Matt Stephens, author of Revolution in a Heartbeat, explains what People Analytics is and how it could revolutionise your company’s HR strategy:
You may have heard that People Analytics is the hot topic in HR. Although in my experience most companies are still trying to understand what this emerging trend means.
I believe HR remains the lowest ranked user of metrics and analytics in the corporate world. Although I’m pleased to report the trend is now changing, with Josh Bersin writing in Forbes about the arrival of “the geeks” in HR. The potential here is enormous.
Apparently more than $4 trillion is spent on payroll alone around the world, making HR and big data very big business.
But the truth is People Analytics in HR is right at the beginning. CIPD CEO Peter Cheese identified People Analytics and HR data as key themes for HR, stating that the focus must be on “analytics, better numbers and being able to measure effectively what is really happening in organisations around human capital.”
And how can he be wrong? Which employers wouldn’t want help understanding a broad range of issues related to employees? For example, how valuable would the following be to understand:
- Data relating to engagement – are your employees recommending you as a great place to work? Are they thinking about looking for a job at another company?
- Data relating to leadership – are your employees motivated by the way your leaders communicate the company vision or purpose? Do your people have confidence in their leaders?
- Data relating to role – can your employees see how their work contributes to the goals of the company? Do they know what they need to do to be successful in their role?
How valuable would knowing this information on a regular basis and the reasons why be to your company?
And without the right questions, data is worthless. Analytics must be understood in order to create a positive impact on a company and its people, but when managed effectively the benefits are significant. A 2013 study carried out by the Harvard Business Review suggests that businesses managing their workforce using People Analytics most effectively improved company profit by up to 65%.
HR cannot afford to not embrace People Analytics – it’s the future!
Revolution in a Heartbeat is available to buy here.
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