In the constantly shifting landscape of the corporate world, data is sometimes praised as the industry’s “new currency.” This is especially true in the field of human resources (HR), where making decisions based on empirical evidence has emerged as an essential component of efficient workforce management. The implementation of Human Resource Management Systems, or HRMS, has made possible the collecting and examination of enormous volumes of data in the HR department. Despite this, many companies have not yet reached their full potential with regard to the use of bespoke reporting in HRMS analytics. In this article, we will investigate how custom reporting may be the key to unlocking the potential of HRMS analytics and personalizing it to the unique requirements of your company.
The Essence of Data-Driven HR
It is not enough to just collect data in order to have data-driven human resources; rather, it is necessary to match HR decisions, procedures, and strategies with data acquired from a variety of components of your organization’s personnel and business operations. This strategy involves much more than simply keeping track of a few measures; rather, it is making a continuous commitment to enhancing HR decision-making through the use of data.
Despite the fact that many companies are devoting significant resources to the development of big data and AI initiatives, a surprising percentage of them have not yet developed a data strategy that is clearly described. In spite of the fact that 91.9% of businesses are increasing their expenditure on big data and AI initiatives, just 30 percent of companies now have a solid data strategy in place, according to recent figures. This suggests that a significant number of firms do not have a well formed data strategy, which results in them missing out on important workforce trends and useful insights.
How therefore can you be certain that your HR operations are truly data-driven and that they are aligned with the strategic goals of your organization? The solution lies in making efficient use of HR technology in order to make full use of the potential of people analytics.
Barriers to Becoming Data-Driven
Tools for HR analytics and reporting that are powered by AI are easily available in the advanced technological world of today. They are hosted in the cloud, can be accessed from a variety of devices, and are user-friendly. As a result, sophisticated insights on employee engagement, retention, and performance are more accessible than they have ever been. Therefore, why aren’t they being utilized properly by such a large number of organizations?
It is not a lack of technological resources that is the major obstacle in the way of an organization becoming data-driven; rather, it is the cultural and social hurdles that frequently prove to be more significant. In point of fact, according to the results of one poll, CEOs believe that the most significant hurdle to becoming data-driven is cultural impediments rather than technological problems.
These cultural hurdles are caused by a number of variables, including the following:
- Data Ownership: In certain companies, data flows across departments or teams, which results in a lack of ownership and responsibility for the data. In situations when there is no one to take responsibility for the data, it frequently gets lost.
- Time Constraints: It is common for HR employees to be inundated with administrative responsibilities, leaving them with little time for data-driven, big-picture thinking.
- Data Literacy: There is a possibility that the HR team may not have the appropriate data literacy or training to make good use of analytics.
- Leadership Understanding: There is a possibility that not all of an organization’s leaders completely understand the importance of HR reports and workforce analytics.
The elimination of these cultural obstacles might be a difficult task. In addition, a significant portion of the data that businesses hold is unstructured, which makes it challenging to assess and utilize for the purpose of making decisions based on data. HR specialists are tasked with extracting meaningful information from the data and incorporating it into relevant reports.
Unlocking Data-Driven Strategies with HRIS
Fortunately, firms may overcome these hurdles and allow data-driven initiatives with the assistance of the appropriate HR Technology, such as a Human Resources Information System (HRIS). The following is how HRIS may make it possible:
1. Applying Data to Decision-Making
People analytics gives HR professionals and business executives the ability to make decisions that are not influenced by unconscious bias or a lack of evidence and are instead based on facts and data. A performance management and reward system can, for instance, benefit from the data-driven objectivity that HR reports can bring. They are able to properly quantify the productivity of employees, which enables HR and Payroll to guarantee that everyone is fairly compensated. HRIS makes performance evaluation and compensation alignment much easier by connecting employee information with timesheets, data from performance reviews, payroll and incentives systems, and performance review data.
2. Customized Reporting Dashboards
Convincing the top executives of the necessity of people analytics is one of the most critical challenges involved in transforming an organization into one that is data-driven. This divide may be closed with the use of individualized reporting dashboards that cater to the particular requirements of leadership teams. These dashboards are able to give executives with high-level HR data and information that is meaningful to them.
For instance, during the COVID-19 pandemic, firms like XCD utilized bespoke HR dashboards in order to give C-suite officials with key HR information relating to the effect of the pandemic. These studies enabled firms to make educated decisions and prepare efficiently during a period of upheaval by providing answers to the questions that executives were asking about the workforce.
The use of custom HR dashboards enables businesses to compile and show the data that is most relevant to their company, which in turn makes it easier for businesses to make decisions based on the data.
3. Predictive HR Analytics
Predictive analytics make use of the data that are now available in order to identify future talent requirements and skill shortages. HR experts are able to forecast times of high turnover and make appropriate preparations by evaluating data on employee turnover. For instance, if retention rates vary across multiple office locations, analytics may compare these rates to employee engagement levels, indicating trends that might guide strategic decisions.
Predictive analytics may also be used to forecast future skills shortages, which enables HR and business executives to build career development programs that provide employees the opportunity to learn critical skills before the gaps become apparent. Organizations are able to better match their Human Resources (HR) initiatives with larger business goals when they use data to drive recruiting, onboarding, learning, and development.
In today’s highly competitive company world, data-driven human resources are not a luxury but rather a need. HR analytics and individualized reporting are potent tools that, when used together, may help a business become more strategic, successful, and efficient. When using the appropriate HRIS, businesses are able to easily incorporate data into their deliberation and choice-making processes.
When integrated into HR operations, HR analytics and individualized reporting have the potential to transform HR from a simply administrative department into a strategic partner inside the firm. It brings HR into alignment with the aims and objectives of the company, which eventually leads to increased revenue and the creation of an organization that is more nimble and competitive.
Companies who recognize the value of data and actively incorporate HR analytics and customized reporting into their operations will be in a stronger position to prosper in the dynamic and ever-shifting business environment. It is time to take use of the full potential of HRMS analytics and modify it to meet the specific requirements of your firm if you want a future that is more data-driven and prosperous.