Data and analytics are the next two big things in HR, but do you really know how to implement your findings in meaningful ways? When we spoke with people analytics thought leader Lisa Donchak of the Wharton School, she explained, “Even 15-20 years ago, there were very few institutions rigorously collecting this data about anything, much less about their employees or who they might want to hire.” Now, within the last year, Deloitte found 56% more companies are correlating people data to business performance and 50% more are using people data to predict business performance. Still, HR analytics is relatively new and often undervalued segment.
What’s the big deal about data analytics?
Data analytics has become a hugely valuable field supporting more informed business decisions, from operations to marketing. Finally, it is power has extended to HR. When Dr. Michael Moon applied analytics within a process methodology, she improved the first-year new hire retention rate by 40% for corporate positions.
It was the first time that I used data for something practical. That really was the eye-opener for me. It was very exciting for me to conduct interviews and surveys, analyze the data, and do a root cause analysis of what was going on, and then to be able to make suggestions as a result.
What data tells us about recognition?
For an instance within talent management and company culture, employee recognition suffers from a lack of hard evidence in comparison to areas like recruitment and training. But just because employee recognition is less concrete doesn’t mean it’s any less than being valuable to an organization’s success and bottom line.
Studies show that recognition can increase:
- Engagement by 60%
- Productivity and Performance by 14%
- Conscientiousness, Collaboration, and Creativity
How to use data analytics for effective employee recognition?
In addition any organization can be benefit from HR analytics. The following 10 recommendations will help you enrich your business decisions with people data.
- Open for learning.
- Collect data which is relevant.
- Clean data to maximize output.
- Sharpen technical skills in HR.
- Budget creatively.
- Try a tool.
- Bring together diverse skills.
- Focus on business.
- Remember the people in people analytics.
- Communicate the value.