Harnessing Big Data with HR Technology
The prominence of big data’s role in business has been growing steadily over the last few years. Today, it has reached every area of business, creating even a new name for data-driven companies — the “quantified organization.”
And HR has been no exception. In fact, the concept of people data has created a huge buzz, expanding ideas of what HR thought was possible with solving issues such as employee engagement, recruitment, retention, and more. But with all the scraping and storing of scores and scores of data, companies have run into a new conundrum — putting that data into action.
However, 2016 has seen new hope for the application of big data in HR. Deloitte University Press recently reported that the percentage of companies that feel ready or somewhat ready to use this data in people analytics jumped from 24 percent to 32 percent this year — one-third greater than last year.
Why all the hype? Sierra-Cedar reported in its “2014–2015 HR Systems Survey Results” that organizations with an environment of data-driven decisions have a 79 percent higher return on equity than non-quantified organizations. So it’s no wonder that businesses are beginning to look for the tools and methods that will best put their invaluable stores of data to work.
The Role of HR Technology
Despite all the interest, the problem of implementing a strategy for big data remains. As organizations go about solving this problem, they will invariably look to HR technology to help produce, store, analyze, and even form predictive models with their big data. But the sheer amount of information means that HR leaders will need the right software and systems to be able to make sense of it all. Add to that the chance for error, and it’s clear that while big data has amazing potential, the ability of organizations to partner with the right HR technology will prove its worth.
In search of answers about this evolving relationship, we interviewed top HR thought leaders — Stacey Harris, Steve Boese, Robin Schooling, and others — to discuss the power of HR technology in the new quantified organization. The conversation focused on three questions:
- What does the datafication of HR mean to HR leaders today?
- How has the role of HR technology changed to meet the demands of the quantified organization?
- What area of HR technology is most likely to have the most immediate and measurable impact on, or in, the quantified organization?
From implementing wearable technology to accurately evaluating human behavior to addressing the need for HR to maximize available tools to their full potential, these experts provide thought-provoking discussion on the complexity and promise of HR technology and big data.
A Clear Direction and the Right Tools
As organizations move forward with their big data strategy, it’s necessary to have a specific HR goal they want to accomplish. And to accomplish these goals, HR needs the right tools to analyze this data. Without clear direction or the right tools, HR will be missing an incredible opportunity to leverage big data and HR technology.
Datafication of HR is meaningless unless companies know their challenges; only then can they find the information they need to solve them. And this doesn’t necessarily mean more information, but the right information. When companies consider HCM solutions — including our automated HR case management solution, LBi HR HelpDesk — it’s crucial that they consider whether a solution can give them the analytic power they need in one package.
Most important, HR must remember that data and technology alone will not have the immediate and measurable impact on the quantified organization that company executives desire. HR must first focus on building better projects for big data and then equip themselves with the right tools to correlate and map it to their business goals. HR technology and big data have the potential to change the game forever, but it’s essential to devise a winning game plan first.
Hear from the experts by reading our Lightpaper® “The Power of HR Technology in the Quantified Organization” and learn more about how you can get your company on the right track toward strategic, datafied HR that makes a positive difference for your employees and bottom line.