Nathan Reynolds, Director of sales at ANZ bank, sheds some light on the use of technology in organisations for human resources and how it can leverage employees’ analytical data to create data-driven decisions and even improve worker productivity.
How is performance management evolving with the assistance of human capital management (HCM) technology?
In today’s world of work, an optimal employee experience is grounded in regular and meaningful communication. This underlying truth impacts performance management discussions also.
Annual reviews requesting managers to condense a year’s worth of achievements into a few sentences discourages meaningful conversations and hinders the relationship between employee and employer. For one, bias and the pay packages tend to show more about the reviewer than the individual being reviewed – a lenient supervisor will give better reviews, no matter the performance of the individual employee, and a rigorous supervisor will give worse reviews, independent of how their employee really perform. Additionally, annual reviews tend to have a bell curve while real performance doesn’t follow this pattern.
Consequently, many businesses, including ANZ, opt for and are advised by business coaches to adopt a more frequent and developmentally focused approach to performance development, leveraging the Functionality of cloud established HCM technology to help ease the tensions caused by traditional performance reviews.
What HCM technology allows for is the ability for workers to participate in T\their development daily, using the exact same system they get their pay through, to view their programs and perform other common procedures, enabling them to access their digital content all in the one place.
Moreover, through HCM technology, businesses may equip their people leaders with tools such as a predetermined content strategy, which prescribes how to offer feedback based on the unique strengths of the team members. This personalised training frees the ability to tailor conversations, ensuring that the message is known and acted upon.
With workers frequently talking to their leaders on a range of functionality topics, they continue to feel valued and gain a better comprehension of the opportunities unique to them.
How do HR leverage employee analytics to create data-driven decisions and increase the employee experience?
More HCM technology companies are adding predictive analytical solutions to their software mix allowing for insight into the probability of a worker leaving, their performance potential and their general level of participation — information that could help business leaders make better choices.
Having said this, predictive analytics is very much based on actual figures — utilising a combination of data mining, modelling, machine learning and artificial Intelligence to analyse present information and make predictions about the future. Each version requires a goal — be it flight risk, or advertising Possible — as well as the HCM information of an organisation’s choosing (such as Compensation levels) to finish their predictive and algorithm probable outcome.
What does this mean for businesses looking to improve their employee experience?
With insights based on actual data, company leaders become better equipped to have a proactive employee engagement strategy.
Knowing which workers are likely to leave and possible (correlated) motives for this likelihood, people leaders can begin making changes to an employee’s Situation (reimbursement, training, etc) and affect a more favourable outcome For the employee and the organisation as a whole.