HR leaders in the last few years have started relying more on evidence-based decision making rather than relying only on their experiences and gut feelings. It is quite evident that HR is getting more serious about data analytics for the first time. The interoperability of HR as a function has increased over time while seeking to measure the impact of strategies, programs, and interventions being planned and implemented. Whether through leadership training or D&I interventions or any other strategic interventions; all the initiatives require a measurement strategy to track the returns on investments. In short, all of them must provide the right value to the organization. Value can be measured only when there is a strong connection between data sources and data-driven decisions.

The 2017 Deloitte Human Capital Trends report states that 85% of HR leaders in Asia and 81% in Oceania see analytics as a high priority agenda in their organizations. As per a recent LinkedIn Survey, there has been a 70% increase in specialized analytics professionals in HR in the last five years. These include professionals who focus solely on analytics in HR and may have a variety of job titles, like ‘Talent Analytics Manager’, ‘Diversity Analytics Specialist’ and ‘Data Scientist.  This clearly shows that several companies have already started to establish analytics teams via various sources.

However, the maturity level varies when it comes to embracing the adoption journey of HR analytics. And this can range from a simple reporting framework to complicated predictive analytics structure. Hence, before setting up the HR analytics voyage three of the most pertinent questions that HR leaders must ask themselves are:

• How and where do we begin?

• Do we need an HR analytics function, or can we outsource it?

• If we need to begin with a small team, what skills are needed first?

HR leaders need to take the necessary steps to find out the answers to the above three crucial questions before taking the plunge directly into setting up a new team of data scientists within the  HR function.

Set the purpose first

The key to success lies in outlining the purpose behind undertaking an initiative. Identify all the stakeholders and collect all the information pertaining to important metrics that drive the organization. Find out how to align your purpose to the business goals, your needs, and your organizational aims. Develop a vision that incorporates the core elements of workforce analytics by adapting the vision to fit the business.

Inculcate the change in approach

The ‘data-first approach’ is a struggle evident in the HR function. From talent acquisition to performance, from workforce planning and policies to employee engagement and retention; all these areas lack data-driven design thinking approach. Hence, the complexity to change becomes a challenge. Changing the mindset towards a data-first approach helps in finally building a data-driven organization that functions within an analytics space. Such strategies need to be driven from the top wherein positive actions were taken towards making a change are rewarded and appreciated. If this approach is not inculcated, outsourcing HR analytics for trial run is a better proposition so that its success later can help in driving the change that’s needed in the culture.

Data and analytics literacy building

When it comes to analytics, HR is not traditionally a mature arena as a mere 30% of HR professionals in the APAC region have analytics-related skills. The penetration of these skills is seen to increase with seniority in the HR function.  Hence, before starting with the new journey, there needs to be a conscious effort to help the HR function understand its real relevance for them. f a small team needs to be created, the vision should be to make analytics available in a digestible format that is easy to access. The data should be easily available for reference and use by general HR professionals. The need to drive data literacy programs and training to up-skill HR staff must become an organizational priority through both offline and online platforms.

To sum up, take charge and educate the team and businesses on how analytics in HR can bring in exceptional rewards for the organization. The insights generated from billions of interactions of data can enable today’s HR leaders to answer the most complex questions raised by any senior business leader. This ammunition enables the HR function to marry their instincts with insights from data analytics to make the right decisions.