“Why?” is the central question in HR controlling
HR software enables HR controlling with substance
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HR Consulting, HR Controlling, HR Digitization, HR Planning, People & Culture, People Analytics
HR controlling's ability to prepare well-founded decisions and develop strategies is crucial to establishing it as a central function that supports the company's objectives. A well-structured reporting system is essential for such effective controlling. The focus of personnel controlling on the evaluation of reports is crucial. HR management is about collecting and preparing data and information on the one hand, and analysing and interpreting it on the other. In the midst of data, reports and metrics, however, the view of the essentials is often clouded. And this is where the question "Why?" comes into play.
The significance of “Why?” in HR controlling
Why are certain key figures used? Why are certain trends observed? Why do employees react in a certain way? Which data can be analysed ad hoc and which need to be interpreted in more detail by the HR team?
These questions may seem simple, but their importance for HR controlling is immense. They serve as a guideline that makes it possible not only to collect data, but also to really understand it and utilise it sensibly. After all, the key question is: what data does HR Controlling need to collect and analyse in order to promote the company's goals through the planning and management of HR processes?
The challenge of HR controlling
All too often, however, personnel controlling is still faced with the challenge of collecting a large amount of data on personnel at short notice and passing it on in corresponding reports. These tasks are often repetitive, tie up manpower and leave little room for in-depth analyses. The temptation is to focus on the quantity of data collected rather than its quality and relevance. This can lead to an overabundance of reports and metrics that offer little insight and confuse rather than inform decision-makers. Correlations and trends are not transparent and metrics that serve no other purpose dominate.
What are the benefits of focussing on the "why?"
The above examples make it clear why the foundation of HR controlling and the structure of HR reporting should be based on the question "Why?". Increased relevance of the data collected is the benefit of this more detailed approach.
Alignment with corporate goals
The "Why?" in HR controlling allows key figures and reports to be closely aligned with HR objectives and therefore with overarching corporate goals. By regularly asking why certain information is relevant, HR controllers can ensure that their reports contribute to supporting the company's overall strategy and answering relevant questions.
Identification of causes and effects
The "Why?" helps to not only react to superficial data, but also to go deeper and understand the causes and effects of trends. By asking why certain key figures are changing, HR controllers can respond proactively to challenges by using a well-structured reporting system to present correlations transparently and propose preventative measures that actually have a target group-specific effect.
Example 1: Interpretation of the fluctuation rate
Staff turnover in the company is increasing and the question of why reveals core problems such as management difficulties or inadequate working conditions. Improving the working environment and leadership training increases employee satisfaction and reduces staff turnover.
Example 2: Overtime evaluation
The recording of overtime shows high values, but only questioning the why reveals causes such as excessive workloads due to absences or inefficient processes. This leads to targeted measures such as process optimisation or adjustments to the workforce.
Example 3: Sick days
A high number of sick days is recorded and analysing why absences occur can reveal problems such as poor working conditions or stress. This results in measures to improve the workplace and promote health.
Example 4: Analysing employee surveys
Low job satisfaction from surveys raises the question of why. Deeper analyses reveal core problems such as communication deficits and poor work-life balance. HR then develops targeted measures to improve these areas, which increases employee satisfaction and retention.
Improving the decision-making process
A strong "Why?" promotes a data-driven decision-making culture. If HR managers know what purpose certain information serves, they can make well-founded and target group-specific decisions. This helps to increase the effectiveness of the HR strategy and make the company more successful overall.
Promoting a learning culture
Constantly scrutinising evaluation targets and observed trends as well as their causes promotes a culture of learning and continuous improvement. It encourages people not to simply accept things, but to actively look for opportunities for improvement and learn from experience.
Conclusion
In HR controlling, the "Why?" is more than just a simple question. It is the key to ensuring that all reporting has strategic value. And more than that, it is the essence of what HR controllers do. By constantly asking why things are happening, not only can data be collected and analysed, but a deep understanding can be gained, problems identified, strategies optimised and a culture of continuous improvement fostered. Ultimately, it is this question that enables HR controllers to fully utilise the potential of the workforce and create real added value for the company.
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