Organisations rate themselves poorly when using HR data to predict workforce performance and improvement.
According to a Deloitte survey, while 78 percent of companies rated HR and talent analytics as important, 45 percent rated themselves “not ready” when assessing their readiness in HR analytics.
Despite the powerful improvements analytics can deliver, most companies have yet to convert these capabilities into action. While 14 percent of companies now have some form of analytics capabilities.
Right now, 86 percent of companies report no analytics capability in the HR function, compared to 81 percent of companies that utilise analytics in finance, 77 percent in operations, 58 percent in sales, and 56 percent in marketing.
Companies that successfully leverage analytics and big data will be positioned to outperform their peers in executing their talent strategies.
Eugene Burke explores the challenge organisations face in understanding leadership and value creation, and the role of HR analytics in measuring the potential of the workforce.
Google, for example, use their people measures to analyse their recruitment processes and success – using people data they have established that after the fourth interview; Facebook use people measures to understand the factors that affect high-performer retention; and BP use analytics to evaluate the effectiveness of their training programmes.
Eugene Burke explores how people data is now being used to change how leaders drive value creation in their organisation, and how increased amounts of data will play an influential role in describing the organisation to its many stakeholders.
He urges for a greater understanding of people data in value creation.