Data-driven HR is an exciting, fast-developing field that can transform every aspect of human resources. But, in order to  get the most out of data,  it’s vital every HR team maps  out a clear data strategy that links to wider operational objectives and demonstrates how HR will contribute to those objectives.

Why every HR team needs a data strategy

Data-driven HR isn’t about capturing data on everything in the organisation that lives, breathes and moves. It’s about using data in the smartest possible ways. It’s about using the insights that you glean from data to continually improve decisions, better understand your employees, optimise operations, and add value to the company.

To pull this off, you need to be very clear about what it is you want to achieve and what data you need to  reach those goals.  Counterintuitively, it’s not about gathering tons of data. In fact, you should aim to  collect, store and analyse the smallest amount of data possible to achieve your goals.  Keeping your data as small as possible means you’re  maintaining a tight focus on where you want to go and what data will help you get there.

Besides,  from a people perspective,  it’s never a good idea to start collecting huge amounts of data that you don’t really need – and this is especially true with a lot of HR data, because it’s so personal in nature. Collecting people-related data  with no clear business reason or benefit can lead to  serious  morale problems. No one wants to feel like  Big Brother is  watching them!

In this way, creating a robust  HR  data strategy helps you develop and maintain a laser-like focus on what data is best for you.

Linking your HR objectives to wider organisational objectives

The best kind of HR data strategy is directly linked to the organisation’s wider objectives. In effect,  it  should cascade down from those corporate objectives to create HR-specific  goals that will help fulfil those corporate  aims. Therefore, a good place to start isn’t with HR at all, but the company-wide strategic plan.

Only once you understand the  company’s strategic  priorities can you begin to create your own HR  objectives that link to those  strategic priorities. Therefore, your HR data strategy is about identifying  what you need to achieve in order to contribute to the company’s success.

I cannot  stress enough that you  must  keep this objectives phase simple.  You don’t want to end up with a 100-point list, so focus only on core objectives.  You need to be  crystal clear on what exactly you need to achieve and, in turn, what areas or activities you need to focus on to achieve those aims.  This is the smartest way of  delivering value through data.

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