Business leaders face a diverse set of challenges – from business operations and revenue goals, global expansion amidst tight border restrictions to creating genuine employee experiences against a volatile global business landscape.
We speak with Michael Chen, CEO of BIPO – a leading, one-stop HR and Payroll solutions service provider with a global footprint across 27 countries.
Two years into the global pandemic, what’s a growing trend you’ve observed?
With remote and hybrid work arrangements here to stay, people analytics is the new norm in workforce management and planning. Increasingly in my conversations with global business leaders in the Asia Pacific, the growing trend points to companies adapting existing data analytics processes to other business areas such as Human Resources.
Traditionally, data analytics has been used by large enterprises and MNCs to predict global and consumer trends. While the pandemic has resulted in gaps that need to be addressed, it has also created opportunities where SMEs and HR teams are now leveraging data to gain insights in areas like compensation and benefits, employee retention strategies, pulse surveys, and employee engagement.
Data Analytics, People Analytics, Workforce Analytics – boon or bane for HR today?
Often compared with data analytics, people analytics is a data-driven approach towards Human Resources management. It involves analysing a range of HR metrics to enable businesses to make data-informed decisions that impact business performance.
One of the biggest wins we’ve seen with clients who have incorporated People Analytics and BIPO’s Business Intelligence tools in their business strategy is better decision-making and accurate benchmarks and forecasting.
How can business leaders and HR leverage data for better decision-making?
Traditionally, decision-making is left to a select few in the senior leadership team. Decisions are based on experience, team consensus, and risk avoidance instead of historical data, leading to an absence of tangible results to the detriment of the organisation.
By combining the art of HR with the science of people analytics, businesses make better-informed decisions to achieve the desired objectives based on measurable metrics aligned with their business and expansion goals.
What the pandemic has given rise to, is a foundation on which business leaders plan and make their decisions with data and analytics at the core.
What are some examples of Data and People Analytics, and how are they used by businesses today?
Applications of people analytics are now integrated into existing HRMS and Enterprise Resource Planning (ERP), leading to a significantly positive impact on compensation and benefits, performance evaluation, attrition, retention, and employee engagement.
People analytics is particularly useful in instances when employee retention rates are consistently poor. Data analysed over 12 months is used to identify key reasons (push/pull factors, for example) to shed light on possible underlying issues such as inadequate leadership or poor engagement. Results may indicate that salary packages and promotions may not be sufficient in addressing the issue. Instead, a better strategy with long-term impact could include coaching, mentoring, and succession planning to ensure engaged and sustainable teams.
Avoiding the pitfalls of decision-making that lack reliable data while steering decisions to achieve business objectives is precisely what people analytics is designed to accomplish.
Tell us what are the misconceptions surrounding data?
The common misconception surrounding big data, data analytics, and BI tools is that they are complex and require technical knowledge for use in real-world situations.
This might be true for legacy BI and data analysis tools. However, with the widespread use of data and advancement in technology, BI tools and platforms have evolved to allow those without the scientific skill and technical background to analyse data in a manner easily understood. Besides providing real-time information for analysis, such platforms also afford simple reports, dashboards, and data aggregation.
As a leading global HR service provider, BIPO is committed to driving innovation in HR technology. Our award-winning, cloud-based HR Management System integrates BI, data, and people analytics tools, empowering HR leaders to address critical business and people-related needs.
First published in hrtech.sg on 14 January 2022
