Don’t Dump the Data Out with the Dish Water
Gathering data for a variety of reasons is a big deal for business. In addition, not only are there a variety of areas a business needs to be collecting data in, but there are also a variety of types of analytics producing data such as predictive, descriptive, prescriptive, and causal analytics. Collecting any data can be time consuming and expensive. However, the answers and possible solutions data can bring are well worth the effort.
One area organizations should be collecting data in is Human Capital. While this is a new phenomenon for many, human capital analytics enjoys a long history. However, today there is a better cohesiveness and labeling around analytics. Further, there are new technologies and tools that help facilitate the gathering and interpretation of data as well as cost reduction. Yet, despite this, many organizations struggle with a few questions:
- Who should be on the analytics gathering team?
- How much should we budget for analytics?
- Which projects should we pursue?
- How should we use the data we collect?
- How can we sustain the practice of analytics?
Human Capital Analytics (HCA) is useful for measuring such items as:
Now analytics help predict such important information as the ROI of programs. For example, many CEOs see training as a tool – not a solution. Therefore, it is often the first item that CEOs cut during a turndown time. Another way data helps organizations make more profitable decisions is in the hiring process. Today there are any number of psychometric instruments that aid in this process. What’s that noise? Oh yes, the wails of spending time and money on your most valuable asset – people. It’s always amazing how organizations are willing to buy thousands of band aids that don’t work, but not willing to make a solid investment for now and the future.
Moreover, even organizations that do use assessments, only use them at hiring. The assessment then goes into the employee’s file never to see the light of day However, assessments can continue to enhance your investment by using that same assessment to help with employee development and other uses such as:
- Increasing profit margins
- Elevating customer satisfaction
- Enhancing efficiency
- Increasing productivity
- Helping create a more rewarding and fulfilling work environment
Analytics are important to business. HCA is a metric that organizations not only fail to implement but fail to use to their full potential. Don’t dump the data out with the dish water, use them to their full capacity to help make your human capital investment more successful while ensuring your organization's profitability.
Graphic credit: BigStock.com
Anonymous. (2012, December). Who said, “What gets measured, gets managed?” A Thinking Person, a.k.a Cogit8R
Coker, C.W. (2014). Profit Through Your People. Life Thrive Performance Systems Inc.
Fitz-enz, J. (2010). The New HR Analytics: Predicting the Economic Value of Your Company’s Human Capital Investments. New York: AMACOM
Phillips, J.J., & Phillips, P.P. (2017, April). Calculating Success: The State of Human Capital Analytics. Talent Economy