In the world of business, all eyes are on data. In the last two years, 92% of Fortune 1,000 companies have begun or continued to invest in big data, with this currently being one of the leading places of worldwide investment. Due to this, more money than ever is pouring into the data industry, with this funding allowing for even more deployments to be discovered. Big data is currently predicted to reach a valuation of over $75 billion by 2023, with no signs of slowing down yet.
When discussing data-driven business practices, most companies focus on marketing or sales techniques, using data to inform how they structure advertisements or word copy. While these are valuable opportunities, one area that’s often overlooked is the effectiveness of data-driven human resources.
HR is commonly known as a very human-orientated field; it’s even in the job role title itself. However, the level of person-to-person contact that HR requires also leads to subjectivity, with many decisions being made from an emotional or reactive standpoint instead of due to any solid reason.
Organizations are finally recognizing that the ability to hire, retain and mobilize top talent is the key to success. Thus, they are turning to their Chief Human Resources Officer (CHRO) for guidance to chart their course forward. This has become more relevant in the ‘new normal, post-pandemic world where companies are still iterating to find out what works for them.
Chief Human Resources Officers (CHROs) Are enjoying the moment: CHROs are key members of the management team. They lead critical elements for a brand’s success, such as succession planning, talent management, and company culture. But the COVID-19 pandemic has been instrumental in elevating the role of CHROs in organizations.
The CHRO of the new normal now enjoys the power and influence to drive change in an organization and make a meaningful impact, especially in areas that may not have been prioritized earlier.
Analytics is a GPS that navigates the story of HR, its current state, and the roadmap to the future. The maturity of analytics is reshaping HR from being historical, annual, and hindsight-based to becoming predictive, persistent, and foresight-driven.
After spending years of efforts in consolidating workforce data, CHROs are now shifting and enjoying ready access to a wealth of information. This data is being used to generate reports more efficiently and at a faster pace. But that’s just scratching the surface.
HR analytics needs accurate and comprehensive internal and external data to be effective. Internal data refers to information from the HR department, such as records and metrics connected to employee compensation and performance appraisals. External data consists of information from other departments or outside the organization, such as financial data, economic trends, or job-market research. There are many different HR analytics software and tools. While analytics is a topic frequently invoked in endless discussions of how to get more value from all this historical data, CHROs are now taking stern measures to unearth the truth of what analytics can really deliver.