Over One Hundred Peer Organisations!

Our Insight222 People Analytics Program® develops the knowledge and capabilities of people analytics leaders and their teams. It is the only networking and learning program in the world, dedicated to people analytics leaders and delivered by ex-practitioners. Through a variety of learning and networking solutions, Insight222® enables people analytics leaders and their functions to deliver greater value and improve their impact.