If there is one question that is asked by Chief People Officers and other senior HR executives more than any other about people analytics, it is “what are the best doing”? Over the last three years, Insight222® has researched this in detail in our annual People Analytics Trends report.

The Insight222® People Analytics Trends Report for 2023 introduced the Leading Companies Model. The report provided specific details and guidance on how companies can transition between different “states” of people analytics. This is not a “maturity model”, which implies that a function can only mature to the next level if it has been through the immediate prior level. Instead, we identify these states as ABCD Teams. Each of these teams has particular characteristics, and each provides the platform to transition to a more impactful level.

This model, the Leading Companies Model (Figure 1), has eight characteristics across two dimensions:

Take the Leading Companies Diagnostic

There are eight defining characteristics that Leading Companies in people analytics display (as shown in Figure 1). By taking the Leading Companies Diagnostic, every people analytics function, in any organisation, globally, can diagnose themselves against the eight characteristics to understand their current state, and what characteristics are the most important to develop to create more impact.

“A Teams”

“A Teams” account for the “top 10%” of people analytics teams across companies all over the world. These companies believe in the value of people analytics, have invested in the function and are seeing value and impact from the activities.

The Insight222® People Analytics Trends Report for 2024 includes detailed research into “A” Teams, which helps answer the question – “what are the best doing” – and provides guidance that other companies can learn from.

There are eight characteristics across which “A Teams” excel:

“A Teams” and People Strategy

The Insight222® People Analytics Trends Report for 2024 provides new research into the differentiating characteristics of “A Teams”. These teams are embedded across the HR function and as such tend to be directly aligned with – and sometimes responsible for – setting and delivering the people strategy.

Recent research by Insight222® into the symbiotic relationship between people strategy and people analytics confirms why this focus by “A” Teams on people strategy is so significant.

Over the last four years, there has been a shift in the importance of people analytics for HR – and for the CHRO specifically. With more people topics on the agenda for boards and executive teams than ever before, the CHRO must be equipped with evidence-based insights and recommendations from their people analytics team.

Since HR is responsible for the people strategy of the business agenda, people analytics has become essential in creating, driving, and refining the people strategy. Data and insights must sit at the centre of the people strategy to:

Shape the formulation of the people strategy
Inform the priorities of the people analytics team
Evaluate the execution of the people strategy

Figure 3: The percentage of “A” Teams and “D” Teams defining the people strategy. Insight222® People Analytics Trends Report for 2024

The Insight222® People Analytics Trends Report for 2024 finds that 89% of “A” Teams play an essential role in defining the people strategy, compared with 57% of “D” Teams.

Case Study: ABN AMRO: An Enhanced Priority-setting Process for HR with Analytics at its Core

Insight222’s research – Building the People Analytics Ecosystem: Operating Model v2.0 – features a detailed case study from ABN AMRO Bank N.V. (ABN AMRO) about the relationship between people analytics and people strategy.

Over the last year, Jaap Veldkamp, Global Head of HR Analytics and Organisational Effectiveness at ABN AMRO, and his team have partnered with HR strategy professionals and HR business partners to design, implement, and test an improved prioritisation process for HR. The objective of this process is to better translate business needs into the people strategy, prioritise capacity, and create more value.

People analytics drives the people strategy by providing the data and insights which form the input for this prioritisation process. This in turn informs the priorities for Jaap and his team. As Jaap explains, “We not only set the foundation for the HR prioritisation process; we also contribute to the successful execution of the agreed priorities. For example, we launch new surveys or execute statistical projects to identify the best solutions that align with our organisation’s needs.”

The final step of the process is continuous monitoring and evaluation of progress against the plan and agreed timelines. Jaap’s team plays a central role here, as Jaap explains: “My team is also part of the monitoring process. Have we delivered what we (HR) said we would? What has been the impact? We also do in-depth analysis to understand the impact of the new solutions that have been delivered.”

Pre-register to Download the Insight222 People Analytics Trends Report for 2024

For HR to become a truly data-driven function, and a strategic partner to the business, data and insights must sit at the centre of the people strategy. And this is a distinguishing characteristic that differentiates “A Teams” from other people analytics teams.

To explore these insights further, as well as access benchmarks on the growth of people analytics, the democratisation of insights and the use of AI in HR, you can pre-register to receive the Insight222 People Analytics Trends Report for 2024 when it is published early in December.

The report will also provide recommendations for action to ensure people analytics delivers impact, as well as advice from people analytics leaders in “A Teams”.

ABOUT THE AUTHOR

Naomi Verghese – Senior Director, Research & Events at Insight222®

Naomi is an experienced business professional with over 15 years’ experience, mainly in the financial services industry. She has undertaken roles as an HR business partner, HR chief of staff, and as a commercial sales analyst during her time at Barclays. Naomi played a key role in the establishment of the people analytics team at Barclays and led the development of a people analytics consulting capability. In the last eight years, Naomi has dedicated her career to people analytics, with particular expertise in consulting with business executives, HR leaders, and other stakeholders.

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What Top Companies Do Differently in People Analytics