It’s amazing to me how many HR pros are now so focused on data. Not that I am surprised, I have lived by data for the past 10 years, it is just that until recently the HR data discussion was reserved for really big companies. These companies were using SAP, Oracle, PeopleSoft or some other system to inform them about the thousands of global employees they were trying to keep track of. Small and medium sized businesses neither had the systems or the desire (my impression) to track data. Now it’s all anyone can talk about, regardless of the size of your organization.
Why is data so important?
Two relevant, personal examples immediately come to mind. The first was when I was working for an organization that was looking to double the size of the organization over a 2 year period. Let’s say that organization had 500 employees and a 20% annual turnover rate. To get to 750 after the first year they would need to hire 350 employees (250 new heads and 100 backfill heads for the 20% that left). In the second year to get to 1000 they would need to hire 400 employees (250 new heads and 150 backfill). If the organization can cut its turnover in half, it would need to backfill 125 fewer employees over the two year period. At an extremely conservative cost of $25K per turnover (made up number, well below the actual cost) the company would save $3.125Mil over the two years. That’s a huge number. That is exactly what happened.
The second example was when I was trying to convince the CFO and CEO of a company to invest more money into getting employee referrals. There is a lot of research and literature that suggests that employee referrals are the best source of hire, but they wanted their own data. After aggregating data from a couple of sources we found that given a set period of time (we looked at 24 months post hire) referred new hires were twice as likely to still be with the company than non-referred employees. That’s a pretty important piece of information to have!
So what’s the issue?
Personally, I have always loved data. I love looking at hiring data and analyzing the success of an interview process. I love deploying surveys, calculating the results, setting benchmarks, creating action plans and trying to get the numbers to move. I love correlating data and seeing how making an organizational change can make a significant impact on survey results and ultimately your people.
And I love dashboards more than anything.
As an HR person there is nothing like being able to log into a system and seeing at your fingertips: open roles, costs, candidates in the pipeline, new hires, employee satisfaction, attrition or anything else related to your people.
It’s really too bad this doesn’t exist.
Crazy as that may sound, all I hear about is the frustration HR folks have trying to get accurate data so that they can make critical decisions. For example, if you wanted to measure the efficacy of a group of hiring managers based on a couple of factors, let’s say: time to hire, performance of new hires, satisfaction of new hires and attrition, you would need to log into multiple systems (ATS, Performance Management, HRIS), pull the data and try to put it all together in some kind of spreadsheet. In all likelihood none of those systems is providing the data in a clear way that make is easy to pull that spreadsheet together. Definitely, none of those systems allows you to integrate or easily pull data into so that maybe you could have one system of record and create one report, but that is for a different post.
While some might point to Workday as exactly what I am describing, that might be true from a dashboard standpoint, but where is the data? Companies are not using Workday for all of their talent management needs (They don’t have an ATS yet). Workday is also incredibly expensive to implement and maintain so clearly it is not for everyone.
Bottom line is the HR market is wide open for a company that wants to be the system of record for anything and everything HR related, has clean, configurable dashboards (think Salesforce) and creates great reports. Looking forward to seeing that sometime soon!