Driving action through people analytics
We are all aware that the best decisions are made when they are informed decisions, but do you have the information that you need to make decisions about people? People Analytics is becoming an important profession in the HR world and is critical to the success of companies-bot big and small. Keeping people analytics in the realm of HR needs to be over- and an integrated approach to all analytics for greater success is here.
Many dealers ( and businesses overall) have a strong methodology for financial, operational and systems based analytics however, the people analytics has been implemented on a smaller and slower scale.
In order for leaders to make the best decisions, they need a combination of financial, operational and people based data and they need that information in an integrated ( not isolated way).
Given this, where do you start? First off, people analytics should tell a story. The data is great, but what does it mean? More importantly, what does it mean and what is the story in context of the other data available? Here is an interesting example:
The quarterly financial reports regularly show that overtime costs are increasing, HR data shows that the ratio of overtime hours to regular hours is increasing. If leadership is given these two data points in isolation, they will either see a contradiction, potentially ignore one data set, or make a decision based on limited ( and misleading) data. Given the data points together, with a story told through the collaboration of HR and Finance, the decision can now be based on whole evidence to drive the needed change.
How do you begin to integrate the analytics? Start with being sure you are gathering the data in the first place. Then ensure the data is shared- do you have quarterly meetings to review analytics? Are there working groups to present data and solutions where the analytics relate? Build these relationships.
Then build the tools. Develop a common language. When one department uses an acronym, does it have the same meaning in an other department? Do your departmental leaders know the language of their counterparts? For example an EA in accounting is an Enrollment Agent, in HR it is Employee Assistance. This could result in highly confusing conversations and misinterpretations. In addition, the formula for many data points that have the same name can vary by department. How does your department or company calculate an FTE for example? Be sure that common definitions and language are present. Does your dealership have dashboards that leaders can access, quarterly reports to each other or a jointly accessible information system?
Lastly, build storytellers. Ensure that key players in your dealership have the capacity to respond to hard questions from the top. Telling a story means being able to take whole organizational data and provide a diagnosis, prognosis and solution to the situation. Including analytics on factors such as workforce planning, retention, safety, competencies and engagement that are integrated with other organizational evidence from operations and finance will ensure faster and more reliable decision making. This is where the impact of being a strategic organisation can be seen.
Would you like to know more about HR Analytics, strategic data or how we can help your dealership manage these types of strategic initiatives? Contact us at email@example.com.