{"id":91088,"date":"2023-05-17T18:43:17","date_gmt":"2023-05-18T01:43:17","guid":{"rendered":"https:\/\/www.betterworks.com\/?p=91088"},"modified":"2023-09-12T05:09:16","modified_gmt":"2023-09-12T12:09:16","slug":"david-swanagon-hr-investment-should-be-data-infrastructure","status":"publish","type":"post","link":"https:\/\/www.betterworks.com\/magazine\/david-swanagon-hr-investment-should-be-data-infrastructure\/","title":{"rendered":"David Swanagon: \u2018HR\u2019s Investment Should Be in Its Data Infrastructure\u2019"},"content":{"rendered":"\n<div class=\"wp-block-ht-block-toc is-style-contrasted htoc htoc--position-wide toc-list-style-plain\" data-htoc-state=\"closed\"><span class=\"htoc__title\"><span class=\"ht_toc_title\">Table of Contents<\/span><span class=\"htoc__toggle\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\"><g fill=\"#444\"><path d=\"M15 7H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><path d=\"M15 1H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1zM15 13H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><\/g><\/svg><\/span><\/span><div class=\"htoc__itemswrap\"><ul class=\"ht_toc_list\"><li class=\"\"><a href=\"#h-prepare-for-the-evolution-of-the-hr-leader\">Prepare for the evolution of the HR leader<\/a><\/li><li class=\"\"><a href=\"#h-reimagine-how-you-collect-hr-data\">Reimagine how you collect HR data<\/a><\/li><li class=\"\"><a href=\"#h-align-people-data-with-revenue\">Align people data with revenue<\/a><\/li><\/ul><\/div><\/div>\n\n\n\n<p>Data analytics is an area where HR has historically <a href=\"https:\/\/www.hrmagazine.co.uk\/content\/news\/hr-the-worst-function-on-data\/\" target=\"_blank\" rel=\"noreferrer noopener\">lagged behind other functions<\/a> \u2014 but that means there\u2019s tremendous potential for growth. When HR data is properly collected, consumed, and applied, it directly influences business outcomes.<\/p>\n\n\n\n<p>By focusing on data analytics, HR will enter the next stage of its evolution, says <a href=\"https:\/\/www.linkedin.com\/in\/davidswanagon\" target=\"_blank\" rel=\"noreferrer noopener\">David Swanagon<\/a>, executive consultant at <a href=\"https:\/\/www.trellix.com\/en-us\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">Trellix<\/a>. Swanagon has helped organizations merge people and technology functions, and he\u2019s passionate about the future of people analytics.<\/p>\n\n\n\n<p>Check out Swanagon\u2019s predictions for the evolution of HR leadership and for how HR data is collected and applied.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<figure class=\"wp-block-pullquote\"><blockquote><p><em><strong> \u201cI think the CHRO of the future is someone who can lead both people and machines, and who anchors HR activities to four business outcomes: revenue, growth, profit, and corporate reputation.\u201d<\/strong><\/em><\/p><cite>\u2014 David Sawangon, executive consultant, Trellix<\/cite><\/blockquote><\/figure>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-prepare-for-the-evolution-of-the-hr-leader\">Prepare for the evolution of the HR leader<\/h2>\n\n\n\n<p>HR is evolving along the same path as other business functions, such as the supply chain. \u201cIn the past they saw it as a cost function,\u201d Swanagon says, \u201cwhere it&#8217;s actually an analytics function and a process efficiency function.\u201d&nbsp;<\/p>\n\n\n\n<p>Similarly, HR will transition into a digitally driven function to better support the business. \u201cThe shift in HR is going to happen, and we&#8217;re going to know it&#8217;s happening when the type of CHRO changes,\u201d Swanagon says. \u201cI think the CHRO of the future is someone who can lead both people and machines, and who anchors HR activities to four business outcomes: revenue, growth, profit, and corporate reputation.\u201d<\/p>\n\n\n\n<p>The workforce of the future will rely heavily on machines and artificial intelligence, and <a href=\"https:\/\/www.betterworks.com\/magazine\/meet-the-hr-leader-of-the-future\/\">HR leaders will need new skills<\/a> to manage that complexity. \u201cIt&#8217;s something that people get more comfortable talking about as the type of CHROs change,\u201d Swanagon says.&nbsp;<\/p>\n\n\n\n<p>To prepare for that shift, HR leaders need to invest in training engineers and digital teams in what the people function does.<\/p>\n\n\n<div class=\"lazyblock-recommendedread-2r283v align  wp-block-lazyblock-recommendedread\">        <div class=\"recommended-read-notice\">Recommended Read<\/div> \n        <div class=\"recommended-read-box\">\n            <div class=\"recommended-read-image\">\n                <img decoding=\"async\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/05\/How-AI-in-People-Analytics-Is-Transforming-HR-SEO-Blog-Thumbnail.jpg\" alt=\"\">\n            <\/div>          \n            <div class=\"recommended-read-text\">\n                <div class=\"recommended-read-categories\"><a href=\"https:\/\/www.betterworks.com\/magazine\/category\/vantage-point\/hr-leadership\/\">HR Leadership<\/a> | <a href=\"\/okrs\/\">Strategic Alignment &amp; Execution<\/a><\/div>\n                <div class=\"recommended-read-title\">How AI in People Analytics Is Transforming HR<\/div>\n                <div><a class=\"recommended-read-cta\" href=\"https:\/\/www.betterworks.com\/magazine\/how-ai-is-transforming-hr-the-future-of-people-analytics\/\">Read Now<\/a><\/div>\n            <\/div>\n        <\/div>\n        <\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-reimagine-how-you-collect-hr-data\">Reimagine how you collect HR data<\/h2>\n\n\n\n<p>Leaning into data analytics requires lots of data that most organizations don\u2019t have. \u201cA terabyte is the starting point of big data. It&#8217;s this massive amount of data,\u201d Swanagon says. \u201cHR, I would say, doesn&#8217;t remotely come close to that in even the largest organizations \u2014 and it&#8217;s only because it&#8217;s not tracked.\u201d<\/p>\n\n\n\n<p>HR can fix this problem. \u201cSince human beings have a direct or indirect involvement in every transaction in the business, the HR dataset \u2014 if it was fully capturing those experiences \u2014 would be the largest in the entire business,\u201d he says.<\/p>\n\n\n\n<p>Most organizations lack the processes or infrastructure for capturing data points generated in the flow of work. Before solving the collection problem, evaluate the data you do have: \u201cWhat is the size of my dataset? What aspects of the company&#8217;s operations do we capture data on? How does human capital interface with the broader revenue chain?\u201d Swanagon says.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><em><strong>&#8220;A terabyte is the starting point of big data. HR&#8230; doesn&#8217;t remotely come close to that in even the largest organizations \u2014 and it&#8217;s only because it&#8217;s not tracked. Since human beings have a direct or indirect involvement in every transaction in the business, the HR dataset \u2014 if it was fully capturing those experiences \u2014 would be the largest in the entire business.&#8221;<\/strong><\/em><\/p><cite>\u2014 David Swanagon<\/cite><\/blockquote><\/figure>\n\n\n\n<p>After you understand what you have, \u201cHR\u2019s investment should be in its data infrastructure,\u201d Swanagon says. HR will change the business when it can easily feed data into prescriptive analytics models.<\/p>\n\n\n<div class=\"lazyblock-recommendedread-14zwTJ align  wp-block-lazyblock-recommendedread\">        <div class=\"recommended-read-notice\">Recommended Read<\/div> \n        <div class=\"recommended-read-box\">\n            <div class=\"recommended-read-image\">\n                <img decoding=\"async\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/03\/HR-Metrics-SEO-Social-800x800-1.jpg\" alt=\"\">\n            <\/div>          \n            <div class=\"recommended-read-text\">\n                <div class=\"recommended-read-categories\"><a href=\"https:\/\/www.betterworks.com\/magazine\/category\/vantage-point\/ai-people-analytics\/\">AI &amp; People Analytics<\/a> | <a href=\"\/performance-management\/\">Performance Management<\/a><\/div>\n                <div class=\"recommended-read-title\">Modern HR Metrics: The Key to Better Performance Enablement<\/div>\n                <div><a class=\"recommended-read-cta\" href=\"https:\/\/www.betterworks.com\/magazine\/hr-metrics\/\">Read Now<\/a><\/div>\n            <\/div>\n        <\/div>\n        <\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-align-people-data-with-revenue\">Align people data with revenue<\/h2>\n\n\n\n<p>If HR wants to showcase its business importance, it needs to use data to show how people drive profit \u2014 and that requires a shift in perspective.&nbsp;<\/p>\n\n\n\n<p>When public companies file quarterly reports with the Securities and Exchange Commission, \u201cemployees are one of the largest expenses on an income statement because of their payroll and their overhead,\u201d Swanagon says. &#8220;Executives are trained, through financial reporting, to not see employees as an asset \u2014 despite the fact human capital is embedded into every activity.&#8221;<\/p>\n\n\n\n<p>The CHRO of the future will want a single chain of data that maps to the revenue logic model. They\u2019ll want an HR information system that captures every stage of revenue transactions, the effects of human interventions, and where HR can increase revenue by enabling performance. \u201cIt&#8217;s anchored against revenue,\u201d Swanagon says, \u201cit&#8217;s anchored against profit.\u201d<\/p>\n\n\n\n<p>HR transformation starts by investing in it \u2014 and that requires conscious support from executive leadership, who \u201chave to make a decision that HR is a domain worth analyzing,\u201d Swanagon says.&nbsp;<\/p>\n\n\n\n<p>The important thing for HR leaders to remember is the opportunity in front of them. Even as machines take over more of the work, it\u2019s still people who drive the business forward.<\/p>\n\n\n\n<p>Interested in learning more? Check out our comprehensive guide to <a href=\"https:\/\/www.betterworks.com\/magazine\/unlocking-the-power-of-predictive-analytics-in-hr\/\">unlocking the power of predictive analytics in HR<\/a>.<\/p>\n\n\n<div class=\"lazyblock-post-resource-cta-Z1BAlWh align  wp-block-lazyblock-post-resource-cta\"><div class=\"custom-post-resource-box\" style=\"background:url('https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/01\/Performance-Software-Innovations-Shaping-2023-BG-Image-1200x680-1.jpg;') no-repeat center;background-color:;box-shadow: 0px 0px 18px -5px ;background-color:\">\n  <div class=\"custom-box-heading\" style=\"max-width:500%;\"><p style=\"color:#ffffff;font-size:36px\">Unlock the power of predictive analytics in HR.<\/p><\/div>\n  <div class=\"custom-box-cta\" style=\"\"><a class=\"et_pb_button\" href=\"https:\/\/www.betterworks.com\/magazine\/unlocking-the-power-of-predictive-analytics-in-hr\/\" style=\"color:;background-color:;\">Read Now<\/a><\/div>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Data analytics is an area where HR has historically lagged behind other functions \u2014 but that means there\u2019s tremendous potential for growth. When HR data is properly collected, consumed, and applied, it directly influences business outcomes. By focusing on data analytics, HR will enter the next stage of its evolution, says David Swanagon, executive consultant [&hellip;]<\/p>\n","protected":false},"author":111,"featured_media":91089,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[59],"tags":[],"featured_location":[],"industry":[],"class_list":["post-91088","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategic-alignment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.1 (Yoast SEO v23.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>David Swanagon: \u2018HR\u2019s Investment Should Be in Its Data Infrastructure\u2019 - Betterworks<\/title>\n<meta name=\"description\" content=\"Check out 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