2013
What Does Big Data Mean for HR?
Everyone’s talking about Big Data these days. What does it all mean? What’s new about Big Data? And what are its main implications for people management and HR?
Big Data refers to huge batches of data, typically drawn from a wide variety of sources. In addition to more traditional (spreadsheet-like) data, Big Data can include machine data (e.g., from mechanical sensors, computer activity logs, satellites), transactional data (cash register purchases), and even “unstructured” data like that from social media (e.g., tweets, Facebook relationships).
In addition to the much greater volume of data that can now be stored and accessed, new software techniques make it possible to combine and analyze a much wider variety of data types, even including unstructured data. Further, Big Data files can be set up so they’re updated almost instantaneously, making real-time analyses of massive data flows a realistic possibility for the first time.
So what does this mean for HR? Well, from one perspective, many of the most notable Big Data advances – analysis of machine data or real-time social media trends – don’t seem as useful in the realm of people management as they do in fields such as retail ordering, supply chain management, risk analysis, etc.
But Big Data’s most fundamental insight – that data from a wide variety of sources can be combined to yield concrete steps for improving business results – is exactly where HR should be seeking to go as well. And it’s not necessary to have millions of data points or GPS trails or real-time transactions to benefit from this insight.
In fact, HR Analytics at its core is much more straightforward than much of what’s happening in Big Data. All you really need to get started is to map some reasonably decent data on the “people side” of your business (e.g., from an employee survey, 360 reviews, learning records) to information on key business outcomes (e.g., financial results across locations, turnover, or a variety of other strategic outcome measures that can even be captured through an employee survey).
So don’t be overwhelmed by all the talk of Big Data – the advances it’s enabling are exciting to watch, but the HR world is already well-positioned to take advantage of analytics. Now it’s time for more organizations to do just that!
2013
The Ostrich School of HR Management
As its name implies, the Ostrich School of HR Management is committed to running the people side of the business by relying heavily on a head-in-the-sand strategy. A few of the rationalizations from a leading member of the Ostrich School about why not to apply analytic scrutiny in the realm of HR (and no, we didn’t make this up):
1. In the HR function, we already know what’s going on. It’s just the executives who are demanding we provide them with metrics and analysis to know whether things are moving in the right direction or not.
2. Analysis would simply confirm what we already know and that we are doing the right things.
3. The analysis might point out the need for us to do some things differently – and we won’t be able to do that. So better not to do the analysis.
Folks – we all know we can do better than this.
There is both a necessity and an opportunity to use the tools of modern business to run the people side of your organization. This includes smarter surveys, predictive analytics, big data, and insightful reporting – all that stuff being ignored by members the Ostrich School (which, fortunately, doesn’t include everyone in the HR profession – just too high a percentage).
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2013
Webinar on employee surveys and big data
I’ll be joining forces with KnowledgeAdvisors for a terrific new webinar, “Employee Surveys and Big Data: Gaining Crucial Business Insights from Your Workforce,” on Thursday, April 11, 2013, at 11:00 am.
I’ll share what I’ve learned about using employee surveys and predictive analytics to understand employee culture and drive better business results.
Join us and come away with insight into getting started, best practices and pitfalls to avoid!
Register here: http://ow.ly/jkcRT
2013
5 HR Analytics Mistakes to Avoid
No matter what name you prefer – HR analytics, HC analytics, or talent analytics – more and more organizations are getting serious about applying analytics to the people side of the business.
Our work with clients over the past decade has taught us that analytics can be enormously powerful, but there are also many pitfalls to avoid along the path to becoming a more analytically-capable organization.
Here are some of the major missteps to avoid:
1. Using analytics to “prove the worth of HR” – this may well be a byproduct of your efforts, but it should never be its primary purpose. (If it is, you’ll lose your credibility.)
2. Assigning responsibilities for analytics to a lower-level technician. In order for the power of analytics to be realized, it must have executive-level support. Otherwise, it will degenerate just into another pile of reports.
3. Believing benchmarking is the same thing as analytics. For most people-related issues, the actionable insight you gain from analytics completely eliminates any need for generic one-size-fits-all benchmarking.
4. Confusing data dumps with actual insights. While the process of analytics can involve lots of data, the reporting of results should not. Reports should focus clearly on the major findings and implications, with supporting tables confined to an appendix. No one wants to wade through dozens (or hundreds) of data tables trying to figure out what they all mean.
5. Allowing the perfect to become the enemy of the good. We have not yet worked with a client whose data is perfect. But using the lack of perfection as an excuse for inaction ensures that your HR function will fall behind in analytics. And analytics is one of the most important developments the profession has seen in the past few decades.
(This post was sent this month via email to our monthly newsletter subscribers. Click here if you’d like to subscribe.)
2013
Center for Talent Reporting
If you’re not already aware of it, I’m excited to call to your attention the Talent Development Reporting Principles (TDRp), an important initiative to bring internal reporting standards to the human capital industry. This effort began two years ago as an industry-led, grass roots initiative led by industry thought leaders and practitioners. Significant progress has been made and hundreds of organizations, including consultants and vendors, are now adopting TDRp.
The nonprofit Center for Talent Reporting (CTR) was created in 2012 as a long-term home for TDRp. (McBassi is a founding sponsor and I’m a member of the board of directors.)
TDRp measures and reports have been developed for all key talent processes including:
Learning and Development
Leadership Development
Talent Acquisition
Performance Management
Capability Management
Total Rewards
Outcome, effectiveness, and efficiency measures are available for each process along with sample statements and reports suitable for program managers, department heads and senior leaders.
TDRp workshops have just been announced for 2013. Dave Vance and Peggy Parskey from the Center will conduct a hands-on, two-day workshop covering all elements of TDRp including assumptions, principles, types and definitions of measures, and creation and use of statements and reports. Dates and locations for the first three workshops include the following:
February 14-15, Denver, CO
March 26-27, Irvine, CA
April 29-30, Alexandria, VA
TDRp Certification for individual practitioners and software as well as TDRp Accreditation for adopting companies and consulting organizations will also begin in 2013.
More information about TDRp, the Center, workshops, and certification is available at the organization’s website or by contacting the executive director, Dave Vance.