But the sheer volume of options generated by the various apps can often get in the way of meaningful insight. How, then, can leaders use metrics strategically, to deliver on both HR and wider business goals? How can metrics be used to engage the C-suite, and how can data-led insight help understand and positively impact business performance?
To really bring the power of its people to bear, HR needs to drive a change in attitude, where metrics contribute towards the view that people are an asset, as opposed to a resource. Part of the problem lies in the way that HR data is used. Many organisations simply haven't identified what aspects of their HR data actually matter.
Read more: Putting people on the analytics map
I’m not saying that those ‘resource-based’ metrics – such as cost to hire, time to hire, or diversity representation figures – aren’t important: they are. However, without a focused set of measurement objectives in place that sit above these, important messages and insight can get lost among the wider noise.
We can’t increase the collective value of our wonderful, human assets if we only measure quantity over quality, activity over productivity, or look at our lagging indicators more than our leading ones. In these circumstances, HR teams are going to struggle to understand whether their approach is working or not, let alone pass this insight on to others.
The devil’s in the data
For those looking to make effective use of their HR metrics, I need to first make the point: good data is clean data. We all need to ensure we’re putting rules and structures in place to keep the data clean over the long term.
Read more: Four ways to get people to care about HR data
Secondly, HR professionals need to work hard on core analytical skills, as well as data presentation and visualisation techniques. We need to invest the time in learning to understand what our data is saying, as well as how to manipulate it. We’re way beyond the bar chart now.
The most dynamic insights come from combining data from multiple sources. It comes from time-series analysis. It comes from dynamic, interactive tools, and it’s an unfortunate reality that not enough HR professionals are close enough to Excel, Power BI or similar tools to understand the art of the possible.
Looking at diverse participation in a workforce is nowhere near being able to visualise diverse representation for a range of community groups, across hiring, learning and development, access, pay and promotion, or exit factors. HR professionals who invest in their skills here can have a significant impact on what the C-suite sees, and the decisions it makes.
Not every HR professional needs to be a Power BI superuser. Dashboards can be built by specialist third parties or by HR people with a deeper interest in numbers. But we are a far cry from where we could be as a profession. Take up the challenge!
Read more: How HR can use data to persuade the C-suite to flex
At the heart of it is measuring what matters. Step back, look beyond the numbers, and take the time to reflect. Forget performance rating distributions; who is performing, and what do we know about how they are targeted, incentivised, and managed?
Ahead of our end-of-quarter employee engagement survey, who in our organisation is happy today, and why? What are we doing to spread that happiness?
Beyond reasons for leaving, who has been successful in growing their career in our organisation, and what enabled that? These are the kind of insights that can really inform leadership thinking, add valuable colour to discussions around organisational culture, and shape the success of a company. These questions are the genesis of the management objectives that really matter.
Read more: How can HR become more data-driven?
There is no magic bullet. Each organisation will have its own unique set of opportunities to more effectively align HR with other core business objectives.
But we can distinguish ourselves by thinking about the information we hold, and ensuring it’s complete, correct and current. We can invest in our own analytical skills. And we can embrace data-led insight for the benefit of better, more successful companies, more effective teams, and happier humans.
By Lindsay Gallard, chief people officer at Six Degrees
