What are the Opportunities for People Analytics?
People analytics is the collection and application of talent data to improve critical talent and business outcomes. The field has been growing rapidly over the last decade, and investment in the field has only accelerated in response to the Covid-19 pandemic. According to research conducted by Insight222 in 2020, people analytics teams have grown in size in absolute terms, with 60% of companies surveyed intending to grow their people analytics teams further with new experts relative to the rest of HR in the coming 18-24 months.
Early results from Insight222 Research’s 2021 report investigating the field of People Analytics, due for release in October this year, shows an increasing commitment to grow people analytics teams, with 75% of companies planning to increase their team size. To further reinforce the pervasiveness of this commitment, only 1% of respondents indicated an intention to decrease the size of their People Analytics team, compared to 7% in 2020.
Why are companies committed to investing in People Analytics? What is the opportunity for People Analytics to impact the organisation? In a series of videos interviewing leading People Analytics experts, we spoke with Josh Bersin, David Green, Michael Arena and Richard Rosenow on the opportunities for the People Analytics profession. Check out the video below.
So what are some of the opportunities for People Analytics?
1. Embracing Change
From the simple perspective of the HR function, the opportunity to embrace change and all that it offers is at least something that is worth considering. Employee-data is eminent and is developing daily. Companies worldwide use data for learning & development, employee performance, talent mobility, and so forth. Moreover, technology, advancements, and movement, such as real-time data around employee engagement, employee wellbeing are all equal improvement for organisations. If we consider that human resources and managing talent assets is ultimately all about the people – the right people in the right place at the right time – then consider that people analytics provides the fact, the data part of the equation, which should therefore, allow the HR professional the opportunity to better apply the human aspect of the HR function.
2. Keeping pace with business
As technology evolves, the pace of business picks up and the priorities of the enterprise change. From a simple functional perspective, people analytics bridges the gap between the research and the data that is available and the decisions a business needs to make. Success in business is ultimately all about the decisions being made – people and talent decisions among them – and people analytics offers a decision-making tool that is responsive, fluid and that can meet the needs and pace of the business.
According to research conducted by Insight222, people analytics’ most value-adding contribution to the business is in business focus areas such as employee experience and wellbeing, business strategy and workforce planning.
3. Shedding the best practice mindset
It can be all too easy, and all too comfortable, to rely on best practices to share your strategy or to just copy what other companies are doing. Although best practices can be interesting, people analytics can allow us to formulate multiple strategies based on the multiple unique scenarios and related to the many complex problems that all businesses face. Rather than forcing every square peg into a round best practices hole, data analytics can help identify the unique nuances and therefore an opportunity to develop best practices to truly meet the varied needs of the business.
Further research by Insight222, HR in the Digital Age, reveals how organisations must leverage the benefit of digital technology to remain competitive in the current environment. The skills required of HR professionals are evolving to include more data-driven and experience led skill sets, which require “analytical thinking” and “digital literacy”.
4. Scaling and sustaining
Part of growing and continuing to succeed in business relates to a company’s ability to scale its workforce, to retain key talent, and the ability to reallocate talent as required and as the business model changes.
Using data to drive discussion creates the potential for people analytics to inform decisions around how companies should adapt their practices related to areas such as recruitment, retention, performance management, and employee engagement; all key to scaling and sustaining success.
With the approach to scale people analytics, Dawn Klinghoffer, head of People Analytics at Microsoft, says: “in its simplest form, people analytics required good data, solid analysis and effective processes. but to really make a difference to employees and the business, people analytics must be scaled”
What is the point to all of this?
People analytics solutions provide actionable insights in real time, offering organisations a strategic opportunity to successfully weather a fast-moving, ever-changing business environment. Additionally, using people analytics can help you better understand the business problems you need to solve and what you need to find in a potential new employee. It helps you understand the skillsets your employees have so you can position them in the right place and at the right time. It helps you shed old notions, moving forward with a solution that is based on data and evidenced to better position your company for the future. it offers the opportunity to contribute to an organisation’s strategy by creating insights on what people can do to drive change.
If you're interested in learning more about how people analytics can help your business, then why not check out our People Analytics online courses in the myHRfuture Academy or take a look at Jonathan Ferrar and David Greens recently published book Excellence in People Analytics which provides business and human resources leaders with everything they need to know about creating value from people analytics. Be sure to sign-up for Insight222’s upcoming research report exploring the field of People Analytics
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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.