In today’s business landscape, the phrase “the only constant is change” has never been more true. In fact, constantly changing market and business dynamics have made it increasingly difficult for business leaders to drive consistent and successful strategy. And as the importance of HR in driving business success continues to grow, more HR professionals are turning to data to inform their decision making. In fact, Oracle’s recent Decision Dilemma report found that 94% of business leaders believe the right data and insights can help them make better HR decisions. But with the overwhelming amount of data available, it can be difficult for leaders to determine what data to trust, how to use it, or what will be the most helpful in supporting their business.
We know the role of data in decision making is critical, and an overwhelming 97% of business leaders report that they want help from data to make better, faster, and more successful decisions. And when it comes to people strategies, HR leaders can – and should – be using data to gain necessary insights into employee performance and engagement while identifying trends and patterns that could impact the overall success of the organization. This allows them to develop and implement strategies that are tailored to the unique needs of their workforce, leading to more effective talent management and improved business outcomes.
Business leaders know that without data their decisions would be less accurate (45%), less successful (29%), and more prone to error (41%). So, HR leaders must know how to leverage the right data in the most efficient ways to avoid becoming inundated. With the right HR metrics and insights, practitioners can use data to help identify retention risks, forecast talent needs, evaluate performance management strategies, and enhance the employee experience. Here are a few ways the right data can make a meaningful impact on HR:
Identifying and Addressing Retention Risk
On the heels of the Great Resignation, business leaders know that retaining top talent is a critical factor in driving business success. And amid that, identifying employees who are at risk of leaving is becoming increasingly challenging. But this offers a huge opportunity for data support. In fact, according to our study, 33% of business leaders believe that the right data and insights help them retain and engage employees. With the right data and insights, HR professionals can better identify and monitor things like retention risk, turnover rate, and employee engagement. In recognizing employees who are at risk of leaving, HR professionals can develop effective retention strategies, such as targeted training and development opportunities, or more personalized approaches to their development and support.
Predicting Future Talent Needs
Planning for future hiring and recruitment needs requires thoughtful and careful forecasting and nearly 30% of business leaders believe the right data and insights can help HR professionals decide who to hire. But, predicting the needs of these workers can be challenging, especially in a constantly evolving labor market with economic uncertainty. With the 360 ° view the right kind of data provides, HR professionals can forecast future talent needs by analyzing historical data and trends. Through predictive analytics, HR professionals can predict future hiring needs based on factors such as employee turnover, business growth, and retirement trends. Using this information, HR professionals can develop effective recruitment strategies to ensure the organization has the talent it needs to succeed.
Determining Effective Performance Management Strategies
Effective performance management is key to driving employee engagement and productivity. But evaluating the effectiveness of current strategies requires visibility that only the right data can provide. We found that 40% of business leaders believe the right data and insights can help them improve performance and efficiency across teams. This can be done in a variety of ways, such as assessing the effectiveness of current performance management strategies with HR metrics like employee feedback and performance reviews. By understanding which strategies are driving an impact and which are not, HR professionals can better identify areas for improvement and develop more effective strategies that drive engagement and productivity to move the needle on larger business goals.
Enhancing the Employee Experience
The importance of the employee experience cannot be underrated. Understanding employee needs and preferences is a necessity for business survival, meaning HR professionals need to develop initiatives that enhance the experience, drive engagement, and retain top talent. Data analytics can help HR professionals understand employee needs and preferences by analyzing HR metrics gathered from employee satisfaction surveys, engagement surveys, and exit interviews. HR professionals can then develop initiatives aligned with both employee preferences and business needs, whether it’s flexible work arrangements, personalized training and development opportunities, or improved employee benefits.
By incorporating data into decision-making processes, HR professionals can drive employee engagement, increase retention, improve productivity, and ultimately contribute to business success. HR professionals need to embrace data and explore the many ways in which analytics can revolutionize HR practices. The key is to be strategic and intentional in your use of data. With clear goals and a systematic approach, leaders can make the most of the data they have and can use it to make informed decisions. For HR leaders, this will ensure that their organization has the talent it needs to thrive in an increasingly competitive market.
As businesses continue to evolve and the workforce becomes more diverse, the importance of data-driven HR practices will only continue to grow.
Yvette Cameron, senior vice president of Oracle HCM, is a known HCM product leader, having grown her career in HCM over the past 25+ years with technology vendors SAP, Saba, PeopleSoft and JDEdwards. She spent the first 10 years of her career as an HR practitioner, informing her later roles with the practical perspective of an HR user and buyer. Oracle offers integrated suites of applications for HR, finance, supply chain and more, as well as secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle Fusion Cloud HCM, please visit us at https://www.oracle.com/human-capital-management/
Weekly news and industry insights delivered straight to your inbox.