14 August 2019

Analytics: More agility and efficiency for Human Resources

Undoubtedly, we have reached the Era of Digitalization and Digital Transformation. Practically, every article we read, events that we attend and influencers that we follow, these trends are present across all industries and sectors. Nevertheless, the extreme importance of these in the global market and in the search for differentiation and innovation factors, people are the main competitive advantage and organizations’ pillar. CEOs are focused on this situation. Therefore, there does not seem to be a better time for Human Resources to prove their entire value to the business.

Also, we increasingly see a shift in organizations focus from customer-centric to human-centric. Taking advantage of these strategies which allow organizations to deliver a unique and differentiated experience to customers, why do not do the same with employees? Why do not create different employee experiences for employers in the same way that we create customer experiences for customers? Adopting Human-Centric and Employee Experiences strategies will undoubtedly help organizations to engage employees, retain and attract talent and have significant impacts in increasing productivity. Combining these strategies with Design Thinking methodologies will increase organizations creativity and innovation through their employees.

Assuming the natural social impact that these changes will mean, it is expected that disruptive technology will also intersect with the daily routine of human resources professionals. And here, technology has all the potential to contribute with a giant step that offers countless benefits.

Certainly, all these topics make sense, however, the first question I come across constantly is, how are they applied in practice?

Well, let’s think about the recruitment process. If we are talking about the digitalization process, which is the introduction of digital technologies into existing processes to improve or replace the processes there were centred on the human being, we can think about reading CVs automation through Artificial Intelligence and the recruiter accessing an analytical platform that presents the information visually and analytically, instead of a recruiter to have to open and analyse the candidates’ CVs one by one.

As we move forward in the maturity level of organizations, we can talk about Digital Transformation, which leverages areas such as Big Data, Internet of Things, Advanced Analytics and Data Science to re-engineer business models and processes from organizations by creating new sources of value. Continuing with the recruitment process, which organization would not like to have a more agile, efficient and accurate recruitment process? Recruit the right person for the right position? Always achieve the greatest talents in the market that will be high-performances in the organization?

With entire potentiality of the above-mentioned areas associated with the power of technology, we can move candidates automatically between phases in the recruitment workflow for example in the CV screening phase. Applying gamification strategies, which allow to applying the same test to candidates and high-performers collaborators and evaluating candidates by proximity to match profiles with high-performers rather than conventional scales, achieving the right talents for the right positions. We can also remove from the process the unconscious bias, that leads the recruitment process participants to choose one candidate over the other, not making the best decision, replacing this intuitive decision with data-driven decisions, analysing information based on Artificial Intelligence and Machine Learning bias-free algorithms. Apply augmented reality to Assessment Centres.

For sure, the previous examples are only a minor part of what Digitalization and Digital Transformation can do for Human Resources. And, because Digital Transformation is so much more related to processes and people than technology, it is up to you, Human Resources decision-makers, who hold the key to transforming this area. Because towards many challenges you faced daily, it is worth to explore the benefits that Digital Transformation can represent in your daily life.

At a time when there is too much talk around the precious time that we have to manage to achieved greater tasks efficiency that really matters and need our input, such as having the time to think, be creative and transform the area and its processes, there is nothing better than having technological solutions at our disposal which enable us to achieve better results, with better decisions in the shortest time possible.

This is precisely why technology-based solutions have emerged with the aim of making human resources professionals work easier, faster and more efficient, based on three essential principles: providing better analytical skills regarding human resources management, provide quality information based on objective data from organizations to assist decision-making and present all relevant information to decision-making through a unified view of the entire action spectrum of these professionals.  All of this is achievable, it already exists and is based on Analytics tools.

The high demands of these professionals combined with the indispensable rigour of compliance with the legislation and the needs pointed out by the organizations’ boards, represent an extremely interesting challenge in the formulation of these kinds of solutions, because it entails a combination of factors and data analysis that drives all of this in a completely satisfactory way and leads to the organization’s success. Therefore, these technological tools are based entirely on huge amounts of data resulting from the normal activity of these structures, serving as a basis for their analysis to yield information with significant value and capable of supporting decision-making processes.

If we consider the crossover of the reach of these solutions, we can speak of a valuable help in different action areas of these professionals: From headcount analysis, turnover, payroll or recruitment processes, by studying the levels of employees’ engagement, assessment processes or even, characterizing skills or training needs, for example. Besides, at a time when recruitment is becoming a growing challenge for those who are developing this kind of work due to the difficulties associated with attracting and retaining new talents, can count on a solution that enable to increase the efficiency of the human resources department, providing a detailed global perspective of all relevant parameters, it is revealing of how much this profession will undergo with transformations in the coming years.

Surely, we are living a period of the clear change being undeniable that Digital Transformation will have effects on the way how the labour market is built. It will not make any sense to leave behind a profession or business area in this evolutionary process. If there are approaches to make human resources departments more efficient, agile and with a higher percentage of accuracy in their decisions, we just have to embrace it. Otherwise, we will risk falling behind in the race to success. It is time to change, transform, act and seize the future!

Opinion article published in InfoRH – August 13, 2019

       Rui Afeiteira BI4ALL
              Rui Afeiteira
Knowledge & Innovation Lead