Hr Library
Trending

The Top Three Areas Where People Analytics Adds Value

Source | www-myhrfuture-com.cdn.ampproject.org | Caroline Styr

As the people analytics function continues to evolve, it is vital for teams to create tangible business impact in order to deliver more value and gain further investment and buy in from the business. Many organisations face a number of key challenges when trying to achieve this: 

  • Eliciting business challenges from stakeholders. The business reason for undertaking a specific analytics exercise must be crystal clear and understood upfront to avoid undertaking the wrong analysis and also to give the project the best chance of success. A well-defined and clearly framed business question ensures that the analytics work is actually necessary. 

  • Prioritising projects. To manage various business challenges and requests from multiple stakeholders, the people analytics team must focus on project prioritisation. This can be done by focusing on two aspects: business impact and complexity.

  • Scaling people analytics products across the enterprise. Dawn Klinghoffer, head of People Analytics at Microsoft, says: “In its simplest form, people analytics requires good data, solid analyses and effective processes. But to really make a difference to employees and the business, people analytics must be scaled. Like most things, the value of analytics is limited unless people – employees, managers and executives – actually use it.” Instead of taking a white-glove approach, addressing the concerns of a handful of – often very senior – executives, people analytics should start to scale products to meet the needs of many more stakeholders across the business.  

Whilst these challenges are by no means straightforward and easy to solve, tackling them will lead to people analytics creating more business impact. Our recent research shows that leading companies, who are addressing these challenges, are increasingly delivering value against business areas, more often than against HR areas.

Source: Delivering value at Scale: A New Operating Model for People Analytics

These findings show that leading people analytics teams are adopting an outside-in view, prioritising the needs of the business first and foremost, as opposed to an inside-out view, conducting HR analytics for HR’s sake alone.

Let’s look at the top three areas where people analytics adds value in more detail:

  1. Business & Strategy

  2. Employee experience and wellbeing

  3. Strategic workforce planning

Business & Strategy

In our research, we categorised the following elements under the number one value-driver of people analytics, ‘business and strategy’: sales effectiveness, business strategy execution, risk, compliance and crisis management and culture development.

Let’s look at a couple of these elements in more detail.

Organisational culture is defined as the underlying beliefs, assumptions, values and ways of interacting, that contribute to the unique social and psychological environment of an organisation. In essence company culture has everything to do with how employees, prospective employees, customers, and the public perceive your organisation and what makes it unique.  Culture has a lot to do with the sales, profits, recruiting efforts and employee morale, and is therefore critical to business success. For example, it is reported that 48% of employees will leave a job due to poor organisational culture and climate.

Click here to read the full article

Source
www-myhrfuture-com.cdn.ampproject.org
Show More

Related Articles

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button