Human Capital Analytics (HCA) can ultimately maximize the potential of an organization’s workforce and productivity. It can do all of this while simplifying the life of the HR. Basically, it is a win-win for everybody. The ultimate question is: how can an organization go about creating a HCA mechanism?
In part one of this two-part series, Defying the Odds of HR Through Human Capital Analytics, we explored what HCA is (and isn't). While the majority of organizations can benefit from the insights HCA provides, a staggering number of companies do not utilize these insights in their decision making process; even though its often right at their fingertips.
Knowing that organizations have access to HCA intelligence, we'll explore how to start collecting the data, and most importantly, what to do with it.
How To Get Started
At its most basic level, HCA involves three things:
- Identifying data points
- Collecting the data
- Performing analytics on the data
Carry out an HCA assessment: The first step is to carry out a basic assessment of your organization as regards HCA. This includes both needs which can be addressed using HCA, and the resources you currently have which can be used for HCA.
Create an HCA policy: HCA can be quite sensitive especially since it involves handling employee data. Whenever data is involved then issues of privacy come into play. As such, you need a clear policy which spells out what kind of data is collected, where it is stored, how long it is stored and who has access to it.
Assemble an analytics team: HCA is a precision activity which requires a combination of specialized skills. Such skills include IT, data analytics and HRM. Therefore, your analytics team needs to include people from different departments within your organization.
Equip the analytics team: Once your team is in place, you need to equip them. The exact nature of the equipment will depend on the kind of data you intend them to collect. However, it will most likely include some analytics software. The easiest way to equip your team is by asking them what they need to get started.
Start with what you have: To get the most of HCA, you need high quality data. However, even as you build the capacity to collect such quality data, you can get started with what you have. Lack of perfect data shouldn’t be an excuse not to do anything. Start with what is available; you can always improve with time.
In a nutshell, Human Capital Analytics has the potential to greatly improve an organization’s fortunes. Unfortunately for many organizations, this potential is untapped. The good news is that implementing HCA isn’t at all complicated. The above tips can help any HR department get started. Therefore, if you are in HR and desires to maximize the potential of your workforce, begin integrating HCA into your decision making process. It might just be the breakthrough you’ve been secretly wishing for.
Brett McIntyre is the Digital Marketing Manager at Crimcheck, the leading pre-employment background check company. Including criminal checks, driving records, drug screening, employment history and medical sanctions checks. Helping HR and Staffing professionals daily.