The influence of digital, data and information-driven insight is rapidly changing the way business decisions are made. The actual test is in knowing how to make use of the massive amount of people data available to generate relevant insights that drive better business performance. Also, there is quiet a shift taking place in human resource and talent development departments globally. Needing substantial insights into the workforce, organizations are starting to notice the excessive, unbroached possibilities with regards to their people. People analytics is what it is called and it is changing the way companies design ideas – from drawing and developing talent to engaging employees and retaining talent.
By using people analytics, organizations can eliminate the confusion and get a clear picture of what is working and what isn’t. People analytics is all about using data dominant path to keep a check on people practices, programs and processes. Analytical techniques extending from reposting to metrics to predictive analytics to experimental research can help organizations reveal new insights, find solutions to people problems and direct companies’ HR actions.
People analytics, specifically in HR is undergoing a tremulous change. Driven by the comprehensive acceptance of cloud HR systems, organizations are investing in programs to use data for all facets of workforce planning, talent management, and operational improvement. People analytics, a concept that began as a small technical group that studied engagement and retention, has now become a mainstream subject. Companies are restructuring their technical analytics groups to design digitally abled enterprise analytics solutions. These new solutions, whether developed internally or ingrained in new digital solutions, are allowing companies to carry out real-time analytics in the business process. This allows for the better realization of challenges and actionable insights for the business.
The function of people analytics, which involves using digital tools and data to measure, report, and understand employee performance, is going through a major shift. After years of investing in cloud HR platforms and specialist teams, CHROs and business leaders are not getting the results they want. No longer is analytics about finding interesting information and flagging it for managers. It is now becoming a business function focused on using data to understand every part of a business operation, and embedding analytics into real-time apps and the way we work. In the context of mobile maps, it is time to “recalculate the route.”
For companies that have been investing in this area for years, it is now easier to get these answers than ever before. Predictive analytics tools from many HR technology vendors have arrived, making it possible to analyze data regarding recruitment, performance, employee mobility, and other factors. Executives now have access to a seemingly endless combination of metrics to help them understand, at a far deeper level, what drives results.
Moving beyond the analysis of employee engagement and retention, analytics and AI have come together, giving companies a much more detailed view of management and operational issues to improve operational performance.
The big trend in 2018 is that these new solutions are business driven, not internally HR focused, challenging HR departments to move beyond their own internal view of data and leveraging people data for a broad range of business problems.
Imagining New Uses for Data to Drive Business Results
Traditional HR organizations set up an analytics team as a separate group of specialists. Today, companies are rethinking HR as an “intelligent platform” and embedding analytics into their entire workforce management process and operations. A large telecommunications company in India analyses the time to productivity of every new hire across the company, giving line managers and corporate leaders a dashboard to note when people are behind in their onboarding process. Uber’s operations team collects data on how quickly drivers can pick up food in response to requests to improve customer service and enhance productivity. Several companies have now used organizational network analysis (ONA) to analyze the behavior of high-performing teams to understand how work is done, helping teams become smarter.
In the talent acquisition trend, analytics is now becoming a critical part of high-performance hiring. Companies use interview data, careful parsing of job posting language, and candidate screening data to reduce unconscious bias in recruiting. New tools that look at social and local hiring data help companies identify people who are “likely to look for new jobs” much before they are even approached by competitors. The use of external data for people analytics has grown significantly, as more than 50 percent of companies now actively use social network and external data to understand attrition, retention, and other performance metrics
Over the next few years, the number of data sources will continue to rise, leading to a fusion of external and internal data in predicting employee behavior. At leading companies, analytics will become even more interdisciplinary, along the lines of ONA. Eventually, people analytics will be fully integrated into systems and always in the background, rather than a separate source of information.
Going forward, analytics technology will have the capability to deliver increasingly personalized recommendations. Due to the sensitive nature of some people analytics programs, organizations will likely need to become far more serious about data confidentiality, local regulation regarding the use of employee data, and the risk of public disclosure of private information on the organization and its employees.