Advertorial Feature
Data and HR:
Watch out for the data disconnect
It’s almost a given now that data is an essential resource for HR. But do HR professionals currently
have the right technology in place to really deliver on its enormous potential?
MATTHEW JACKSON
Vice President –
Proposition and Client Solutions
Thomsons Online Benefits
It’s a fact that cannot be denied: technology
has transformed HR. Firstly, HR automation has
allowed HR professionals to free themselves
from basic administrative tasks and concentrate
on more strategic value-add activities that
actually make a difference to their people.
Secondly, and connected to the point above,
technology enables organizations to collect
ever-growing amounts of data on a wide range
of areas. The analysis of this employee data will
in turn have a huge impact on how HR and the
benefits and reward function operates.
Though some functions have already been
radically changed by technology, others are
still undergoing the process. Our new research,
Innovation generation - the big HR tech
disconnect 2019/20 - a global survey of over
380 HR and reward professionals working in
multinational organisations - reveals that when
it comes to data analysis, job prospects are
promising. Asked about their intentions, 17
per cent say they are looking to hire additional
data talent, 32 per cent will upskill their existing
teams, and a further 17 per cent will be doing a
mixture of both.
So data careers look set to flourish; however,
data will only ever be as useful as the technology
that underpins it, turning it into practical and
usable insights. It is in this area that we find
the significant ‘disconnect’ between the data
promise and its actual delivery. A significant 68
per cent of organisations report that their
biggest barrier to investing in new technology
is that existing tools are not fit for purpose.
Furthermore, and arguably as a result, many
are struggling to get buy-in for new tech
investments from the C-suite. According to The
Workforce Institute,* 55 per cent of employees
say that it’s easier to search for a film on Netflix
than it is to check their employee benefits
online.
Yet the demand for quality data insights is
growing exponentially. Our research found that
56 per cent of employers collect employee
benefits data on take-up and scheme
engagement now, yet in three years 97 per
cent say they’ll be doing it. Today just 21 per
cent say they are using building sensors to
measure footfall and desk-time around their
workspaces. By 2022, 50 per cent say they’ll
be measuring this. Taking into account that 33
per cent of organisations classify themselves as
technologically innovative – and 27 per cent see
themselves as early adopters of new technology,
there is a huge disconnect between how they
see themselves and the reality. The danger is
clear: unless employers recognise the disconnect
and make significant changes there will remain
a gulf between technology adoption and the
ability of HR teams to use this technology
and data it generates to deliver meaningful,
business-transforming metrics.
Employee wellbeing, engagement with benefits,
even long-term retirement planning – all of these
activities and many more will be dependent on
the gathering and analysis of larger and larger
amounts of data. Analytics talent is already
being put in place, but the danger is that the
technology could lag behind this investment. So
while the future for HR teams is bright and the
benefits of data analysis and measurement are
powerful, it’s critical that investment decisions
taken around technology are the correct ones.
If not, the disconnect will mean data simply
won’t deliver on its promise, and both employers
and employees won’t reap the huge benefits out
there waiting to be grasped.
To download your copy of the full report, go to bit.ly/2kI7yvX
68% of organisations report
that their biggest barrier to
investing in new technology
is that existing tools are
not fit for purpose
*https://workforceinstitute.org/workplaces-falling-behind-todays-on-demand-culture-user-friendly-technology-a-top-priority-for-2019/