New research from Deloitte’s Bersin pinpoints seven factors that set apart the most effective people analytics initiatives – and which can have a major impact on organisational success.
The High-impact people analytics: the 2017 maturity model report finds a strong link between people analytics maturity and improved organisational profits. It defines people analytics as “the use of employee data to help optimise business and management decisions” and people analytics maturity as “using people analytics in a sophisticated and insightful way”.
Seven steps to people analytics success
Drawing on a survey of more than 900 talent and business leaders at around 700 organisations in north and south America, the report identifies seven essential characteristics of organisations that have achieved advanced levels of people analytics maturity. Such organisations have:
- high standards of data accuracy, security and consistency;
- multiple listening channels (including HR systems, communications portals and other employee data sources) to gain insight on talent issues;
- strong data-literacy skills in HR;
- a multidisciplinary people analytics team with connections across the organisation;
- the ability to translate people analytics insights into managerial actions;
- a people analytics team that partners with analytics teams in IT, finance, operations and other internal functions; and
- data-driven decision-making embedded in the organisational culture.
Yet only a small minority (2%) of organisations taking part in the Deloitte’s Bersin research have achieved the highest levels of people analytics maturity. The majority are still working to build their organisation’s people analytics capability.
Basic data literacy among HR professionals emerges as a particular “bottleneck” preventing people analytics success. Many organisations need to focus on developing “elementary statistics and data analysis” skills in their HR department, the report suggests.
People analytics: a must-have for HR and for organisations
People analytics is an idea whose time has come, according to separate Deloitte’s Bersin research on HR technology disruptions for 2018.
“Sound people analytics is now a must-have” for HR professionals and for organisations, it says. The importance of people analytics will continue to grow as the HR profession and HR technology evolve. It says:
“The next big phase we’re about to see is the true industrialization of people analytics. Companies are now taking this domain seriously and putting in place data quality programs, analytics fluency learning, dashboards, and data-driven decision-making processes. In other words, people analytics is now a must-have discipline within HR and business.”
HR professionals themselves are also keen to maximise their people analytics skills, according to XpertHR benchmarking research. The XpertHR HR careers survey finds that only one-quarter (23.2%) of UK HR professionals say that workforce analytics skills are required for their current role. But looking ahead, more than one-third (37.5%) of respondents want to develop workforce analytics skills in future.
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Contact us to learn more about how XpertHR can help you take the next step on your journey to evidence-based decision-making.