In the past few years, the role of CHROs has been majorly redefined. They are now expected to play a more strategic role in developing and executing human resource strategies in a way that aligns with the overall business. Furthermore, the reality of digital disruptions is making it essential for the HR leaders to become data driven along with being business savvy and innovative. A recent study showcased that majority of the executives agree their company cannot succeed without an assertive, data-driven CHRO, who takes a strong stance on talent issues and uses relevant facts to deliver an informed point of view. However, new research by Harvard Business Review Analytic Services has found a large gap between what companies want from the CHRO and the capabilities that are necessary to deliver it. It has been found that lack of data analytical skills is holding HR leaders back. Many chose this as the biggest obstacle to using data to make effective strategy decisions. This very aspect highlights the fact that HR leaders now need to possess knowledge and skills of data analytics to strategically analyze, align and act on the critical people-related issue with the core intent of adding value to the business.
Contextual intelligence technology can make a huge difference to CHROs when applied to the human capital supply chain. Let’s see how contextual intelligence is empowering CHROs to make business critical decisions:
Deciphering the huge amount of data: Given the fact that HR data is huge and also the most unstructured, thereby mostly unused, it is all the more imperative that CHROs employ intelligent technology to harness HR data and make more sense out of this latent data in today’s digital age.
Making data-based, informed decisions: Contextual analytics of talent data provides unprecedented insights and in-depth understanding in actionable areas such as talent sourcing, development, planning, deployment, management, and monitoring. Since contextual technology gives accurate results, it empowers the CHROs with valuable knowledge to make realistic data-driven recommendations which could be used by the CEOs to make more impactful decisions.
Saving costs: By leveraging on the insights from data analytics, CHROs can identify the key talent gaps and ways to plug those in a timely manner. This timely information and requisite interventions will help them tackle the issues of non-performance, low productivity, and attrition- some of the major elements which contribute to hiked company cost. CHROs can definitely help impact the bottom line by increasing revenue/employee with contextual talent analytics.
Innovation: Sitting on rich information derived from analytics, CHROs can advise CEOs on efficient yet innovative investment ideas with respect to existing skills data of talent pool and the best possible future course.
Aligning business: CHROs can align talent to business goals and decisions by customizing L&D, getting more relevant candidates, increasing employee retention and optimizing talent to help fulfill organizational goals and direction.
Today’s fast paced disruptions have changed the equation between CEOs and CHROs. CEOs want their CHROs to advice them on various strategic matters and they want information which is relevant, accurate and backed by strong data and facts. By leveraging on rich data analytics, CHROs can actually become the strategic business advisors and change the perception associated with HR as a support function to something more strategic in nature. By using the right analytics, CHROs can greatly contribute towards the overall growth of the organization; research by Bersin by Deloitte showed that the stock prices of companies with high-impact talent analytics outperformed their peers by 30% over the previous three years. Furthermore, organizations with sophisticated talent analytics functions see improvements in recruiting, leadership pipelines and talent mobility.