This article by the folks at Hay Group argues that the next frontier for HR is harnessing “big data” to drive engagement with employees and improve talent management – the holy grail of many HR teams. The author suggests there is a stark contrast between the massive explosion of data and real-time analytics in fields like marketing and retail with the halting, uneven progress in HR. For many HR teams, the promise of big data is still more potential than reality – notably in the area of talent development and succession planning.

This assessment is in line with what I’ve seen over years of working closely with HR teams in a wide range of organizations. Despite the emergence of powerful tools and technology – and access to related data on employees and their performance – too many HR departments are still struggling with rudimentary challenges like creating clean, dynamic staff directories and are barely scratching the surface of data collection and analysis. Though in theory HR departments know a great deal about their employees, I haven’t seen (or heard of) many teams that are consistently collecting and analyzing data and using their insights to direct their policies and programs. (To be fair, the one area that seems to be evolving for the better is online performance management. ) In fact, it’s not rare for me to encounter HR teams still using written records or forms for many of their HR transactions – which obviously limits their ability to quickly collect, update and review the information.

Here are a few examples where big data – used to its full potential – could dramatically improve engagement and results beyond talent management:

  • Virtually all leading organizations conduct some sort of engagement or culture survey. Many of these surveys, however, remain superficial (often formulaic) annual surveys more useful for benchmarking than driving real change – including responsive program and policy adjustments – across the organization. Often these surveys are outsourced and the information is reviewed once to develop the final report, and never seen or used again. With all the enterprise social media platforms and real-time analytic tools available, would it not make sense to implement a more sustained, detailed and actionable research program with employees? At minimum, companies should track the content of internal conversations (on the intranet, blogs or other discussion platforms) with the same level of sophistication and follow-up as they do with external platforms. Listening should not be a one-time annual event, but a full-time contact sport.
  • Though some companies have mastered the art of knowledge management and make it easy for their teams to identify and contact peers for collaboration, others still struggle with relatively simple profile information that would allow employees across all levels to search for peers with specific skills, expertise or experience. Having this data readily available would also help leaders develop ad-hoc project teams and make informed staff assignments.
  • While consumers are repeatedly probed for their opinions and preferences on topics like communication and marketing, employees are not consistently asked about company communications. Though some companies conduct robust, actionable internal audits designed to assess the effectiveness of their communication efforts, many rely on piece-meal efforts that are often event-driven, sporadic and informal (qualitative.) Others don’t take full advantage of the built-in tracking devices on their intranets or corporate email tools, which can provide a rolling update on key metrics like traffic, page views and comments. This is a relatively easy fix that can help to make corporate communications much more relevant, resonant and impactful.
  • Though it’s not employee data per se, harnessing the ideas and collective wisdom of an internal audience can be a major driver of innovation and engagement. Companies like Dell and RBC use an internal crowd-sourcing platform to solicit and rank employee ideas on a range of topics, and incorporate the best suggestions in their operations and planning. Several vendors provide user-friendly platforms that do most of the work behind the scenes and allow users to focus on the ideas and the outcomes.

Much like IT’s reluctant acceptance of social media and new technology, I fear HR’s slow adoption of data collection and analytics will decrease its relevance and credibility in the coming years. The result will be the exact opposite of what the HR teams seek; prospective employees raised on social media, ubiquitous communication and all-digital content are unlikely to be impressed if the very team responsible for managing talent and fostering a dynamic culture is so clearly out of sync with social and technology trends.

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