Organizations today face a multitude of workforce challenges, from turnover and burnout to shifting employee expectations and economic instability. As businesses struggle to keep up with these challenges, many are turning to data-driven approaches and talent analytics to gain insights to optimize hiring practices, improve employee engagement and identify growth opportunities.
 

For us, aligning people, process and vision, using data is not just a way to track performance — it’s a key strategy for navigating uncertainty and staying competitive in the long term.

Even before the onset of the pandemic, organizations grappled with workforce challenges, such as increased turnover, changing revenue patterns and heightened employee expectations around compensation and work-life balance. Only about 45% of employees feel they have a clear understanding of their job responsibilities, highlighting a need for better communication from employers, according to Gallup.

For organizations, staying agile and responsive in the face of such uncertainty requires robust, real-time data that reflects actuals and trends across various aspects of the business.

Executives and project managers need insights into team performance, anticipated revenue and projected expenses to make informed decisions. A data-driven approach allows businesses to pivot quickly — whether it’s hiring additional staff, adjusting budgets or reallocating resources.

With access to real-time data, management can not only provide employees with the stability they crave but also offer flexibility, such as unlimited PTO or remote work options, which are increasingly seen as key benefits. Enterprise-level data tools, such as an ERP system or custom-built solutions, are critical to providing teams with actionable insights on demand.

Enhancing Hiring Practices Through Data

Knowing when to hire, who to hire and how to hire is essential for any high performing organization, and technology is key to answering these questions:
 

• Knowing when to hire: Since 2020, we have custom-designed and utilized several sophisticated systems for tracking team capacity and projecting future team capacity. Doing so has provided us with an essential runway to understand when to hire and how many resources to hire.


• Knowing who to hire: To identify the right candidates, we use a behavioral assessment tool, to understand work styles across our team. This data helps pinpoint gaps in team dynamics and defines the ideal candidate profile. For example, if the majority of team members are big-picture thinkers, hiring a detail-oriented individual could be the best move.


• Knowing how to hire: To ensure fairness and consistency, we leverage a standardized rubric during hiring processes and screen candidates against this rubric based on survey data from our hiring managers. This enables us to ensure a fair and equitable merit-based process.

Reducing Turnover and Improving Retention with Data

Employee turnover is costly, and addressing its root causes requires a data-driven approach. One of the primary reasons employees leave their jobs today is burnout — especially in fast-paced environments where work-life balance may be lacking. By assessing hours worked, team capacity and individual workloads, managers can allocate work more efficiently, ensuring team members are neither overwhelmed nor underchallenged.

Routine data-backed performance evaluations are also key. Equipped with data, managers can intervene before issues escalate, whether through professional development, work reassignment or offering additional support. More importantly, recognizing high performers through positive feedback, promotions or financial incentives can significantly boost employee satisfaction and retention.

Optimizing Employee Engagement and Culture with Data

Data-driven decision-making plays a key role in fostering a positive organizational culture where employees feel valued and have a meaningful understanding of how their work contributes to the company’s overall success.

Leaders who leverage data to make decisions and then clearly communicate how and why decisions have been made are doing a lot to earn the trust of their workforce. Team members who understand that their contributions result in specific outcomes know that they have a hand in shaping the direction of the organization.

Leaders who use data to make informed decisions and communicate these decisions transparently earn the respect of their workforce, which in turn boosts employee engagement. According to Gallup, highly engaged teams are 21% more profitable than those with low engagement. Engaged employees are not only more productive but also more likely to stay with an organization long-term.

Using Data to Identify Skills Gaps for Future Growth

Talent analytics plays a critical role in identifying skills gaps within teams, which is essential for planning future growth and development. At Trepwise, we use behavioral assessment tools to understand team dynamics and identify areas where new skills or expertise are needed. This data helps inform hiring decisions, but it also guides professional development efforts for existing employees.

For example, if a team is lacking in technical skills, managers can prioritize training programs or recruit talent with the specific skills required for future projects. By continually monitoring skill sets and performance data, organizations can ensure they are prepared for the future by addressing current gaps and aligning talent with long-term growth objectives.

Balancing Data with Human Judgment

When evaluating employees, it is critical to collect data often — and to collect different types of data. However, while data is crucial for making informed decisions, it must also be balanced with human judgment.

Trepwise and other small organizations benefit from knowing each employee personally. As a result, we are able to marry rigorous data on employee performance (e.g., metrics, self-evaluation and peer-evaluation) with the knowledge of who team members are and what their goals are.

Routine 1:1 meetings combined with professional development planning enable managers to get to know team members, ensuring that data is contextualized by an understanding of individual goals and potential. Then, leadership and employees can work in collaboration to set goals for promotions and career development. When we are considering a promotion, for example, we may ask ourselves: “If we promote this person, will they rise to the occasion or really struggle in the new role?” This question can only be answered by developing personal and meaningful relationships with each team member.

The Role of Technology in Talent Management

To effectively manage talent, leaders need the right tools to optimize hiring, employee development and retention. Every organization should have an ERP or similar enterprise-level data management system and should collect performance data using a standardized performance evaluation process. And every organization should have clear job descriptions for all team members, should track metrics on employee performance and should use a behavioral assessment tool to understand individual and team workstyles and identify gaps.

By integrating these tools, organizations can access a comprehensive view of their workforce and make strategic decisions that drive growth. Companies that operate in this manner are not only enhancing their ability to navigate change but also creating a more engaged, productive and future-ready workforce.

Author Bio

As Chief Operating Officer at Trepwise, Geoffrey Hamlyn provides senior oversight, leads business development and oversees operational elements of the firm.

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