How to Grow Your HR Analytics Budget
posted by Laurie Bassi
- You know you should be making more progress on HR analytics
- You also don’t know where to get the money to do it
And yet, some organizations – admittedly a minority – report that they have sufficient HR analytics budgets.
So we set out to determine what distinguishes those HR functions that report having an ample budget for analytics. To answer this question we analyzed McBassi’s HR analytics maturity benchmarking database. (If you would like a free customized benchmarking report on how your company’s current HR analytics maturity stacks up, click here.)
Our analysis showed that the following attributes distinguish HR functions that have a sufficient HR analytics budget from those that don’t:
1. They have a strategy in place ensuring that their HR analytics initiatives are aligned with the organization’s strategic objectives.
2. They get the basics right. They have reports/dashboards making it possible to determine whether goals are being met for each of HR’s key responsibilities (recruiting and selection, training and development, compensation and benefits, retention and promotion).
3. They have developed the capacity to link together disparate pieces of information on people and business outcomes to produce actionable, executive-level insights.
Now we know what you may be thinking – “We can’t possibly do these things because we don’t have the budget to get them done.” Classic chicken-and-egg problem. But what we’ve learned is that it doesn’t take a lot of money to make a good, running start at each of these issues. It does take being clever and resourceful – and committed.
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