HR analytics is the new HRM gold. To put it differently: basing decisions on valuable insights from ‘big data’ has been on the rise in larger organizations for years. Within HR, and more specifically within Learning & Development, there are still numerous possibilities for development. How to use HR analytics to your strategic advantage as L&D manager?
After a quick search for “HR analytics” you are bombarded with masterclasses, training and e-HRM tools. But what is it exactly? Techopedia offers a useful definition, summarized as: “applying analytic processes to the human resource department of an organization in the hope of improving employee performance and therefore getting a better Return On Investment (ROI).” So within HR, analytics are the most relevant for L&D. What practical applications will lead to that higher ROI?
1. Central overview of individual skill levels
The fact that e-learning and a LMS can offer more insight in the skill levels of your employees won’t be shocking news to you, hopefully. But did you know that the same is possible with ‘soft’ communication skills? Combine e-learning with e-training and you always have an up to date view on the level of each employee. This helps with linking the right people to projects or positions, for example: are you looking for an employee with strong negotiation skills or someone who is good at coaching?
2. Basing programs on an objective analysis of the development need
The automatic consequence is that you don’t have to base development programs on ‘a feeling that it’s time for training again’ or a temporary offer from the local training bureau. If the company strategy is steered towards customer satisfaction, you can measure the current levels of customer satisfaction and subsequently roll out a fitting program to get them up to the required level. You will not only have insight into the ROI of skill development, it’s very likely that it’s higher than it used to be.
3. Carrying out more targeted learning interventions
What if it turns out that the required negotiation skills of everyone in the function group are below par? Then you carry out a targeted learning intervention. Sape van der Werf of UMC Utrecht mentioned this when he formulated his expectation at the launch of our Smart Video Role Play app: “By generating data, you can see how efficient the tool is implemented and how it is experienced. With this data you also get more information for the continuation of your teaching. In this way you can carry out targeted learning interventions at the moment that you know where they are necessary.”
4. Benchmarking for best practices
The potential of HR analytics via internal benchmarking is huge. It starts with setting the norm for communication and commercial skills and training and testing them. Based on this, we establish a link between other skill levels and performances in terms of, for example, revenue, customer satisfaction, retention and absence in different regions or departments. Using the data in a clever way to develop both individuals as KPIs and the ROI is a new step towards a strategic Learning & Development policy.
