Needless to say, the changing dynamics of the modern workplace have significantly transformed our approach to employee listening. Hybrid and remote working arrangements have become the norm, employee expectations continue to evolve, and technological advancements continue to augment jobs and processes. All these factors have necessitated a focus on a more attentive and responsive listening culture.

When you pair this with fluctuating economic climates, employers are starting to recognise that understanding their workforce's needs is no longer optional but essential for fostering a resilient and engaged team.

The Evolution of Employee Listening

While practical, traditional methods, such as bi-annual surveys, often only provide a limited snapshot of employee sentiment. They provide insights into employee perceptions at specific points in time. But with the rapid pace of change in today's workplace, waiting six months or a year to gather this information is no longer effective. A lot can change in that time frame, and by the time the data is analysed, it may no longer accurately reflect employees' thoughts and feelings.

As such, forward-thinking organisations are now turning to more agile and continuous listening methods that enable them to capture real-time feedback over the whole period of the employee lifecycle. This includes regular pulse surveys, one-on-one meetings, focus groups and even natural language processing tools to gather insights from employee conversations.

Organisations want to empower their managers with the insights to make data-driven decisions and act quickly to improve employee engagement, well-being, and productivity - before it is too late. And they can only achieve that by establishing continuous listening strategies complimented by people analytics.

Consider McKinsey & Co's approach. Each week, McKinsey's leaders send out a simple yet powerful survey consisting of just two or three questions to employees across the organisation. The results are then tracked and analysed in real-time, allowing managers to address any issues or concerns as they arise rather than waiting for the next annual survey.

Some organisations even integrate artificial intelligence (AI) into their employee listening processes to help personalise surveys. One notable example is Genpact, which uses machine learning algorithms to adjust the survey questions based on previous survey responses and stages of the employee lifecycle.

Even using passive data, such as collaboration data, matched with survey data can provide more significant insights into workplace dynamics. Using this data with active data can help understand and determine whether employees are disengaging because of heavy workloads, ineffective communication or a lack of recognition. It provides an additional avenue for leaders to gain a deeper understanding of employee sentiment and take targeted action to address key issues.

Because of these emerging trends and the evolution towards more advanced data-gathering methods, people analytics has become a valuable tool for employee listening, so much so that our Insight222 research conducted over the last four years has consistently shown that employee listening is one of the areas where people analytics teams add the most value to organisations. It comes as no surprise that the percentage of companies identifying employee listening as a critical area of value within people analytics has steadily increased from 2020 to 2023, reflecting the growing recognition of its importance.

The Strategic Value of Employee Listening in People Analytics

At its core, people analytics aims to provide actionable insights that inform HR strategies, personalise employee experiences, and strengthen the employer value proposition. When it comes to understanding employee sentiment, people analytics offers a level of depth and context that traditional methods cannot match.

Let's put this into perspective: say you received low engagement scores in your recent bi-annual survey. While this might indicate a problem, it does not provide specific guidance on how to address the issue. Employees may be working towards tight deadlines, experiencing fatigue or feeling disconnected from colleagues. But one survey wont necessarily identify the root cause of these issues.

Sophisticated people analytics functions go beyond merely identifying problems—they look to uncover the underlying issues that may be driving them. McKinsey's continuous listening approach during the COVID-19 pandemic serves as a prime example of this strategy in action.

By integrating survey data with existing employee information, McKinsey's people analytics team was able to identify key concerns among employees, such as financial and childcare challenges, as well as the impact of remote work on mental health and productivity. These insights allowed McKinsey's leaders to tailor their interventions, addressing the most pressing issues for different employee groups while maintaining privacy and confidentiality.

McKinsey's successful implementation of these methods is a testament to the importance of dedicated people analytics teams. These teams, consisting of data scientists and engineers, proficiently amalgamate various data sets swiftly and cohesively. With this expertise on their team, they can leverage advanced analytics techniques, including natural language processing, to extract valuable insights from integrated and unstructured data sources.

Essential to this team are also translators who collaborate closely with McKinsey leaders to formulate pulse survey questions, analyse the resulting data, and offer insightful recommendations. Translators help bridge the gap between HR and leadership teams and people analytics experts, ensuring that data is effectively translated into meaningful business insights, allowing leaders to make more informed decisions and take targeted action based on employee feedback.

Building a High-Functioning People Analytics Model

However, the key takeaway is that the people analytics model McKinsey has created is one that other organisations can learn from and emulate within their own teams - reflecting the five core capabilities of a thriving People Analytics Ecosystem.

For those unfamiliar, Insight222 research found that a successful People Analytics Ecosystem consists of the following core capabilities: Consulting, Data Science and Research, Employee Listening, Analytics at Scale, and Adoption. Therefore, understanding and investing in these capabilities is essential if organisations are to build a high-functioning people analytics function that can drive real value for organisations.

With these capabilities, gaining buy-in from leaders and stakeholders becomes easier, as they are more likely to understand the value that people analytics can bring to their organisation no matter what size of the company. Take, for instance, Chetwood Financial, which is a relatively small organisation of around 300 employees compared to McKinsey, which is a large global enterprise organisation. Despite their size difference, both companies have successfully implemented people analytics and continuously use employee listening to drive strategic decision-making.

Under the leadership of People Director Louise Millar, Chetwood implemented a data-driven people strategy that became crucial during the acquisition of Yobota in 2022. By combining qualitative and quantitative data, Chetwood aligned the cultures of the two organisations and built trust among employees by acting on their feedback​. The insights they gleaned were used to influence senior leadership team meetings, inform the C-Suite, and, as such, gain more trust as a function in driving business strategy.  

The bottom line is that the link between employee listening and people analytics has proven to be invaluable for organisations in making informed decisions and driving positive employee experiences. By prioritising employee listening as a critical capability within people analytics, organisations can not only gain a deeper understanding of their workforce but also build trust and drive meaningful change that benefits both employees and the business as a whole. So, it's clear that investing in employee listening is a strategic move that can reap significant benefits for organisations in the long run.  

Download our Insight222 Research and Discover the Five Trends Shaping People Analytics!

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People analytics is moving at an accelerated pace, understanding the latest trends is crucial for staying ahead. Our latest Insight222 report highlights the key trends that are impacting people analytics.

Understanding these trends is vital for organisations aiming to leverage people analytics for strategic advantage. To explore these trends in detail and learn how your organisation can harness their power, download the full Insight222 report “Building the People Analytics Ecosystem: Operating Model v2.0” for FREE today!