Are You Using Data to Drive Your HR Strategy?

2014 is shaping up to be a year that will disrupt the way traditional HR functions operate. As technology, social media and data continue to become interwoven into the fabric of the workplace, HR must start to think and act like business functions by using data and insights to drive their strategy.

Business accountingNot that long ago, thought leaders called upon companies to treat HR as a strategic partner alongside the CEO, CFO, CIO, etc. to bring insights to human capital within the organization. HR, like business functions will need to rely on data, trending and analysis to assess and shape new initiatives.  Over the last few years, business functions (marketing, sales, legal, communications, products, operations, compliance; just to name a few) have expanded their data sources to include social media insights, internet analytics, search and traffic patterns. That coupled with “listening” to what people are saying about the company on social platforms provides key information on developing and/or tweaking strategies. This data is also extremely useful for HR to gage satisfaction, employee insights and dissatisfaction.

You may wonder how HR can use data for strategy when most of the data is based on operational transactions. To that I say, follow the lead of the business. HR can use a combination of operational, internet and social media metrics to analyze recruitment volume, sourcing effectiveness, candidate experience, retention and brand impact.

Here are a few ideas on how you can put data to work to help build your strategy:

1.      Recruitment (Talent Sourcing)- Building your workforce  is critical to achieving the organizations’ goals

a. Measures:  Source of Application, Source of Hire, Cost of Sourcing Channels

 Data Source: RMS/ATS

Strategy:  What channels have proven to be most effective for hires? Are there any shifts or trends that are emerging quarter over quarter or year over year? Invest your sourcing dollars wisely. Analyze data over time so you can see what sources are yielding and providing good ROI.  Your data will guide you to make sound, informed decisions.

 Cost per paid channel

 b. Measure:  Recruiter capacity

 Data Source: RMS/ATS

Strategy:  Do you have enough people to execute the work?  Analyze recruiter capacity against volume and complexity. Be prepared to dig deeper to speak to efficiency of work. Recruiter capacity impacts both service levels and the quality of output they can provide in a realistic time frame.

2.       Talent Sourcing Interactions- impacts brand and consumer opinions about the organization

a. Measure: Candidate experience

Data Sources: Glassdoor, Indeed, Facebook, Twitter, etc.

Strategy: As social recruitment becomes more dominant, candidate experience is playing a more critical role impacting attraction. Like it or not candidates’ feedback about their employers are becoming more prevalent and visible online, whether the employer has a social media presence or not. It’s important to understand and assess chatter as more candidates rely on authentic feedback to make employment and product decisions about the organization. Organizations that embrace feedback and make improvements not only impact talent sourcing, but may also impact bottom line sales.

 6-british-entertainment-retailer-hmv-lost-complete-control-of-its-social-media-team-when-rogue-members-used-the-account-to-childishly-live-tweet-a-massive-firing-at-the-company

b. Measure: Manager experience, Recruiter Performance

 Data Source: Survey

 Strategy: How do businesses know if their products or services add value? Feedback about the service and its value is critical to fostering good working relations to achieve the organizations goals.  Use manager feedback to fine tune your service offering. Identify areas for improvement and acknowledge and reward great service.

 

3.       Talent Management – retention is critical to building and sustaining human capital in the organization

a. Measure: Retention

Data Sources: ERP, Performance Tools, Exit Interviews, LinkedIn

Strategy:  Why are employees leaving your organization? Where are they going?  Are certain departments or job functions prone to lower retention than others? Analyzing data will provide insight on which companies are attracting your talent and what jobs they are moving into. Social media has made it easy to get that information. Channels like LinkedIn can run talent analytics on employee changes (coming and going) to help you understand your competition.

 talent flows

b.      Measure: Employee experience

Data Sources: Glassdoor, Indeed, Facebook, Twitter, etc; Engagement Survey, Internal Crowdsourcing

Strategy: The ability to solicit feedback from employees has never been easier for HR Functions. With internal and external social media and collaboration tools available it’s quick and simple to get a sense of what’s working and what isn’t. Canned annual engagement surveys may feel like a corporate exercise rather than an employee centric forum to voice opinions or ideas.  Happy and engaged employees are more likely to stay and move within your organization than those who feel they have no voice.


I hope these few examples get you excited about the possibilities that are are at your fingertips.  Be cognizant that your metrics should be meaningful and actionable. Use your data to drive strategy, not file in your metrics folder!

I would love to hear about some metrics your company has used to help drive your strategy. Comment on my post or send me a tweet @annzaliebarrett

Advertisements

The Evolution of Human Capital Metrics

Last week I was privileged enough to moderate a roundtable of HR professionals at the first Indeed.com international conference. Our topic of conversation centered on big data, HR Metrics and ROI. The participants represented a variety of industries including insurance, banking, retail, IT and professional services.

indeed full logoThe group talked about how talent strategy and recruitment has been shifting over the last couple of years due to technology innovation, mobile, social media and Millenials entering the workforce. With so much activity happening electronically the amount of data available to be captured, deciphered and analyzed can be astounding, not to mention overwhelming. Some of the participants said they had a hard time figuring out where to start. As the roundtable continued we also talked about the shift from relying on RMS data to using data warehouses and/or HRMS’ which integrate data from a variety of different sources. The focus on using big data to help articulate ROI in the form of human capital metrics was still an area all our companies continue to work through. As I reflect on our conversations I realized that human capital metrics also needs to evolve to include new skills such as engagement and collaboration to reflect the modern workforce.

Let’s start with collaboration. Not a new skill, but usually used to assess project management and ITbanner-about related roles. Newer generations such as Millennials rely on collaboration and crowd sourcing techniques to complete work and build relationships. As reliance on virtual interaction and engagement play a greater role in attraction and retention, collaboration is fast becoming an essential skill for all jobs across organizations, especially leadership and management roles. Let’s look at two human capital metrics that can evolve to give credit to this skill.

  • Quality of hire– measures the calibre of external new talent determined by early performance indicators with the organization.  Collaboration is gaining more industry acceptance as criteria for performance. In a recent blog post the CEB updated their definition of quality of hire to incorporate collaboration. The new definition now reads; a new hire’s current and likely future effectiveness at completing his or her individual tasks, and contributing to others’ performance and using others’ contributions to improve his or her own performance[1]. The updated definition pays homage to collaboration as an important contributor to both measuring-employee-performaindividual and organizational performance.
  • Ready Now Candidates– Measures the number of potential successors that can be developed for managerial and leadership positions[2].  With an almost even distribution of Baby Boomers, Gen X’ers and Millennials in the workforce, engagement and collaboration are two important skills that people managers need to bring to the table in the modern workplace. Organizations should build in measures to gage how effective Managers are at collaborating below, across and above their positions. This can be done as part of an employee, manager and peer review. Managers with higher rating on collaboration can not only manoeuver within the organization, but may have a higher effectiveness in leading and managing teams.

 Engagement is a current measure in the human capital vernacular. Most organizations typically send out their engagement survey once a year to gauge how connected employees are. The outcome should be to develop an action plan to address areas where engagement is low. Through blogs, social networking channels and crowd sourcing websites (e.g. Indeed, LinkedIn groups, Glassdoor, etc.) digital dialogue, or what I call engagement; is also becoming a more relevant indicator of employee retention, performance and the employee value proposition.  

 Consider that from a talent sourcing perspective, more candidates want to have a relationship with a potential employer before they make a decision on whether that employer is a good fit for them. I equate it to dating; you have to go on a few dates before you know if you’re ready to make a commitment. Let’s take a look at how two human capital metrics can evolve to include social engagement.

  • Employee Engagement Index– Measures employees’ engagement in their work. Turnover may occur if employees feel disconnected between the organization’s employment offer and their own needs. Employees on-going interactions and communications will continue to shape their opinion of the organization influencing retention and commitment[3].  Organizations are challenged to find new and different ways to continuously engage with their employees to learn about, assess and identify areas for improvement. Social platform and collaboration tools for feedback and ideas with interaction can have a positive influence on the employee’s perception of the organization, impacting both commitment and retention. Organizations that only rely on annual surveys and/or do not engage in dialogue with employees risk employees, engagement_surveyusing other public avenues to share information and voice opinions about the company.
  • Employee Net Promoter Score– Measures the difference between the number of employees who are “promoters” (recommend organization as an employer) and number of employees who are “detractors” (would not recommend the organization as an employer)[4].   Through crowdsourcing and social networking there is a broader forum for both detractors and promoters to make their opinions viral. Through outlets like Glassdoor and ratemyemployer.com, anonymous reviews can provide rich insight into an organizations work culture to potential job seekers. Organizations should be using technology to regularly engage employees earlier in the employee life cycle to pulse check their perceptions.

Talent sourcing has typically been the topic of attention on how social media and technology are workforce planninginfluencing recruitment approaches. It has higher visibility because it’s a front line operational function that can measure results. Talent management also needs to embrace changes and recognize that newer generations bring different skills to the table. Using static measures that don’t incorporate or recognize these new skills can impact performance management, succession planning and retention. Employees will continue to assess their employment offer promise and evaluate how closely it aligns with reality.

By taking collaboration and engagement into consideration, how would it impact the way you view your talent pools?

By Ann Barrett, Director eRecruitment & Social Media Strategy


[1] CEB Corporate Leadership Council, “The Metrics Standard” (2013):

[2] Ibid

[3] Ibid

[4] ibid

How Does Big Data Impact You?

Big data has become a big topic in the industry. It’s transforming business strategies by providing companies with key information in the areas of talent, social media, mobile, brand, engagement, products, consumer preferences, etc. So what exactly is big data and how does it impact you?

big_data2Wikipedia defines big data as a collection of sets so large and complex that it becomes difficult to process using on-hand database management tools or traditional data processing applications1. Basically, as more people start to use technology to facilitate transactions more digital data is being collected and stored. At its core, mobile devices, the internet and social media capture multiple terabytes of information. Consider by 2015, the world’s mobile worker population will reach 1.3 billion people2. That’s one out of every six people on the planet will use a mobile device to conduct work. With all of this volume traditional data warehouses can no longer store all of the data being collected. eCommerce companies such as AdKu have created a niche market, offering their services to collect data analyse it, correlate it and highlight both positive and negative trends. This provides a goldmine of rich data. Historical data can be analyzed and used to forecast potential trends and consumer preferences which can be built into business strategic plans.

You are also impacted by big data. Accessing information via technology leaves a digital footprint of demographics, preferences, number of visits, number of shares, etc; which shapes the way products and services are being developed, marketed and delivered to you.

Here are three examples of how big data impacts you:

  • Tailored Digital MarketingYou may notice on your Facebook news feeds you are now presented suggested_postwith “suggested posts” better known as ads.  These posts are not random, but based on big data analysis that serves up targeted, relevant suggestions based on historical trends such as pages you’ve visited, pages you like, search results, etc. Almost all social platforms have an analytics component build into them. Whether you’re on Facebook, Pinterest, LinkedIn and of course Google, companies can use this data to better to understand who their audience is and what content is resonating with them. This subtle, yet effective marketing technique has transformed the way businesses reach potential customers. By looking at historical data and analyzing trends, companies can predict products you may be interested in. Instead of casting a wide net, big data provides the opportunity to cast a smaller, highly relevant net. The end result is higher sales.
  • Volume Discounts– The concept of discounted prices for consumer items on-line is not new. If you’ve ever used hotels.com or hotwire.com to book a hotel, you will know these companies buy rooms strategyin bulk and allow consumers to purchase them at discounted rates. This model has now evolved where groups of consumers can buy a variety of discounted products on online through digital coupons, or Groupons. The consumer will only get the deal if a number of other people also buy the coupon. To help reach the minimum, Groupon encourages sharing the deal with friends on social networks like Facebook and Twitter. Digital coupons provide the opportunity to collect information and begin to analyze consumer supply and demand trends on a per month, week, day, and even hourly basis[3]. To understand these trends Groupon acquired Adku, an eCommerce company specializing in big data. Analysis on this data means more relevant deals are served up to consumers increasing user adoption and sales. As coupons are shared, more consumer data can be collected and analyzed.
  • Your Career-. Many companies are moving to more sophisticated human resources management systems (HRMS) as a one stop shop to assess talent within the organization. Newer systems are geared to “manage” talent, shifting away from pure transaction processing.open big data Companies can collect and store data pertaining to work experiences, projects, goals, deliverables, performance ratings, work history, job levels, age, gender, accreditations, etc. Many systems also integrate social media accounts such as LinkedIn, Facebook and Twitter. Add to that other system integrations such as applicant tracking systems, payroll systems, background checks, on boarding, etc; and the amount of data that can be analyzed collectively is exponential. This big data provides a wealth of information to companies seeking to understand talent pools, succession planning, retention, etc. at macro and micro levels. Companies can also use data to better understand how overarching enterprise objectives are being imbedded and delivered down the chain. This provides a holistic view of an employee over time and may serve to predict which individuals are top talent.

So your contribution and interaction with big data is inevitable. Next time you see a tailored ad remember big data predicted it!

By Ann Barrett, Director, eRecruitment & Social Media Strategy

[1] Wikipedia.com
[2] IDC, Worldwide Mobile Worker Population 2011-2015 Forecast, Doc#232073, Dec 2011
[3] http://steinvox.com/blog/groupon-big-data-play-winning-startups-focus/#ixzz2VpVJ9lwl