Accelerating People Analytics: A Data Driven Culture for HR
The global pandemic has raised the importance of the Chief Human Resources Officer (CHRO) with a multitude of challenges bringing new pressures to the role.
Additionally, in the face of widespread social justice movements, racial inequalities have added much needed new focus to diversity, inclusion and belonging in the workforce. Hybrid working has become an expectation of many employees too, as mental health issues become more common. These complex workplace, employee and societal issues have challenged CHROs across the globe.
The Chief Executive Officer (CEO) and the CHRO subsequently need a much deeper understanding of their workforces than ever before. They are turning to their people analytics leaders for the insights needed to manage these topics and at their most profound, the people analytics leader works alongside their CEO, helping them explain insights to employees and determine the most important course of action.
Any one of these issues on their own – equality, hybrid working, mental wellbeing, pandemic planning – is complex and requires large volumes of data to identify the insights required. Together they are ultra-complex, and they elevate the people analytics function to “a whole new level”.
So it is no surprise that people analytics – as a discipline and function within companies – is growing. At Insight222, we have undertaken detailed research in 2021 to understand this growth, where investment is being made and what is required to build a data driven culture for HR.
The Insight222 People Analytics Trends 2021 research, based on in-depth structured interviews and survey responses from people analytics leaders in over 100 global companies was conducted in July 2021. Most of these companies are household names, which are collectively responsible for over 12 million employees operating in over 180 countries.
The Growth of People Analytics
Investment in people analytics has accelerated in 2021, as the function continues to deliver value to the business and support the C-Suite in managing the ultra-complex topics mentioned above.
Six in every ten companies grew their people analytics team in the 12 months to June 2021 and a further quarter stayed the same size. People analytics teams now have one person for every 2900 employees, up from one in every 4000 in the preceding 12 months.
When we look at the next 12 months to June 2022, three quarters of people analytics leaders predict they will receive even more investment for their teams and eight out of ten leaders predict they will invest in people analytics technologies.
Key Findings
Alongside the results shared above on the growth of the people analytics function, the key findings of this research are:
Leading Companies invest more in people analytics.
For the first time, our research has defined “Leading Companies” as those with superlative people analytics functions. The data driven methodology finds that Leading Companies invest more in people, have bigger teams, productise analytics at scale and have a data driven culture for HR.
CHROs unanimously conclude that data and analytics is important.
The research shows that 90% of CHROs make it clear that data and analytics are an essential part of the HR strategy. They have stated the expectation that HR professionals of the future will need to have data driven skills.
A data driven culture for HR delivers business value.
When people analytics leaders are asked about the effect of having a data driven culture, 90% of them state that it delivers business value and 81% state that it enables managers to make “in-the-moment” decisions.
Developing a Data Driven Culture for HR
The results of the Insight222 People Analytics Trends 2021 research show that less than half of companies surveyed report that they have a data driven culture for people data and analytics, despite the CHRO clearly stipulating that it is an essential part of the HR strategy.
Based on the research, it is concluded that there are three attributes of a data driven culture that all HR functions should adopt:
Using data to make decisions: HR professionals and People Managers should become skilled in using an evidence-based approach in their decision-making
Making data accessible to managers and HR professionals: Data should be democratised throughout the organisation
Delivering business value from data: People insights should inform strategy, allowing action to be taken and outcomes to be measured
People analytics has an important role to play in developing a data driven culture. 60% of people analytics leaders feel they have the primary task of creating a data driven culture for people data and analytics.
Steve Scott, Managing Director, Global Head, Workforce Management and Analytics at Standard Chartered Bank, who was interviewed as part of this research, explains: “Creating a data driven culture is absolutely one of my key responsibilities that I am passionate about. I truly believe it’s critical for my team to be able to deliver value to the organisation.”
Final thoughts
In conclusion, the Insight222 People Analytics Trends 2021 study shows that people analytics is growing in size – and in importance. To be successful, the people analytics leader needs to productise solutions and take the responsibility to create a data driven culture for HR.
The CHRO demands this culture across HR so that data and analytics can be used for people decisions across the enterprise, including the C-Suite.
It’s looking good for people analytics in 2021. And so it should be. People analytics is growing, and the CHRO wants them closer, as a trusted advisor, on hand to help them manage the C-Suite with increasingly complex people, workforce and societal topics.
For more details on this research and to read recommendations for building a data driven culture for HR, download the Insight222 People Analytics Trends 2021 report.
ABOUT THE AUTHORS
Jonathan Ferrar is CEO of Insight222, and a Board Member of the CIPD and TrustSphere. In addition to being a co-author Excellence in People Analytics (Kogan Page, July 2021) with David Green, Jonathan is also co-author of The Power of People (Pearson, May 2017).
Caroline Styr is the Research Director at Insight222. She is a thought-leader, researcher and writer on people analytics and the future of HR. Prior to joining Insight222, she worked at the Center for the Future of Work where she was an advisor and in-demand speaker on topics related to the future of work. She has also held roles in digital services and transformation consulting at Cognizant. Contact Caroline at caroline.styr@insight222.com
Naomi Verghese is currently the Director for Insight222's People Analytics Program®. This unique program develops the knowledge and skills of People Analytics leaders and their teams to increase value, impact and focus through bundled learning, networking and advisory solutions. Prior to joining Insight222, Naomi built out and led the People Analytics Consulting team at Barclays. She has also held roles in HR Business Partner teams and in Reward.