NEW YORK, Nov. 6, 2012 /PRNewswire/ -- Today, corporations are embracing and analyzing "big data" to transform business and industries and spur innovation. Despite the plethora of data gathered over the past two decades, human resources functions have made little progress in using this data to help provide insights critical to making strategic decisions. According to a new report from The Conference Board, Human Capital Analytics: A Primer, it is not only critical for HR departments to embrace analytics, but to move analytics from beyond analyzing what happened or what is happening to predicting and prescribing solutions that align with enterprise-wide goals.
The report, prepared by The Conference Board's Human Capital Practice and co-authored by Dr. Jac Fitz-enz, CEO of Human Capital Source, Dr. Patti P. Phillips, Principal Research Fellow, Human Capital, The Conference Board and Dr. Rebecca Ray, Senior Vice President, Human Capital, examines the current state of human capital analytics, identifies best practices that can lead to rapid development and deployment of a sound human capital analytics function, and creates a framework to better understand the process of human capital analytics that will increase the likelihood of success.
"Today's human capital functions have failed to keep pace with other business leaders in using analytics to make critical decisions," said Rebecca Ray. "It is imperative for human capital departments to create effective analytics processes that focus on making decisions in real time, particularly those which are predictive in nature, all of which closely align to current and future business plans. Human Capital Analytics provides guidance and recommendations, and key actions corporations can take to outline a strategy to create a sustainable human capital analytics program."
The goal of a proper analytics practice is to ensure that data is being tied to strategies that matter most to the organization and that human capital efforts are aligned with the corporate goals and strategies. As such, the report notes several strategies to achieve this goal, including:
- Identify the key business issues, problems or opportunities facing the organization
- Build hypotheses surrounding the causes and probable impacts of an issue or opportunity
- Consider methodologies, consistency, information management, project management, technology, and data governance
- Strive for high quality, alignment, transparency, credibility, and stakeholder input and executive buy-in as you implement your approach