Aberdeen Group has released a research report called Intelligent Human Capital Management: Workforce Analytics Drive Profit and Performance. First let’s state the obvious. Despite the recession, the importance of Human Capital Management (HCM) is increasing. But while more and more companies are aware of the importance of HCM, they also realize that not all HCM practices are created equally.
To get the best bang for the buck, you must have metrics. And as we all know, it is very difficult to get everything in place to make data-driven decisions when it comes to people and their performance levels. However, it is something that best-in-class companies do, and do well. Other best-in-class practices include:
· Integrating HR, talent management, and other organizational data to see future and current needs (break down those information silos).
· Training leaders on how to use analytics and reporting systems.
· Creating standardized HCM metrics (what doesn’t get measured, doesn’t get done).
· Making reports available down to the line manager level (don’t keep that information at the top of the organizational chart).
· Improving processes so that data is accurate and timely (and available for decision making).
Bottom line: Good HCM requires collaboration between many different areas of the organization – HR, IT, line managers and strategic leaders. Unless your organization fosters collaboration between these groups, uses a system that everyone is trained on, and implements appropriate workforce metrics HCM is unlikely to give the performance gains that it could.
What do you think? Is there enough collaboration between HR, IT, and management in your organization to foster strong HCM practices?
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