How to Avoid Information Overload in the Employee Assessment Process
Wednesday, January 11, 2012 at 4:29PM
Most human resources departments do a good job of tracking employee metrics. In many cases, however, the sheer volume of data collected exceeds management’s capacity to effectively analyze and act upon it. Ironically, this inefficiency often leads to demands for even more data despite the lack of a clear objective of how to use the information to increase employee performance or sales.
The “analysis paralysis” phenomenon leads to increasingly more time being spent on data analysis than on actually using it to improve processes and performance. In the worst case scenario, it can ultimately lead to lower productivity and higher turnover rates.
The key to overcoming analysis paralysis is collecting the right data.
Businesses often invest significant resources collecting information that is not directly linked to their specific strategic business objectives and priorities – a process that can be extremely time consuming and ultimately of little value. By having a firm grasp of the company’s objectives prior to beginning the data collection process, the human resources department will be much more efficient and will deliver data that supports those objectives and strategies.
It’s also important to provide managers with streamlined online dashboards that provide instant access to aggregated data.
In addition to showing managers the areas that need improvement, it’s equally important to provide them with a roadmap on how to attain their performance goals. By integrating internal data and survey results dashboards, you will provide managers with an easily accessible and understandable action plan that can significantly increase their chances of success and help reduce employee turnover.
Finally, by linking employee performance metrics to business performance and critical decisions, many businesses also uncover powerful correlations between survey data and other business outcomes. Advanced analytics can lead to enhanced customer and employee satisfaction, and higher profit margins.
By implementing an employee assessment strategy that is aligned with your business objectives, you’ll be able to provide more valuable, actionable information to your managers and have a more positive impact across your entire enterprise.
Do you have thoughts on other ways to avoid “analysis paralysis”? Please post your comment below.
Reader Comments (2)
How do you know if you're collecting the right data?
Julia, you are right on target in recognizing the importance of finding the right data. Here are three areas to consider when choosing the right data: 1) Determine your Business Drivers - The best way to move in the right direction is to focus on the “business drivers” or data that contributes to the bottom line of the company. Each job contributes to the bottom line in some form or fashion. Some roles lend themselves to very objective data (i.e., units sold, percent to quota, quarterly profit gain, etc.). Other roles may contribute more indirectly (i.e., average call handling time, improved efficiency, etc.). But sticking closest to the bottom line for each job helps you to ensure a direct impact. 2) Demand Accuracy - Review the collection methods of the data to determine the accuracy of the performance data. Don’t forget to focus on individual-level data that the employee can directly impact. If it doesn’t measure the employee’s effectiveness, then it’s not relevant. 3) Quality of the Data - Make sure the data is clean with no missing values, gaps, or inaccuracies. Data quality is also impacted by how many other employees influence the outcome. It is tough to measure individual performance on a data set where many employees directly influence the outcome.
Just a word of encouragement. Finding the right data may take time; in some cases, it may require an overhaul of the tracking process. Once you began to pursue performance data, you will find many ways to improve the data collection methods and quality. The main thing is to get started down that path.