Big data may be helpful in making decisions about your employees. However, predictive analytics shouldn’t be the only foundation on which you base your judgments. Here are three mistakes to avoid when using big data to make decisions about your employees.
Being Secretive with Healthcare Data
If your company uses healthcare data to make better healthcare decisions, be transparent about it with all of your employees. Because many companies use outside firms to predict health risks in their employees, your workers may be concerned that you’re using the data to predict which employees may become sick or pregnant or develop serious health conditions, then terminate those workers to save on healthcare costs. Therefore, it’s important you show your employees that you respectfully use HR analytics in ways that comply with HIPPA and all privacy and HR laws. For example, you may point out that HR analytics help evaluate your healthcare costs and wellness programs to determine their effectiveness, find out whether there are gaps in healthcare coverage or employee benefits, and uncover ways to improve your programs. You may also compare employee and company data to industry data to offer the best, most cost-effective healthcare coverage and benefits to your employees.
Using Predictive Performance Analytics to Make All Decisions
You may use predictive performance analytics to help make decisions about employees, but you should incorporate human input as well. For example, you may use predictive analytics to help manage and train employees, assess future hiring needs and create a pipeline of talent, yet you should still gain supervisors’ and HR’s input on exactly how to proceed with each employee. Also, you may use predictive analytics to determine which employees get promoted or fired, yet you should gather input on individual performance from supervisors and HR before making a final decision. This will help you avoid wrongful termination lawsuits and other issues.
Focusing on Details Rather Than the Big Picture
Use big data as a guide for making decisions about your employees while focusing on the big picture. Ensure you don’t use only one piece of data for hiring or firing and that your actions are honest and legal. For example, if your analytics show that employees who live closer to the office are more likely to work for the company longer, avoid using that information to terminate employment for workers who live farther away. Rather, form your hiring and firing decisions based on individual performance and what’s best for your company.
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Use big data along with supervisors’ and HR’s input to help make better decisions about your employees. For help filling your accounting and finance roles, contact the financial staffing experts at Casey Accounting & Finance Resources!