When HR analytics emerged on the scene as a viable technology, no one quite knew what to expect in terms of how it would affect businesses and HR departments. Now as more and more companies have adopted this beneficial technology they’ve been able to identify the strengths and also the challenges.
What are the challenges you might face in your HR analytics journey?
Here are some of the more common HR analytics challenges – and ways that your business can deal with them effectively.
#1. Lack of resources and knowledge
You might have the best intentions of using HR analytics to improve your company’s culture and overall performance. It might seem like a way to get better results faster and it certainly seems to be a business buzz term lately, perhaps one that you’re eager to try. The truth is that results take patience, and more than that, they take people. Do you have the right people in place to implement new HR technology, including installation, upgrades, and troubleshooting? What about knowledgeable people to decipher data? Do you have enough manpower in your information departments and HR departments to help establish the goals and processes of HR analytics? It’s important that businesses don’t jump in and expect things to just “work themselves out”. Thorough research and planning are necessary to get the most out of any new and exciting technology, HR analytics included.
#2. Lack of strategy
Businesses need to understand how HR analytics will play into and benefit their entire overarching business strategy. The objective shouldn’t be to “run HR analytics” and be presented with a complete list of problems and solutions. While HR analytics can help you identify gaps in your processes or ways that your business could improve HR related issues, it is still advisable to go into using HR analytics having a set of questions you want to be answered and either specific problems or things or you know could be improved upon.
How can your business overcome or reduce HR analytics challenges?
The most important thing that any business can do in their HR analytics journey is to start somewhere. Businesses don’t need to do everything at once, and it’s unrealistic to believe that all the benefits of HR analytics can be reached immediately or that that particular business is going to benefit from every HR analytics option. Some things simply might not apply – for instance, while HR analytics are a great option for large businesses because of the ability to run big data analysis, what if your business is only 25 people? HR analytics might not be right for your at this stage in your company, or may only apply to help create and define processes, for instance. The two most important thing your business can do in the face of HR analytics challenges are:
1. Identify your goals
What do you hope to achieve by using HR analytics software? Can you quantify what you’re hoping to accomplish and also create realistic timelines by which to track your progress? Have you identified the most important stakeholders involved in the decision to engage with analytics, as well as be involved with the data collection, assessment, and related evidence-based decisions along the way?
2. Recognize the limitations
HR analytics has great potential and has been part of the reason many businesses have improved their business operations and company cultures. But it’s important to recognize that the application of analytics alone will not improve problems or provide solutions. There are limitations of HR analytics and smart, talented people will need to be involved in the process of developing decisions around analytics to make sure that your business is making the most of technology.
HR analytics has proved to be a great way to improve human capital management and human resource processes, but like any technology, it does present some challenges. Having an understanding of how these challenges present themselves helps position your business better in overcoming them and successfully using HR analytics to its full potential at your organization.