Transforming HR Effectiveness: Synergising People Analytics with CHRO Priorities
The role of the CHRO has evolved exponentially over the years. From a transactional service-driven function leader, the CHRO is now seen as a strategic partner who plays a pivotal role in aligning people-related strategies with the organisation's overall business outcomes and goals.
This shift was particularly prevalent during the pandemic, as HR was forced to rapidly respond and adapt to unprecedented changes in how people worked, being centrefold in navigating the complexities of remote work, employee well-being, and the need for agile workforce solutions. You could even say it introduced the start of the employee experience era, where understanding and meeting the needs of employee satisfaction had become a top priority.
As a result, there has been a considerable transition in focus towards a people-first approach to business operations. So much so the title Chief People Officer has become increasingly commonplace - a testament to this new role that the CHRO is playing.
The Evolving Role of People Analytics in Business and HR Strategy
But the pandemic did not only elicit a focus on people-centred strategies; it also highlighted the mandatory need for data-driven insights and analytics, moving people analytics into what Insight222 Director and host of the Digital HR Leaders podcast, David Green coins as the Age of Value:
"a shift in emphasis for the field where people analytics is not just about HR, but people analytics is about the business".
It is about solving the critical HR hurdles and the broader business challenges organisations face today. This raises the question regarding the reporting lines of people analytics teams - should they be sitting within the enterprise analytics function for enterprise-wide visibility and impact or within HR departments for better ownership and alignment with HR's strategic agenda?
How CHROs Utilize Advanced People Analytics for HR Excellence
Regardless of where they are positioned, CHROs need the right insights and analytics to drive people strategies that overcome these business challenges. And this goes beyond the standard reporting on diversity and attrition metrics. By leveraging expert analytics skills and tools such as using predictive models, workforce insights, organisational network analysis (ONA) and sentiment analysis, CHROs can gain a deeper understanding of their workforce and what drives them - further aiding impactful business decision-making.
In fact, our Insight222 2022 'Impacting Business Value: Leading Companies in People Analytics' report found that people analytics added the most value in five key areas: diversity and inclusion, employee experience, retention, workforce planning, and talent acquisition.
Top five areas where people analytics adds business value. (Source: 'Impacting Business Value: Leading Companies in People Analytics' report)
Leading Companies in people analytics understand the business value of this, which is why the CHROs in these organisations ensure that data analytics is a core element in HR strategy development.
The Power of People Analytics in Solving HR Challenges
The power of HR analytics lies in its ability to analyse relevant data, uncover hidden patterns, predict future trends, and identify areas for improvement. Take, for example, one of the top HR challenges of attrition. As David Green highlights in his discussion on the McKinsey & Company podcast, the key role of people analytics is:
"to separate the signal from the noise. It can help organisations understand if they actually have a problem with attrition and, if so, where, what job families, what locations? Is it people that have been tenured for a certain time? Is it certain groups?"
But it also takes the guesswork of how you can enhance the employee experience, especially regarding remote workforce agility, employee well-being, employee engagement, or promoting diversity and inclusion.
With advanced, HR data analytics tools, organisations can now analyse data such as text and voice data and collaboration information to understand their workforce better. And with the power of predictive workforce insights, CHROs can better predict how the business needs to adapt and respond in a timely manner.
In essence, people analytics allows the CHRO to make informed decisions based on data-driven insights and increase their strategic and operational impact in the organisation. It provides profound, tangible evidence to inform people-related decisions and strategies - something that is invaluable to the CHRO.
Creating Strategic Alignment Between People Analytics and the CHRO
To create a successful alignment between people analytics and the CHRO, organisations need to ensure that the people analytics team is adequately integrated into HR. This means having both teams collaborate closely on initiatives such as workforce agility, employee experience strategy development, employee turnover and recruitment and retention strategies.
Rather than solely recruit data scientists who may not have the necessary HR expertise, consider hiring dedicated HR analytics professionals with a deep understanding of the organisation and its culture. You could also look to upskill existing HR team members with the necessary skills and knowledge to analyse people's data to ensure that insights align with organisational objectives and deliver tangible ROI.
When it comes down to it, successful implementation of people analytics requires strong leadership and collaboration between the CHRO and the HR analytics function. By understanding the data, insights, and analytical techniques available, CHROs can unlock the power of people analytics to inform their HR strategies and drive organisational success. But perhaps most importantly, it will help companies create better employee experiences.
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