The article “The C-Suite Lacks Confidence in HR Data Analytics. But Why?” by Roy Maurer explores the current state of HR data analytics and how business leaders are perceiving the data. The study conducted by KPMG highlights a significant trust gap, as only 35% of the senior executives surveyed have high confidence in their organization’s use of data analytics. The research, which included participants from 8 different countries, found that 40% expressed reservations about relying on the data, while 25% showed little to no trust.
One of the reasons for the lack of confidence is the fact that business leaders are unaware of how the data is gathered and analyzed. The data is usually based on algorithms created without their input, making it difficult for them to trust the results. Additionally, the data is coming at an incredible rate, making it hard for companies to keep up and ensure its accuracy.
The article points out that executives have to ask themselves three questions each time new data is presented: How is it gathered, how large is the dataset, and how long has it been analyzed? Some measurements, such as tracking source data, are deemed “thin data” and cannot be truly tracked due to the self-reported nature of the information.
Another factor contributing to the trust gap is the lack of accountability for the accuracy of the data. The study showed a wide range of opinions on who should be responsible for the research, with 33% believing it falls under core business (such as CEO or CHRO) and 62% saying it should be handled by IT. The article highlights that it is a shared responsibility between IT and core business, with the accountability of accuracy ultimately falling on the CEO and functional leaders.
The article also notes that while numbers can provide insight, it is essential to intelligently consider them and augment one’s decisions based on their own experience, intuition, and knowledge. Hiring assessments are just as valuable as the human element.
In conclusion, the article sheds light on the current state of HR data analytics and the lack of confidence business leaders have in the data. It highlights the need for companies to be transparent about how the data is gathered, analyzed, and presented and the importance of considering both the numbers and the human element when making decisions.
Source: The C-Suite Lacks Confidence in HR Data Analytics. But Why?https://www.shrm.org/resourcesandtools/hr-topics/technology/pages/hr-data-analytics-trust-leaders-kpmg.aspx