As the world of work continues to undergo rapid change, organizational leaders must quickly and proactively adapt, especially when it comes to understanding and making informed decisions about their people. Connection, resiliency, and engagement are more than ever top of mind for companies as they manage evolving workforce conditions. With the right systems in place, people analytics and the democratization of data can transform the way leaders address these concerns.
The state of people analytics
Traditionally, people analytics focused on tasks like maintaining headcount and open roles, and often failed to add value beyond the administrative level. Today, HR leaders are being asked to collect and analyze more people information than ever—they need systems that are proactive and leverage reliable data to surface useful insights. Effective people analytics tools compile and transform all the details about an organization's people, teams, and work-related behavior into actionable insights that can significantly improve business outcomes and goals. When generated properly and delivered directly in the flow of work, this information can revolutionize the way leaders build teams, allocate pay resources, improve diversity and inclusion efforts, and so on.
When an organization’s leaders have access to accurate, relevant workforce intelligence, driving strategic outcomes like improved communication, engagement, and productivity can be done with more confidence and less manual labor.
Tech is gaining traction
Cutting edge HCM is widely seen as the next logical step in the push for strategic HR. In a recent study by PwC, 74% of respondents see an increase in HR tech spend in their future. Companies are increasingly interested in modernizing their HCM systems, looking to machine learning-assisted intelligent recruiting, personalized workforce experiences, and task automation to help improve the employee experience—and people analytics helps fuel all of these.
But while the interest is there, not all tools and tech are proving to be especially useful, as 82% of the same respondents reported a struggle in user adoption. With all of this potential, why do most companies fail to convert HR data into actionable results?
The answer is multi-pronged in nature, requiring vision, tools, and execution. In order to harness the potential of people analytics, leaders have to understand how people analytics can empower the whole organization.
Empowerment through analytics
When companies get people analytics right, it's not only beneficial to the HR team, but to the entire company. Democratized data—creating transparent HR data insights for the organization and making them accessible—can empower workers throughout the organization. For example, people analytics can help identify high performers and build requisitions for similar candidates, identify pay equity gaps, determine candidate organizational fit, spot workforce trends, and a host of other previously hidden insights.
Guided data analysis allows leaders in the organization to gain further understanding of their teams, their people’s potential, and can help them operate more efficiently by simplifying decision making through easily accessible data and recommendations.
HCM that complements leaders
If forward-thinking companies aspire to remain competitive in today's environment, adoption of HCM tools is crucial. First, organizations need tools that can break down information silos, instead of data residing in systems that don’t talk to each other. Centralized people analytics solutions that have evolved to deliver insights to the right people at the right time allow for answers when leaders need them, without logging into multiple systems.
Second, companies need customizable HCM that’s built on adaptable technology to then take action on meaningful people analytics insights. HCM designed to flex and meet evolving business needs provides leaders the opportunity to continuously adapt to shifting workplace environments. Understanding the work that happens on teams, providing teams the flexibility to use the tools that work best for them, and leveraging technology that allows for quick modification are just a few ways for an organization to unlock the potential of their people.
Next-level business outcomes
The constant transformation of today’s workplace means organizations need data more than ever: to understand their people; to make smart, informed decisions; and to create unique, data-informed employee experiences to help improve employee resiliency, engagement, and productivity. When customized, centralized, and paired with flexible, adaptable HCM, people analytics can be exceptionally powerful and help leaders make decisions that make a difference for the organization and for its people.
To learn more about people analytics & best practices please join our webinar: The Personalization Blueprint: Building Unique Experiences with HCM and visit FlowOfWork.adp.com.
