The Growing Influence of People Analytics in Strategic Business Decisions
Developing relationships with C-suite and senior stakeholders is essential for people analytics teams to deliver on key business priorities. This is one of the key findings in Insight222's People Analytics Trends Report for 2023, Investing to Deliver Value: A New Model for People Analytics.
Over the last four years, strategic business topics have become defined by global people events. This has accelerated the need for chief human resources officers (CHROs) to have more insights at their fingertips to advise their C-suite colleagues and board of directors to make the right decisions about people.
In this blog, and drawing on four years of research and work by Insight222, I will explore:
What we mean by 'influence' in the context of people analytics
Some of the ways people analytics has grown in influence
How a people analytics leader can gain access to senior stakeholders
Why it is important that a people analytics leader has executive-level influence in organisations today.
What is the Meaning of Influence in the Context of People Analytics?
Influence is defined as "the power to make other people agree with your opinions or do what you want".
With this definition in mind, and focusing on the discipline of people analytics, the impact of people analytics can be advanced through the following factors:
How is People Analytics Growing in Influence?
To understand how people analytics has been growing in influence within global organisations, it is helpful to consider the relationship between the people analytics leader and key stakeholders.
The Relationship Between the People Analytics Leader and the CHRO
This year, 21% of the 271 companies who participated in our People Analytics Trends research have a people analytics leader who reports directly to the CHRO, compared with 13% of the 114 companies who participated in 2021.
A people analytics leader may report directly to the CHRO or 1 level down from the CHRO; however, what is most critical is the regularity of meetings between the people analytics leader and the CHRO. Our research in 2022 and 2023 finds that regular meetings (at least once a month) between the CHRO and the people analytics leader are essential in creating two opportunities:
Opening doors for access to other C-suite executives and senior business leaders – which, in turn, provides a higher likelihood of focusing people analytics on the most pressing and vital business topics and
Allowing the people analytics leader to represent the CHRO in essential meetings, especially ones that require analytical insights, such that the people analytics leader themselves is influencing personally on a one-to-one basis.
The Relationship Between the People Analytics Leader and Senior Stakeholders
The board of directors is of increasing importance to the people analytics function. Ever since the Securities and Exchange Commission (SEC) made human capital reporting a requirement and other reporting requirements legislation came into effect in various countries, such as gender pay gap reporting in the UK, the work of people analytics has been elevated to investors and, therefore, the board in new ways.
It is natural, then, to expect many people in analytics teams to work on topics the board requests. Our research found that in the last 12 months, 83% of the 271 companies who responded to our survey have been asked to do specific work for the board of directors, and 79% have prepared analyses included in regular updates to the board of directors.
Our research further confirms that working with C-suite executives and business leaders is also happening. Of the people analytics leaders in the companies surveyed, 58% have presented to the executive committee (C-suite or ExCo) in the last 12 months. This means that in these companies, the people analytics leader and their team have the ability to influence the senior executive team.
These relationships and conversations are important for value to be derived. Gaining insights from senior executives is an important part of ensuring the success of the people analytics function and in creating business impact.
How Can People Analytics Leaders Gain Access to Senior Stakeholders?
Isabel Naidoo speaking at the Insight222 Global Executive Retreat
At the Insight222 Global Executive Retreat 2023, Isabel Naidoo, Chief People Officer at Wise, provided strategies for people analytics leaders to effectively influence the C-suite. In this session, Isabel highlighted how inefficient the common practice of relying on second-hand knowledge is to know what's required. Instead, she urged people analytics leaders to start with what is within their sphere of control – to partner with the CHRO and HR business partners to engage with the heads of the business directly. Isabel's direct strategy for people analytics leaders is:
Request a seat at the table.
Listen to the business issues first-hand.
Ensure you tell the stories of your most impactful insights when you get there.
Why is It Important That a People Analytics Leader Has Executive-level Influence?
The business world is challenging chief executive officers (CEOs) like never before. Across the globe, companies have needed to respond rapidly to global people events, including the global pandemic, social justice movements, hybrid work and the "Great Resignation". The CEO and the CHRO need a much deeper understanding of their workforces than ever before – and in an evidence-based fashion. They turn to their people analytics leader for the insights needed to manage these topics.
With access to a vast amount of people data and expertise within the people analytics team in advanced analytical approaches, people analytics leaders have an opportunity to provide insights which can shape C-suite and board responses to some of the most complex challenges organisations are facing today.
Our People Analytics Trends research for 2023 finds that it is becoming more critical for CHROs to hire, develop and retain influential and expert executives in the people analytics leader role. As people's data and insights become more critical in the business environment, this will become a differentiator in how the CHRO will be able to influence the C-suite and the board of directors.
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.
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