Effective Evidence-Based Decision Making in HR Practices

1 Evidence-Based Decision Making Evidence-Based Decision Making HRM-5080 Evidence-Based Decision-Making for HR Professionals Dr. Uzma Burki March 22, 2024 Gabrielle Hawkins-Dimming

2 Evidence-Based Decision Making Evidence-Based Decision Making Evidence-based HR entails making decisions based on factual data to ensure desired business outcomes (Boatman, 2023). This approach relies on findings from empirical research, internal organizational data, practitioners' expertise, and stakeholders' input (Waters, 2023). By integrating critical thinking with empirical evidence, evidence-based decision-making minimizes reliance on subjective anecdotes and personal experiences (2022). "Evidence-based" HR emphasizes using established evidence, concrete data, and experimental research to mitigate subjectivity, uncertainty, and risk in decision-making (n.d.). It involves conscientiously documenting and evaluating information rather than relying solely on personal intuition (Briner,2 2015). Conscientiousness entails meticulous record-keeping and transparent discussion, while judiciousness involves critically assessing evidence reliability (Briner, 2015). Understanding the appropriateness of evidence for specific situations is crucial. It involves sourcing evidence from diverse channels such as research, subject matter expertise, prior experiences, and direct input from stakeholders (Miller B, 2018). However, caution should be exercised in their utilization. For instance, ensuring research relevance and contextual appropriateness and considering various viewpoints are imperative (2018). The Importance of Data Utilizing data enables HR to become more people-focused, aiding in targeted interventions and informed decision-making (Ward, 2017). Data-driven approaches are instrumental in candidate selection, onboarding, retention strategies, and predicting employee turnover (Ward, 2017). While challenging ethically and legally, leveraging HR data remains invaluable for enhancing decision-making and organizational performance (Marr, 2018). Data empowers HR to evaluate workforce productivity and satisfaction and predict attrition rates (Zander, 2021).

3 Evidence-Based Decision Making Furthermore, HR analytics offer insights into improving candidate experiences and refining recruitment processes (n.d.). Leveraging data facilitates informed decision-making, enhances leadership in people-related matters, and improves overall workforce productivity (Marr, 2018). Understanding HR Metrics Professionals rely on HR metrics as their guiding compass, enabling them to navigate critical HR and recruitment activities, enrich the employee experience, and enhance program effectiveness (Furr, n.d.). These metrics encompass a broad spectrum of factors, including employee performance, retention, compensation, engagement, cost-per-hire, and time-to-hire (Furr, n.d.). By diligently monitoring these metrics, organizations gain invaluable insights to fine-tune their programs and effect improvements as needed (Furr, n.d.). There exists a plethora of metrics, each serving a distinct purpose. As Furr (n.d.) outlined, there are ten pivotal parameters that businesses should meticulously monitor: headcount, turnover, diversity, compensation, total workforce cost, organizational structure, employee engagement, talent acquisition, learning, and workforce planning. HR metrics serve as a guiding light, furnishing HR and recruitment leaders with objective data to optimize their programs (Furr, n.d.). Devoid of HR metrics, HR departments would be left adrift, lacking insights into employee performance and potential avenues for growth (Furr, n.d.). HR professionals can procure data metrics from internal or external sources (HR et al., 2021). A significant hurdle in this endeavor is gathering accurate and high-quality data meticulously. Internal data pertains specifically to information garnered from the HR department of an organization (HR et al., 2021). Within HR analytics tools, various data points come into play, encompassing employee tenure, compensation details, training records, performance appraisals, reporting structures, insights into high-value employees, and records of disciplinary actions against employees (HR et al., 2021). By fostering

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4 Evidence-Based Decision Making collaborative relationships with other organizational departments, HR professionals can tap into external data sources (HR et al., 2021). External data holds immense significance as it offers a holistic perspective that internal data alone cannot provide (HR et al., 2021). Such external data may encompass financial information, organization-specific data, passive data gleaned from employees, and historical data (HR et al., 2021). HR professionals can collect data points from diverse sources across the organization, encompassing employee surveys, attendance records, performance reviews, historical compensation and promotion records, employment histories, demographic data, recruitment processes, and employee databases (HR et al., 2021). Exploring Analytics in HR We refer to HR analytics as the art of gathering and scrutinizing HR data to uplift an organization's workforce performance. One might also hear it being called workforce, talent, or people analytics. This approach involves aligning the data amassed frequently by HR with both HR and organizational objectives (Andreev, 2023). This alignment provides tangible evidence of how HR endeavors contribute to the organization's goals and strategies (Andreev, 2023). HR analytics is often perceived as a tool exclusive to HR professionals (Marable, 2022). However, this statistical analysis of workforce data can seamlessly integrate with various systems such as HRIS, OKR, Performance, Applicant Tracking, Engagement, Learning Management Systems (LMS), Payroll, and Rewards and recognition data, extending its utility across the organization (Marable, 2022). Leveraging data analytics empowers leaders to make informed decisions, enhance employee attraction, management, and retention, optimize Return on Investment (ROI), cultivate conducive work environments, boost employee productivity, and positively impact the organization's bottom line. HR plays a pivotal role in driving business

5 Evidence-Based Decision Making outcomes, and harnessing the power of data provides a distinct advantage in decision-making ("How HR Analytics," n.d.). While analytics may not be a panacea for all HR challenges, they offer invaluable insights and support in crafting strategies that optimize talent investments while effectively overseeing various workplace initiatives, including recruiting, development, engagement, productivity, accountability, and retention, facilitated by seasoned HR professionals ("How HR Analytics," n.d.). The Importance of Data Collection Data collected inaccurately can lead to erroneous conclusions stemming from inadequate data management and inaccuracies, impeding compliance and demoralizing employees (Diard A., n.d.). However, this merely scratches the surface of the challenges HR teams face in managing data (Diard A., n.d.). HR teams prioritize data quality and organization to prevent wasting time transforming raw data into valuable insights (Diard A., n.d.). Navigating HR's Role in Organizational Insight Within the intricate fabric of organizational functions, HR serves as the perceptive eyes, diligently scouring internal and external realms for insights and comparisons to optimize operational efficiency (Crail, 2023). Workplace data, while visible, remains cryptic without the aid of human resource measurements, akin to requiring a pair of glasses to discern finer details (Crail, 2023). Employing the right lenses enables organizations to discern patterns, trends, and discrepancies, empowering them to approach decision-making processes with a clearer understanding of reality (Crail, 2023). In today's dynamic landscape, every organization necessitates bespoke HR measurements and benchmarking to ensure employees operate at their peak potential amidst constant change (KeKa Editorial Team, n.d.). HR leaders leverage HR

6 Evidence-Based Decision Making metrics' invaluable insights to make informed decisions and adeptly manage human resources, thus fortifying HR practices (Strikwerda, 2022). HR dashboards are indispensable tools for HR teams, facilitating the tracking, analysis, and reporting of Key Performance Indicators (KPIs). Modern, interactive dashboards harness the power of HR analytics platforms to seamlessly integrate data from various systems, enabling deep exploration within the dashboard interface (HR et al.). Armed with these dashboards, HR teams swiftly uncover insights to enhance recruiting efforts, streamline workplace management, and elevate employee performance (HR et al.). Meanwhile, the strategic HR measurement system, embodied by the HR scorecard, empowers organizations to monitor, manage, and enhance the strategic role of the HR department. This system meticulously tracks crucial HR performance indicators, with leading indicators as metrics that forecast future commercial expansion (Vulpen, 2024). Employers frequently use benchmarking to compare their organization's HR metrics against counterparts in similar industries (Benchmarking et al., 2024). Internal benchmarking involves contrasting data from various temporal points, departments, or locations (Benchmarking et al., 2024). By intertwining HR metrics with the overarching business strategy, leadership gains more profound insights into how HR practices influence organizational performance (Benchmarking et al., 2024). Moreover, Return on Investment (ROI) emerges as a quintessential financial and business calculation used to gauge a company's success by juxtaposing net profit against net worth (Contributor, C., 2021). Tangible, quantifiable metrics bolster HR's credibility and afford upper management a clearer understanding of how HR services contribute to the organization's success (Contributor, C.,2021). It is no longer sufficient to assert the effectiveness of a program merely

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7 Evidence-Based Decision Making —one must substantiate its value (Contributor, C., 2021). Hence, HR experts are tasked with demonstrating how their services directly impact the bottom line and proactively eliminating inefficient programs (Contributor, C., 2021). Wrapping Up: The Human Touch in HR In wrapping up, it is evident that HR professionals wield significant influence over the entire organization through their decisions. Given this pivotal role, it becomes imperative for these individuals to possess a reliable framework for navigating critical choices. This is where the essence of evidence-based decision-making comes into play. By grounding decisions in evidence, professionals are encouraged to meticulously evaluate their ideas before implementation, mitigating the risks associated with hasty judgments (Indeed Editorial Team, 2022).

8 Evidence-Based Decision Making References Andreev, I. (2023, November 16). What is HR analytics?: Definition, examples, metrics . Valamis. https://www.valamis.com/hub/hr-analytics Benchmarking HR metrics . Welcome to SHRM. (2024, March 12). https://www.shrm.org/topics- tools/tools/toolkits/benchmarking-hr-metrics Boatman, A. (2023, November 7). What is evidence-based HR? examples, benefits, and decision- making steps . AIHR. https://www.aihr.com/blog/evidence-based-hr/ Briner, R. (2015, January 14). What’s the evidence for... evidence-based HR? HR Magazine. https://www.hrmagazine.co.uk/content/features/whats-the-evidence-for-evidence-based-hr CoAdvantage. (2023, December 29). Evidence-based HR 101: What is it and what do you need to know? . CoAdvantage Blog. https://blog.coadvantage.com/evidence-based-hr-101-need- know Contributor, C. (2021, March 5). What is a return on investment in human resources? . Small Business - Chron.com. https://smallbusiness.chron.com/return-investment-human- resources-45590.html Crail, C. (2023, July 18). 10 essential HR metrics in 2024 . Forbes. https://www.forbes.com/advisor/business/hr-metrics/ Diard, A. (n.d.). 6 areas where inconsistent data is an HR headache . PeopleSpheres. https://peoplespheres.com/6-areas-where-inconsistent-data-is-an-hr-headache/

9 Evidence-Based Decision Making Evidence-based practice for effective decision-making: Factsheets . CIPD. (2023, July 25). https://www.cipd.org/uk/knowledge/factsheets/evidence-based-practice-factsheet/#gref Furr, A. (n.d.). Top 10 essential HR metrics you need to track (2024) . Visier. https://www.visier.com/blog/top-10-strategic-hr-ta-metrics/ How HR analytics are changing business . How HR Analytics Are Changing Business | Lesley University. (n.d.). https://lesley.edu/article/how-hr-analytics-are-changing-business HR dashboard: 7 key examples and best practices . Qlik. (n.d.). https://www.qlik.com/us/dashboard-examples/hr-dashboard HR data collection . Tutorial. (2021, January 28). https://www.vskills.in/certification/tutorial/hr- data-collection/ HR metrics: Definition, advantages, examples, and what to measure . Keka HR. (n.d.). https://www.keka.com/hr-metrics-examples Indeed Editorial Team. (2022, June 24). What is evidence-based decision-making? (and why it’s important) ... https://www.indeed.com/career-advice/career-development/evidence-based- decision-making Marr, B. (2018, April 13). Why data is HR’s most important asset . Forbes. https://www.forbes.com/sites/bernardmarr/2018/04/13/why-data-is-hrs-most-important- asset/?sh=604f1df56b0f

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10 Evidence-Based Decision Making Millan Chicago | Data Science Consulting and Data Culture Development in Chicago, Illinois and Beyond. (2022, February 21). HR analytics: People aren’t numbers and numbers aren’t people: Millan Chicago: Data Science Consulting and Data Culture Development in Chicago, Illinois and beyond . Millan Chicago | Data Science Consulting and Data Culture Development in Chicago, Illinois and Beyond. https://www.millanchicago.com/resources/in-hr-analytics-people-are-not-numbers-and- numbers-are-not-people Miller, B. (2018, January 7). What is evidence-based HR? . HR Daily Advisor. https://hrdailyadvisor.blr.com/2017/09/29/evidence-based-hr/ OpenAI. (2024). ChatGPT (3.5) [Large language model]. https://chat.openai.com Strikwerda, L. (2022, June 13). What is HR metrics analysis and why it is important . WorkforceHub. https://www.workforcehub.com/blog/what-is-the-importance-of-hr- metrics-analysis/ Vulpen, E. van. (2024, February 19). The HR SCORECARD: A full guide . AIHR. https://www.aihr.com/blog/hr-scorecard/ Ward, D. (2017). Data-Driven HR. HRMagazine, 62 (9), 14-15. http://library.capella.edu/login? qurl=https%3A%2F%2Fwww.proquest.com%2Ftrade-journals%2Fdata-driven-hr %2Fdocview%2F1960928729%2Fse-2%3Faccountid%3D27965

11 Evidence-Based Decision Making Waters, S. (2023, December 21). Make better decisions with evidence-based HR . Welcome to SHRM. https://www.shrm.org/topics-tools/news/hr-magazine/make-better-decisions- evidence-based-hr Zander, O. (2021, August 15). Why you need to start working with HR analytics . Trustcruit. https://www.trustcruit.com/blog/why-you-need-hr-analytics/?gclid=CjwKCAjwq- WgBhBMEiwAzKSH6LeNjuwyAOwMWKHBjjyhluAe4vwoh_- 2l5BSoalqlqyelHdNLn_kaxoClrkQAvD_BwE

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