Today, decision making is all about streamlined insights. It is simply not enough to make decisions based on gut instinct in today’s working world. Subsequently, companies turn to data analytics and employee feedback to understand their employees’ needs. However, with that knowledge comes new challenges; how do companies get feedback from every level of the organisation and build a comprehensive view? What processes should they be using? How can they use this information to make changes quickly and efficiently? These questions are essential in today’s business world, where split-second decisions have become necessary for organisations to stay afloat.
With so many solutions being offered in the market today, any company with an internet connection has access to countless avenues for gathering crucial employee insights. Not only that, but the tools necessary to act on that feedback are readily available. Organisations need to work quickly and efficiently on new information to navigate the ever-moving market of today. With a wealth of resources at their fingertips, it is no wonder that company leaders are making their decisions based on today’s readily-available feedback streams. As such, managers need a consolidated information system that can help to highlight critical areas and strip their information back to the essence of the issue.
Key Facts
- Employee engagement initiatives have failed to meet their expected goals about 60% of the time.
- Younger generations are more likely to lose faith in institutions and look to companies for leadership.
- Open dialogue across levels is critical in understanding company culture and building consensus.
- The values-Based Leadership model includes shared values, active listening, and empowering employees.
This article highlights the need for employees to build consensus on everything occurring within the organisation. This need is becoming increasingly prevalent as younger generations develop opinions on company culture. It also emphasises the importance of an open culture where dialogue is valued to engage all staff members. Finally, it touches upon the fact that developing policies that promote this kind of engagement require companies to cultivate values-based leadership.
What is a decision matrix, and why is it essential for streamlined employee insights
Businesses have started to analyse and evaluate effectively by utilising a decision matrix. “A decision matrix can help you not only make complex decisions but also prioritise tasks, solve problems and craft arguments to defend a decision you’ve already made. It is an ideal decision-making tool if you are choosing among a few comparable solutions with multiple quantitative criteria.” [businessnewsdaily.com]. Although effective when implemented correctly, can an analytical tool compare several alternatives to choose the most suitable accurately? Although a decision matrix is most commonly used to evaluate cost-based decisions, it can apply to almost every business area.
It is also crucial to highlight some of the pitfalls of a decision matrix. When evaluating human-based decisions, it is essential not to oversimplify and make choices with employee needs. “One such example can be seen when approving a leave of absence. Each employee may have reasons why they require time off, and as such, a decision-maker may have to prioritise their needs. To combat this, companies may benefit from pulling line managers and supervisors into more personal decisions, boosting the employee experience, and shortening the decision cycle.” Employee insights are becoming increasingly important in today’s workforce. With the ever-growing number of available options, companies need systems that help them remain competitive and attract talent. Decision matrices can often optimise this set of data, which can help introduce new avenues of success to employers based on raw facts. They can also help employers find new avenues for success by highlighting which policies will increase profit margins and employee happiness.
How can you use data to help with decision making
It’s no secret that people-centricity is a significant trend in the business world, and rightly so. According to a study, “Companies that are customer-centric are 60 percent more profitable” [Deloitte.com]. Further, businesses are beginning to realise the power of putting their employees first and tapping into what truly drives them as individuals and collectively as a workforce. This approach translates to a higher rate of engagement amongst employees, which comes accompanied by its own set of benefits. “Companies with highly engaged employees are 21% more profitable. In addition, engaged employees are 20% more productive.” This engagement can also be related to the shortened decision-making cycle mentioned in the previous section. “The quick turnaround of requests can increase employee engagement because they, in turn, feel empowered and deliver their best.” This change is evident across industries, with some sectors taking it more to heart than others, but those who know how to use data and analytics to make people-centric decisions will see the rewards.
Which data should HR collect?
HR should consider what kind of data will help them achieve their people-centric strategy and who is responsible for collecting it. For example, the human resources department could find several different data types helpful. Bamboo HR spoke on this topic in a 2020 blog, stating, “From a list of various options, almost a quarter of respondents selected employee satisfaction as a report they would like to have, and 20 percent selected employee engagement.” The data points can also cover a broad spectrum of themes from employee sentiment, organisational structure; workforce diversity; and HR outcomes. The most important thing about collecting data from your employees is asking genuinely exciting questions that allow them to share their unfiltered thoughts. For the data collected to be precise and impactful enough to make the right decisions, leaders must provide a safe environment for their employees to communicate openly without fear of reprisals. In some instances, it may be appropriate for a company to use automated software to record employees’ answers for managers to review later. This software can range from a simple online survey format to more a complex system and will help to alleviate the pressure employees feel to give the ‘right answer’ and provide anonymity. In line with this, SHRM suggests that “Any metric that does not lead to action is not worth the time and effort to calculate and report it.”
How can you use technology to make better decisions?
When stripped down to its quintessential meaning, the term ‘Decision’ has one overriding definition: analysis. However, whilst research can be beneficial in making a sound decision, it is not always necessary to negotiate your way through a systematic process. An excellent example of such non-analytical methods is the use of technology. More specifically, HCM solutions.
Using technology systems to make meaningful choices saves time that managers could have spent elsewhere. It also helps compound the ‘hybrid working’ approach that many companies have incorporated into their culture as there is no need to be on-premises. In this way, the economic and time-saving benefits of using technology to make decisions outweigh going through a systematic process because it can help you achieve your goals much faster. A study conducted by Mckinsey found “decision making takes up a huge proportion of management’s time—as much as 70 percent of it for some C-suite executives. The opportunity costs are staggering: the average Fortune 500 company typically equals more than half a million days of managers’ time, or $250 million a year in salaries” [Mckinsey.com]. The use of AI can also help minimise the impact of bias in decision making. On that same note, it is essential to be aware of the limitations within the systems your company uses. For example, a salary increase should be down to performance attained by you or your department and not just achieved because of a pushy or overbearing personality. AI can help analyse the right behaviours that warrant success. As such, they may not be able to entirely remove any partiality- particularly regarding extrinsic and intrinsic factors.
Building consensus through employee engagement
By recognising the need for employees to drive innovation and build consensus, companies create an open dialogue between leadership and staff. This communication is critical for businesses today, as nearly 70% of organisational change efforts fail to meet their expected goals “largely due to employee resistance and lack of management support”. Conversely, “When people invest in change, it is 30% more likely to stick” [Mckinsey.com].
LSE concluded that when companies create open dialogue across levels, employees will feel empowered to take the initiative on projects that they see as important. The most effective way for businesses to demonstrate this kind of active listening is by implementing policies that promote an open culture of overall employee wellbeing and cultivate a Values-Based Leadership model. Technology helps you do precisely this whilst actively highlighting opportunities to build the employee experience autonomously.
Collecting and analysing employee feedback
As earlier suggested, a degree of anonymity when providing feedback can be appropriate for some companies when opening up a dialogue. However, companies can supplement this by having regular meetings where employees can give feedback on how work is going and what needs improving. Any problems can make it easier for both parties involved to communicate with each other regularly. These meetings should be formal yet relaxed, with the purpose being simply to assess current progress and identify areas that employees and leadership could work together to improve. As a result, it is essential that everyone feels comfortable and relaxed enough to voice their opinions and feedback. The onus remains on supervisors to create this open environment, allowing employees to relax and convey a culture of care and concern. On the other hand, employees should be encouraged to mature to the point where they are comfortable enough to review their performance and supervisors constructively’.
Periodic discussions can improve communication and highlight areas where there is a disconnect. This session should also ensure employees are clear on their role within a department or team and whether they feel confident that they have all the resources to do their job correctly.
Maintaining an environment where people feel comfortable and able to express themselves and provide feedback directly is essential for any business if it wants to improve its customer service and employee working practices at the same time.
Closing thoughts on the importance of streamlined employee insights in decision making
For decades, companies have been using various approaches to gain insight from their employees. There is a tool for everything: surveys, questionnaires, interviews, etc. And while certain methods may be more effective in specific situations or companies, there’s one thing that can’t change. When it comes to understanding employee motivations and behaviours within the company culture, you need concise and precise, actionable data from an accurate sample size.
Human capital and experience have never been more critical in today’s hyper-competitive market climate. There is a vast and rapid shift from human capital to human experience. “Human Capital Management (HCM) applications… are more transactional than strategic. These applications, in essence, tell companies what is happening” “this, in turn, brings them one step closer to figuring out how” [Sougat Chakravartty, Birlasoft]. Small businesses often rely on employees’ talents to distinguish themselves from larger competitors. As a result, every time a company decides to manage client expectations or source new talent, having access to actionable insights directly from employees is critical to success.
About Birlasoft
Birlasoft is a strategic implementation partner working with Oracle. With decades of experience, the specialist team can help your business make the most of Oracle HCM and their associated offerings. If you would like to find out more or book an appointment with one of our specialist experts, visit our website here.
