Using Analytics and AI to Build a Better HR Strategy
When we launched this year’s annual HR Realities Research, there was no doubt in my mind that an interesting set of results were in store. And what is fascinating about the data we gathered from 500+ HR leaders across Europe, is that the reality of HR today is one of massive change. The cumulative impacts of the ongoing war for talent, the challenge of creating strong people experiences, the pure speed of technology development are all converging and piling the pressure on HR.
More than anything, this year’s data highlights the need for a new and more agile approach to HR. Conservative strategies simply aren’t going to cut it going forwards, because by the time the ink is dry, things will have moved on. Increasing business agility is now the #2 business driver for 86% of HR professionals, second only to increasing performance and profitability (unsurprisingly, the perennial #1). The days of software implementations taking 18+ months are rapidly becoming a distant memory. Moving at the pace of the business, particularly where HR technology is concerned is now a must.
One of the stark results is that 68% of HR leaders do not think their current HR systems are ready for the modern workforce. Which helps explain why so many are looking to change their solutions – from talent acquisition through Core HR and Analytics – within the next two years.
So, how can HR become more agile and ensure its systems are fit for the future? One of the keys to this is analytics. Better analytics drive more powerful insights – and these in turn should help connect not only HR silos, but also HR data with broader business metrics. Measuring strategic value and impact HR can deliver will never have been easier. Currently, analytics provide executives or board level staff the lowest levels of satisfaction of any HR technology, at just 49%. But the predicted investment in analytics is huge at 68% seeing an increase, making it the #1 area for investment in the year ahead.
The other strategic game changer will be AI. In figures we’ll explore further in this month’s webinar, 95% of organisations see AI as impacting their strategy and 45% believe it will be truly significant in less than two years. And whilst AI is going to impact lots of aspects of HR process and systems, one of the earliest areas of impact is analytics, and the rapid growth in predictive analytics.
The reality is that AI and analytics could hold the key to making HR an agile organisation, as well as future proofing your HR skills and truly making HR a strategic business partner. I’m looking forward to sharing more insights and data with you in my webinar with SD Worx next week.