Workforce & HR Intelligence in a Nut Shell
In the context of HR, the war for talent coupled with the HR profession’s battle for strategic legitimacy has given rise to a plethora of methods and activities being performed in organizational settings such as:
• Talent pool and site/location identification research
• HR metrics and indicators (including scorecards)
• Employee and organizational surveys
• 360 degree or multi-rater feedback systems
• HR benchmarking
• Selection research (including personality assessments)
• Training and HR program evaluation
• Return-on-investment (ROI) studies
• Qualitative research methods (including case studies, focus groups)
• Literature review (e.g., review and synthesis of existing or secondary data sources such articles and research reports)
• Outsourced research activties including membership-based research consortia
• Advanced organizational behavior research and modeling
Although these methods have significantly advanced HR practice, they’re treated as very specific and narrow methodological specialties generally managed as independent programs and projects, and largely exist within functional HR silos. More disturbingly, they often lose sight of their original intent and become highly institutionalized and symbolic practices. Despite the fact that companies spend millions on people research and analytics related practices each year, no systematic process is available to make sense of and transform these disparate data collection activities into meaningful intelligence results.
Current Trends & Perspectives
Dr. Salvatore Falletta, President & CEO of Leadersphere, recently introduced the concept of HR intelligence and specifically how organizations can drive a proactive HR research agenda and make sense of their disparate data collection activities as part of an on-going HR intelligence cycle (Falletta, 2008 forthcoming):
1. Determining stakeholder requirements
2. Defining the HR research agenda
3. Identifying data and information sources
4. Gathering data and information
5. Transforming data and information
6. Communicating and using intelligence results
7. Enabling strategy creation, decision-making, execution, and learning.
Dr. Jac Fitz-enz, Founder and CEO of the Workforce Intelligence Institute and a highly respected authority on strategic HR measurement asserts that “we desperately need to advance traditional people research and analytics practices and develop a more scientific and evidence-based approach to predict business and organizational outcomes" (Falletta, 2008).
Boudreau and Ramstad (2005; 2007) further call for a HR decision science approach whereby organizations strategically analyze their data and information and make better decisions with respect to their workforce and key talent.
Moreover, Pfeffer and Sutton (2006) have introduced the concept of evidence-based management. Specifically, they contend that hunches, trends and fads, and the popular press tend to influences our decisions around what strategies and practices are best. Instead they advocate an evidence-based approach whereby science and empirical evidence drive business decisions and strategies.
Lastly, Davenport and Harris (2007) argue that the landscape for using data and information has shifted dramatically, and that leading companies are building strategic capabilities and competitive advantage through data-driven intelligence and insight vis-à-vis advanced analytics.
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