Improving Employee Experience with a Solid Data Strategy
Employee Experience (EX) is moving from the sidelines to the core of business planning within companies, according to TI Peoples State of EX Study 2023/2024. However, there are also notable barriers leading to less than half of all companies managing their EX to the best of their abilities. The biggest issue being calculating the financial impact of EX efforts. With EX teams partnering least with finance, this is not surprising.
Overcoming Key Challenges and Aligning People Strategies with Financial Goals
Several factors make it hard for people-oriented teams to partner with finance departments:
1. The people vs numbers focus
2. The different terms used to describe each focus
3. HR/EX seeks to invest, while Finance seeks to save costs
4. EX takes time to show the ROI, while Finance would like to see faster results
5. Both HR and Finance handle sensitive data. If not regulated properly, allowing for meaningful data exchange, easily results in unbreakable silos, making it impossible to connect any EX measures to financial outcomes.
In my consulting experience I have seen many times that these differences often create tension rather than collaboration. And, with only 17% of EX teams collecting finance data to measure their work's impact, there is room for improvement.
Setting up a finance or people dashboard seems simple: identify stakeholders and gather requirements; turn requirements into a solution; and build a usable model. But once you have a basic HR or finance analytics tool, the next step is to add in data from the other department to see the full picture. This starts big debates about what data to use, where it is stored, how it is used, how safe it is, and who owns the data.
A big part of making EX more efficient and effective is setting up a solid system to measure impact. This needs both People and Finance data, and a robust data strategy is key to making this work. Without a good data strategy, EX can stumble upon difficulties like data ownership issues and internal politics that get in the way of measuring the real impact of employee-centered strategies.
A data strategy helps manage and use a company's data to meet business goals. It covers collecting, storing, sharing, and analyzing the data, then uses this to help improve how the business works. Since EX teams are usually part of HR, the relationship between HR and Finance is crucial when it comes to succeeding in EX areas.
How can you put together a data strategy?
1. Start with your company strategy: Think how data and analytics can support it. One of the main pillars has most probably something to do with your human capital. Which main KPIs should be tracked? Which data will be needed?
2. Data Governance and Architecture: Establish clear policies for data management, storage and access, and choose systems for integrating and presenting data.
3. Analytics Tools and Skills Development: Choose the appropriate data analytics tools based on your needs and invest in training or hiring data professionals.
4. Privacy and Security: Implement strong data privacy and security measures to protect the data and comply with regulations.
5. Cultivate a Data-Driven Culture: Encourage use of data for decision-making at all levels and continually review and adjust your data strategy as needed.
In conclusion, for businesses to really make their EX better, they need a detailed and balanced data strategy. By making data a big part of your strategy, encouraging different departments to work together, and setting clear processes, the path to improving EX becomes less challenging. A well-managed data strategy helps not just the EX but can also improve how the company works as a whole.
ABOUT THE AUTHOR
Natalia Gormann
With a background in empirical social research and performing arts, Natalia brings an unconventional perspective to the corporate landscape. As a consultant, currently with Deloitte, she works on financial and HR analytics projects. Her approach is characterized by a passion for connecting various disciplines and fostering collaboration and innovation. When not providing expert advice to her consulting clients, she sings in a rock band and trains for the next endurance run.
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