In order to bridge the gap between successful, high-performing employees and those who need to be performance-managed, some companies are extending their data analysis methodology right into the realm of HR.
According to a Sydney Morning Herald report, the big-four banks have found that using data analysis software to better manage employee success has had a positive effect on their bottom line. NAB workforce effectiveness manager Stuart Moseley said HR software from SuccessFactors meant they could pull data from their HR systems, compare it to other data from across the business and ultimately analyse the factors of employee success in the greater context of meeting corporate goals. Moseley said the employee population was segmented, before looking for ‘clusters of success’, and asking if there were special factors making them more successful – “What is that kernel making them successful, and what is it making the other ones not successful?”
In the case of the NAB project, it was found that tenure at the company was a key factor in success, after it segmented the bankers that were/weren't successful and compared this against employee engagement scores; he said HR can use data to justify their decisions to shift employees from their teams when they aren’t performing. “The higher the percentage of people that have less than three years tenure in a team [...] the risk profile of that population starts climbing, which makes sense,” Moseley said.
While he conceded that this information may seem like telling Grandma to suck eggs, the key difference was now being able to quantify the information by using the software. He added that rotating people around the organisation to make sure there’s always someone experienced can mean a world of difference.