Craig Donaldson mentioned in one of his articles on InsiderHR that HR should be aware of three strategies, including: (1)HR strategy, (2)people strategy and (3)business strategy.
HR strategy includes company systems, policies and practices. While people strategy impresses what can we do to promote talents, what do we think about them in our organisation, or the capability strategy. Depend on each company or industry, business strategies are different, but HR needs to make sure that this kind of strategy should be aligned with the two strategies above.
After these strategies are defined, the next challenge is dealing with data we got and understand how these data affect HR and people strategy. Beside the data related to the people in the company, HR should pay attention to all customer info as well as their products.
But how to deal with these data? HR should have access to necessary data in the company to know where to put the data correctly.
Thanks to the development of big data and data analysis, more and more people without HR background can join HR team if they have knowledge in data analysis. They can see the link between data analysis and the performance of HR. Then based on the insights they achieve from data, HR strategies will be evaluated and adjusted if necessary to improve the HR performance. However, the data quality is very important as it is the first step in analyzing data. HR needs to be sure that their data is structured and reliable.
Analyzing what collaborators want, if they are satisfied with company performance, or any comments from the cooperation will help HR have good strategies related to which kind of talents they should focus on or which skills should be developed.
After that, HR needs to find out the relationship between HR strategies and the company business performance based on the historical data analysis. They should figure out how the HR strategies affect the accomplishment of business strategies to reach the goals that companies set up.
The source of these data can come from company internal resources or from social media like Facebook or LinkedIn.
Thanks to analytics, companies now can know if their employees intend to leave and when it happens, which sources to focus on to find the valuable talents, how to attract them or what can make them satisfied after they join the organisation. In the past, when data analysis did not exist, this kind of insights can not be produced as HR data was unused or wrongly used. Economist Intelligence Unit mentioned in their report that 82% of organisations intended to start using big data in HR or increase the amount of data to be exploited and analysed. This can lead to a trend called ‘intelligent HR’ or data-driven HR.
Despite the fact that more and more companies pay attention to data analysis for HR, HR officers still use mostly their time to solve admin and legal issues instead of analysing data to understand their people. Moreover, traditionally, HR is considered as people-oriented, they don’t pay much attention to data or numbers.
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