Are Your HR Decisions Data-Driven?
Basing your business decisions on accurate information and data is critical to your business’ success. If your decisions are not driven by your data, you risk making ineffective decisions are best and detrimental decisions at worst. Just as your overall business decisions need to be based on factual data, your Human Resource (HR) decisions need to be driven by the information and data you’ve gathered. This data will help you make the important decisions based on employee hiring, termination, and payroll activities. Without it, you risk making ineffective decisions that will impact not only the company but the employees as well.
Making “data driven” business decisions requires more than just making intelligent decisions based on business information. The decisions must be initiated by business data and then acted upon by HR individuals (rather than the other way around). This is will ensure that you are consistently making the right decisions at the right time for your business.
Consider the top three benefits of using a Human Resource Management System (HRMS) to create a more data-driven business:
- Expanded Awareness. As the amount of HR data within a company has grown, so too has the need to glean better information from that data. Problems that HR departments assumed were just part of “the cost of doing business” are now identified, acted on, and in many cases, prevented. HR business indicators that were previously only hinted at by virtue of an anomaly here or a trend there are conclusively determined.More importantly, HR decisions are based on proven metrics – not assumptions.
- Faster Response. The all-too-common HR department refrains of “if only we had known” or “if only we had known sooner . . .” become a thing of the past. As soon as evidence in the form of empirical data is present to trigger a decision or action, it is identified, transmitted, and acted upon. HR departments no longer wait for reports to be run, nor do they wait for managers to review those reports looking for indicators, exceptions, or anomalies
- Better Use of Resources. Employees—particularly HR managers and staff—have better value to offer a company than wading through piles of analysis looking for indicators that should trigger a response on their part. The value of these people is in determining and executing the appropriate response, so let the indicators come to them, and let them do what they were hired for—make the most intelligent HR decisions.
A Human Resource Management System (HRMS) can help you sift through the information you need to make better HR decisions. For more information about the benefits of making data-driven HR decisions, download our whitepaper, “The Data-Driven HR Organization”.