Change has never been happening this fast before, and will never be this slow again.
The biggest challenge for CEOs today is the pace of change. Currently, there are eight forces that are shaping the future of work namely, rapid technological advance, and raised intensity of competition, increased demand for skills, greater employee expectations, and exponential growth in data, shifting labor demographics, new work models, and changing regulatory environment.
According to a report by The People Analytics Program Insight222, when HR community was asked about the one skill in 2019 they want to develop to face these changing times, 89 percent of the respondents said they want to develop People Analytics team.
In fact, according to research by Accenture, over $3 Tn is the amount of revenue growth that exists in the public listed companies by using workforce data responsibly.
Why is analytics so popular among businesses and leaders today?
Besides many data driven outcomes like customer loyalty and growth, sales effectiveness, operational performance, data can be a powerful tool in accelerating candidate experience and customer loyalty.
During the session, Driving emerging technologies that enable disproportionate leaps in work efficiency,’ by David Green, MD at The People Analytics Program — Insight 222 shared this very interesting case study of Virgin Media. This UK based Telecommunication Company, lost 7,500 customers due to poor candidate experience. This cost the company with a loss of £4.4 Mn just because of poor candidate experience. To mitigate the challenge, the company invested in people analytics in an attempt to improve people related decision-making which further improved candidate experience. The enhancement in candidate experience created new customer revenue stream of £5.6 Mn.
Similarly, IBM saved about $300 Mn using data by recognizing early attrition.
While the companies have great success stories of how they created business impact by improving candidate experience through analytics, one of the prime challenges is to implementing analytics. How do you go about it? Green says, “Getting the analytics technology should never be the first step for your analytics strategy.”
The first step should to understand why you want to implement HR analytics in your organization. Know:
- How can I improve my IMPACT?
- How can I create VALUE?
- What should I FOCUS on?
Diving deep into the implementation strategy, have a look into the following three stages:
Why undertake the project?
- Frame Business Questions
- Build Hypothesis
How should the project be carried out?
- Gather Data
- Conduct Analysis
- Reveal insights
- Determine recommendations
What will result from the project?
- Get your point access
- Implement and evaluate
Green further shared nine dimensions of for achieving excellence in people analytics which can be categorized into three broad pillars:
- Value: This pillar includes Culture, Business Outcomes, and Workforce Experience
- Foundation: This pillar includes Governance, Methodology, and Stakeholder Management
- Resources: This last pillar includes Data, Technology, and Skills
If implemented responsibly, companies with advanced capabilities in people analytics have:
30% higher stock prices
79% higher returns on equity, and
56% higher profit margin
At last, it should be duly noted that HR analytics is not about HR but about stakeholder and business impact.