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When faced with decisions — regardless of the subject or implications — it’s human nature to seek information. We all need information to help us make the right choices, to confirm our assumptions, to confirm the courses of action we take. In business, data is driving important decisions in marketing, operations, logistics and other important business functions. We’ve seen that insights from data provide a surefire way to better results.
But information about people has probably never been as valued as it is today. People data is driving better assessments of the workforce and the global economy. From hiring to compensation to promotion and everything in between, each data point reveals a truth that helps business leaders and human capital management (HCM) professionals make better choices about their workforce. Collectively, such informed decision-making can open the door to a more diverse, fair and inclusive world of work.
How data can inform people’s decisions.
With the technology tools we have today, we can capture and use real-time data to track important workforce metrics, but more importantly, help proactively address workforce issues like turnover and retention. With aggregated and de-identified real-time data, we can see trends emerge and even begin to predict their likelihood. Detailed data on how long people stay at work, how much they earn and how often they get to know each other can help clarify where businesses are doing against the backdrop of the global economy. For example, analyzing people’s data allowed a company to discover the reasons for unauthorized changes in their organization. Using these insights, they changed processes, procedures and policies, resulting in a 20% reduction in turnover.
Benchmarking data – knowing what other businesses in your industry or geography are paying – can also mean the difference between attracting talent to your organization or losing it to a competitor. Today’s job market has more jobs than candidates and is in constant flux. Companies need to know how they compare to others on compensation, benefits and other key job factors. In this environment, having up-to-date workforce knowledge is critical.
Data as a flashlight
There’s no question that having this level of detail in your people data can help make your organization more competitive in the talent marketplace. But perhaps more importantly, the transparency of this public analysis can help you identify gaps in representation and equity and take meaningful steps to close them. There is a need in society to continue to push forward creating an inclusive environment for all, and the first way to advance that goal is by measuring progress. If you can’t measure progress, you can’t adequately assess whether you’re making an improvement in people’s lives.
Examining the critical DEI test, let’s consider pay equity. At the end of the day, nothing is more important than making sure people are paid fairly and accurately for their contributions. In the past, it was difficult to accurately assess compensation differences. We’ve known about gender pay inequity for some time, but often companies are too advanced to take concrete action. Discussions about the root cause of the problem and how to fix it will also be very high level to respond to. This doesn’t help leaders and HR professionals who want to reduce pay inequity in their organizations. By analyzing internal workforce data and then comparing it to existing metrics by industry, demographics, geography, function and job title, companies can now pinpoint where their organization has lost ground.
One misconception is that hiring people at higher wages will help close the gap. If you bring people in, you’re not creating upward mobility in the organization. By examining compensation in different positions and companies and evaluating what it means for someone to move up, organizations can better understand where to correct course.
It’s another important and often overlooked component of closing payment gaps. Giving workers more information about pay and similar roles in their industry can help workers in underrepresented groups gain bargaining power.
Data can help organizations proactively address these inequities, resulting in higher employee retention and better talent acquisition. Data helps you see around corners and acts as a flashlight for dark places on your road ahead. We can use data to identify when people are not being paid the level they should be. We can create tools for planning and budgeting to bridge those payment gaps. Ultimately, the goal is to turn real-time data into actionable insights and workplace solutions that help businesses and people grow. In the year By February 2022, 75% of customers using the solution had improved payment equity, impacting $1.1B in communities across the US.
Driving change through information
It’s important for organizations to reflect on what’s visible in their people analytics, looking for context and relationships that create asymmetric impacts. As patterns emerge, examine what happened in the past to understand possible causes and adjust proposed solutions. When it comes to creating a better, more just world of work, focus on removing barriers to growth and building programs and policies into your workplace culture that allow your employees to be seen as their best selves. By using data to communicate your efforts, you can make a meaningful difference and be part of the benchmark that challenges others to follow.
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