Why Is HR So Slow to Adopt People Analytics?

People Analytics: What is in Store For the Future of HR?

Advanced analytics has always been a tough tactic to adopt for HR pros looking to improve processes. HR teams are constantly being ladened with conventional data management and administrative work such that its’ true potential is being concealed; even though HR holds tremendous capabilities and opportunities that can significantly add value to businesses.

So why is there still a laidback attitude towards people analytics, when in other departments, it is gaining momentum at a fast pace?

Falling short with advanced analytics

One of the most common reasons put forward is the lack of skills among HR practitioners. Knowledge about advanced analytics using innovative technology has always been baffling in the minds of HR leads and executives as the workforce is not ready for it or lack the support from management. Right from graduation to on the job training, HR people are guided and educated only on support operations that have now become their comfort zone and is hard to come out of.

Financial limitations and budgeting

Another reason is the financial restrictions. Adapting to advanced technologies like cognitive intelligence and machine learning does come with a price tag and there are constraints to consider. Adaptation to advanced HR analytics requires specially skilled workforce including statisticians or data scientists, who are specifically trained for the job, or organizations must invest in upskilling existing staff.

Train employees

HR is still anxious about data

Data also plays a crucial role when it comes to averting advanced analytics. HR is still being pulled back by data. CHROs feel they have insufficient data to be processed while HR practitioners are terrified with the volume of big data and IoT.

These disputes are just stepping stones the organization must cross to grasp a firm grip on advanced analytics, as the results it bears definitely surpasses all the shortcomings and weighs in on optimized business processes.

Primitive HR analytics is already being integrating into the foundation of business structures, but that wouldn’t suffice, advanced HR analytics need to be reflected into all HR undertaking. HR executives and CHROs must start pushing their teams to get accustomed to the practices of predictive and prescriptive analytics. Corporate strategies and workforce management should be strengthened by making facts-based decisions built on the reliability of advanced analytics. Business KPIs like employee engagement, learning and development, budgeting, retention strategies and recruitment need to be influenced by rationalized decision making. Data must be simplified and streamlined with the help of readily available dashboard and scorecards.

The current stance of HR managers and CHROs is such that they are slowly breaking out of their cocoon and are approaching advanced analytics with the hopes of improving business outcomes. Untill today, only  8% of organizations consider themselves prepared and ready for advanced HR analytics, this number has to change. As the world of HR is moving into a whole new phase of digitalization, it’s about time organizations catch up. Within the next couple of years, most of these processes are foreseen to become automated with less human intervention. The marvels of Robotic Process Automation and Cognitive Machine Learning will have taken over HR. So now is the time for disruption. The more effort put towards mobilizing advanced HR analytics the more the organization will have to face change in the work process. But change is good, changes present more opportunities to learn and develop, change leverages the true capacity of the human workforce. So now is the right time to start embracing advanced HR  analytics one step at a time, to prepare for the wonders HR would hold in the future.


Author: Aarathi B

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