Can HR become Data-driven?

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Focus of HR has been hitting a drastic change during the last few months and we’ve discussed how Digital technology is creating this change. Digital HR is becoming the future of HR and social, mobile, cloud and analytics have won!

The world of business keeps changing with Digital tech, every process of a business is getting optimized with the help of advance technology and systems and hence HR can’t be lagging behind.

For decades, HR has been focusing on the traditional approach of building relationships, involving operationally to implement programs and policies and coordinating annual performance appraisals to other. This approach might have worked well for operational HR until the entire business landscape changed forever with DIGITAL Tech.

We have seen how the global business arena was dominated by brick-and-mortar firms for many decades. However, few adaptive and progressive companies just took few years (not decades) to completely take over the dominance of those established firms forever… These trailblazing companies includes Facebook, Apple, Microsoft and Google to other. The essential reason behind the success of these companies has been their adaptability, speed and innovation spirit. This vanguard of companies have leveraged emerging technologies such as Digital tech to refine their processes.

Rapid growth of these companies influence other businesses to adopt the benchmark technologies. We have been providing our clients with HR software solutions throughout the last two decades. Thus, we’ve seen how CXOs are demanding every single business function to be aligned with the company vision. In the recent past, many CXO’s are determined to create data-driven business entities as they’ve realised the importance of digitization, data science and workforce analytics to arrive at confident business decisions.

New CEO expectations tells us that it’s time for every HR professional to recognize that HR could no longer avoid this shift, where digitalization and analytics infiltrate everything that we do in business.

Research undertaken in 2016 revealed that the #1 business challenge facing businesses for the second consecutive year is how companies will manage their Human Capital. In this same research, Innovation and digitalization were ranked #4. This indicates that the key challenges facing CEOs are towards people management.

To support the next wave of people management, we have introduced “Data-driven Digital HR”, which includes intelligent and sophisticated analytical capabilities into our latest Cloud HR solution.

How can HR expedite/accelerate this shift towards data-driven HR? Fortunately learning to adapt to this shift is easy. Business leaders can take a look at other data-driven functions of their organizations, understand how those functions are getting benefited through data. Finance, CRM, Sales and Marketing, Supply chain shifted to the data-driven system long time ago. These functions have been able to optimize efficiency with the use of analytics and data. Observing these best practices within the organization is the best way to convince themselves on adapting a data-driven approach to HR.

Digitization is important because it creates a network which connects all employees in an organization. It allows all employees and systems to freely exchange information. This digital connectivity, enables HR to have data-driven HR systems in place and access all workforce data through one single system (e.g. employee demographics, performance, attendance details etc.). Business leaders may utilize HR data to improve people management decisions with such a facility.

Data-driven HR offers much stronger tools to support their decisions. HR solutions with real Digital capabilities would include natural language capabilities, artificial intelligence, cognitive computing and predictive analytics to make HR data more robust and efficiently accessible. Business leaders can now utilize these tools to improve the speed and the quality of employee decisions with such tools.

As our final thoughts, we should reveal that HR leaders should not be experts in Math to drive this data-driven HR shift in organizations. Digital HR which includes above capabilities will ease this transition with broad range of HR analytics, and your experience in deriving at analytics would be much easier with natural language capabilities, predictive analytics to other. So the future role of HR would be to provide actionable analytics to the management and provide them with recommendations for people decisions. Leveraging data-driven digital HR enables our HR professionals to use their gut, learn from data, and assist the management to make the best talent decisions in the future!

To understand Data-driven digital HR & Workforce Analytics visit

Written By : MiHCM Reporter

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