PEOPLE matters – Evidence-based HR

Dr Richard Plenty and Terri Morrissey consider the pros and cons of adopting a systematic data-based approach to decision-making in the workplace.

The Nobel prize winning psychologist Daniel Kahneman in his book ‘Thinking Fast and Slow’ describes two human systems for decision making: fast, intuitive thinking and slow, rational thinking. Both types of thinking are vital, but what is most appropriate at any time depends on the circumstances.

For example, professional pilots flying in good conditions can make rapid visual assessments of where they are and how they are doing. But when they are flying at night or in cloud, they are taught to rely on their instruments – the evidence – rather than their instincts.

In difficult conditions – and complex, changing or uncertain circumstances – relying on intuition alone can be dangerous. Gathering data and objective evidence provides a sounder basis for decisions. Organisations sometimes don’t do enough of that when addressing their people issues.

We came across a very good example of this when working with a large multinational organisation where there was a high turnover of young talented engineers. The conventional wisdom was that this could be remedied by better induction, training, higher pay and carefully managed career progression.

These solutions had been put into place at considerable cost – but the engineers still kept on leaving. It was only when the evidence from employee survey data, turnover statistics and exit interviews was put together systematically that it became obvious that the real reason for people leaving was that there wasn’t enough challenge on the job. People wanted more responsibility, not more support.

This kind of systematic data-based approach to decision-making is becoming formalised as ‘evidence-based HR’. At the European Association for Work and Organisation Psychology (EAWOP) Conference we recently attended in Katowice, Poland (May 2023), Prof Rob Briner pointed out that a ‘conscientious, explicit and judicious’ approach to collecting evidence from multiple sources can increase the likelihood of a favourable outcome when making decisions.

He described a six-step approach:

1. Ask the right question; 2. Acquire and gather data from multiple sources; 3. Appraise the data, taking into account its credibility; 4. Aggregate the information; 5. Apply the findings; and 6. Assess (and learn).

All of this sounds straightforward, but our experience is that putting evidence-based HR into practice can be difficult. There isn’t always backing from the top. Some organisation leaders are reluctant to invest time and resources in exploring ‘people’ issues deeply and are not open to changing their minds if new evidence emerges.

Others feel that time spent ‘thinking’ and in the collection of evidence might be better spent ‘doing’ – trying things out to see what works in practice.

Despite these difficulties, our view is that evidence-based HR is likely to grow rapidly in importance, as organisations demand evidence to help them prioritise investment and make better, more considered decisions.

It will be turbocharged by the enormous strides being made in digital and AI, as well as advances in psychological science. Professional organisations such as the CIPD (Chartered Institute for Personnel Development) and CRF (Corporate Research Forum) are providing strong backing.

At the same time, it is important to remember that leadership judgement and accountability for choosing a particular course of action can’t be reduced to straight logic. In a changing world, what happened in the past might not always be a reliable guide to the future.

Leadership requires balancing and integrating many variables and choosing action, which takes into account the big picture – vision, values, overall strategy and ethics. And as we heard from other speakers at EAWOP, leaders also need to bring people with them by creating a sense of community, belonging and shared identity.

We need both logic and intuition to get the most from our organisations and our people.

Arrivals and Departures

Sydney Airport will shortly begin the search for a new CEO after the announcement that Geoff Culbert will step down at the end of the year. Culbert, who has held the position for almost six years, joined the publicly listed Sydney Airport as CEO in January 2018 from GE and will continue in his role until the end of the year to ensure a smooth transition.

CV Deepak is Airport Authority of India’s new airport director for Chennai Airport, succeeding Shri Raju. Deepak was formerly general manager (Finance & Accounts) taxation cell at AAI’s corporate headquarters in New Delhi.

Kam Jandu has returned to Budapest Airport to become its new CEO, succeeding Chris Dinsdale, who left earlier in the year to become the new president and CEO of Calgary Airport Authority. Jandu knows Budapest Airport well having originally joined the Hungarian gateway in 2009 and formerly working as its executive director of aviation director and chief commercial officer before leaving for a brief spell with Munich Airport International in 2021/22.

About the authors

Terri Morrissey and Dr Richard Plenty run ACI’s Human Resources training. They received a Presidential Citation from the American Psychological Association in June 2022 for their leadership in advancing global psychology. Contact them at info@thisis.eu