With data and analytics moving up the HR agenda for 2017, Michael Carty identifies five essential principles for an effective people analytics strategy.
“Analytics is no longer a ‘good idea’ for HR – it is now mandatory.” This is according to people analytics expert Josh Bersin, founder of Bersin by Deloitte, in his predictions for HR in 2017. “I believe in 2017 we will see analytics move from a niche group in HR to an important operational business function.”
Having an effective people analytics capability is critical for high-performing HR teams as the modern workplace becomes increasingly digital, argues Bersin. “I believe in 2017 we will see analytics move from a niche group in HR to an important operational business function.”
Bersin identifies the minimum requirements for HR to flourish in 2017: “Effective digital HR means you have good data; you have an analytics team; your systems are integrated and cleaned up; and you can find accurate information quickly.
“Without this data ‘platform’, you will likely fall behind the rest of the business and decisions may be made too slowly.”
HR departments looking to develop a people analytics strategy in 2017 need to consider these five key principles.
1. Be clear on what people analytics is
A clear understanding of what people analytics is and what it can achieve is critical. Speaking at the Tucana People Analytics Forum towards the end of last year, Madhura Chakrabarti – people analytics research leader at Bersin by Deloitte – offers a definition: “People analytics is the discovery, interpretation, and communication of meaningful patterns in data to drive high-quality people-related business decisions.”
People analytics can have a significant impact on organisational performance, in turn helping build the strategic impact of HR. Organisations with advanced people analytics capabilities “produce output that is 5% to 6% higher on average” than their competitors, according to Bersin by Deloitte research quoted by Chakrabarti.
Click here to continue reading Michael Carty’s article.