Data has become the linchpin of almost every Board decision. But when it comes to HR and pay data, many Boards are flying blind.
Boards tend to focus on the CEO and the top management team. Appointing the CEO is the Board’s direct responsibility and the Board will set the remuneration of the leadership team.
For a few levels below that, engaged Boards will have a handle on the level of talent the organisation possesses and have an idea of successors they see moving up the ranks. They will potentially approve remuneration structures.
Employees below these upper echelons generally escape Board scrutiny. Appropriately, management have delegated accountability to oversee appointments, pay, performance, learning and development for the majority of staff.
Yet ignoring the composition and pay of the general workforce can lead to a strategy-operational mismatch, money being wasted on areas of low priority, lower levels of employee engagement and key employees walking out the door without warning. Aggregate data on employees that would not normally fall under detailed Board scrutiny can be informative in ensuring the company’s workforce is fit for purpose.
Increasingly, Boards are seeking access to organisation-wide information on total workforce metrics and key employee attributes. While remuneration or people, culture & remuneration committees have a primary focus on the leadership team, they are increasingly engaging in wide demographic and cultural issues on which they wish to be informed by management of the organisation’s progress.
An improved quality of human resource information embracing predictive analytics which can aggregate that data in histograms, pie charts and other summarised forms can provide Directors with meaningful snapshots of issues which are progressively becoming front and centre.
Egan Associates’ new Workforce suite of online tools support management in developing consistent documentation of roles and accountabilities and also enable the organisation to capture significant additional information on gender, age, tenure, job grade and current remuneration.
The data can be broken down by business group or division, job family and location, enabling the Board to gain insight into the application of rewards across the organisation with a view to enhancing the organisation’s demographic balance, its reward equity, its expenditure on training and development and any biases which may exist that need to be addressed.
In addition to providing condensed and meaningful access to the above data in a dashboard, Workforce also provides contemporary job analysis, job evaluation and pay analytics tools that enhance efficiencies by providing access to an organisation wide database of position descriptions, job grades and pay statistics to assist in minimising anomalies.