With global economies facing challenges for the remainder of 2020, some businesses will look at creating new revenue streams, some will try to reinvent themselves introducing new product lines or different ways to attract and retain their customers, other businesses will look at ways to really understand what their operational state is, how they can work differently, to ensure the biggest return on their investments are achieved.
The key to addressing these different business challenges lies in an organizations’ ability to understand the current mode of operation of its different functions, so that they are able to come up with a well thought through future state, that would stand the test and succeed.
An example, the savvy marketers who will look at the data to understand the performance of each product, the underlying themes influencing growth and market share rely on data and analytics to be
able to make more informed decisions. In the new world of work, what if these business objectives were not only clearly tied to the teams and individuals working in the organization but would shift as and when the data insights support this. What if businesses were able to identify their inability to drive market share growth because their teams needed to build new types of skills? What if they understood that these skills are so scarce in the market and invested sooner, rather than later in re-skilling and up-skilling their people?
The digitization of HR processes and creating the connections between the main business functions is how the world will need to transform. The business of HR has always been about people with relatively
high subjectivity driving decision making. In the new world of work, businesses will need to weave into their business strategies data insights and predictive analytics. HR analytics is a mixture of methodology and software that works on the statistical model in order to deliver work-related data, which enables the company’s decision-makers to optimize and enhance human resource management. This will result in the biggest disruption, and will set company’s up for fast paced success, or will keep them locked in the old ways of execution.
Insanity: doing the same thing over and over again and expecting different results.
Albert Einstein
Global technology companies and some of the top eCommerce and retailers of the world have started to look at data insights to help them make better hiring and retention decisions. On the global level, the
adoption has been slow, however leading the world in Asia Pacific where the use of some type of HR Analytics has reached 70%.
It is no surprise that research found that only 2% of HR organizations have a mature people analytics capability. 1 Despite the fact that businesses globally have adopted HR solutions and the size of this
technology market has grown by 29% from 2018-2019. 2 The adoption of technology solutions continues to grow, however the abilities of using such solutions for data insights is still lagging.
New rising HR solution providers are tackling every point in the employee journey to be able to connect and monitor their impact on business performance. Talent Acquisition has had the lion’s share of focus over the years, this will continue to grow and dominate the focus areas, however, there are a lot of close runners up. We strongly believe that by 2025, companies who have not considered and challenged the
value of their investments in this space will be confronted with their inability to keep up with their financial targets.
Q: Thinking ahead to the next 12-24 months, which of the below areas are you
planning to pursue regarding HR Technology? (Response Base: 594 – HR and HR IT Leaders)
Source: PwC HR
Technology Survey 2020
HR Technology focus through 2022
49% Talent Acquisition tools
48% Employee Experience/Portal Layers
46% Skills Mapping/Career Pathing
45% Intelligent Recruiting
45% Intelligent Automation or Process Automation
37% Business Insights
36% Tailor Learning Journeys
Smart HR solutions continuously on the rise will be the disruptors in the coming few years. We categorize the principles of decision making of SaaS HR Systems to be those that …
1) Focus on the user experience (the employee – the manager – the HR professional)
2) Require little, to no customization
3) Are cost effective
Fewer Leaders say that their solutions are showing real value back to the business.
43% Recruiting Solutions - recruiting insights - employer brand
41% Workforce Planning Solutions – workforce analytics
37% Talent Management Solutions – retention – skills
inventory – Career Pathing – compensation & reward
strategies
Employee Experience – engagement - tenure
More and More organizations are realizing that HR is not the only function to benefit from People Analytics. Over 70% of Executives are making strides to integrate data into everyday decision making.
Bersin Research Survey - 2017 1
In summary, business leaders need to think deeply about how they are able to get the biggest return on their investments, they need to think beyond the independent processes of HR and consider the broader sense of how their People Agenda influences their businesses in the broader scale; they need to consider the fact that the digitally embracive culture and mind-set is something that they might not
have, and that they need to be taken into account to ensure adoption and bigger more impactful return.
Employees sit at the center of a business’s universe.
RightFoot
Our Mission: Helping businesses maintain, scale, and transform in a predictable manner, while focusing on their core asset – The People.
- Bersin Research - 2017 1
- PwC Survey – 2020 2