In the rapidly changing world of work, organisations have had to change the way they approach people, teams and data. With these changes has come the need for a dedicated people analytics team within HR. Is it time to build your own?
People analytics can equate to better information to inform your decision-making. But how can you tell if it’s time for your organisation to build your own?
Based on the latest research from July 2019, which collated data from 380 HR professionals worldwide, found the number of people analytics teams within organisations had grown from 15% in 2016 to 68% in 2019.
“The growth in people analytics teams across organisations reveals that it has emerged as a valuable method of processing the large employee data organizations have been collecting over the years.”
So, what are people analytics teams and why are they so valuable?
People analytics uses a combination of mathematical and statistical modelling to identify and examine workforce behaviours.
“For example, people analytics can help determine the effectiveness of your learning and development programs in terms of how many people engage with it, complete it, and drop out midway.”
While the terms HR analytics and people analytics are arguably used interchangeably, people analytics goes one step further.
“According to the report, here are the top five areas in which companies have been using people data and analytics:
- To measure employee sentiment
- To measure employee adoption of tech tools given to them
- For succession planning
- To forecast retirement
- To measure employee wellbeing.”
With people analytics being seen as so useful, why aren’t more organisations getting on board?
According to HR Technologist, there are three possible reasons for this:
- Automated processes presents the implication of possible job loss. People truly fear automation and, “top leadership must help HR overcome this fear, by specifying how automation in the form of moving to people analytics solutions will help HR streamline its work, give it actionable insights to work with, and implement meaningful change in the organisation.”
- Implementing people analytics requires a particular skill set. Typical HR and related degrees do not prepare future professionals to apply the analytics. While much of the data collated does not require in-depth knowledge, “they do need a data-driven mindset, the ability to make sense of data, and the ability to use this data to develop strategies.”
- Good quality data is not readily available. The data is so widely spread that some of the information collated may not be of use or poor quality. “As a result, having a team dedicated to the process is essential, comprising data analysts and HR professionals to clean HR data and use it to develop stronger people analytics solutions.”
Is it time to upskill your team for people analytics?
“An interesting fact that the Innovation Generation report found was that 32% of companies have plans to upskill their HR teams to develop people analytics skills. However, 17% indicated that they would hire external talent for their requirements.”
The questions still remains, is it better to upskill internally? Or is it be best to hire externally? HR Technologist shared opinions from Matthew Jackson, the VP of Client Solutions at Thompson Online Benefits (the organisation that completed the initial research).
“An internal HR team will likely have a better grasp on company culture, employee sentiment and desired brand resonance – so if insights gleaned from data and analytics are going to be used for initiatives related to those areas, that in-house knowledge is invaluable.”
However, Jackson also notes that external analytics teams may also be valuable for other areas: “A people analytics organisation is likely going to have access to incredible amounts of data and insights from broad sources that in-house teams don’t have access to.”
A mixture of both may be the best option when investigating People Analytics. “It may be a combination of these two teams, or individuals who are armed with data – both internal and external, that would make the best fit for your organisation.”
What is best for your organisation?
HR Technologies has previously endorsed people analytics as the key to taking more strategic HR decisions. For an organisation to “prepare for the future, every HR professional should have people analytics capabilities. It is no longer a nice-to-have. It is a must-have.”
Do you agree? Will you be implementing people analytics strategies in the future? Share a comment below and continue the conversation on LinkedIn.
Source
Does your organisation have its own people analytics team yet?
Puja Lalwani
HR Technologist
Nikita Thorne is an Oxford-based digital marketer and writer. After completing a BA (Hons) in English Literature and Film & Theatre from the University of Reading followed by a six-month internship in marketing, Nikita has been travelling the world.
While temping as a Content Producer at Employment Office in Brisbane, she gained expertise in recruitment marketing, writing articles and coordinating webinars on multiple recruitment marketing subjects.