People Analytics + Action = Growth. Do the maths.
As technology continues to evolve at a rapid pace, businesses are now able to very effectively leverage data to inform their people management practices. By collecting and analysing meaningful and timely data, leadership teams are set to gain valuable insights into their workforce to support their strategic decision making and drive growth.
The use of technology in HR has become increasingly prevalent in recent years, with many companies adopting SaaS solutions to streamline processes and improve efficiency. However, the true value of technology lies in its ability to collect and analyse data to inform decision-making. By using analytics tools, trends and patterns within the workforce can be leveraged to improve the effectiveness of recruitment, retention, and development activities.
One of the key benefits of using technology in people management is the ability to track employee performance in real-time. By collecting and using data on performance, leaders are better enabled to identify areas for improvement, and provide targeted feedback and coaching in the flow of work. This alone can increase engagement and productivity, and ultimately drive bottom line growth.
Predictive analytics go a step further. By analysing data on employee behaviour and performance, leaders can identify patterns and predict future outcomes. For example, predictive analytics can be used to identify which employees are most likely to leave the company, enabling the company to take proactive steps to retain them. However, this should be used as a part of the picture, and not solely relied on to drive person-specific interventions. In this example, "stay" interviews or conversations could be started with holders of a particular job title, however a more natural and effective response could be to develop a habit of 1-to-1s and supportive conversations across the company to better create a more rounded view of engagement.
People analytics can also be used to improve recruitment practices, and can be especially useful in tight markets. Reviewing data on past recruitment campaigns provides insights into which sources are most effective for attracting top talent. In my experience, this is a fundamental action to take in recruitment, as it would be in any sales process. By optimising recruitment strategies, companies can save time and resources, target the right candidates, build a healthy pipeline, and truly compete in the market.
Data has been used in the area of L&D for some time, and there's no reason this should stop evolving or be left behind at the expense of other initiatives. Development is non-negotiable for any business looking to be competitive: there's no room for those who fall behind. By using skills matrices to analyse gaps within the workforce against current and future needs and target areas for growth, companies can source and provide targeted training programs to improve employee skills and knowledge. Again, this can help to improve employee engagement and retention, as well as drive business success by ensuring that the workforce has the skills needed to give the organisation a competitive edge.
It is extremely important to note that technology should not be relied upon exclusively when it comes to people management. While data and analytics can provide valuable insights, it's important to balance this with human intuition, judgment, and leadership expertise. Senior teams should use data as a tool to inform decision-making, but should also take into account the unique needs and perspectives of their people.
In addition, it's important to ensure that the use of technology in people management is ethical and transparent. Any company should be transparent with employees and other workers about the data that is being collected and how it will be used, ensuring that this collection and use is compliant with local privacy laws, such as GDPR.
In conclusion, leveraging technology and data to make informed people management decisions can be a significant driver in business success.
By collecting and analysing relevant and accurate people data, leadership teams can gain valuable insights to enable their success.