It’s no secret that the world’s most successful companies all have one thing in common: They’re able to recruit —and retain — the best and brightest minds. Indeed, a global battle for top talent is heating up, and companies in industries from high tech to retail are finding big advantages in big data.
As younger-generation workers continue to job-hop their way up the corporate ladder—or even strike off as entrepreneurs—job loyalty is in decline. How can companies do a better job retaining employees? According to Leerom Segal, co-author of New York Times bestselling book “The Decoded Company,” the answer could lie in big data.
“We'd like to encourage organizations to think about what would happen if they were equally as obsessed with understanding their people as they are about understanding their businesses,” Segal said.
Using Big Data as a Coach
One of the greatest benefits that big data can provide to an organization is the ability to more effectively coach and train employees by understanding their unique needs, Segal said. “For any extraordinary accomplishment, there’s usually a coach behind it working for you, trying to understand you, providing you with feedback, and reminding you of the basics at the right times,” he said.
For example, recognizing that it’s an employee’s first time doing a particular task, software could provide coaching or refer the employee to a co-worker with experience. “It might recognize that another co-worker has done the task 100 times before,” Segal said.
Big data could also be used to uncover insights, such as the traits that make a top performer, and then coach employees to develop those traits.
This data can come from many sources. Employees leave behind digital footprints as they interact with different systems and software throughout their day. For example, checking in with their security passes, making calls on their smartphones, sending emails, using intranets, and chatting and messaging with colleagues all create what Segal calls "digital body language" that, in aggregate, creates a profile.
Google, for example, used analytics to identify the traits that make a successful manager, as part of an initiative called Project Oxygen.
“Contrary to their assumptions, the number one trait was how well [managers] provide feedback, the frequency of it, and how constructive it is,” Segal said. He added that this insight re-shaped how Google coaches its managers. And as a result, performance is improving, engagement levels are rising, and turnover is falling.
But what is most interesting, Segal said, is how the company pairs these insights with its Google EDU training program, which uses algorithms to figure out when someone is receptive to training and how to deliver it based on the individual's unique learning style.
Using Big Data as a Sixth Sense
Segal also pointed to the benefits of empowering employees with big data analytics to help them do their jobs better. Data, paired with greater decision-making power at all levels of an organization, can help organizations realize big benefits.
For example, United Parcel Service introduced its ORION big data system in 2013, to provide employees with optimized routes for parcel deliveries. The routing model leverages the massive amounts of proprietary data UPS has about parcels, customers and routes, and pairs it with mapping algorithms.
The secret ingredient in the UPS big data initiative, however, is drivers' ability to override suggestions. UPS found that the most effective deployment of ORION was when drivers were empowered with the data but were allowed to ultimately make their own decisions on the best routes.
“That speaks to where the biggest opportunities are," Segal said. "Organizations that trust their people to use this real-world data and analytics along with [their] instincts and experience provides them with a competitive advantage.”
Avoiding Big Brother
Employees will naturally be hesitant to have their every move tracked, so companies need to walk a fine line when mining employee data. Segal recommends that companies be completely open and transparent about what they’re tracking, ensure they never infringe on personal information and get employees to opt in.
“You can [learn a lot from] what happened in the consumer world, where companies didn’t allow people to opt in," he said. "That created a lot of backlash, so if employers don’t do that they’re going to run into the same problems."
For example, in his book “The Decoded Company,” Segal shared the story of Target and the concern that rose up around its use of loyalty card purchase information to predict pregnancies. Microsoft went through a similar incident when it read a Hotmail user’s private account in order to trace an internal source code leak.
Companies must adopt ethical practices around big data to protect their people and their ability to attract top-tier talent.
Looking Ahead
Segal said it's important for companies to recognize that any form of big data analytics requires patience and experimentation, but that those who embark on the journey will find great potential for reward.
“Employees will have more choice in the years ahead and will choose to work for companies who make their lives easier, save them time, and emphasize with their needs," he said. "The companies that will win will be better for the employees."
