When it comes to information, conventional wisdom holds that more is always better. New research shows, however, that fewer than a third of firms are utilising big data effectively, if at all. What can HR do to encourage data and information collection?
While the benefits of embracing and integrating data collection into HR are numerous, most companies aren’t doing enough with the data they amass, if they do anything at all. A new report—Counting Success: How metrics & measurement correlate with business success—highlights the ways in which organisations are falling behind in today’s technology- and data-driven society. The report, conducted by Alexander Mann Solutions in conjunction with the HRO Today Institute, received contributing information from over 380 HR managers at more than 300 companies worldwide.
Martin Cerullo, Managing Director—Development, APAC for Alexander Mann Solutions, referred to data as “the world’s first infinitely renewable resource.” Noting a slower uptake of big data in APAC compared with other regions, he explained, “On the face of it, the slow pace of adoption doesn’t sound like good news for the global economy in 2014, which most economists expect to be driven by Asia. However, on the upside, it also means there is tremendous untapped potential for Asian businesses that do get to grips with big data to grow their businesses and outperform competitors.”
A black hole for data
The report sought to explore both the type of data companies collected, along with how it was used. With particular focus on information collected concerning recruitment and employee performance processes, and to what extent such data was integrated to enhance wider business objectives, the report unveiled a veritable sinkhole in the data collection and utilization for many companies.
While more than 90 percent of organisations globally collect data of some kind relating to employee performance, for nearly half of all companies collection is as far as it goes. Only 51 percent use any type of performance metrics to analyse such information to improve ongoing talent acquisition efforts. An entire stunning third do not examine data collected on employee performance in any way at all.
Cerullo explains that this vacuum into which so much data is lost stems from a lack of support from upper management. While a company may have the means and procedures for detailed data-taking, if the leadership does not encourage or does not understand the benefits of analysis and integration then that information will go nowhere. Cerullo points out that the firms that are making full use of their data collection “are reaping the benefits and winning market share in their industry sectors.”
Bridging the gap
According to the report, when it comes to collecting data most companies share the same focus, regardless of what they do with the information afterwards. Nearly three quarters seek data on employee performance appraisal ratings, and over half focus on new hire retention and customer satisfaction. By contrast, only 13 percent examine the speed at which new hires are promoted, with a similar percentage (12%) looking at the time it takes to bring a hire to full performance. Nearly a quarter collect data on the profit generated per employee.
Cerullo urges companies to improve data integration, analysis, and collection. He commented, “Just as major sports teams harness physiological data to optimise their athletes’ training and performance on the field, businesses should analyse constructively, efficiently and meaningfully the masses of recruitment and employee data that they accumulate to drive real business value and outperform their peers.”
Paul Arkwright
Publisher
