“Analytics is knowledge is power.”—Francis Bacon
There is no doubt that the priorities and investments of the HR function have shifted as a result of COVID-19. As employees transitioned to a predominantly remote work environment, HR was faced with fresh challenges. Not surprisingly, maintaining employee productivity and safeguarding their well-being were among the top ones.
Thirty-two percent of respondents ranked adopting digital technologies to support remote working and collaboration as one of the most important initiatives to manage the implications of COVID-19.
As a result, investment priorities in technology have shifted to focus on enabling employees to work in a remote environment.
Surprisingly, the survey data also showed that HR functions are less confident in their ability to use data and analytics compared to 2019. Additionally, while “Conducting workforce forecasting” and “managing performance and productivity” continue to rank among the top five skills required by the HR function, “applying analytics and data science” is now a much lower priority.
This could have costly implications. If HR does not continue to invest in workforce analytics, it may hinder the success of their near-term investments. Technology to support learning and remote working is key to addressing current demands, but HR needs to be able to monitor the impact of those efforts. Data and analytics will also help the function to identify which activities to automate and what skill gaps it will need to fill through new hires or partnerships.
Applying analytics and data science is a prerequisite to conducting workforce forecasting, and pretty much any evidence-based decision the HR function needs to make. You cannot have one without the other.
Evidence-based HR uses data, analysis, and research to understand the connection between people management practices and business outcomes, such as profitability, productivity, customer satisfaction and quality. Using this approach is vital for the HR function to ensure that is focused on activities that deliver the most value to the organization. Check the report for a step-by-step guide on how companies can put this approach to practice.
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