Transitioning from Traditional Data Management to Modern People Analytics
Do you remember the spreadsheet? Back in the day, it was HR’s essential tool. Attendance data, productivity data, and benefits enrollment were all kept on individual spreadsheets on someone’s computer to use for all HR decision-making. The data was collected manually and from people of various backgrounds and training. Additionally, these spreadsheets were susceptible to unwanted exposure or someone unintentionally corrupting the information, making it difficult to ensure data quality.
Not surprising then, that many HR leaders are wiping away the sweat from the stress caused by those practices. However, there is a much more effective method for modern data management of employee data: people analytics.
What Are the Benefits of Transitioning From Traditional Data Management to Modern People Analytics?
Because of people analytics, information that is collected can be more insightful due to the nature of it being collected and analyzed. By the quality of the information, people analytics data can deliver solutions at scale, HR practitioners and business leaders can make more decisive decisions that are more likely to bring beneficial change.
People analytics help ease the common pain points HR professionals face with their role and help businesses contend with the most difficult people management challenges companies face today. By transitioning to modern people analytics, people analytics can provide value to areas such as:
Diversity & Inclusion
Employee Experience/Employee Listening
Retention
Workforce Planning
Talent Acquisition
How people analytics provides value is that it helps scale HR projects. With modern people analytics leveraging advanced technologies like machine learning and artificial intelligence to turn HR data into actionable insights, organisations can advance their informed decisions about their people, talent management and improve their overall business performance.
Top 5 areas where people analytics adds business value, Source: (2022 Insight222 People Analytics Trends Report)
What Challenges Are Organisations Facing When Transitioning to a Modern People Analytics
Every change comes with its obstacles. Being first aware of the hurdles to overcome makes the transition much simpler without any surprises that could put the movement to a grinding halt.
Convincing Stakeholders of the Importance
As anyone has experienced, convincing others to make the change and follow through is one of the most significant barriers. People do not like change. To get them on board, it is essential to communicate the reasons and benefits people analytics would bring to the company. Explain the “why” and give examples of what the company could see after adopting the new human data management.
Understanding Data
There needs to be more confidence when using data. It is understandable, considering that the assumption is you must be a brilliant individual or a scientist to know what information to collect and how to interpret that data. It is far from the truth. Data analytics is a skill that is not only capable of learning but is readily available to master. Understanding what data to measure, how to measure it, and the key business challenges it can address are crucial. But before jumping deep into big data sets or looking for strategies to pull from predictive analytics, it is essential to to know what you're looking for and how to best go about gathering said data.
Data Governance
When transitioning to modern people data management, individuals can be concerned about how personal information will be collected and used. Some might even worry about repercussions from answers they give on surveys or personal information. With proper governance over the data, not only can employees be protected, but it can build their trust in supporting the people’s analytic efforts.
Getting the Right Technology
Not all people analytics software is right for the organization or within budget. Finding what technology will work best within the organisation can take time and effort. Companies will want to do their research and invest in the best user-friendly technology that they can.
What Can Companies Do to Make the Transition to People Analytics?
Leading companies are already making the transition. From our 2022 Insight222 People Analytics Trends report, we found seven characteristics (see figure below) that define these organisations as leading companies that are succeeding in their industry and giving back. Of those characteristics, making people analytics the basis for HR decision-making and building a data-driven culture was vital. How leading companies make the transition to utilizing modern data management is the focus on these key elements.
The seven characteristics of Leading Companies vs Non-Leading Companies, Source: (2022 Insight222 People Analytics Trends Report)
Investing
For an effective transition, there must be a commitment to the change, involving investing in stakeholders and prioritising the most important business topics. From there, there is enthusiasm to see the process through to the end, dedicating time and resources to see it happen.
Measuring
To ensure the transition to modern people analytics happens, companies need to monitor progress continually. They should measure the changes and their impact on the work and adjust as needed.
Scaling
Taking the first step can be the hardest, but to see real value with people analytic efforts, the momentum needs to continue. The first step needs to be followed by a second and third that drive the transition forward, meeting all the challenges companies face.
The transition from traditional data management to modern people analytics is a significant shift in how organisations collect, analyse, and use data to make informed HR decisions. That is why the sooner the transition is made, the sooner companies can reap the benefits from their efforts. With the success of these efforts it will be much easier to have a positive impact from scaling people analytics within your business.
How HR Can Help Make the Transition Smoother?
With the right skills, HR can be the champion of change. By utilising best practices and the right mindset, HR professionals can keep the transition on schedule.
Focusing on the Business
HR should be business-led to get the ball rolling. They want to start with proper stakeholder management and communication. To do this, they will want first to be well-versed in storytelling and painting pictures of success. Once they have the mindset to drive the business forward, they can begin paving the way for the transition to a data-driven culture.
Investing in New Tools and Techniques
The old saying, if you build it, they will come, does not apply to technology. People will only use it if it is straightforward and easy to manage. For researching the right tools and techniques that employees and teams would embrace, HR needs to be experience-led. This means they have a grasp on concepts like human-centric design, EX implementation, and digital literacy. HR must first understand the user’s challenges with the tech and AI to find and implement the best software for the company.
Building a Data-Driven Culture Within HR.
Probably the most important step to take for HR is to create a company culture that embraces data and uses it for all HR decision-making. With the right approach, companies can continue with business as usual and stay caught up with their competitors. To help with this, HR should be data-driven themselves and build on their data skills, including analytical thinking, data analysis (advanced analytics), and workforce planning. With confidence, HR can advise best practices and value-based decisions that help make the shift to modern people analytics much easier and more effective.
Our myHRfuture course is essential for HR professionals as it provides a solid foundation in the critical field of people analytics. By taking this course, HR professionals will learn how to use data to make informed decisions that drive real business value and improve the employee experience. They will also gain valuable insights into the skills needed to succeed in people analytics and how to get stakeholder buy-in.