Strategy Execution Blog, Research and Analysis
Fortune 500 companies use HR Analytics, but few trust their data
Cornell University has published an interesting report (download PDF report here - opens in a new window) on the state of HR analytics. Not surprisingly, the high-profile companies who participated in the Cornell study group use a variety of data-management systems that produce reams of monthly reports and historical data. But Cornell found that few data systems were able come up with the real-time information companies need for effective HR management and analysis.
The consensus among Cornell’s management working group was this:
“Many participants doubted their organization is effectively aggregating all available data into an overall summary of the health of the organization from an HR and employee perspective. They agreed that better integration will be the key to identifying areas of risk or areas that need attention.”
What is holding them back…
Well, systems limitations, to begin with. Although most HR leaders agree that HR analytics is the way to go, most said they had no way of linking the data they have for in-depth analysis how HR analysis can be interrelated with company goals. Some do not even have centralized HR data to begin with.
High buy-in for HR Analytics...
Cornell surveyed their study group participants on how they use HR Analytics. Fifteen high-level officials of Fortune 500 firms revealed the following:
- Every respondent said that they used their HR data in basic reports.
- About 80 percent said that they reported key HR data in a scorecard or dashboard approach.
- Over 70 percent had the in-house talent to apply necessary techniques in quantitative analysis.
- Over 65 percent believed that their senior leaders supported HR analytics.
...but a low confidence rate in their ability to use HR performance data:
- Less than 30 percent believed they had a “strong team of analytical talent” to work with HR analytics projects.
- About one-third agreed that their front-line HR administrators understood the value of HR analytics.
- Only one in five responded that they “trusted the reliability and accuracy of their organizational data.
Here’s where Kapta comes in…
Cornell’s report concludes with this startling finding:
“Just 13 percent felt they had the necessary technology/systems to facilitate HR analytics.”
Kapta has the resources you need to create the foundation for effective use of HR analytics. We’ll help you build a goal-oriented employee evaluation system with software that will give you real-time analysis already integrated with the organization’s goals and accountability system.