Top 3 HR Analytics Trends for 2015

HR analytics have probably featured in the ‘top HR tech trends’ lists for the past few years. But this year, there’s a new perspective available on how organisations use their HR data; and let’s face it, analytics are all about the data.

The latest Sierra-Cedar HR Systems Survey 2014-2015 has refined its definition of top-performing organisations, looking more closely at the survey responses and coming to some conclusions about some common themes regarding how such organisations use their data. They’ve named such entities, “Quantified Organizations” (QOs) because via HR practice and technology, they create a culture of data-driven decision making. As Sierra-Cedar put it, this means the organisation has a, “high level of process maturity when using Business Intelligence,” which in turn, contributes to creating a measurable competitive advantage.

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In terms of HR analytics technology, this fresh concept offers a number of ‘must-do’s in 2015 for those who find Quantified Organization (with a very real competitive advantage) an attractive proposition.

2015 HR Analytics Trend #1 – Direct Access by Managers

Valuable as HR analytics are in the boardroom, the broader advantage comes when their fruits are not only available to, but used by, managers throughout the organisation. In answer to the question whether managers use analytics to support their workforce decision-making, the average for all respondents came in at just 19% (that said, that’s an improvement on the 2013-14 figure); but in a QO, 74% of managers have direct access to HR analytics and business intelligence; a significant indicator of analytics adoption.

2015 HR Analytics Trend #2 – More Data Sources

Ever since Big Data arrived on the horizon, more has been better when it comes to business information. QO managers have the option to combine their workforce data with other sources, including core HR, talent management, workforce management, financials, sales, and various operational systems. These multiple sources enable QOs to demonstrate more clearly the contribution of employee efforts to measurable business outcomes.

2015 HR Analytics Trend #3 – More Categories of HR metrics

‘Hard’ measurement of HR efforts via HR metrics is still somewhat undeveloped in many organisations even though they form a critical part of the feedback loop that drives more informed decision-making and workforce optimisation. What Sierra-Cedar found was that Quantified Organizations are more mature in their use of multiple HR metrics, especially focused on measurement of recruiting, absence, learning, compensation, performance, and productivity.

Whether you like the phrase “Quantified Organization” or not, there’s no denying that it offers a framework that could guide a successful HR analytics technology strategy in 2015.

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Dave Foxall

About the author…

Dave has worked as HR Manager for the Ministry of Justice for a number of years, he now writes on a broad range of topics including jazz music, and, of course, the HRMS software market.

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Dave Foxall