There are tons of benefits you can achieve from processing the data you get from your teams’ daily activities. The challenge is in finding the way to do that in the most productive way. This guide focuses on the types of data the HR dept collects, how to go smoothly through the process of collection and use the effects for the company's benefit.
Big Data has introduced a new way of doing business, based on large volumes of data mined for insights and guidance toward greater revenue and reduced costs. This goal can be achieved in HR also, not by replacing the empathy-based approach but by augmenting it with quantitative data.
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Rebuilding the HR using the data insights is the logical consequence of big data transformation in the company. It is all about using the owned and gathered data to optimize the workflows and spot new opportunities. According to Google data, highly data-driven organizations are 3X more likely to report significant improvement in decision making.
The pursuit of good decisions is also seen in HR departments, leading to a data-driven HR culture. Yet this remains a challenge - according to the PwC study, 39% of companies struggle to implement HR data analytics and mine for insights, with antiquated employee data software being one of the key reasons behind it.
The data-driven HR comes with multiple benefits rooted in traditional HR goals. The data-driven approach:
Apart from the benefits listed above, data-driven HR also reinforces the processes done in the human resources departments on a daily basis, including candidate sourcing, onboarding, or offboarding.
Yet the first step toward building the data-driven HR processes in the company is gathering a deep understanding of the employee data
Contrary to the data from the production or marketing departments, the data stored by the HR department comes in various forms and requires multiple levels of protection. Also, the company stores and processes it even if the level of making data-driven decisions is currently far beyond its reach.
The most common types of data that are seen probably in all organizations in the world are:
This type of data is the most basic level of information processed, and it is usually enforced by local legal frameworks to make employment legal. These compose of personal details, including the full name, address, and contact information. Also, the employee file needs to include:
The HR department also stores information about the employees' performance and how their relationship with the company changes over time. These include:
These data, when combined with production data, come as a powerful tool to get a comprehensive picture of the company's workforce's overall condition, especially when it comes to the mental and moral aspects.
The last type of data is about all the non-vital elements of employee life that can influence (sometimes dramatically) his or her work performance.
This type of information is rarely used in data-driven HR. Also, considering the form it takes, it is rarely actionable.
Some data, like the full name or contact information, is pretty obvious to be collected. Other types, like time logging or performance checks, can backfire when handled improperly. By that, the company needs to initiate the data collection in a proper way:
The employees shouldn't be surprised that the company is measuring their performance. Quite the opposite - the metrics and measures used to validate employee performance should be transparent and fully available.
The metrics and the measures mentioned above should be included in the publicly available company policy. By that, the employee may have comfort in everyday work and a feeling of security if the work is done properly.
The software used to process employee data and transform it into actionable insights needs to be as secure as possible. The records in the HR employee database include sensitive information that can be devastating if used by malicious actors.
Choosing a trusted software partner like Calamari comes as a good way to ensure the highest standards without compromising the ease of use and availability of the software.
Another way to ensure the security of stored information is to audit the security of the database on a regular basis. Regular auditing and stress tests are one of the benefits of using trusted partner software. It is basically not the company's headache to do so.
Last but not least, the employee data needs to be stored and processed according to the legal requirements. This comes as a challenge, especially for distributed and decentralized teams. To keep the compliance, the company needs to take into account:
Employee data can be rocket fuel for the company in the same way that production or marketing data is. The key difference is that the data in HR is about people and can reflect real-life dramas, joys, or challenges that shouldn't be simplified to mere numbers and indicators.
And that's why a skilled and empathic HR specialist is priceless.
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