Nathan Reynolds, director of sales at ANZ bank, sheds some light on using technology in businesses for human resources and how it can leverage workers’ analytical data to make data-driven conclusions and even enhance worker productivity.
How is performance management evolving with the guidance of human capital management (HCM) technologies?
In today’s world of work, an optimal employee experience is grounded in regular and meaningful communication. This underlying fact impacts performance management talks also.
Annual reviews requesting supervisors to condense a year’s worth of achievements into a couple paragraphs discourages meaningful conversations and harms the connection between employer and employee. For starters, bias and the cover packages tend to reveal more about the reviewer than the person being examined — a lenient manager will give better reviews, whatever the operation of the individual worker, and a rigorous manager will provide worse reviews, independent of how their worker really performs. Furthermore, annual reviews generally get a bell curve while actual performance does not follow this pattern, this is really one of those corporate programs that are becoming phased out with traditional business practice and replaced with meaningful modern day employee reviews.
Consequently, many companies, including ANZ, opt for and are advised in small business coach training sessions to embrace a much more regular and developmentally focused approach to performance development, implementing the functionality of cloud based HCM technology to help alleviate the tensions brought on by conventional performance reviews.
What HCM technology allows for is the ability for employees to participate in their development every day, using exactly the same system they receive their pay through, to see their programs and perform other common processes, allowing them to get their digital content all in the same place.
Moreover, through HCM technology, companies may equip their people leaders with resources like a predetermined content plan, which prescribes how to provide feedback based on the unique strengths of the group members. This personalised training frees the capability to tailor conversations, ensuring that the message is understood and acted upon.
With employees frequently talking to their leaders on a range of performance topics, they continue to feel valued and develop a better understanding of the opportunities unique to them.
How can HR leverage worker analytics to make data-driven decisions and increase the worker experience?
More HCM tech companies are adding predictive analytical solutions for their software mix allowing for insight into the likelihood of a worker leaving, their performance potential and their overall level of involvement — advice that could help business leaders make better decisions.
Having said that, predictive analytics is very much based on real figures — using a combination of data mining, modelling, machine learning and artificial Intelligence to analyse existing information and make predictions about the future. Each version requires a target — be it flight risk, or advertising potential — and the HCM information of an organisation’s choosing (like compensation levels) to complete their predictive and algorithm likely outcome.
What does this mean for companies seeking to increase their employee experience?
With insights based on real data, business leaders become better equipped to have a proactive employee participation plan.
Knowing which employees are likely to leave and potential (correlated) motives for this likelihood, individuals leaders can start making changes to a worker’s Situation (compensation, training, etc) and influence a more favourable outcome for the worker and the organisation as a whole.