Navigating the course
While HR functions have long used analytics to understand factors such as hiring, attrition, and engagement that approach is seen by Pathfinders, individuals we interviewed that are putting bold people strategies at the heart of their decisions in the KPMG The future of HR: From flux to flow report, as simply a baseline. Rather than tracking standalone metrics, they are building the value chain required to undertake relational analytics and turn existing insights into tangible action.
Pathfinders have also invested in technology and talent to ensure that insights are connected across the business so they can be interpreted accurately and acted on swiftly. Pathfinders go out of their way to correlate findings in one area to another—bringing disparate datasets together to investigate multiple, often complex underlying factors to properly understand a problem, so as to truly understand the business and their people.
The result for Pathfinders is a strong link between data and decision-making. Interestingly, for our survey respondents,1 36 percent say delivering predictive insight and business value will be a priority in the next few years. Worryingly, only 17 percent ranked analytics first when asked what they are best placed to deliver. This may explain why 53 percent are investing in analytics platforms for their HR function in the next few years, although 38 percent are not.
Source: KPMG, The future of HR: From flux to flow, November 2022
As important as analytics is to HR functions, data quality, HR capability, and functional integration are all potential barriers to making the best use of it. Data may be unclear, unavailable, or fail to be translated from raw source to valuable insight.
According to Matt Yerbury, a workforce analytics leader in financial services, who contributed to this year’s Pathfinders research, says Pathfinders see analytics as a value chain. That value chain, in his experience, typically consists of five parts.2
Ensuring that integrity will demand: