I’m Now in Charge of What?!?
While some companies have opted to build a separate team for workforce analytics, others have selected an existing HR executive to add this function to their team. The most popular choices are to add HR analytics to the recruitment function, HRIS or to survey teams containing Org Psychologists. So, if you suddenly find yourself in charge of building your company’s analytics capabilities but haven’t “dipped your toe” into the analytical pond yet, the following paragraphs aim to provide you with some advice before you do.
Having spoken with a variety of companies over the past 6 months about their HR analytics journey, I have seen a large range of challenges. Some companies have had to take a step back and re-evaluate their data systems because they have never needed to collect certain information before and they now find themselves in need of this to move forward. Others have a variety of data systems and are experiencing the frustration of merging data sets and assessing whether the data is reliable.
If you are an HR leader and find yourself in charge of this journey, it is important to take a break from the day-to-day operations of HR in order to determine your biggest pain points. What is it worth to the business to fix them? What will it cost to fix them? How will it change your company for the better? The answers to these questions will provide guidance on which ones to address first and which ones you’ll just have to live with for now.
Have you inventoried your data systems in order to document the information available to address the issues on your priority list? Who uses the information? What level of confidence do they have in the data? Can you actually extract the data into a usable format without a lot of manual manipulation? The answers to these and other questions will allow you to determine whether your existing systems will serve you well, whether you need some modifications to the system or whether you need to consider a larger investment to add or replace a system.
If your data systems are in order, it’s time to revisit your list of prioritized issues. Do your internal HR people have the skills required to analyze and interpret the information? Some people can crunch numbers sufficiently, but when it comes to determining what the numbers are trying to tell you, that’s a much rarer skill.
What is the timeframe in which you need to see results? This is when it is beneficial to gather the key stakeholders together to determine the details of a project scope and to ensure that everyone sees the value in moving forward. You will likely need their support along the way so it’s best to have “everyone on the same page” right from the start.
Next, it is recommended that you kick into project management mode. If you plan to use only internal resources for the first analytical project, creating a project charter document will be very useful. This type of charter records such items as: the scope of the project (in order to avoid scope creep), the team members, the responsibility of each team member, executive project sponsors, how the team will communicate and/or how often the team will meet. This doesn’t have to be a long, complicated document. I have normally managed to document these items in just a few pages.
Finding top-notch project management skills inside the HR function can be a challenge since it is not a skill that has historically been required in this area of the company. It has become much more important in modern day as HR heads down the path of becoming more data-driven and strategic. If you plan to use external resources to manage your first few analytical projects, a document clearly outlining the scope of the project and the expected deliverables is recommended.
As a final thought, when I reference “dipping your toe” into the analytical pond, it is because most HR teams have not been in the analytical world before. I’ve been in analytics and global project management for over 20 years spanning the areas of Engineering, Supply Chain and HR. Taking on a large project for your first one will be higher risk. It is better to make your mistakes and learn on a smaller project. After successfully executing a few of these smaller projects and showing the value of them to your executive team, you will then be well prepared to take on a larger challenge.
Tracey is the author of “HR Analytics: The What, Why and How” and "Strategic Workforce Planning: Guidance & Back-up Plans." She holds degrees in Mathematics, Engineering and Business from universities in Canada and the U.S. and has over 20 years of experience in the areas of Human Resources, Supply Chain and Engineering. She was born in the U.K. and has worked in both Canada and the U.S.
Tracey is an independent consultant and her company, Numerical Insights LLC, helps clients in the areas of HR Analytics, Workforce Planning, and HR Process Improvement.
You can find Tracey on the web at:
Web Site: www.numericalinsights.com
Email: publications@numericalinsights.com
Facebook: www.facebook.com/numericalinsights
LinkedIn: http://www.linkedin.com/pub/tracey-smith/0/523/77a
Twitter: @ninsights