The culture of data driven decision making: Are your HCM systems geared up?
Mckinsey reports that in 2022, 70% of companies will be using hybrid-cloud or multi-cloud platforms as part of a distributed IT infrastructure. In other words, HR technology will be the driving force in organisations globally at an even more accelerated pace. This is a crucial finding for us because it also heralds the coming in of a data driven organisational culture and data driven decision making strategies. Companies will increasingly harness the power of people, strategy and technology for unleashing innovation and transforming uncertainties to opportunities.
At this juncture, a critical value addition for any organization would be investment in the right HR platform that helps mine the data that will empower the business outlook and planning. Akrivia HCM offers HR leaders and the Executive Leadership team spearheading workforce planning this very critical opportunity of identifying risks, uncovering opportunities and monitoring company specific trends to aid this endeavour. Their reporting and analytics model which is driven by AI will help achieve this and empower companies, afterall the future of work rests on increased automation whose starting point is the HCM platform.
The rising significance of a data driven culture in HR:
Of the many benefits that accrue from a data driven culture, the noteworthy ones include improved decision making, improved performance management and cost reductions. However, as critical as it is, BARC Data Culture Survey 2022 reports that 70% of less mature companies tend to struggle because of lack of clarity over data platforms and tools for employees.
Some of the major struggles that continue to remain also include resource allocation, lack of assigned roles and responsibilities when it comes to data & analytics and most importantly lack of internal communication regarding these hr tech platforms. What then can become a helpful solution is implementing an HCM platform that is more accessible, user friendly, has seamless integration with HR functions and offers easier onboarding of employees.
Are your HCM systems ready for people data democratization?
HCM cloud platforms will be one of the primary interactions of employees with data concerning their actions and their companies and will be a useful stepping stone in furthering the agenda of data literacy. Moreover, it has been found in several studies that data driven organizations are top financial performers and rely on a heavy use of people analytics which is collated and mined by these very systems. The digital transformation in the HR domain is indeed in full swing and so is the call for a data driven culture, which is why it becomes increasingly important as Visier puts it to further the agenda of people data democratization.
This is a skillful mix of implementing HR tech platforms that are accessible and transparent to the workforce at all levels of the organization. IDC researchers have also warned that the lack of a ‘meritocracy-based data culture’ will erode trust in management, reducing employee satisfaction and increasing turnover in two-thirds of mid to large enterprises by 2024, exacerbating skills gaps.
When more employees of the organisation become data literate, they actively take part in the culture of decision making backed by data. They contribute to the workforce planning strategies and are able to also witness the trajectory their company is taking and how they are also individually contributing to the overall performance and success. An HCM platform as has already been mentioned plays this very important role of processing information sitting across multiple channels in legible forms to non-technical users.
Data literacy is one of the key components of any data culture as it opens up the door to data access and data communication which empowers people to participate in the creation of a data led business strategy. Such a strategy not only enables organizations to achieve their growth targets at a much faster pace but also increases their ability to innovate and meet market demands with faster decision making. It also aids in making organizations flexible, adaptable and future ready.
Data culture has to be presented in the form of concrete, tangible benefits your workforce can reap, be it in terms of improving efficiency productivity, progress tracking and greater team coordination. HCM systems play a very important role in driving this forward. Implementing Akrivia HCM will serve as one of the pivotal decisions as it will empower the workforce to get access to data that will not only help improve their data literacy but also increase their investment and participation in a data driven work culture. Data and analytics are indeed key players in the digital transformation agenda and will elevate enterprise value at great speed.