Importance of Data Analysis for Strategic HRM'

 

 

As per the definition from Michael Armstrong Strategic HRM is,

“an approach to making decisions on the intentions and plans of the organization in the shape of the policies, programs and practices concerning the employment relationship, resourcing, learning and development, performance management, reward, and employee relations” (Armstrong, 2012)

To make effective decisions on the main areas covered in the definition (knowledge management, performance management employee relationship management) organizations will require data.

In any organization HR department is similar to a data hub. But how much of these data is actually being looked at properly, analyzed and used for decision making is a question mark.

Instead of making use of the already available data, some organizations tend to make decision based on assumptions, gut and by generalizing current status. Such organizations might survive in the short term, but they are moving towards the risk of failure.

Most of the HR teams are familiar with conducting 360’eveluations, environmental surveys and collating and analyzing data to understand employee skill gaps, employee’s relationship with the organization… etc.

Apart from that HR department can use the already available data (based on personal information, exit interview feedbacks) on employees to understand the spread of educational levels, experience levels, key reasons for leaving, employee life cycles, age analysis of work force etc.
Once these data are compiled and properly analyzed organizations will be able to see patterns, trends of its employees.

Ex –1.  20% of the management trainees has left the organization within one year from commencing work.

       2.  15% of the fresh graduates leave the organization because the working hours does not support them to pursue their further studies.

Once the analysis outcome is available organization needs to make strategic decisions accordingly. As an example if an organization is having more employees that has joined within the last 1-3 years, there is a possibility of lacking the process knowledge that will lead to failures. Hence, HR will require to arrange process trainings.

Likewise, the proper use of data will drive the organization towards accomplishment of its objectives while boosting the employee motivation, retention as well as job satisfaction.


Reference

Armstrong, M. (2012). Handbook of Human Resource Management Practice. In M. Armstrong, Handbook of Human Resource Management Practice (p. 115). London & Philadelphia: Kogan Page.

Biro, M. M. (2016, April 21). Why Data is the Key to Strategic HR Decisions. Retrieved November 15, 2017, from visier.com: https://www.visier.com/clarity/why-data-is-the-key-to-strategic-hr-decisions/

King, K. G. (2016, November 20). Data Analytics in Human Resources. Retrieved November 17, 2017, from sagepub.com: http://journals.sagepub.com/doi/abs/10.1177/1534484316675818?journalCode=hrda