TECHNOLOGY
Keeping up with the demand
Charles Knox, director of product and solutions at SDWorx UK, reveals research findings and discusses the implications
H uman resources (HR) and payroll (HR&P) juggle a lot of tasks. From remaining compliant through to preparing for the fluid nature of the future workforce, HR&P departments face a constant balancing act when it comes to keeping business leaders and employees happy. But recently, HR&P has had another ball to juggle: data. Research has found that other departments are looking to HR&P to help inform strategic business decisions, using the data they hold on employees. Data is unleashing a whole new demand for this already busy function – and helping HR&P to secure a seat in the boardroom. Our latest research highlights that almost three-quarters of European employers (69%) trust HR&P to provide data-based insights and appreciate the added value these can bring to the business. However, this has created new challenges for HR&P when it comes to delivering on these new demands. Businesses need to support these departments with the right tools and infrastructure to ensure it can keep up with the demand for data. HR&P data is arguably the most important data in business, as it allows the sharing of information about an organisation’s most critical assets: its people. It can be used to inform on employee performance and engagement, talent gaps and predict future trends based on historical data assets, to name just some uses. From utilising data to make lists (58%) through to more complex tasks such as linking different data sources to find correlations and patterns (38%), data is an integral tool to future proofing not just the workforce but the business at large. The fast-changing demands of the workforce such as flexi-pay, flexible hours and continuous performance feedback
means HR&P must adapt to the increasing fluidity that employees seek in their jobs. Data is central to HR&P responding at speed to the fluid demands of the workforce. This is supported by the research which found that in the UK 46% of business decision-makers believe HR&P data can impact employee satisfaction and engagement. HR&P departments can work with the business through using data to guide, build and unleash high performance. From getting people paid through to attracting and rewarding talent across the organisation, HR&P play a crucial role in supporting the changing demands from the workforce. Holding real- time, data-led insights on employee needs enables businesses to make decisions that support engagement and garner a strong future for the business. ...crucial role in supporting the changing demands from the workforce... The demand for data is at an all-time- high and there is no sign of it slowing. In fact, according to our research, 43% of HR decision-makers across Europe are being asked for insights at least once a week. The reasons for these include absenteeism (44%), employee costs (40%), and productivity (40%). If HR&P are expected to respond to these demands, decision- makers must equip them with the right skills and infrastructure to ensure the best possible insights are being shared. For decision-makers to support HR&P they must first understand the departments’ needs. 69% of European business decision-makers think HR&P is comfortable in handling and analysing
data, and around two thirds think the right skills and competencies to embrace data- based insights are currently in place. But there is no time for rest, as our research further states that the skills needing further work when it comes to HR&P data-based insights are analytical skills (40%) and change management skills (34%). If businesses are to continue expecting data-led insights from HR&P, decision- makers must realise there is still much work to be done putting the right support in place for their teams to respond to the demand for data. This challenge can be addressed through offering appropriate training opportunities. For example, teams can get training on data analytics in order to track themes in employee absenteeism, which then enables HR&P to consult business decision-makers on employee engagement schemes. This is just one of a number of challenges to address before HR&P takes a seat at the boardroom. There are other obstructions stopping businesses from embracing HR&P data across the board. The top three potential barriers to embracing data-based insights are: a lack of communication between HR and the broader business (29%); the costs associated with it (27%); and internal structures limiting innovation (28%). These can be lifted through an attitude change in the organisation. If 56% of respondents expect trust by non-HR decision-makers in applying HR data- based insights to improve over the next two years, businesses must ask HR&P for their insights and opinions in the bigger discussions in the business. HR&P departments are facing a new balancing act – keeping up with the demand for data. If supported in the right way, HR&P can position itself as a strategic business partner. But if the demand for data is set to increase, technology and internal knowledge must rise alongside it. n
| Professional in Payroll, Pensions and Reward | February 2020 | Issue 57 42
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