Data-driven decisions will help resolve many human resource management issues

The decision to open the borders at this time, with new coronavirus cases still not falling consistently under 300, must not have been an easy one, and should send a message that we are looking past the virus and on to our economic circumstance. I maintain that I am not envious of world leaders, including ours, and other decision-makers operating within this novel environment.

On a weekly basis I receive and review judgements from the Industrial Court, and the issues and judicial comments are always so familiar, mainly due to the many recurring ill-informed decisions made by companies which usually result in the award of damages to workers or in their reinstatement.

In a previous column I suggested that soon we must reach some sort of accommodation for sustained industrial peace, supported by my prediction that the tripartite movement would adopt a position that is more supportive of the concept of business survival and continuity.

I believe that coming out of this period of economic uncertainty, companies in already precarious financial situations, if ill-informed about the tenets of good industrial relations, may cause undue harm to themselves, our industries and the workforce. Our economy should be viewed as ground zero after this covid19 war and all shoulders should be to the wheel.

It was reported in July 2019 that former president general of the Banking Insurance and General Workers Union and now Industrial Court judge Vincent Cabrera said, “Too many matters, especially dismissals, are being referred to the Industrial Court,” and he was “calling on trade unions to find alternatives to the court to settle disputes.” Cabrera said, “This is evidence of a dysfunctional industrial relations system and other options must be considered.”

At this time, we should consider being more proactive and embark on a sustained outreach education programme to our major stakeholders and directly to employers.

In 2018 the Ministry of Labour initiated a series of commercials titled the Labourville Show that covered issues like sexual harassment, progressive discipline and retrenchment. These should be reconvened and expanded, based on purpose, reach and desired outcome.

I always believe that data in decision-making will help us to resolve many of our HR issues. So, as opposed to someone’s mere intuition, I believe data should be mined efficiently and effectively to objectively determine the what, who, when and how of the particular issue. These are normally the questions of fact that are required to be answered in resolving disputes, along with the fair and reasonable application of the principles of natural justice.

A recent Harvard Business School article claimed that, "Society has imbued the concept of 'intuition' – of simply knowing when something is right or wrong – with a tremendous amount of prestige, importance, and influence.” It went on to state, “According to a survey of more than 1,000 senior executives conducted by PwC, highly data-driven organisations are three times more likely to report significant improvements in decision-making compared to those who rely less on data.”

The critically important issues of data collection and reporting were recently highlighted when Moody’s downgraded our international credit profile. This is a clear example of the role reliance on data plays, not only in company decision-making, but, probably more importantly, on the national economic profile of the country.

Moody’s stated, in part, “Governance issues are a key limitation to TT's credit profile, as reflected in Moody's institutions and governance strength assessment. Despite meaningful efforts in recent months to improve data reporting, significant data limitations and institutional constraints limit the government's capacity to execute fiscal policy, weakening the sovereign’s credit profile.”

Do we believe that the employers brought before the court are all determined not to do the right thing? Or are all, or at least some of them, simply unaware of their obligations and responsibilities? Is it that companies deliberately want to spend so much time, money and effort chasing after trade disputes they are destined to lose?

I am sure the answers to both these questions are no. The solution may therefore lie in the adoption of data-driven decision-making processes.

This speaks to a process which involves collecting data, extracting patterns and relevant facts from that data and using the objective interpretation of those facts not only to make inferences but also to influence the decision made.

A related emerging trend of reliance on data by many large organisations increasingly points to algorithm-based HR decision-making to monitor employees' conduct, their performance and productivity. This is generally driven by the technology industry in more developed countries and claims to be an efficient and objective decision-making tool. This method of workplace monitoring requires critical data study and operates at the intersection between HR management and corporate responsibility.

There are several examples of critical HR functions where the best outcome is achieved by reliance on objective data. Managing employee attendance records and selecting staff for retrenchment are just two of which readily come to mind. With respect to attendance, the accuracy of this data represents factual evidential proof of the alleged misconduct and historical performance ratings data which supports and facilitates an objective process for selection for retrenchment.

It is hoped that the adoption of a data-based decision-making process will help drive meaningful economic growth and HR maturity in the rapidly approaching post-covid world.