Predicting business outcomes is the future of CHRO.
Together with CEO and CFO, CHROs should be able to assess the chances of meeting business goals using people data & knowledge of the human behaviour side.
Due to the transition to new HR, it is expected from CHRO to analyse whether the KPIs, talent assignments, engagement levels, and skill pools are the right ones to deliver desired business outcomes.
The trouble is executives increasingly recognize that their current HR function fails to meet their companies’ people management needs mainly because of 3 reasons:
Limited Data: Leaders think that their HR systems are providing extremely limited view of what employees think, experience, and value.
Reactive: Current measurement methods (i.e. annual performance evaluations, employee engagement surveys, one-to-one meetings etc.) are slow and backward-looking in a world where people expect their concerns to be noticed increasingly quickly.
Unfocused: The association between performance evaluation or satisfaction survey-based scores and business outcomes is not well understood and analysed.
As researches show, most organizations still rely on traditional HR tools that fail to provide meaningful data. New role of CHRO is to build systems generate data, turn data into insight and take action.
The transition to predictive insight will not take place overnight.
CHROs should focus on a 3 step roadmap:
Generating employee level data pool
Predictive employee scores
Insight and action engine
After these steps, CHROs now have the opportunity to take their HR program to the next level. The next level requires another 4 key steps to jump-starts such HR management transformation.
Do not forget, CEOs have a new contract for CHRO to form a core steering team together with the CFO.
The CHROs’ fit depends on predictive people insight which is the future. It is the only way to understand your people more deeply and gain the advantage of superior employee engagement over competition.