NEW PROVIDENCE, N.J., Aug. 11, 2016 /PRNewswire/ -- Data matters, especially when it comes to talent management. In an increasingly service-based economy, the cost of human resources is often the first item on any organization's balance sheet. It's a cost that, ideally, is offset through the productive contributions of an organization's employees. But, far too often, the value of these contributions is never known. Why? Because the cost/benefit of talent management is rarely measured, according to a recently released white paper from XpertHR.
However, measurement efforts are on the upswing, according to XpertHR's white paper author Linda Pophal, writer and owner of Strategic Communications. Her research shows many companies have already invested in or are planning to invest in big data over the next two years.
"While the focus of their data efforts tends to be primarily related to customer experience, organizations are targeting streamlining processes, marketing more effectively, reducing costs and enhancing security capabilities," she notes.
Pophal's research also points out the need to focus on predictive analytics for workforce analysis. In a recent survey by Deloitte, she notes, only 4 percent of respondents investing in "big data" indicated use of predictive analytics.
Indeed, a central part of the white paper points to how data can and should be used. "Companies need to do more than identify metrics," Pophal says. "When a metric goes 'red', organizations need people in place who are assigned to ensure the health of the metrics and be ready to turn those metrics around."
Whether companies are measuring speed of acquiring talent, retention of talent, cost of the work, job acceptance rate or any other HR-related metrics, HR executives play a key role in examining the data, Pophal notes. She recommends the following actions:
- Quickly address data and insights for C-suite leaders.
- Ensure that return on investment is central and woven into any dashboards or presentations.
- Use benchmarks and industry comparisons to frame results annually or quarterly and answer questions in advance for busy executives.
While use of "big data" may not be intuitive for all HR professionals, it's time to get comfortable with it, Pophal recommends. "By using data wisely and staying alert for situations that may turn metrics 'red,' HR departments will become even more valuable to their organizations."
XpertHR (www.xperthr.com) is a practical online service to help HR professionals comply with federal, state and municipal laws. The white paper – The ROI of Talent Management: The Metrics that Matter – can be found on XpertHR's website.