What are the Challenges Facing People Analytics?
People Analytics is still often seen as the new kid on the block. And in some ways, that’s absolutely true for many organisations, and the field as a whole. It’s certainly the case that “there is no handbook” for how to execute People Analytics, despite the fact that case studies, insights and advice are pouring in from the field on a daily basis now.
We interviewed leading People Analytics experts to hear their views on the challenges and opportunities for the people analytics profession. Watch the video below to hear from Heather Whiteman, Michael Arena, Michelle Deneau, Geetanjali Gamel, Jeremy Welland and Richard Rosenow on the opportunities for the People Analytics profession.
So, what are the challenges facing the People Analytics profession? Here’s our interview highlights:
1. Solving business problems first and foremost
All People Analytics activities should aim to help the business make better decisions and ultimately drive real business value. The challenge, then, for People Analytics is to keep up with the pace of the business and changing business priorities. (Listen to the podcast episode, ‘How can People Analytics Drive Business Value?,’ to hear David Green explore this topic in more detail.)
While the field of People Analytics is growing rapidly, and with it an abundance of case studies, insights and advice, the expression “there is no handbook” is very true. This is in part because it is still a relatively new and evolving field, and in part because of the uniqueness of business models, problems and solutions.
The challenge for HR teams is to be comfortable with the unknown and learn as they go. All the while, they must identify and solve problems, achieve goals, and convince key stakeholders of the value of the effort. This will mean trying, testing, sometimes failing and sometimes succeeding. The positive here is that it will only take a few successes - tied closely to a business problem and therefore offering real business value - to gather the evidence needed to continue trying.
Interested in learning more about running a successful People Analytics project? Take a look at our online People Analytics certifications on myHRfuture
2. Developing a data-driven culture in HR
A major challenge is “HR itself”! HR’s work will dramatically change, shifting from an operational function to a highly data-driven function. But shifting from a ‘best practice’ mindset to an evidence-based approach is a big challenge for this typically traditional function.
In our article, ‘How can HR build a data-driven culture?,’ we investigate how to address culture in isolation from other factors that influence the successful adoption of people analytics, as well as discuss six steps to shifting towards a data culture in HR.
3. Data governance
As the HR function shifts towards an evidence-based and data-driven approach, data governance and privacy become critical. How do we collect data, store it, identify it, leverage it and keep it safe? Especially in these times when cyber security faces such extreme challenges.
Absolutely key to successful governance in people analytics are:
Setting policies in place
Regularly reviewing protocols and new technologies
Updating your employees so they understand the steps you are taking to ensure their data remains safe.
It goes without saying that GDPR is a critical component and consideration here as well, no matter where your company is based.
4. Leveraging existing organisation resources
Though People Analytics may be the new kid on the block in your company, it is really important that you seek advice, guidance and support from other analytics and IT teams throughout the business. Understand that People Analytics activities are often another level built upon the foundation of a data server and warehouse, perhaps even analytics modelling that finance or operations are already using, and so it is important to identify and leverage the enterprise resources that exist. The challenge can be to evolve those resources where People Analytics requires an additional level of access or functionality and getting buy-in related to the cost/ benefit of such activities.
5. Looking outside HR (HRBPs)
HR is often very inward-facing and it can be hard to recognise (or be willing to take advantage of) external opportunities for support. When it comes to the insight that People Analytics can drive and the associated hurdles that can be presented, HR departments can significantly benefit from tapping into a business partner network who can understand and interpret findings. Think of it like getting a second opinion from a physician who is not living the symptoms nor feeling the pain. Someone who has third party perspective can be invaluable in truly understanding the data and possible solutions.
The challenges to People Analytics exist but we have to understand that they are not a barrier. Instead, think of them as hurdles to overcome, knots to be untied or minor detours to be followed along the path to greater understanding of your people and how they contribute to the business.
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ABOUT THE AUTHOR
Ian Bailie is the Managing Director of myHRfuture.com and an advisor and consultant for start-ups focused on HR technology and People Analytics, including Adepto, Worklytics and CognitionX. In his previous role as the Senior Director of People Planning, Analytics and Tools at Cisco Systems, he was responsible for delivering the tools and insights to enable and transform the planning, attraction and management of talent across the organisation globally. Ian is passionate about HR technology and analytics and how to use both to transform the employee experience and prepare companies for the Future of Work.