If we look back at the history of the world of work, we will see that there have been significant changes in how organisations manage their workforce.

In the first few years of the 21st Century, which our Insight222 CEO, Jonathon Ferrarr, and Senior Director, David Green, in their book 'Excellence in People Analytics: How to Use Workforce Data to Create Business Value', coin as the Age of Discovery, pioneering organisations started to recognise the value of data, technology and analytics in understanding people and their impact on business performance.

From there, we have seen a rapid evolution in people analytics as a discipline. From a function that started as a primary data collection and reporting role, people analytics has transformed into a strategic business partner that uses data-driven insights to drive decision-making and influence organisational strategy.   

This has been largely fuelled by the need to understand and navigate the efficiency of the workforce during the complex challenges we faced during the COVID-19 pandemic, the rise in recognition of racial inequality, and fears of financial uncertainty. However, as we move forward, we have seen that several trends are shaping the future of work and, in fact, the activities, priorities, and impact of people analytics.

New Ways of Working

Although remote and hybrid work has been common for years—particularly in the tech and finance sectors—the COVID-19 pandemic solidified these arrangements as the new norm. Four years later, navigating these evolving work models still remains a challenge because there is no one-size-fits-all approach.

How you navigate this new way of working depends on your unique organisational goals. Through multiple years of research at Insight222, we have found that more organisations are increasingly leveraging people analytics to enhance their employee listening, helping them understand how to navigate these changes and create a workplace culture and employee experience where the workforce thrives in this new way of working.

This goes beyond understanding how many days a week employees would prefer to work from home. It is about understanding the nuances of working in different environments, how it impacts employee productivity and well-being, and what can be done to effectively manage and support this new way of working.

This is something Jazz Pharmaceuticals, a global pharmaceutical company, has been successfully doing. Under the leadership of Heidi Manna, Chief People Officer, Jazz Pharmaceuticals has been leveraging employee listening to troubleshoot collaboration issues arising from remote work.

Through their employee listening engine, they found that their remote employees felt that they were engaging in too many and sometimes unnecessary virtual meetings. As a result, the company went on a journey to shift collaboration from death by email to using MS Teams chat and found that, as Heidi highlights:

"[We've] even seen the language change within our organisation.  [We] hear people talking about, "Can we do this async?" which is code for, "Do we need a meeting to actually set up to do this; or, can we use the Teams platform to actually do this asynchronously and collaborate virtually at a time and place when it makes sense for somebody who's over, you know, in the UK working with someone who's on the West Coast?"  So, that's been a huge unlock."

However, they have also used employee listening to understand how the flexible working model works for stakeholders. While they found that their flexible work model significantly improved employee satisfaction and well-being, what was most interesting was that through their flexible working efforts and employee listening to understand employee sentiment, voluntary turnover decreased, saving the company $15 million.

If these examples can prove something, it is that a successful employee listening strategy that generates business value should not be understated. Therefore, identifying the right approach to navigating the new way of working and leveraging data-driven insights from employee listening will be essential for people analytics for the foreseeable future.

Empowering Societal Change

Expectations around social corporate responsibility and transparency have never been higher. From the introduction of European's Corporate Sustainability Reporting Directive (CSRD) and Pay Transparency Directives to the global push for diversity, equity, inclusion, and belonging (DEIB), organisations are under increasing pressure not only to meet these expectations but to lead the charge.

With that, they are turning to people analytics to better understand their workforce demographics, identify areas of inequality and bias, and take actionable steps towards addressing these issues. In fact, our recent research, Building the People Analytics Ecosystem: Operating Model v2.0 supports this trend, revealing that 84% of the global companies surveyed have turned to people analytics to address gender parity, focusing on aspects such as pay equity and promotional opportunities. In addition, 80% have implemented analytics to enhance organisational inclusion and foster a sense of belonging among employees, and 66% to make changes that improve employee well-being.

People analytics is what Daisy Auger-Dominguez, author of the book Inclusion Revolution, refers to as pivotal to:

"Uncover the things that we don't want to tell ourselves every day.  That is when we uncover the true sore spots, what's happening in those dance floors, what's happening on the ground in organisations, and I think that's the role of HR." 

It enables HR leaders to take action towards building a more diverse, equitable, and inclusive workplace.

As we continue to navigate new ways of working and address societal issues in the workplace, people analytics will play an increasingly vital role. By leveraging data-driven insights, organisations can create a positive impact not just within their own workforce but also on society as a whole.

Building the Skills-Based Organisation

With AI set to change the way we work, it's safe to say that the world as we know it is going through a major talent restructure. We are already on the precipice of a skills drought, with two-thirds of UK organisations worried about the impending skills shortage.

To mitigate this and stay ahead of the curve, organisations are transitioning towards a skills-based model of workforce planning to help them navigate future requirements, retain top talent despite potential restructures, and enhance the employee experience. This is changing the HR operating model as we know it, the people strategy, and, subsequently, the priorities of the people analytics function.

Our recent research found that 50% of people's analytics support the HR function in becoming skills-based. This is largely due to the function's skills and capabilities in developing skills architectures, identifying skills gaps, leveraging technologies to infer skills and leading the introduction of talent marketplaces.

This starkly contrasts old ways of working, where siloed teams and skills were the norm. The shift towards a skills-based organisation not only enhances adaptability and agility but also fosters a culture of continuous learning and development. But, of course, achieving this requires building the capabilities and setting the foundations right.

At Insight222, we consult many organisations on how to become skills-based, and it all starts with having the right data infrastructure in place. We teach our clients how to set the strategy, build the technology architecture, and leverage people analytics to make better decisions about skills deployment. But if there is one clear thing, it's that the skills-based organisation of the future will rely heavily on people analytics to succeed. It's not just about responding to market changes and talent demands but also about creating a sustainable workforce for the future.

Learn how Johnson & Johnson is Scaling Their Skills-Based Approach to Talent 

Delivering Digital Transformation

The drive for digital transformation is not recent; however, its speed and scale have significantly increased in recent years. Fuelled by technological advancements and the growing accessibility of data, companies are making substantial investments in digital tools and platforms to boost efficiency, cut costs, and foster innovation.

However, digital transformation involves more than just adopting new technologies; it involves fundamentally changing how organisations operate and deliver value to their customers and employees.

For HR, this transformation involves integrating data, analytics, and technology into every aspect of the employee lifecycle. From recruitment and onboarding to performance management and employee development, the HR function is becoming increasingly data-driven.

Our research on Upskilling the HR profession indicates that people analytics play a crucial role in driving change. The HR function must enhance its data literacy to understand and utilise people's data and insights effectively. This necessitates upskilling, and we found that 79% of people analytics leaders are spearheading initiatives to improve HR's data literacy. Similarly, regarding the technology needed to scale and streamline people analytics efforts, 80% of people analytics professionals are responsible for procurement in this area.

Most importantly, the digital transformation has allowed the people analytics function to become more consultative in their approaches. Something Cardinal Health has taken on heads first.

By focusing on standardising processes, automating dashboards, and fostering a consultative approach, Erin Gerbec, Director of People Analytics at Cardinal Health, has transformed her team into a high-functioning, strategic partner for the business. This shift not only improved operational efficiency but also empowered HR professionals to leverage data more effectively, thereby enhancing their ability to contribute to strategic business goals.

As organisations continue to embrace digital transformation, the role of people analytics in driving this change is becoming increasingly critical. By integrating data and technology into every aspect of the employee experience and upskilling HR teams to use these tools effectively, companies can ensure that both their employees and the business thrive in a data-driven environment.

Embracing Gen AI

On the topic of digital transformation, artificial intelligence has become the tool governing every digital transformation conversation. With AI-driven insights, HR teams can make more informed decisions, predict future workforce trends, and personalise employee experiences in ways that were previously unimaginable.

One company that exemplifies the transformative power of Generative AI in HR is IBM. Leveraging this tool as a strategic partner in driving HR initiatives across the organisation, IBM has been able to revolutionise its employee experience.

IBM's use of AI in HR spans multiple dimensions, each designed to enhance efficiency, personalise employee interactions, and optimise decision-making processes. From personalised learning pathways to AI agents and Gen AI-powered assistants that help employees navigate the complexities of HR processes, IBM is leveraging AI to create a more human-centred and data-driven workplace.

People analytics platforms such as Crunchr are also developing their own Generative AI capabilities. These capabilities allow their end users to automatically generate insights on key workforce trends and predict future scenarios through simple prompts and questions.

However, embracing AI is not without its challenges, particularly when it comes to ensuring ethical use and aligning AI initiatives with organisational values. Teams must ensure that as AI becomes more integrated into HR processes, they navigate complex privacy, bias, and fairness issues. Ensuring that AI is used responsibly and in a way that aligns with an organisation's values is paramount.

For people analytics, despite our recent research finding that only 18% of people analytics teams currently have a machine learning engineer or AI specialist, the function has been using AI for advanced analytics for years – developing in-house tools and investing in advanced enterprise tools to scale their insights and algorithms.

People analytics professionals understand and have the capability to build the strong data infrastructures needed to secure the successful implementation of Gen AI with HR, and as such, will be pivotal in spearheading the adoption of Gen AI for optimising people processes, enhancing HR outcomes and driving organisational success.  

Turning Trends into Action

It is clear that the people analytics function is becoming a driving force in securing the future success of organisations through data-driven insights and technology.

However, the need for the right strategies and measurements cannot be emphasised enough to connect the dots between these trends and your business offerings. This requires continuously developing the skills of people analytics and HR functions and ensuring that you have the right operating model and processes in place for success.

It also means investing in the right tools, upskilling programs and external consulting expertise to ensure your function is equipped to deliver its full potential. With Insight222's Immersive Learning Experience programs and expert people analytics strategy consulting, we can help your team develop the necessary skills and strategies to navigate these trends successfully.

Contact us to learn more about how we can help your organisation thrive in the era of data-driven HR. Let's drive real change together.

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

Download for our Insight222 research “Building the People Analytics Ecosystem: Operating Model v2.0” understanding why trends are crucial for success.

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!