Most companies are now stepping away from evaluations as they realize the HR has been right all along – Managers need training, time and the incentives to have the much-needed conversations with subordinates about performance and growth.
HR has profound knowledge about workplace issues. Although,
it makes no difference if it doesn’t help the company gain firstrate analytics such as employee data and how to gain the most from their human capital. According to a recent Deloitte survey, HR Managers felt least prepared in the area of analytics. Companies like Google, Microsoft mine their own data to predict successful hires. Similarly, IBM uses its employee database to create teams effectively. Besides the tech sector, no other company has been able to successfully employ the use of data to identify its best performers and minimize its own health care costs.
In many companies, CIOS are the ones handling big data to solve HR problems, such as hiring the best candidates and finding out which practices increase productivity. If HR is to meet goals on people management, it must either handle those analytics itself, or partner with CIOS and their teams to do the work.
Today, one of traditional HR’S biggest problems has been supporting business strategy. Companies no longer stick to long-term plans. Instead they generate streams of initiatives to address talent requirements. What can HR do to bring the long view back into
organizations? By integrating with the immediate problems that businesses face, they can help the companies use human capital and once again be reliant on it. HR should assess what initiatives should be taken: what emerging needs do they need to address first? How do those needs map to the company’s talent pipeline? How are things likely to change in the marketplace? Do we have the ability to handle those changes internally?
Companies such as Apple, Google and Microsoft are at the forefront of HR innovation. This is largely because each of these companies now specialize in talent. Human capital is their biggest asset. This doesn’t mean that other sectors are falling short. For instance, JP Morgan is now using an algorithm to identify candidates who are likely to break the rules. Now is the time to reimagine how to handle human capital more broadly. Companies should treat HR more than just a cheerleader for an initiative to draw talent; otherwise leaders will take on another task for attracting and retaining talent and end up burning more capital in the process.