Using data to its full advantage can be an ethical minefield for HR, according to Toby Culshaw, global head of talent intelligence at Philips.
Speaking at Expedite’s ‘Using talent intelligence to drive strategy’ event, Culshaw pointed to the analogy that data is the new oil to explain how it is both “valuable” and “dirty”.
“You’ve probably heard the phrase ‘data is the new oil’ and that it’s the world’s most valuable resource," he said. "There’s another quote – that data is like oil because it’s ‘dirty, polluted, misunderstood and pulled from all the wrong places'. Just as we’ve seen with oil, if you don’t use data correctly you could end up with a lot of accidents. The thing we need to really be aware of in HR is the ethical implications of data. Who should be using it?”
Culshaw explained that data can be used to make unethical people decisions: "If Google monitors people who go to the gym they might find a correlation between the gym and high performers. Should they then force people to go to the gym as a result?”
Despite these concerns, data does have the advantage of being relatively cheap and accessible, Culshaw continued.
“I’m not convinced that data is the new oil, which is expensive and labour intensive. Data is becoming ever cheaper to mine, refine and publish. Once you’ve got the right tools in place you can keep going and going,” he said. “There is a huge amount of data out there, the key is to get your head around it all.”
He went on to offer advice around where to start when using data and the pitfalls to avoid. “Look for the pain points; the weak parts of your business. This is a good place to start and will lead to quick wins. These might be obvious, but you need to look further at the root cause. Keep asking yourself: what is causing the problem?” he said.
“Sometimes if you’re too close to something it can be difficult to understand the context. One of the most powerful things you can do is take a step back. If you become too obsessed with certain areas you can miss something important. It’s also important to understand that data and statistics do not give you the full context. It can give you suggestions, but not the answer.”
Like many organisations, Culshaw said, Philips has undergone dramatic change moving “from a hardware company to a digital software company”.
“There are micro challenges too. The labour market is tighter than ever and managers must work towards having to look for skills they haven’t had to look for before. All of the headlines around digital talent shortages have happened within a very short space of time, and this isn’t just happening in the UK, it’s happening all over the globe,” he said.
This means HR must be using data to help navigate this change, Culshaw added: “Without data you are just another person with an opinion. Everyone has just as much right to an opinion as you. You might have a lot of experience but you need proof."
