77 percent of HR professionals do not know how workforce potential affects the company bottom line
77 percent of HR professionals do not know how workforce potential affects the company bottom line
'Big data deluge' leaving HR unclear on how talent data can enhance business results
SHL, the global leader in talent measurement, has found that 77% of HR professionals worldwide do not know how its workforce potential affects the company's bottom line1 and less than half of organisations surveyed use objective talent data to drive business decisions. The study of nearly 600 HR professionals worldwide, suggests that HR is overwhelmed by the volume of employee data and struggles to elicit meaningful insights that will help drive businesses forward and deliver results. These findings are revealed in SHL's annual Global Assessment Trends Report 2013.
With organisations focused on restructuring, cost-cutting and growing the top line in tough markets, HR's 2013 priorities reflect the organisation's need to engage their talent (55% of those surveyed) and cultivate strong leaders (52%) to drive change. The report reveals the other priorities of HR professionals are performance management (49%), workforce planning/talent analytics (43%) and training (42%). HR priorities reflect the contention between balancing short-term employee productivity and performance with longer-term strategy of aligning talent to the business' needs and vision.
"Our research shows that even though organisations measure employee performance, they have historically focused on efficiency data, like how well an employee is performing versus data that allows them to make a strategic talent decision," said Ken Lahti, vice president, product development and innovation at SHL. "This means key information on talent potential and future capability is overlooked, making targeted programs that identify the next generation of leaders and nurture talent for crucial roles ineffective. This increases succession risk for organisations, putting business performance and continuity in jeopardy. The challenge of big data."
The report also revealed that HR professionals are facing a 'big data deluge' with confusion about how to manage talent data to impact company performance. As of 2012, around 2.5 exabytes of data are created each day, which is set to double every 40 months2. Two major challenges for HR to overcome are data quality and accessibility, as respondents indicated that there is room for improvement in both these areas.
Despite workforce planning and talent analytics being referenced in the top five priorities, less than half of respondents (44%) said their organisations use objective data on employees' competencies and skills to make workforce decisions and only 18% of HR professionals are currently satisfied with the way their organisation manages talent data. However, according to the upcoming report from CEB, SHL's parent company, organisations that use talent analytics effectively can boost employee bench strength, performance and retention by approximately 19%.
Social media is one source of data which adds to the deluge and distracts HR from the metrics that matter; despite the fact that 88% of employers claim there is a lack of confidence in candidate data quality from social media sites, 20% use that information to make hiring decisions and 30% believe the data is useful in determining a candidate's fit.
"HR still grapples to provide the business with strategic data on its workforce and is too ill-equipped to take advantage of big data currently. They do not yet have the systems and tools required to identify people intelligence, create metrics, and link HR data sources together," said Lahti. "The ability to analyse greater volumes of complex workforce data and translate it into meaningful talent metrics offers HR the opportunity to identify skill shortages, development opportunities and answer the most pressing talent questions, such as if the company has the talent to execute its business plan and grow at the desired rate."
The survey was completed by 592 HR professionals from companies of various sizes headquartered across the globe including the UK, US, China, Australia, and South Africa in over ten sectors. The report focuses on key trends within the HR landscape in 2013 as well as insights into talent assessment practices.
1 41% of respondents were unsure and 36% did not have a clear understanding of their workforce's potential and how it impacts the bottom line
2 Harvard Business Review http://hbr.org/2012/10/big-data-the-management-revolution/ar/1
About SHL
SHL is the leader in talent measurement solutions, driving better business results for clients through superior people intelligence and decisions - from hiring and recruiting, to employee development and succession planning. With a presence in over 50 countries, SHL delivers more than 30 million assessments annually in over 30 languages - allowing over 10,000 business customers to benefit from both global expertise and local insight. Along with its world-class consulting practices and 24-hour support center, SHL clients can access over 1,000 assessments through an easy-to-use technology platform. SHL was acquired in 2012 by CEB, the leading member-based advisory company. By combining the best practices of thousands of member companies with advanced research methodologies and human capital analytics, CEB equips senior leaders and their teams with insight and actionable solutions to transform operations. Headquartered in London, UK, SHL has offices in North and South America, Europe, the Middle East, Africa, Asia and Australia/New Zealand. For more information, visit www.shl.com.
