Why overdependence on data for recruitment could be wrong

Today, every business and every function is driven by data. The human resources function is no different. Especially over the last few years, there has been an increased focus on HR analytics to gain meaningful insights that help shape company processes, policies, and strategies.

HR analytics is, no doubt, a powerful tool. After the globally infamous ‘great resignation’ in 2021, more and more companies are investing heavily in building teams, technology, and skills to develop data-driven insights and make robust business and talent decisions. Data and analytics remove the guesswork for HR leaders and teams, allowing them to impact business strategy and build trust-based relationships with the C-suite.

There is a drawback: The missing piece

While data and the insights gathered from HR analytics can result in increased efficiency, better business outcomes, and answer questions around diversity, equality, and inclusion, there is often a missing piece HR leaders tend to ignore. The human angle. HR teams use numbers to identify patterns and trends but quite often, due to the nature of this task, many miss out on the stories hidden behind the numbers.

We must remember. In the last two years, two things have accelerated at unbelievable speeds. First, is the adoption of data technology and second is the need for an empathetic, human-centric approach to business/organizational decision-making. With analytics, HR teams can push data-based decisions but it is equally, if not more, important to take into account individual narratives, contexts, and challenges faced by employees – both potential and existing.

Unfortunately, in many companies, HR analytics teams operate in silos. They do not have any personal connection with the employees or candidates. This issue is heightened in times where remote/virtual work is the norm.

Take the example of intelligence tools that scan CVs during the recruitment process. There is no doubt that this tool can prove to be immensely useful in giving insights into the candidate’s capabilities and productivity but it cannot explain an employment gap in the CV, nor can it gather insights about lower productivity or performance due to unforeseen personal challenges, an unsupportive work-from-home environment or poor mental health. These are details, unique insights that analytics are most likely to miss. And that comes at a cost! Imagine missing out on a great candidate because for the same reason, imagine making an employee feel alienated and unheard by missing out on the human part of analytics.

While relying on data and analytics, HR teams should also focus on different ways to learn and understand the employees. Some of these ways could include:

* Analysing internal communication of employees with leaders, colleagues, and managers, to get a better view of their stories

* Following and engaging with employees on social media

* Regularly connecting one-on-one with employees for check-ins, candid chats, and feedback sessions

Speaking the language of your audience
The human aspect of HR analytics is not just restricted to understanding employees and their experiences. It is also about communicating information in a way that is not only easy to understand but also feels valuable to those receiving the information – in this case, the senior leaders and decision-makers.

The focus on using sophisticated tools and reaching accurate analysis often diverts the HR team’s attention from stitching the data together into a cohesive and impactful narrative. As a result, business leaders can often miss out on the criticality of the data presented.

Crafting stories is a big part of communicating analysis. HR leaders should find engaging ways like analogies, case studies, and familiar, relatable examples, to reach their audience. By itself, data can feel confusing and overwhelming. The whole aim of HR analytics is to derive meaning from data. Therefore, communicating it effectively is a non-negotiable part of the process.

Data, as we have come to realize, is immensely useful for a multitude of reasons. With that knowledge, HR and analytics must remember that while business growth is an overarching goal, the way to reach it always has to be people-focused.

(The writer is Director, Talent Advisory at PeopleAsset)