Companies typically have vast amounts of data from different sources and organizational departments, and it can be accessed by different team members. In the era of change, the companies that realize the importance of rational growth will be more likely to succeed in creating a thriving organization. Organized data has become a huge opportunity and precious resource in today’s world. Having a data-driven culture is now crucial to survive, but you may not know the characteristics that your HR department needs to cultivate. In this article, we will look at all the key elements that must work in conjunction with each other to foster data culture.
What are the characteristics of a data-driven culture?
1. Data-driven leadership
Being able to recognize the benefits of a data-driven culture requires a specific set of characteristics that are different from metrics-oriented organizations. These values primarily start with training, leadership involvement and automation.
Cultivating a data-driven culture begins with leadership. Leaders should embody the same curiosity and critical thinking skills that they wish to see from their employees. Also, working on intentionally fostering a culture where the staff feels comfortable exploring and learning new technologies, as well as coming up with their own data-supported questions.
2. Decision-making process
HR departments can now collect and analyze data from a wide range of sources to make business decisions. Some of these decisions include hiring new talent, evaluating employee performance, determining annual training costs, as well as tracking and monitoring turnover rates. For all of this, an automation software can help speed up the decision-making process and gather as much relevant data and reviews as possible in order to avoid viewing the data in isolated segments. Employees in a healthy HR data-driven culture will be open and honest to admit mistakes and share experiences to help the entire organization learn and grow faster.
3. Democratized data
Each role in your department and organization needs to be clearly defined. It is important to grant broad data access to teams so that they can identify how their activities drive change in the company. There should be a single source of truth where the department can always gather data from multiple sources and present a well-rounded view by eliminating any potential human errors. When data is easily accessible and the processes are transparent enough, employees are free to focus on higher-value tasks such as analysis, strategy, optimization and execution.
4. Data literacy
Data literacy is defined as the ability to read and use data to draw meaningful conclusions in order to make decisions. Here are some questions you can have employees ask themselves to strengthen their skills:
- Is this data from a reliable source?
- How was it gathered?
- Is there additional data that should be included in this specific data set?
- Are there any other data sources that can confirm what has been reported?
5. Having the right HCM software to collect and analyze data
Due to the lack of indicators and delays in HR departments, it takes time to establish a data-driven culture. Statistics such as turnover, absenteeism and recruitment require more time to build up and develop. That is why HR ought to focus on areas where it can make a real impact such as performance management and payroll. Doing so, will allow the department to produce accurate data to demonstrate that employees are being treated fairly and performance is equally distributed.
These are just a few of the characteristics of a data-driven culture inside the HR industry. The Talentia HCM software offers a complete solution to help streamline and improve productivity, gather accurate people-centric data and drive engagement.