Since the seminal article, Competing on Talent Analytics, published in 2010 and written by Jeremy Shapiro, Tom Davenport and Jeannie Harris was published, the impact of data and analytics on HR has been much faster than expected. Speaking to David Green on the podcast in 2020, ten years on from the article’s publication, Jeremy Shapiro said:

“If you were to rewrite it today, the entire body of knowledge of machine learning, of process automation, […] the acceleration inside of HR that has created, that is the missing story. That is the story of where analytics is, I think, becoming more and more of a necessity is because not one of us can keep up with the pace of change. So that acceleration is to me, something that was really, really unexpected.”

Fast forward to today and the importance of data and analytics for the Human Resources function has been widely accepted. An impressive 90% of companies surveyed in our recent research, Accelerating People Analytics: A Data Driven Culture for HR, state that their CHRO has made it clear that data and analytics are an essential part of HR strategy.

In this blog, we’re going to explore the following questions:

• What does a data driven culture for HR mean today?

• How many organisations have this culture?

• How much responsibility do people analytics leaders feel towards developing a data driven culture for HR?

• What can people analytics leaders do to develop a data driven culture for HR?

For more on a data driven culture in HR and the role of the people analytics function, download our latest research now.

What does a data driven culture for HR mean today?

When we asked over 100 people analytics leaders how they would define a data driven culture for HR, we had a myriad of responses ranging from “making data readily available and having the skills to interpret it to make better decisions” to “using people data to unlock value.”

Upon analysis, it was determined that “using data to make decisions” was the most common response. However, there were other key factors that surfaced from our investigation. According to our research, there are three attributes of a data driven culture that all HR functions should adopt:

1. Using data to make decisions: HR professionals and People Managers are skilled in using an evidence- based approach in their decision-making

2. Making data accessible to managers and HR professionals: Data is democratised throughout the organisation

3. Delivering business value from data: People insights inform strategy, allow action to be taken and outcomes are measured

How many organisations have this culture?

Examples of companies who are truly data driven with regards to people data and the workforce are still rare. Our survey results reinforce this, with less than half of companies surveyed (42%) reporting that they have a data driven culture for people data and analytics, despite understanding the value that it can bring to the organisation.

The commitment of and support from the CHRO, which, as aforementioned, 90% of organisations have, is often considered a prerequisite for establishing this culture. By this logic, companies that do not have a data driven culture but do have their CHROs support are sitting on fertile ground to build that culture today.

How much responsibility do people analytics leaders feel towards developing a data driven culture for HR?

Our research shows a significant relationship between a data driven culture for HR and the strength of the people analytics team. We evaluate this based on the ratio of People Analytics Team to Total Employee Headcount, which is a useful indicator of the investment in people analytics.

Companies who report having a data driven culture have a greater ratio compared to companies who do not have a data driven culture. Putting this into context, in a company of 100,000 employees, the people analytics team would have 37 professionals if a data driven culture for HR was established, compared to 23 professionals if this culture was not established.

Due, in part, to this strong link between a data driven culture for HR and the people analytics function, most people analytics leaders (60%) stated that they feel they have the primary task of creating a culture where every HR professional is empowered to use people data to make decisions. 

Despite not necessarily being part of the job description, developing a data driven culture is a key responsibility for the people analytics function. As Steve Scott, Managing Director, Global Head, Workforce Management and Analytics at Standard Chartered Bank, said:

“Creating a data driven culture is absolutely one of my key responsibilities that I am passionate about. I truly believe it’s critical for my team to be able to deliver value to the organisation. Whether it’s actually in the job description of a people analytics leader or not doesn’t really matter to me. I know that I have to take that responsibility and work with others across HR to help create a data driven culture. Only once that’s established can a people analytics function deliver value at scale.”

People analytics leaders need to grasp this responsibility to execute on the CHROs strategic imperative, gain investment for their team, and deliver business value with their work.

What can people analytics leaders do to develop a data driven culture for HR?

To establish a data driven culture for HR, people analytics leaders need to focus on three elements, according to our research:

• Invest in the people analytics function to fuel growth

• Embed data driven decision making across HRBPs and managers, through productisation and upskilling

• Focus on demonstrating business value

Download the full report now to access the Model of a Data Driven Culture for HR and the full set of recommendations, so that you can inculcate this culture in your organisation and deliver more business value with people analytics.

ABOUT THE AUTHOR

Caroline Styr is the Research Director at Insight222. She is a thought-leader, researcher and writer on people analytics and the future of HR. Prior to joining Insight222, she worked at the Center for the Future of Work where she was an advisor and in-demand speaker on topics related to the future of work. She has also held roles in digital services and transformation consulting at Cognizant.

Contact Caroline at caroline.styr@insight222.com

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