Having implemented SAP’s Talent Management modules at various clients, one of the things that has shocked me the most is that many businesses do not use – or do not think they should use – analytics as part of their Talent Management and HR strategy. What perplexes me is how they prove what they are doing and/or have done. I am a strong believer that organizations should be monitoring, measuring, analyzing, and adapting their business to remain competitive and sustainable. Analytics offer organizations a way of analyzing what they are doing in order to make well-informed decisions about their operations and strategy.
It’s good that HR can measure what they’re doing, but HR also needs to provide meaningful analysis and reporting to the rest of the business to show what impact they’re having and the value they are bringing – such as cost per succession plan, total cost for training, total cost for training v external hiring costs, training costs v productivity % increase, etc. These are quite extreme examples, but being able to provide these types of analytics show how HR is providing value to the business. Ultimately the stakeholders of a business will want to know the cost of developing and protecting the organization versus increase in productivity and value added – and HR needs analytics to prove it.
In the blogs below I am going to cover what analytics are available from SAP and SuccessFactors for Talent Management, why I think organizations aren’t using analytics, why I think they should use analytics, what the future holds for analytics, and what I think are the meaningful analytics that organizations should be using to analyze and evaluate how well HR is running the show when it comes to Talent Management.