In 2020 the human aspect of business was magnified by the global pandemic, and since then numerous topics of a “people nature” have topped business agendas – social justice and inclusion, well-being, hybrid working, hyperinflation and geo-political events – making people topics high profile for C-suite executives and boards of directors across the globe.  

Over the last five years, therefore, it is no surprise that analysing people data within 

organisations has been accelerated and magnified. Chief human resources officers (CHROs) need insights at their fingertips to advise their C-suite colleagues and board of directors (boards) to make the right decisions about people. As a result, the relationship between the CHRO and the people analytics leader has increased in importance.  

Insight222’s People Analytics Trends Report 2024

Insight222’s People Analytics Trends study for 2024 “Harnessing Data for Growth” finds that people analytics as a field continues to grow. This is the fifth year of our annual people analytics trends research and our largest study to date.  This year we studied almost 350 organisations, up 28% since 2023, from 36 different countries (2023: 27 countries). 

This year, our research also went deeper on the impact and adoption of analytics. We researched the application of artificial intelligence (AI) in HR, the democratisation of 

people analytics, how teams are creating impact with analytics across the workforce, and how they are measuring value. 

For 2024, our key findings are: 

1. Growth: People analytics continues to grow as a function across companies worldwide.  

2.  Intelligent Automation: AI is here! Companies are adapting processes, guidelines and activities to integrate AI across people practices, using analytics at its core. 

3. Adoption: The adoption of analytics across the workforce, through democratisation and personalisation, is “getting going”. However, there is still a lot to do before people analytics is embedded organisation-wide. 

4.  Value: Few companies are measuring the value of people analytics, especially in terms of improving business performance. And there is a long way to go before business executives realise the full value of their investment in people analytics. 

Growth 

People analytics is growing as a discipline. In our research over the last five years, the ratio of people analytics has improved from 1:4000 to 1:2500 (see Figure 2). This means that for every 2500 people employed in our surveyed companies in 2024, there is one people analytics professional. 

Putting that into context, for a typical 100,000-person company, there are 40 people analytics professionals. 

Overall, 90% of companies surveyed confirmed that their people analytics team grew or stayed the same in size over the last 12 months. We also identified that 68% of the companies in our research have increased investment in analytics dashboard technology, or other specialist people analytics technology, over the last 12 months. 

Across company size, tenure of the people analytics team and industry, the size of the people analytics team differs. Our People Analytics Trends study for 2024 explores this in detail, providing benchmarks for the investment in people analytics resources 

Download the Insight222 People Analytics Trends Report for 2024 to discover the size of people analytics teams globally, and in the financial services, technology, pharmaceutical and healthcare, retail and FMCG, food and beverage, media and telecommunications, engineering and chemicals and materials sectors specifically. 

Intelligent Automation 

Following the breakthrough of generative AI (gen AI) in late 2022 with the launch of ChatGPT, the adoption of AI is accelerating. All corporate functions are looking at how they can best leverage the opportunities presented by AI – and HR is no exception. 

For the first time, Insight222 has undertaken a more detailed review of the “state of play” of AI in HR. This means that across the 348 companies surveyed for this research, we have insights into the journey of AI in HR, especially as it relates to people analytics.  

While much has been published about the opportunities and benefits of AI technologies, it is useful to understand where companies are today on their journey, the specific use cases for leveraging AI and gen AI in HR, and the prerequisites for maximising the opportunities that AI presents. 

Our research finds that for 68% of companies, AI is now a strategic priority for HR. We also found that that just under two-thirds (62%) of companies are in their first year of their AI journey in HR (see Figure 3).

While this may appear to be a notable proportion, it also coincides with the increased focus across the business world on leveraging the potential of AI and considering the return on investment following the release of publicly available GenAI tools.  

While there is much excitement about the opportunities that AI presents, there are also important prerequisites to really maximise the positive impacts it can have for HR. These include: 

1. Acquiring key roles and skills in the people analytics team; 

2. Investing in data foundations; 

3. Instilling strong governance and ethical management of AI; 

4. Establishing an AI council. 

We find that these prerequisites are becoming barriers for those that are “jumping in” too soon. We therefore explore each of these four items in more detail in the People Analytics Trends study for 2024. 

Adoption 

One of the most critical findings from this year’s research is the need for people analytics, as a profession, to improve the adoption and consumption of people data and insights by HR users, managers and employees. 

Data democratisation – the process of making data and insights accessible to a much wider group of people across an organisation who will benefit from its usage – has been a topic of major importance in people analytics for a while. 

With advancements in technology, more investment in people analytics and increased focus by companies on building a data-driven culture in HR, the democratisation of people data and insights through tools and dashboards has increased.  

However, our research also reveals that there is still much progress to be made when it comes to the adoption of people analytics tools and products by their intended users. While 71% of companies report sharing data with managers and executives using analytics dashboards, only 47% report having a high-level of adoption amongst HR practitioners, and an even lower 28% say they have a high level of adoption amongst leadership outside of HR (see Figure 4). 

These findings serve as a strong call to action for people analytics leaders to start shifting focus to the adoption of scalable products – it is about embedding those insights into the way that the business runs their work. 

Value 

Another key message for people analytics leaders and their teams from this year’s research is: Measure the value of people analytics. 

If one action, above all others, could change the trajectory of people analytics, it is this: involve finance colleagues to measure and track the impact of people analytics. To secure more investment for the future, nothing is more effective than proving return on investment. In turn, value will be created for the organisation and will improve the workplace experience for employees simultaneously. 

Not all outcomes from people analytics work have to be financial, but they do need to be measurable for the function to evidence its impact. 

There is a strong desire for measuring and evidencing the value of people analytics. Of the 348 organisations in our research, 93% of them believe it is important to measure and evidence the value of people analytics in order for the people analytics function to have impact. On the other hand, only 37% consistently measure impact. (see Figure 5). 

Leading Companies Model 

In 2024 we have continued to use our Leading Companies Model and the concept of “ABCD Teams” to understand what the “best of the best” are doing. In our 2023 research, we identified key characteristics that indicate what companies should invest in and how value can be created. This creates our Leading Companies Model (see Figure 6). 

By taking the Leading Companies Diagnostic, every people analytics function, in any organisation, globally, can diagnose themselves against the eight characteristics to understand their current state, and what characteristics are the most important to develop to create more impact. 

In our research this year, we identified that only 10% of all companies that completed our research are defined as “A” Teams. What we notice from “A” Teams is that people analytics is embedded in the people strategy. We also identify that these teams regularly and dynamically prioritise their work according to the needs of the C-suite and the business agenda. The People Analytics Trends study for 2024 explores what makes the best companies thrive in people analytics by dissecting what “A” Teams do. 

Harnessing the Power of People Analytics 

In conclusion, after five years of publishing trends in the people analytics industry, it is clear that people analytics is a sought-after discipline of activities and outputs. But, far too often, value from people analytics is not delivered at scale. 

The answer lies in the democratisation of data, personalising and creating the adoption of solutions by employees and managers, focusing efforts on the most important business priorities and measuring financial value. If these are done, at scale, across organisations worldwide, the future is bright for people analytics. 

ABOUT THE AUTHORS

Jonathan Ferrar - CEO, Insight222

Jonathan is a globally recognised business advisor, speaker and author in HR strategy and people analytics. Jonathan has worked in corporate business with extensive executive leadership and board advisory experience for almost 15 years with companies like Andersen Consulting (now Accenture) and IBM. He is co-author of Excellence in People Analytics (Kogan Page, July 2021) and The Power of People (Pearson, May 2017). He is a vice chair of the board of the Chartered Institute of Personnel and Development.

Naomi Verghese - Senior Director, Research & Events, Insight222

Naomi has spent over 15 years’ 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.

Madhura Chakrabarti - Senior Director, Products and Services, Insight222

Madhura joined Insight222 in 2024. She has held various practitioner and consulting roles throughout her career and prior to joining Insight222, she was the Global Head of People Insights and Analytics at Syngenta based in Basel, Switzerland. Other previous companies include Deloitte, Dell Technologies, and Ford Motor Company. Madhura is an active member of the Society for Industrial Organizational Psychology (SIOP) and is an accomplished public speaker. Her work has been published in Journal of Business and Psychology, and Handbook of Positive Psychology and Work.

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