HR is critical to every company’s success, but it requires significant amounts of data to manage candidates, new hires and current employees successfully. Learn how to secure high-quality HR information with the latest technological advancements and business best practices.

The Importance of High-Quality HR Data

A well-informed and properly equipped HR department is essential for a business to thrive. High-quality information tells the team everything it needs to know about each worker, their training and development, performance history, and more. Trust in such data is critical for decision-making across the board.

HR data encompasses a broad spectrum of information. Poor management practices can lead to miscommunication, conflict and other errors — sometimes even legal or financial complications. According to one study, 31% of revenue was subject to data quality issues in 2022. Proper data handling decreases these risks and sets a company apart from the competition. With the right information at one’s fingertips, efficiency is at an all-time high.

With the proliferation of online activity and data creation, HR data’s purview expands regularly. This expansion has raised several concerns and questions for HR departments in every industry. Professionals face challenges when it comes to data collection, storage, analysis and other processes.

6 Ways to Improve HR Data Quality

Fortunately, new strategies help meet today’s management challenges. There are several effective ways HR professionals can improve data quality.

1. Follow the Proper Guidelines

Sometimes, the best practices are the most straightforward. Every brand should ensure it complies with applicable laws or regulations about data. Industry standards often exist for a reason, helping businesses determine what is relevant information and how to keep track of it.

Revisiting internal and external guidelines — such as federal, legal or industry standards — can be a necessary reminder about data collection and storage processes. Some enterprises may be surprised to learn they haven’t been meeting the benchmarks they thought.

Properly handling data is more than a basic requirement to fulfill. It can also serve as a useful guide toward the right information, effective ways to gather it and more secure storage methods.

2. Monitor Information in Real Time

The smallest mistakes can lead to miscommunications or snowball into bigger problems. Real-time monitoring is an excellent way to vet information as it enters the system, catching errors and preventing them from causing larger issues. Over 70% of organizations believe real-time analytics is a high priority because of this extra security. HR departments can establish systems that thoroughly fact-check documents, communications and other pieces of information as they come into the office.

Depending on the size or structure of an organization, 24/7 data monitoring by employees may not be a viable option. However, the latest data quality tools often provide comparable services. Automation and other smart data monitoring solutions are meticulous and often affordable ways to keep an eye on information as it enters the system.

3. Conduct Regular Data Audits

In addition to monitoring the system in real time, regular and thorough audits are necessary to confirm accuracy and security. These allow HR to identify small mistakes that may have slipped through the cracks during real-time monitoring.

Audits are also an opportunity to look at the bigger picture. While an error may not be evident in the moment, looking back at a larger set or a collection process can highlight what works and what doesn’t.

For example, an audit may alert the HR department that a certain step in the hiring process is ineffectual or needs an upgrade. In another instance, HR professionals might see a trend in brand-wide performance and realize it is connected to a larger issue rather than a reflection of an individual employee. These audits provide perspective on overall data quality and its relevancy to the company.

4. Take Advantage of the Latest Technology

While technology often raises new questions about HR data, it also serves as one of several solutions. The latest trends and developments in administrative or data management software provide increases in security, productivity, and other KPIs across the board. For HR, upgraded software systems can make it easier for potential hires to submit important documents. When organizations spend an average of $4,700 per new employee, a smooth and thorough hiring process is key.

Artificial intelligence (AI) and machine learning are two of the largest developments in recent years. Advancements in smart technology have changed the game in almost every field and HR isn’t an exception. AI software allows for intelligent automation in data collection, which speeds up the process while improving accuracy.

5. Frequently Train Employees

While AI can gather all the information in the world, it won’t be of much use if no one at the firm understands how to use it. Thoroughly teaching new hires and holding regular training sessions for current employees is the only way to ensure everyone is up to date. Ongoing learning opportunities include listening to HR podcasts or keeping up to date with relevant industry news.

Since HR involves everyone at a business, employees within and outside the department should be familiar with the systems and processes. Regularly checking in to ensure people are caught up on the latest procedures improves the likelihood of following guidelines, submitting accurate data and improving the quality of what the department gathers.

6. Make Security a Priority

When it comes to HR data, security and privacy are always a top concern. Emphasizing these factors can even improve overall data quality. Compliance regulations are in place to ensure companies follow the rules and treat data properly, protecting employees and employers alike. An additional benefit is collecting largely relevant and useful data while limiting the amount of excess or inaccurate information that can clog up a busy system.

Safe data is quality data. Securing sensitive information with firewalls, encryption, two-factor authentication, antivirus software and data backups can keep information safe from hackers, breaches, or inadvertent errors.

Improving HR Data Quality With Best Practices

A strong HR department is of the utmost importance to internal operations, which influence the overall success of any enterprise. Organizations that prioritize HR data and its quality, organization, security, and analysis set themselves apart from the competition. HR professionals can take advantage of the latest technologies and best practices to advance their own departments.