The results from our mini-poll are now in! (First, it should be noted that the poll was highly unscientific, open to anyone who chose to participate.) We received a total of 65 responses, predominantly from individuals in for-profit organizations of medium to large size.
Asked about organizational areas of focus where respondents thought that HC analytics could have a positive effect, three areas were each selected by over 85 percent of respondents: employee engagement/ commitment, employee retention, and leadership effectiveness. All other possible choices (including sales, quality, diversity, and safety) were each selected by fewer than half of respondents. When asked which of these areas represented the single highest current priority for improvement, 41 percent chose leadership effectiveness.
In almost half of all responding organizations (43 percent), the CEO makes decisions about spending on HC analytics. Interestingly, respondents reported budgets for HC analytics are generally quite tight. Many reported their budgets were zero, minimal or unknown. Among the respondents who reported budget levels, the average budget is $6.90 per organizational employee. Finally, many respondents (44 percent) indicated they’d look first to a firm with a specialty in analytics for outside assistance in this area.
So what do we take away from all this? First, it’s clear that most respondents are still thinking about HC analytics in “traditional” areas – leadership effectiveness, employee engagement/commitment, retention. Only a minority have begun to extend their thinking to incorporate HC analytics into assessing key organizational outcomes like sales and quality.
We were also intrigued by the low analytics budgets for most respondents. It appears that the dollars may not yet have caught up to the talk – people are more interested in HC analytics, but only a vanguard of organizations have truly committed monetary resources to following through on that interest. We’d expect that those on the cutting edge in this area will begin to develop a competitive advantage over their peers whose commitment is more lagging.
Full results from the mini-poll are available here.
Two very good central points in a recent article from the Canadian Management Centre, which reminds us of two crucial factors in making your company a better place to work:
First, “people join companies, but they leave managers.” So it’s vital to ensure that managers and other leaders reflect the organization’s values. This can be done through a strong emphasis on management culture, accountability, and training.
Second, great workplaces should build on their own special qualities. So don’t just try to “cut and paste” new initiatives from generic lists of best practices – which may or may not fit in your unique organizational culture. Instead, identify what’s best and most important in your organization’s work environment, and take steps to build on and improve that.
Susan Heathfield’s blog has a nice list of five factors that she’s found employees look for in their work: respect, access to information, development opportunities, involvement in decision-making, and good leadership.
(Our analytic work with clients through the McBassi People Index® has confirmed the importance of each of those factors in multiple organizations.)
Two other factors that our analysis often finds particularly important in driving employee commitment? Jobs that make good use of an employee’s skills and talents, and being part of an organization that encourages and enables teamwork.
The most important employee factors – in shaping employee commitment as well as key business outcomes – vary significantly across different organizations, of course. So it’s always smart to analyze the unique drivers of employee and business outcomes for your specific organization.