Moving Beyond “Data Rich, Knowledge Poor” in Human Resources
Bring workforce intelligence into sharper focus with advanced analytics
- you could predict who was going to resign from your organisation and why… months before they tendered their resignation. Would it change the game on how you manage and retain your high performers?
- you could triage CVs and score them on the fly as to who has the highest probability of being a high performer, allowing you to deploy your limited recruiting assets to the highest return on investment. Would it change the perception of your recruiting organisation from a reactive to a proactive organisation?
- you could manage your workforce costs on a daily/weekly basis and run different scenarios as the marketplace changes around you. And once you set a plan, monitor pay periods against key workforce performance and business value metrics. Would it change the conversation in the boardroom?
Senior executives are, in essence, flying blind today when it comes to one of the largest expense items in the P&L – the workforce – and the many related corporate resources that support it.
In many companies, virtually every other area of the enterprise has been wired to “business intelligence” software and dashboards that help executives make critical operational decisions about cash flow, manufacturing, supply chain, and financial reporting. But there is often a giant blind spot when it comes to the workforce. How much more effectively could executives manage the major assets of the business if they had visibility, at a very granular level, into workforce trends, performance, and needs?
A key challenge that forward-thinking executives face as they try to elevate HR’s strategic value to the enterprise is this: although a wealth of workforce-related data resides in ERP systems, HR “point solutions,” and other repositories, businesses often don’t adequately consider what to measure in order to link workforce activities to broader business strategies, problems, and opportunities. The result is a gaping divide between petabytes of possibly relevant data and the business issues to which it might be applied.
Deloitte believes a way to bridge this gap – and to make a gigantic leap forward in overall strategic planning – is to adopt a top-down approach to “workforce intelligence.” Such an approach can help you focus first on identifying specific business issues and then use advanced analytics to convert workforce data and other inputs into actionable business information.
This approach can equip executives with a whole new dimension of decision-making power – a capability that addresses many of last century’s lingering human capital challenges with 21st century speed, adaptability, and focus on shareholder value.