If you’re a regular reader of Oracle’s Modern HR in the Cloud blog, you may have read the phenomenal growth story of Pearson Education. An educational services company that experienced rapid expansion through a series of acquisitions, today Pearson employs more than 40,000 people in 70 countries.
What is great about their story is that Pearson realized the key to their success is how they manage their employees. As an HR leader for a small to medium business (SMB), your company might have similar growth aspirations in 2017, which (in turn) may leave you feeling a bit queasy.
Just getting the data you need to make intelligent decisions around employee hiring, succession planning, retention strategies or incentive/compensation packages is challenging on its own. It is made exponentially more challenging when you have to work with separate HR systems scattered across multiple sites.
This was exactly the problem that Pearson faced in 2016, and they tackled it head-on. Through acquisitions, Pearson had accumulated more than 125 different customized HR and ERP systems. Imagine the headaches they faced trying to consolidate all the information from these systems. Now multiply that by 4, and you will start to get a feeling for what company executives were dealing with.
To centralize these systems into one integrated solution, Pearson turned to Oracle HCM Cloud. Pearson’s decision-makers leveraged the role-based dashboards and ad-hoc reporting capabilities embedded in this cloud-based HR solution to quickly understand how hiring, recruiting, turnover, and other employee data impacted financials. This was a smart move. The cost of managing employees often approaches 60% of a company’s variable costs, so analytics are essential to managing this large cost and helping to reduce it.
So, if you are looking to grow in 2017 (and who isn’t), you need the right systems in place to allow you to effectively manage 3 key human resource (HR) capabilities needed for growth.
Effectively managing employee costs begins with the hiring process. To grow, you need top talent. Data analysis can help you identify the most important attributes for potential new hires. Google is a great example of this point. Rather than rely on academic records from prestigious schools, Google determined—through quantitative analysis—that individual initiative is a better predictor of high job performance.
With the right cloud solution you can bridge the gap between HR and sales by using analytics to pinpoint the behaviors that influence sales. For example, one company used geotracking and inventory data to determine the best way to strategically place employees within a store to increase sales. In addition, with the right social and collaborative tools you can regularly connect with new employees and assess their engagement levels.
Unexpected employee attrition can wreak havoc on your growth plans. Depending on the employee type, employee turnover can cost between 30% (for entry-level employees) to 400% (for high-level or highly specialized employees) of the person’s salary. An SMB may not recover from the loss of a few key people. Analytics can help SMB executives understand how various factors, including compensation and performance ratings, contribute to attrition. And with that information, you can affect change and support growth.
More organizations realize that having seamless visibility into their HR data brings results. In 2015, Oracle and the Human Capital Institute conducted a survey on the topic, in which 80% of organizations agreed that data analytics skills are becoming more important for HR professionals. Even so, 4 out of 5 companies say they’re either using data only at a foundational level, or that they’re just getting started with single-source analytics.
Getting started may seem daunting… like climbing up Everest with a walking stick and fuzzy cardigan. Yet having a single, centralized system makes the process of generating critical workforce data analytics less cumbersome. Oracle’s HR Cloud Solutions will help you manage growth more effectively by maximizing productivity, boosting profitability and controlling turnover.
Want to learn more? Visit the Oracle SMB website and let’s chat. Together we can grow your workforce and your business in 2017—and beyond.