What is data collection, and how can data help HR leaders?

Business leaders may be wise to never underestimate the power of data, and the significance of having an effective data collection strategy. Respecting the power of data could be the difference between being a 21st century success, or a business also-ran.

We came across a great article from 2019 about the state of UK recruitment. Among the many interesting data nuggets was this: ‘To reach the widest audience, the data suggests that if you advertise on Indeed [and various rival platforms], you will reach approximately 90% of jobseekers.’

It’s always satisfying to see how well we’re doing according to the data, without which we may never be able to make rational decisions to consistently improve.

In this article, we’ll look at what data collection is, what data collection methods are used, and how data can help to improve business outcomes. Specifically, how can data collection produce insights that are useful to HR leaders?

What is data collection and what data can employers gather?

Data collection methods vary, but one thing is consistent: the law. Whatever methods are used to gather data, there are UK government guidelines to what organisations can and cannot do with it. The laws exist to ensure personal data is kept safe. That data belongs to employees and customers, and there are rules about what data can be collected with or without people’s permission.

The data collection of sensitive information relating to individuals must be stored and handled securely following UK government rules on data protection. With 70% of business leaders ‘not very confident’ about their responsibilities around the protection of sensitive data, it’s important to clearly communicate to employees what's being collected.

Employers typically collect data about employees that streamline processes such as onboarding, salary, qualifications, as well as recorded instances of disciplinary action. Employers can’t keep certain information without employees’ permission, such as biometric data, religious beliefs, health conditions, trade union membership, and more.

An employer is obligated to reveal data when an employee asks for it, and has 30 days to provide a copy.

How is data typically collected?

There are several ways to collect workplace data. The obvious data collection methods for HR and communications professionals include employee surveys and interviews. Employers could also regularly review existing employee records, ensuring they are up to date and relevant.

Anonymous feedback is another useful way for organisations to collect data and understand employee perspectives. And simple observation of project processes could help employers see the bigger picture as it unfolds.

These days, data is easier to gather, which means many organisations may have a lot of it to scrutinise. A Forrester report called Unveiling Data Challenges Afflicting Businesses Around The World reveals that 66% of decision-makers have seen an increase in the amount of data they generate. This may create a scenario whereby organisations are overwhelmed with data, which they can’t analyse or process fast enough for it to be useful. This is sometimes called big data, where there is so much complex data that it’s difficult to process using traditional methods.

Automation has been adopted by many UK organisations: 48% of UK businesses described their use of automation as ‘extensive’. Robotic process automation (RPA) is able to help structure large amounts of data so that it’s easier to analyse. By organising disconnected data points and filling in gaps that may exist, RPA technology can lay the groundwork for more advanced automation to harvest.

How can data collection help an organisation?

The best possible outcome for any organisation is to improve. Data could help HR leaders, for instance, improve hiring processes. Knowing what people look for when searching for a job is useful data, as is knowledge of rival companies’ benefits packages, or what the most popular and successful job sites are.

HR departments could also benefit from knowing employees really well in terms of aptitude and project success. Data collection methods that encompass employee milestones could be beneficial for knowing who to promote, and how not to lose exceptional talent.

There are potential gains to be seen across many departments. Yet, according to the CIPD’s Resourcing and Talent Planning Survey 2020, many organisations are not collecting and using good-quality data to forecast hiring demands: ‘Fewer than two in 10 currently measure the return on investment of their recruitment processes.’

It’s more about humans than technology

Collecting and evaluating data may be key to strengthening business endeavours, inside and out. The insights data collection provides could help business leaders make better decisions. HR teams looking to broaden the pool of talent could find that resourcing data is incredibly empowering.

Yet, having the data isn’t as good as knowing what to do with it. For instance, 83% of UK organisations collect data to identify retention issues, but only 30% use the data to help them make better resourcing decisions.

This leads to the conclusion that, whatever technology is adopted by business leaders to help manage and analyse big data, our capacity to do something with the insights could be a significant blind spot. If business leaders nurture a foundation of adaptability to change, and have the means and the will to tackle large amounts of data, the knowledge and insight gained could be game-changers.