HR Benchmarking and the New Digital KPI

New Views for the Future Workplace

A key first step in human resources digital transformation is to undertake an HR benchmarking exercise. It will provide you the insights needed to determine the digital HR gap between your organization and your competitors. Benchmarking also helps develop your vision and strategic priorities to catch up to or leap ahead of your competition.

Of course, when you have data for comparison purposes, you’re better able to set goals and objectives. But more than that, if you aren’t measuring the right data – that is, the new KPI as described below – all of your work might be for naught.

This second article in our series about Human Capital Transformation (HCT) offers a conceptual view of key HR functions within the context of this new set of KPIs.

Benefits of HR Benchmarking Using New KPI

Along with digitalization, business models and processes are changing from a traditional way of doing things to a new paradigm that requires new data inputs. These are called “post-digital” key performance indicators (KPI), or new KPI.

Although many companies struggle to put their analytics infrastructure together, industry leaders use analytics for setting up their agenda and measuring progress. In fact, more than 95% of companies that report industry-leading performance use this new KPI to frame their digital transformation agenda and drive their business.*

Leveraging new KPI for HR benchmarking helps companies:

  • Determine what world-class performance looks like and how to get there

  • Evaluate their investments and operations quickly and objectively

  • Gather insights needed to inform strategic prioritization and allocation of resources, driving process improvement and transformation

Our research shows that this is how today’s leading companies are succeeding in a rapidly changing environment that presents numerous uncertainties and constraints.

Start with Focusing on Your Own Talent

HR digital transformation needs to start with focusing on your own talent and investing in them via role-based training. As we learned through our research, 8 out of 10 business functions believe role-based training is the No. 1 predictor of digital transformation success.

To accomplish this, you need to measure differently – that is, by putting a new KPI framework in place. This has been a priority for “digital champions” – what we call the 7% of organizations that have succeeded with their digital transformation efforts. As part of their framework, they measure new KPI in real time.

While most organizations search for a 'magic driver of success,' they tend to ignore the most obvious answer-investing in their own talent

Start with Focusing on Your Own Talent

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Digital Champions measure real-time KPIs. This capability allows them to iterate faster than other companies, thus making their transformations more effective

Digital Champions: 42% of Digital Champions deliver moderately effective results and the remaining 58% deliver very effective results with the deployment of digital transformation in their HR department.

All Industries are slightly ahead of the pharmaceutical industry with 33% of companies across industries showing very effective results. A majority of companies in the pharmaceutical industry and in all industries show moderate effectiveness of digital transformation in the HR function.

Due to the criticality of the business processes and regulations, successful transformation is exceptionally complex and challenging for pharmaceutical companies. However, digital HR helps create a connection among people and enables a stronger feeling of belonging. Therefore, proper implementation of technology and regular follow-ups along with training in all aspects will deliver more desirable results.

Digitalized enterprises are becoming predictive

As companies invest in a strong foundation of data and analytics, they go through three stages of maturity:

  • The first is an ability to report across the ecosystem: They will know what happened yesterday.

  • The next level of maturity is business intelligence or the ability to know what’s happening today.

  • And finally, they gain the ability to predict what is likely to happen tomorrow and into the future.

What to Measure: New KPI Frameworks

To complete the three stages above, and to undergo a successful digital transformation, companies must replace assumptions with data analysis. The new KPIs reveal how key elements of a product, service, business model, process, application, or audience are behaving.

Lagging KPIs tell you about what has already happened, while leading KPIs indicate what will most likely happen. To always know where you are, visualize where you need to be and then work backward on a plan to get there.

For each area being digitalized, define a leading and lagging KPI or metric that is specific to HR, your company, and your business. Not all of these will exist, so you may have to invent some yourself. However, the chart below shows examples of leading and lagging digitalization KPI frameworks that can be used for HR.

Digitalization Changes What you Measure: New Human Capital KPI Frameworks

Start with Focusing on Your Own Talent

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Joining the 7% of Companies That Achieve Success

Digital champions realize that HR benchmarking using new KPI is essential because it will:

  • Be vital to understanding how they compare to their competitors

  • Have a positive impact on the rest of their organization

  • Enable HR to partner with the business

  • Strengthen their recruiting, retention, and benefits programs

  • Improve employee engagement, growth, and leadership roles through an enhanced employee experience and workplace culture – which, in turn, will positively impact how employees view their organization’s brand

Survey Question: What is the Impact of Digitalization on Human Resource KPI's Given Below?

Joining the 7% of Companies That Achieve Success

Source: Trasers(Trianz Research)

By undergoing HR benchmarking, replacing assumptions with data analysis, focusing on post-digital KPI, and course-correcting as you move through your HR digital transformation, you will take monumental steps toward becoming a digital champion.

Experience the Trianz Difference

Trianz enables digital transformations through effective strategies and excellence in execution. Collaborating with business and technology leaders, we help formulate and execute operational strategies to achieve intended business outcomes by bringing the best of consulting, technology expertise, and execution models.

Powered by knowledge, research, and perspectives, we enable clients to transform their business ecosystems and achieve superior performance by leveraging infrastructure, cloud, analytics, digital, and security paradigms. Reach out to get in touch or learn more.


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