As cloud HR systems become more ubiquitous, people analytics will be at the forefront of strategic business decisions.
“Driven by the widespread adoption of cloud HR systems, companies are investing heavily in programs to use data for all aspects of workforce planning, talent management, and operational improvement. People analytics, a discipline that started as a small technical group that analyzed engagement and retention, has now gone mainstream.” – Deloitte
The digital revolution is happening now. No matter what industry you’re in or what service you offer, your customers are overwhelmingly digital. They want to engage, buy and be heard quickly and conveniently on any device, anywhere. In HR’s case, your customers are employees—and employees increasingly demand an integrated, digital work experience.
HR is asked to not only go digital—onboarding, for instance, is no longer stacks of paper, but rather PDFs signed and stored in the cloud—but also to be digital with self-service benefits selection, mobile collaboration tools and online performance reviews.
Cloud computing has enabled the digital revolution.
While most HR departments use cloud HRIS, LMS and talent management systems, many are not taking advantage of the people analytics and AI tools that are now available.
It used to be that these tools just didn’t exist, but now they do—and in numbers. Deloitte cites HR-specific AI tools for everything from signalling payroll leakage and analyzing performance data for areas of improvement to assessing candidate honesty and personality through video interview software.
According to the 2017 Deloitte Global Human Capital Trends report, “Advanced people analytics programs increasingly rely on the intersection of data from HR, operations, and external sources. Organizations require a data strategy that encourages the integration and use of structured and unstructured data from internal and external sources.”
But,“only 8 percent of organizations report they have usable data.”
Companies don’t have usable data, because the data needed for useful people analytics is siloed in disparate apps and tools. Financial data lives in ERPs. Recruitment data lives in CRMs or candidate tracking software. Employee records are housed in HRIS, but employee performance reviews and satisfaction surveys are in totally different systems. Not to mention historical employee data living in flat files and data warehouses.
The siloed data creates a disjointed, unreliable view of employee value. Integrating systems enables HR to master the data that fuels people analytics.
HR can become people analytics experts by simply connecting their existing systems that house employee management data, like employee records, development details and benefits information, with financial management data, like compensation and resource planning.
HR is pivoting toward strategic human capital management. But HR departments don’t often have the data needed to make this kind of in-depth, value-based assessment. Download this eBook to understand how HR can become more strategic by connecting employee management and financial management systems.