Several experts have agreed that in recent years, the entire activity of gleaning meaningful insights from HR analytics has gone haywire. As more and more organizations and their HR teams try to overanalyze limited data, draw too many reports, and follow the footsteps of technology companies in their analytics program, some HR leaders are waking up to the fact that the ROI of such cluttered analytics initiatives have the potential to do more harm than good.
What would be the right approach to creating an HR analytics program that works?
Ideally, they would:
Analyze the Cost Effectiveness and Performance Effectiveness in detail, and draw a roadmap with time schedules accordingly.
Ensure that they are at least trying to strike an optimum balance between the activities to be outsourced and those to be carried out in-house.
Get their predictive analytics models vetted by external experts/consultants, while maintaining an adequate range of flexibility in their reporting structures.
Continue monitoring the most important metrics in the analytics initiative by maintaining close collaboration with IT at a managerial level.
These steps will ensure that the transformation is easy and efficient. Data analytics has the potential to impact every facet of the HR function, from the smallest employee query redressal to the macro-organizational work culture improvement program. However, striking the right balance is key for HR leaders today.