• Jeff Doolittle

Changing the HR Game with Data Analytics

The advances in technology within the workplace are revolutionizing Human Resources (HR) and creating many exciting new opportunities. Technology is collecting massive amounts of data with the potential to create a competitive advantage. As the world changes, people and businesses must change too. There is a growing need to focus on using analytics within human resources (HR) to hire top talent and achieve diversity, equity, and inclusion (DE&I). CEOs and boards recognize they need to have the right people with the right skills in the right jobs to gain a competitive advantage and are championing these changes. Data analytics is changing the HR game and improving organizational talent decision making.

"It is logical to expect that the better we manage our talent, the better an organization will be at achieving its mission" (Mayo, 2018).

Changing the Game

Leading HR organizations are using descriptive, predictive, and prescriptive people analytics. Unfortunately, many organizations have inequities in their hiring and compensation processes. HR is using analytics to understand pay-equity attributes such as tenure, location, experiences, and skills so organizations can make better compensation decisions. Additionally, studies support that when HR applies people analytics to identify low and high performers' skills and attributes, leaders tend to make unbiased decisions in talent acquisition processes.

Blockchain is a disruptive technology trend with promising new opportunities for HR functions. The secure decentralized network verification created through blockchain simplifies hiring, performance management, and total rewards. For example, blockchain is being used to:

  • verify applicants' backgrounds in the hiring process

  • streamline verification of external credentials for performance management

  • simplify international compensation in local currencies eliminating the use of a go-between

  • improve workforce competency through learning and development.

In the constrained resource reality within Human Resources departments, the apparent benefits of improved efficiency and reduced costs attract many leaders to consider the use of technology for automation. However, before investing in automation, HR leaders need to consider if perceived or real diminished service levels will offset the value of automation for employees, key stakeholders, and customers. Sometimes in the excitement of looking ahead to future possibilities associated with innovation, it is easy to underestimate and forget to consider the full range of potential reactions. In Olaf's words from the movie Frozen, advancing technology can be both our savior and our doom without proper change management.

Cultural Considerations