Using people analytics to prove the value of HR

How can HR professionals use people analytics to prove the value of HR to the organisation? This question was debated in a podcast panel discussion at the Tucana People Analytics World conference in London earlier this year.

“HR is viewed as a cost centre, not an asset centre in the organisation.” This is according to podcast host Max Blumberg. He argues that simply aggregating and reporting on data is not enough to achieve a successful people analytics initiative. “The danger of quantifying HR is that that quantity is often a cost and not a value”, he continues.

HR must therefore use data to provide compelling evidence that it is an invaluable asset to the organisation, Blumberg says. “That’s a direction that HR analytics needs to help in, to say that we’re not just adding up costs when we do analytics, we are contributing value.”

Using human capital to prove the value of HR

The good news for HR is that – in many organisations – this value is already there in abundance, argues Ekkehard Ernst of the International Labor Organisation. “Human capital is an asset”, he says. “It’s just not on your balance sheet, you don’t have it in your accounting system. But in principle it’s an asset you have to take care of.” People analytics provides HR with the tools to do this.

Effective use of people analytics can also help the organisation retain these assets, Ernst says. “If you don’t take care of it, people leave. This is why HR analytics is so important.”

Click here to listen to the podcast discussion in full.