What does it mean to have a data-driven organizational culture?
For decades, HR has lived by the saying, “start with the gut” — trusting our instincts when it comes to hiring conclusions, recruiting, choosing perks and benefits, and even completing employee assessments. But today, technology brings us something far more dependable on which to rely: Big data.
Data-driven HR is here, and the moment to adopt it is today. National companies that have data-driven HR methods, or “people analytics” exhibit 4 times the revenue growth which supports adding headcount and investing in technology and other aspects to grow business.
But what information should you consult, and how will you use it to make the greatest hiring and culture decisions?
While you may be accustomed to using past data, big information’s biggest force is in predictive reasoning and future casting. Big data will help you decide where your business is headed and how to avoid problems before they begin.
Encompassing all the important components of HR including recruitment, employee involvement, performance management, welfare and education, Data-Driven HR studies these ways data will bring to organisational success by, among other things, optimizing processes, driving performance and improving HR decision making.
Understand Employee Engagement. Do your employees embrace the company culture or do they find it redundant? What values do they prioritize?
Attract and Retain Quality Talent. One of the most important roles of a great company culture is to onboard and keep high-performing people that match your values.
Drive Performance. Reporting and analysis ensures your data transforms from just words and numbers into tangible results for your bottom line.
Predictive Analytics. Data-driven cultures can identify employee populations at risk of increased attrition, decreased performance, and predicts changes to other key performance indicators before they occur.
HR teams can take the above information to create better HR decisions, better understand and assess job outcomes, make better decisions in people-related issues, make HR processes and operations more efficient and effective, and improve the overall well-being and strength of the organization’s employees. All of this will have a large effect on the company’s ability to accomplish its strategic objectives, and this is what makes HR information so important.
The 9 key areas of culture to measure are:
•Vision & Strategic Direction
•Organizational Values
•Leadership & Management
•Teamwork
•Engagement
•Learning & Development
•Innovation
•Customer Focus
Social Impact
Traditionally seen as the purely people work unconcerned with numbers, HR is now uniquely positioned to be a measured, valuable player in factors driving the success of a company. Data-Driven HR is the useful handbook which enables HR professionals to provide invaluable insights for company growth.
Annette White-Klososky is a sought-after consultant and executive coach in all facets of organizational culture and leadership development. She is the host of the leaderspotlight podcast.
