Optimizing HR Data Management for CSRD Compliance

Our client, an international bank operating throughout Europe, sought our expertise to address critical gaps in their HR data management. With multiple branches each utilizing distinct local HR systems and definitions, the bank struggled to achieve consistency and accuracy in data collection and reporting. Although other departments had already streamlined their data management processes, HR remained significantly fragmented, posing substantial risks for meeting CSRD "Own Workforce" (S1) reporting standards.

Our initial assessment revealed several key issues:

• Fragmented Data Systems: Disparate local HR platforms across branches impeded effective centralized data integration.

• Diverse Regulatory Requirements: Variations in national labor laws and HR definitions complicated standardization efforts.

• Manual Processes: Reliance on manual data handling increased error rates and diverted resources from strategic initiatives.

• Limited Strategic Capacity: Persistent technical debt consumed significant effort, restricting opportunities for advancing People Analytics initiatives.

Recognizing that this situation was unsustainable, we emphasized the necessity of integrating HR reporting into the organization's broader data strategy to ensure regulatory compliance and long-term operational efficiency.

At Highberg, our approach extends beyond merely achieving compliance. We leverage CSRD requirements as a catalyst for enhancing data maturity and enabling informed decision-making within HR operations. Our methodology involves:

• Data Integration and Standardization: Establishing centralized frameworks to unify fragmented HR systems across international branches.

• Data Accuracy and Quality Assurance: Implementing rigorous validation processes and automated quality checks to ensure reliable, consistent reporting.

• Stakeholder Alignment: Facilitating collaboration between HR, IT, and compliance teams to foster collective accountability and support transformative changes.

• Future-Proof Solutions: Designing adaptable solutions capable of evolving alongside changing CSRD regulations.

To effectively address our client's needs, we structured our solution into clearly defined phases:

Phase 1: Mid-Term Objectives

In this initial phase, we prioritized immediate improvements by:

• Harmonizing HR data definitions across all European branches.

• Standardizing data collection methodologies throughout subsidiaries.

• Collaborating with IT teams to introduce automated solutions replacing manual Excel-based processes—particularly for critical metrics such as employee absenteeism.

• Establishing automated validation mechanisms to continuously monitor and enhance data quality.

Through these targeted actions, we significantly streamlined the client's HR reporting processes, reducing manual workload and enhancing overall efficiency.

Phase 2: Long-Term Objectives

Building upon the foundational improvements of Phase 1, Phase 2 proposes a comprehensive transformation towards a fully automated data warehouse solution. The envisioned future state includes:

• Centralized automation of all HR data ingestion tasks from a unified bank-wide system.

• Regular automated refresh cycles (daily, weekly, monthly) ensuring timely availability of accurate data.

• Seamless integration of diverse datasets including recruitment metrics, employee surveys, external contractor information, remuneration details, and absenteeism records into centralized dashboards.

This robust infrastructure will serve as a single source of truth for diverse reporting needs such as monthly financial reports, social responsibility disclosures, equal pay analyses, and audit requirements. Additionally, dedicated analytics dashboards will empower strategic decision-making across recruitment management, absenteeism tracking, and other key HR insights.

To ensure sustained success in CSRD compliance and broader organizational goals, Highberg emphasizes robust governance structures clearly defining roles and responsibilities:

Clearly Defined Roles & Responsibilities:

• Global HR Teams: Responsible for translating legislative guidelines into precise requirements suitable for accurate processing within the warehouse environment.

• IT/Data Teams: Tasked with maintaining infrastructure integrity, managing efficient data flows, and upholding stringent quality standards.

We have identified several governance challenges requiring attention:

• Insufficient accountability leading to compromised data quality due to unclear ownership roles.

• Resource constraints within IT departments limiting capacity to address existing technical debt effectively.

• Skill gaps in personnel assigned to manage complex HR datasets resulting in suboptimal outcomes.

By proactively addressing these governance issues alongside technical enhancements, Highberg ensures that compliance efforts translate into lasting organizational value.

Partnering with Highberg means benefiting from:

• Deep expertise navigating complex regulatory frameworks like CSRD.

• Customized solutions seamlessly integrated into your existing technology landscape.

• Enhanced collaboration among key stakeholders—HR teams, IT departments, compliance officers—ensuring unified objectives.

• Future-proof solutions designed specifically to evolve alongside regulatory changes.