We foresee our next prediction because it will be a direct result of our last prediction, which was “Adoption and Change Will be Slow.” HR organizations that do analytics the right way will have a significant competitive advantage because few will do so quickly.
#3 A Competitive Advantage with ROI … for Some
Analytics help organizations solve real business problems — when done correctly. Essentially, the application of analytics will help HR begin making decisions and investments based on facts and data (not guesses). Furthermore, analytics will help them uncover and prioritize the real drivers of results (not squishy concepts like employee engagement). Data-backed decisions, in general, are needed in our field, so the organizations that successfully apply analytics will gain a significant advantage.
Below is a list of reasons that will drive, and almost force, HR to achieve this competitive advantage:
- Quizzical CEOs: One day soon, CEOs will start asking CHROs “What exactly is the ROI of all these surveys and assessments?” HR leaders will have to start answering the “so what” of the people investments and initiatives instead of relying on the assumption that it matters and provides value. The only way to identify the ROI is through the application of analytics.
- KPI Confidence: HR will stay in its comfort zone for awhile focusing on KPIs like turnover. (That’s because turnover is a key metric with real costs that HR feels comfortable owning.) Eventually, most organizations will start to show direct business impact on other KPIs, such as sales, revenue, productivity, operations, and customer satisfaction.
The good news is that you still have time to gain this advantage – recall the “Learning Curve Sprint” from our last blog? Stay tuned next week for prediction #4.