This issue (34.2) of HRPS People & Strategy focuses on analytics – more specifically how
to use human capital analytics to make excellent business decisions. In this
latest issue, Laurie Bassi asks the question: "What is HR analytics, and what
can and should it be used for?”
From the onset, I’d been asking myself the same
question. Some questions that came to
mind after I read the article is: What function does HR analytics play in your
business? Are you responsible for driving the strategic direction of your
company, and if so, how much emphasis do you put on HR analytics and metrics?
Do you feel that using this evidence-based approach has assisted in improving
the quality for individual and organizational performance?
In 2007, HRPS ran an
article titled, "HR Metrics and
Analytics: Use and Impact” in V.27 No.1 of Human Resource Planning. The authors Edward E. Lawler III, Alec Levenson and John
W. Boudreau write:
If HR can
make a strong case for being an important part of strategy development and
implementation because of the importance of human capital, why does HR often
fall short of being a strategic partner? At least one possibility is because HR lacks the type of
analytic and data-based decision-making capability needed to influence business
strategy. One of the reasons for this may well be because it lacks the right
metrics and analytic models.
In their response, they address how HR can make a stronger case to be
part of the strategy development. It seems that in nearly five years (based on
my read of Bassi’s article), HR professionals have become a bigger part of the
companies in which they work and more a part of this decision-making process.
Do you agree or disagree with this assessment? I look forward to hearing your