1) HR has traditionally been process-driven and backward-looking rather than strategic, but new opportunities exist to use predictive analytics and big data to better understand things like why employees stay or leave. 2) While HR systems have historically collected one-dimensional, historical data that is difficult to analyze, new sources of rich data allow HR to do forward-looking predictive analysis to demonstrate how talent management impacts business results. 3) For HR to maintain relevance, professionals must develop analytical skills to leverage growing sources of data and ensure decisions are driven by data rather than intuition alone.

1. | |October 2015
1CIOReview
OCTOBER 28 2015 CIOREVIEW.COM
HR TECHNOLOGY SPECIAL
Lever:
Pathfinders in
the Gen-Next
Hiring Process
Dave Copps,
Founder & CEO
IN MY OPINION
Paula S. Larson, EVP and
CHRO, Newell Rubbermaid
CIO INSIGHTS
Michael Gabbei, CIO,
Celedon Group
T h e N a v i g a t o r f o r E n t e r p r i s e S o l u t i o n s
| |October 2015
17CIOReview
CHRO INSIGHTS
By Pamela Harding, CHRO & Director-Corporate Operations, Next Dimension Media
B
ig Data. Internet of Things. Driverless
cars. Who would have thought about any
of these things just five years ago? We are
in the midst of a technological
revolution that gathers
more momentum every
day. We are collecting data
from multiple sources at an
amazing rate.
HR faces a big question: Is
it going to drown in data or ride
the wave?
Twenty years ago, HR was
only just starting to be recognized
as a profession. It moved from
an administrative task to personnel
management before–at least in some
cases–taking on a high level
‘business partner’ role.
Spurred by legislative
action and regulations, HR has
long been the focal point
for compliance
with labor rules and
requirements. This
meant it was
transactional
and process
driven. While
this became
HR’s comfort
zone, this role
is backward
looking and
far from strategic
in nature. Simply
performing processes
efficiently contributes little to
business success.
When it comes to using analytics, most finance,
sales, and marketing professionals are leaps and bounds ahead
of HR. This may be because HR related analytics are more
challenging to gather and analyze. But HR professionals need
to rise to the challenge, because analytics are set to transform
HR. No longer will “gut feel” be acceptable. Decisions must be
driven by data.
Withtheintroductionoffull-blownHRInformationSystems,
one might presume HR has been using data anyway. But the
information in these systems tends to be one-dimensional with a
historical slant. There have frequently been challenges with the
integrity of the data, requiring continuous ‘clean-up’ efforts to
keep it up to date.
| |October 2015
18CIOReview
Because this looks mostly at
historical data, it’s like looking
in a rear-view mirror to try to
see what is on the road ahead;
a recipe for disaster! There
are too many variables to
make this an effective strategic
approach. With so much rich
data available, HR has an
opportunity to move from the
interpretation of historical data to
forward-looking what/if predictive analysis.
That is the only way that HR can demonstrate talent management
and other strategic HR activities can contribute to the bottom line;
instead of being considered only as an overhead cost.
However, predictive analytics does not negate the importance
of gathering historical data; in fact, that is one of the first steps
in predictive analysis. By evaluating past information, over
time, there emerges a reasonable forecast of the cause and effect
nature of data analysis. And it’s not a one time or regularly
scheduled task–there must be constant review and validation of
the subsequent data to determine other actions that will increase
performance or otherwise provide economic benefits to the
organization.
The most logical area to use predictive analytics is talent
management. Instead of just reciting turnover rates, analytics
provide the opportunity to dig deeper to understand the “why”
of turnover. For example, evaluating the workforce to determine
indicators of why some employees stay while others leave. This
involves a lot more than just looking at statistical data; gender,
age, education, etc. Predictive analysis gives a much richer
picture. Imagine knowing why type of personality is more likely
to perform successfully and stay. Are they creative or organized
in their approach to work? Does previous experience contribute
to longevity?
Another factor is the social aspect of HR analytics. We are in
the very infancy of this, but talent acquisition is in of itself a social
process. Social learning and collaboration takes networking into
a new dimension, as set out in a fascinating recent White Paper,
‘Vertical Networks: An ecosystem for every profession?’
Social data collection through vertical networks will provide
a treasure trove of information. Many companies are leery of
social media. But if HR is quick to seize the opportunity, it can
use social media to its advantage and move into the fast stream of
the information revolution.
It is imperative for HR to understand business goals to be able
to contribute to them. Using and leveraging HR analytics is the
only way HR can maintain an equal footing with others in the
business who are already skilled at utilizing data. Tremendous
amounts of data are becoming available. HR needs to know how
to use it. However, all too often, HR lacks the analytical skills to
know how to interpret the data.
There has been an important shift in the availability of
resources to assist HR in managing HR analytics. Those who are
skilled in data analysis and interpretation are actively seeking to
work in HR analytics as this is an emerging area that intrigues
them to use their expertise in a new way. With the technical
advances in data reporting and dashboard presentations it’s
getting easier to succinctly and effectively present hypotheses and
strategic recommendations.
This is not to say that HR personnel need to be transformed
into data scientists, but it is clear they need to understand and
utilize the basic principles. Attending a single training course will
not be satisfactory; an ongoing commitment is required because
of the rapid changes in data collection and evaluation. Forward-
looking HR personnel need to network, train themselves, attend
conferences and take every opportunity to enhance their analytical
skills.
So why is HR so far behind in utilizing analytics? Many think
it is due to the tendency of HR to rely on surveys, past experience
and intuition. Others point to the lack of resources available to
gather and interpret HR data in a predictive analysis fashion.
Finally, HR continues to have the albatross of transactional
and operational activities thrown their way; how can they even
consider adding something as complex as HR analytics to their
already burgeoning workload?
Regardless of the reason, HR simply does not have a choice.
Economics, technology, and the success of using analytics in other
functions such as sales, marketing and operations demands the
logical expectation of making HR decisions based on predictive
data analysis. And HR is critical to this as it is much more than
just reporting on results; HR are the ones to put the results into
context.
Today’s HR strategists have a great opportunity to truly get a
“seat at the table” by being able to provide data driven initiatives
that contribute to the bottom line. It is not just important that HR
professionals train themselves in analytical skills: It’s critical!
Using and leveraging HR
analytics is the only way
HR can maintain an equal
footing with others in the
business that are already
skilled at utilizing data
Pamela Harding