CASH IN ON YOUR DATA WITH HR

Fiona McKee, Director of Human Resources, SD Worx UK & Ireland

 

The financial sector has changed fundamentally at the hand of digital transformation. Traditional banks are struggling to keep up with disruptors such as Monzo and in a post PSD2 world, this has been a source of frustration for the modern customer. Yet both old and new financial organisations know the biggest key to success – data.

Whether it’s balancing the bottom line or building a holistic view of the customer to help with marketing, financial institutions are using data to help a range of areas in their business. Yet one of the most important departments is often overlooked.

To those in the financial industry, the HR function is often associated as ‘the people department’ but as digital transformation permeates through business, the purpose of the HR department needs to change alongside it. Digital is enabling HR to take on more responsibilities in business. Therefore, as ‘traditional’ HR tasks become less centralised and more embedded into the fabric of everyday business, financial organisations need to recognise HR as a data-centric department and understand the value it has on the broader business.

 

Not just ‘the people department’

For some, the idea of HR becoming data-centric is like taking the ‘human’ out of human resources. But this is far from the case. Data can enhance the role of HR through shining light on core business issues before it’s too late. Financial organisations are therefore missing a trick when it comes to realising the full potential of data-led insights from HR.

HR data can help financial organisations address some of their biggest threats such as the impending skills gap. In fact according to a recent report from Innovate Finance, the UK Fintech sector relies on 42% of their employees to come from outside of the UK. This reliance on foreign talent is dangerous considering emerging threats such as Brexit are set to deter foreign talent from seeking jobs in the UK. Furthermore in the 2017 UK Fintech Census, 60% stated that attracting suitable talent was their biggest challenge – a bigger driver than raising equity capital (34%) or driving consumer adoption (49%). But HR departments can help address this skills gap thanks to data.

No longer does HR need to assume the best methods to attract talent. Instead HR can draw on data to consult business leaders on the best ways to foster talent. For example, through access to data on employee history, HR departments can analyse and pinpoint the pain points in the business which are detering top talent. With the UK Fintech sector facing a poor gender balance, with women making up just 29% of the employee base, HR departments can also help financial organisations create more diverse workforces through sharing insights that can inform changes to recruitment policies.

 

Capitalising on HR

With the application of data, HR departments can analyse and share unique and quantifiable insights which will help the rest of the business make the best decisions. In turn, HR professionals can reinforce their importance and step up as strategic partners in business.

For financial organisations to really see the benefits of HR departments, company leaders must commit to listening to their insights and treat HR as a true strategic partner. This begins by shifting the internal perception of HR in the business and ensuring the department is aligned to the broader business goals.

With rising competition in the financial sector, organisations that want to win must take advantage of data-driven insights from HR if they are to foster and retain a strong and secure workforce for the uncertain future ahead.

 

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