Eight Characteristics that Empower Leading Companies in People Analytics
What sets a company apart as a leader in the world of People Analytics? Is there a set of characteristics that successful organisations possess, enabling them to consistently deliver more business value? These are the questions that we sought to answer in our Insight222 People Analytics Trends 2022 report ‘Impacting Business Value: Leading Companies in People Analytics'. In that report, we identified seven key characteristics that differentiate Leading Companies from others in the field. However, this year, we have delved even deeper into our research and discovered an additional characteristic that stands out among the rest: Ethics.
Figure 3. The seven characteristics of Leading Companies in People Analytics. (Source: Insight222 People Analytics Trends 2022)
What makes a Leading Company in People Analytics?
Before we dive into the specifics, let's revisit what makes an organisation a Leading Company in People Analytics.
For leading companies, data-driven analytics is not just an afterthought or a buzzword; it is ingrained in their DNA. CHROs in these companies understand the importance of fostering a culture of data-driven decision-making within their HR department. These CHROs clearly set expectations that using data is essential to their strategy. Then, they actively enable HR business partners (HRBPs) to embrace data-driven approaches, providing them with the tools and knowledge needed to leverage data effectively.
To do this, the People Analytics Leader prioritises and leads data literacy efforts to upskill the organisation in using data as part of their daily job. All these efforts yield high levels of people analytics product adoption, which fuel data-driven decision-making processes. But Leading Companies don’t stop with product implementation and upskilling - they quantify the impact of them on business outcomes.
In striving for excellence, they take calculated and deliberate steps to scale their people analytics products. Ultimately, their focus is on driving business value, and all their strategies and efforts align towards this overarching goal.
Eight Characteristics of Leading Companies in People Analytics
In last years research, we highlighted three common practices that empower Leading Companies:
1. Investing in Stakeholders and Teams
Leading Companies recognise that their people analytics teams are pivotal to their success. They allocate substantial resources to bolster these teams, providing them with the skills, tools, and technologies necessary to thrive. By investing in their most valuable asset – their people – these organisations ensure that their analytics capabilities reach their full potential.
2. Measuring the Financial Impact
These organisations understand that the true worth of People Analytics lies not just in insights but in the measurable impact of people analytics. They go beyond implementing solutions; they assess the financial impact of their initiatives. By doing so, they ensure that every effort yields tangible and measurable results, contributing to the bottom line.
3. Scaling People Analytics
Leading Companies are not content with isolated successes; they aspire to make a difference throughout their entire organisation. They prioritise the wide deployment of people analytics across the enterprise, ensuring that every decision is informed by data. This commitment to scaling extends to data democratisation and the creation of a data-driven culture where insights and knowledge reach every corner of the organisation.
The Investment and Value Angle
In our current research the People Analytics Trends 2023 Report into what distinguishes Leading Companies from others delved deeper across two dimensions:
Eight Characteristics of Leading Companies. (Source: Insight222 People Analytics Trends Report 2023)
Investment: This dimension encapsulates the resources, both financial and non-financial, that Leading Companies allocate to People Analytics.
Value: This dimension represents the outcomes of these investments - how they contribute to business success and drive results.
This allowed us to identify an eighth, equally vital characteristic of Leading Companies: Ethics.
For a more in depth analysis on the eight characteristics of Leading Companies in People Analytics, please refer to the full report, here.
Ethics is a crucial characteristic encompassing three vital elements, each contributing to a culture of trust and integrity:
Strong Ethical Principles
Leading Companies collaborate closely with legal and data privacy experts to establish and maintain robust ethical standards for using people data. This not only safeguards sensitive data but also upholds the highest ethical standards in the industry.
Transparent Communication
Transparency is a cornerstone of Leading Companies' interactions with their employees. They believe in open and clear communication about how they utilise employee data. This fosters trust and ensures a fair exchange of value.
Ethics Oversight
Leading Companies institute an ethics council responsible for regularly reviewing the use of people data and the analytics projects that involve this data. This meticulous oversight ensures that data is used appropriately and that ethical standards are upheld at the highest level.
How Many Characteristics Does Your Organisation Display?
As we have mentioned, Leading Companies display all eight characteristics in their people analytics initiatives. However, for those aspiring to join the ranks of Leading Companies, it is worth examining details on which of the eight characteristics could be improved upon in order to begin driving more business value through People Analytics.
To facilitate this pivotal step, we have developed our Leading Companies Diagnostic tool that enables organisations to assess their current state and identify areas for improvement. This tool allows you to benchmark your current state against the industry, and pinpoint specific characteristics to focus on in your roadmap to creating more business value with People Analytics.
For an assessment of your organisation's people analytics state and to learn more about your organisation’s strengths and opportunities across the eight characteristics of Leading Companies in People Analytics, click the link below.
Using this tool is the first step towards a more data-driven and value-oriented approach to People Analytics. It's about recognising where you are, envisioning where you want to be, and charting the best course. As you work towards embodying more of these characteristics, you'll find your organisation better equipped to leverage People Analytics for maximum business impact.
Becoming a Leading Company in People Analytics
Investing in people analytics and reaping the business value from this investment is a journey that requires continuous effort and improvement. Leading Companies understand this and have incorporated these eight characteristics into their organisations to drive the most significant impact through data-driven analytics. By embracing these characteristics, your organisation can join the ranks of Leading Companies in People Analytics and take a step towards shaping the future of HR. Remember, it's not just about having all eight characteristics but understanding how they work together to create a powerful people analytics strategy that drives real business results.
ABOUT THE AUTHOR
Naomi is an experienced business professional with over 15 years’ experience, mainly in the financial services industry. She has undertaken roles as a HR business partner, HR chief of staff and as a commercial banker during her time at Barclays Bank. In the last six years Naomi has dedicated her career to people analytics, with particular expertise in consulting with business executives, HR leaders and other stakeholders. Naomi took a career break in the mid 2010s to travel around South America to learn Spanish and immerse herself in the Latin American culture. In her spare time, she loves to watch professional athletics, having once been a junior national athlete herself. She currently lives in the UK.