More companies upskill HR teams to handle people analytics rather than hire out

Dive Brief:

The number of organizations building people analytics teams is up to 68% from 15% in just three years, according to a report released by Thomsons Online Benefits. Thomsons said that with tech talent in short supply, 35% of respondents have upskilled their HR teams, while 21% chose to hire external specialists. About a third said they plan to upskill HR over the next 12 months, while 17% plan to hire externally.
Among the respondents that use analytics for business operations and performance, 64% use the data to improve employee engagement; 47% have improved productivity; and 59% have improved their benefits program by observing workers' interaction with their benefits platforms.
Although 33% of respondents self-identified as "an innovator" concerning HR tech, the report detected a disconnect between adopting people analytics and using the data effectively. Among the respondents that aren't or don't plan to use employee data to report on business operations, 31% cited data illiteracy in HR and poor-quality data as major barriers.

Dive Insight:

In an employee-driven labor market, people analytics are often sought to ensure the quality of the recruitment process. The latest tech allows companies to check in with candidates regularly and elevate their recruiting experience, prompting some experts to note that employers may need to respond to candidates no later than 72 hours after the first contact. Candidates expect an experience on par with what customers or clients would routinely receive.

Checking in on talent on a daily basis is no longer as daunting a feat as it once might have been, experts previously told HR Dive. New tech platforms are avenues for engaging and retaining employees, giving and receiving timely performance feedback, benchmarking compensation and benefits, tracking training and development, and analyzing how employees are recognized. "Technology and data are key to helping HR and management keep a closer eye on talent, all the way from recruitment through retirement," Kim Dawson, director of employee and customer experience at Kazoo, previously told HR Dive.

As more employers mine internal and external data to streamline the employee experience, the expertise gap may confound some companies. In response to this demand, however, the Society for Human Resource Management (SHRM) and the HR Certification Institute have both released credentials specifically on the topic of people analytics.

But employers must be aware of traps associated with analytics use, Erik van Vulpen, founder of the Academy to Innovate HR, previously wrote for HR Dive. He reminded HR professionals that people analytics should only help HR in an indirect way. "People analytics shouldn't primarily focus on optimizing HR," he said. "Just like HR activities are conducted to help the business achieve its goals, so too should people analytics primarily focus on achieving business goals."