In the past few years, there has been an increasing popularity for implementing people analytics in HR. From a realisation that best practices can’t be derived from past experiences and knowledge alone, HR professionals and business leaders are turning to utilising solid science to create real business values in the policies and procedures they put in place. For this, companies are searching for the greatest means of ensuring the time and energy they put into the people analytics is of most value. One way leading companies have found that increases the chances is by employing governance with people analytics.

What is the definition of governance?

Governance refers to the mechanisms, processes, and procedures by which people analytics ‘operates’. It underpins all analytics and ensures the right people provide direction for work, that the structure and stewardship for managing data and projects are implemented and applicable, and that risks are managed appropriately.

Because investment in people analytics accelerated in 2021 and is only predicted to expand in the coming years, there is a growing need to implement governance. Since 2020, people analytics teams have grown to one person for every 2900 employees, up from one in every 4000 in the preceding 12 months.

How does governance improve people analytics?

Of the 42% of companies we surveyed who stated they have a data driven culture utilising people analytics, 90% were confident the work delivers value to the business.

That is why without governance, analytics work loses focus and risks conducting unnecessary work with generating substandard value increases. In worst-case scenarios, poor governance increases the risk of negative publicity and an increased chance of reputational damage.

People analytics require a solid foundation. By having a strong governance with clear purpose, standards, privacy, ethics and security, teams in people analytics will have a clear focus of what their job entails.

Six types of Governance

Governance is about managing the team, or your operating model for the function. This encompasses the action of taking everything in the structure and bringing that together to form a mechanism where you can deliver outcomes through the team, the technology, and the people that you interact with.

1. Align people analytics to the business strategy

One focus of governance is if people analytics is working to offer value to the business. To be able to do this, the people analytics teams should concentrate on delivering business value to a far broader range of stakeholders. They need to take into account not just the executives, but also the managers and the entire workforce when creating best practices for the organisation.

2. Provide a mission and direction for the function

Without knowing what the business goals are, it is difficult to accomplish much. By letting the people analytic team know what the company plans to accomplish from their efforts, the team has a place to start their research and understands the final outcomes.

Also, by being aware of the challenges the company is facing and where they want to be six months from now or one year from now will give the people analytic the end goal so they can plot the steps it will take to reach there. This also prevents likelihood that they will steer off course and put their time and effort into a practice that was not the main purpose.

3. Provide stewardship of the function including data, privacy, ethics, and financial accountability

Without some direction with the individual functions of people analytics, the ball can be dropped. Made up of two elements - data standards and data security, data stewardship prevents people analytics missteps.

Data standards are about agreeing with set definitions and protocol for managing people data.

Data security focuses on the protection of the data collected from employees and the safe distribution of that data for people analytics projects so that data does not fall into the wrong hands.

Areas to focus on:

Data - the very information that is being collected.
Privacy - this guarantees the security of the data being collected. If employees fear their personal information could be leaked out and used in malice, they will be less willing to provide input.
Ethics - as with the privacy of personal data, it is important to build trust by using the data collected for business needs all while not using it to discriminate, defraud or use in any retaliation manner.
Financial - the allotted budget gives the team the idea of what resources they can tap into and how in-depth they can go before the process loses business value.

4. Aid the prioritisation of work

Since every people analytics project can be costly with time and resources, it is vital that teams keep in check with what is most important. There are two questions that people analytic teams ask when working to prioritise their projects:

How do I know which project to start with to drive the most impact and ensure continued investment in my people analytics function to start with?
How can I ensure that every project I do, drives the most business impact for the most stakeholders across the business, as opposed to offering a “white-glove” treatment for a handful of - often very senior - stakeholders?

Providing assistance so as leaders of these teams have a clear idea what is vital for all involved can grow the team's confidence in their continued contributions.

5. Manage risks associated with specific People Analytics projects

With any project that is undergone, there is the possibility of challenges that could lead to costly failures including litigation, security or loss of revenue. By being aware of the risk and what they might entail and then forming counter actions to prevent such risks, can lower the chances of business setbacks.

6. Hold the People Analytics team to account

Again, for people analytics to function successfully, there needs to be a measurement of success. Bringing in teams to collaborate including finance who crunch the numbers and assist in determining if there is a return in investment can make people analytics aware of whether their efforts have provided the desired result or if there is room for improvement. This can also be an opportunity for recognition that builds engagement.

Ways to implement governance for People Analytics

To implement governance for your people analytics projects is to first focus on creating a data driven culture at your organisation. Communicate and educate the importance and the benefits a data supported decision making system offers.

Next, create a data stewardship council that focuses on data governance and definitions that will eliminate confusion across the organisation around what the data means and the definitions of the data.

Then consider a value chain that you can do yourself or can be operationalised through the Insight222®’s Operating Model for People Analytics, which delivers value at scale through three engines.

A Demand Engine – of consultants to work directly with business executives to provide a funnel of the most important business (not just HR) challenges and opportunities
A Solution Engine – of expert analysts, data scientists, behavioural scientists, and stewards to deliver insights and recommendations
A Product Engine – of designers, product engineers and change managers to build and implement valuable analytics products at scale

Key takeaway

Having governance in your people analytics will ease any insecurities you might have in developing a data driven culture at your organisation that utilises people analytics. With a well-formed structure, definitions made clear to all stakeholders and processes outlined for all to understand, the chances of improvement in your HR strategy planning will certainly be more certain.

Are you interested in learning more about Governance in People Analytics…?

In our online course “How to Create a Governance Model for People Analytics” Jonathan Ferrar takes you through how to create strong governance for your people analytics function and understand how to build the six different types of governance for people analytics. As well as examining some case studies of how leading companies have incorporated governance into their people analytics strategies. Sign up to the myHRfuture Academy and begin building the skills you need to future proof your career, becoming more data-driven, business focused and experience led.

ABOUT THE AUTHOR

Manpreet Randhawa is the Head of Digital Content for myHRfuture.com. In her previous role as the Change Management Lead for People Planning, Design & Analytics at Cisco Systems, she was responsible for defining and executing on the change management strategy to successfully implement and sustain the digital and cultural transformation across the enterprise. Manpreet is very passionate about change management and technology and how to use both to transform the employee experience and prepare companies for the Future of Work.

What are the Six Types of Governance in People Analytics?