What HR parameters are most often used for making strategic business decisions?
Today, HR is an inseparable part of business. This has not always been the case, and the importance of HR in decision-making has not always been understood. Data and analytics, which have become one of the most important, if not the most important HR tool, are also essential in making any strategic decision in business. Whether it is the number of employees, costs, cost projections, talent pool planning, recruitment and selection, comprehensive knowledge of the dynamics and trends in an organization are part of the HR process and an essential element in making any business decision.
How is the importance and usability of data in the HR sector prioritized?
The initial postulate is certainly that all data are important, and that their importance is defined by the process for which they are processed. It is important to consider what data is relevant, primarily for the company’s strategy. We consider what data can help us make a rational business decision and what impact the decision will have on the overall business.
Fluctuation rate analysis can, for example, give you precise information as to whether an employee left the company on their own initiative or the company initiated termination. If employment contract was terminated by the employee, it is a signal to address employee retention strategy in the company or one of its departments or to analyze employee satisfaction in more detail and create new programs for employee motivation and development.
How does employee analytics shape business?
I will list only some of the data HR processes - data about recruitment and selection, career development, training and education, productivity, employee development, competencies, employee satisfaction, absenteeism, costs, benefits. This is only a part of the data HR processes and analyzes, and I believe that this is more than a sufficient answer to what impact such data can have on business and decisions made.
All these data help to better understand and assess the impact of business on employees, to improve decision-making related to employees and in this way establish a more effective relationship with employees which can make achieving the company's strategic goals easier.
How should an HR manager be involved in creating a business strategy?
HR is associated with the essential part of every company - employees. Whether collecting and interpreting employee data or implementing HR processes, HR must be involved in creating the business strategy. All the leading companies have long recognized the importance of HR and, I’d say, at the risk of sounding biased, perhaps that is why they are so successful. HR can help to articulate the part of the strategy related to people, but also to provide a new perspective. To be a good partner, HR must be involved in everyday business, know and understand it, and have a vision of how HR can contribute to company improvement.
Do you think that the function of the so-called "translator" of raw data into usable information will be more and more substantial in a company?
Yes, definitely. We have already mentioned the data HR processes and their importance for the company. If you add to that an HR team that can draw valid and relevant conclusions, the company will definitely be on the right track.
