Data-driven decision making – it’s not as complex as it might seem and has the power to transform your contingent workforce efficiency and return-on-investment.
But the key, is accessing the right data for your contingent workforce. This will help to inform better decision making and help to improve productivity and workforce performance.
Today, we’ve put together some of the key outcomes for adopting data-driven decision making for your contingent workforce. But be warned: this is not a ‘set and forget’ routine. Rather, you’ll need to adopt a dedicated, strategic initiative as part of your organisation’s daily operation, to get the greatest possible return on your talent investments.
1. HR Decision Becomes a High-Impact Business Function
Data-driven decision making with a high impact on the bottom line, isn’t yet commonplace across HR departments in Australia. However, some big-business examples out of the US, such as Netflix, Sodexo and Google, are demonstrating its potential. The analytical data available to HR has the potential to transform HR’s role as a key operative in business performance and success, where workforce outcomes are aligned to business outcomes.
2. Data-Driven Decision-Making Boosts Productivity
When HR can quantify the output of mission critical roles in the business, they’re able to use the subsequent analytics to identify factors that boost productivity by each job family. These factors may include rewards, motivation factors, and talent development opportunities, amongst others. From here, HR can quantify the financial impact of a boost in productivity by any given metric. For example, talent retention.
3. Data-Driven Decision-Making Can Make HR a Key Business Innovator
Innovation is critical to organisational growth and longevity. And HR can be a major innovation contributor. How? By developing strategic, data-driven recruiting systems, the business is in a better position to attract the best-fit innovators from the talent marketplace. HR data can also help to improve the retention and career pathways of key business innovators.
4. Predictive Talent Analytics Prepares the Business for the Future
Being able to predict upcoming talent opportunities, gaps – even workforce trends – enables your business to create a better plan for the future. Data offers HR the ability to look at historical talent trends and better plan for future business needs. By looking forward using data, HR can reduce business risk by raising awareness of potential issues before they happen.
5. Data-Driven Recruitment Boosts Hiring Efficiency
According to Boston Consulting Group, an organisation’s recruiting function has direct impact on the bottom line – both revenue and profit. So, it stands to reason that data-driven decision making when it comes to hiring is a must. Refining hiring criteria using data by job type, department and function can significantly impact the quality of both permanent and contingent hires. HR data can also inform management of the most lucrative sources of talent – including those best suited for project or contingent work, and those suited to working in the business long-term.
One of the greatest benefits for your business, in the era of HR data decision-making, is the ability for HR to meaningfully interact and serve the other functions of your business. Consistent sharing of workforce data will help every department better understand their talent needs, and plan accordingly. It’s a more meaningful, predictable relationship between the business and HR.
And of course, data-driven decision making will lead to better understanding of any talent issues in your business. And hence, better designed talent programs to meet productivity goals, project milestones, and profitability targets.