Welcome to this April edition of our ‘Most Trending Articles’ of 2018!
People analytics is emerging and becoming mainstream. The top articles of April features a new book on people data and analytics, a podcast, and a few in-depth articles on the role of value creation and AI in people analytics.
I’m sure you’ll find a few articles that you’ve missed and really should read. Enjoy!
5. How Big Data Can Make a Big Difference in HR
Wharton has a very good reputation for people analytics. Last month, the Warton podcast featured Jenny Dearborn, who, together with David Swanson, wrote a new book titled: The Data Driven Leader: A Powerful Approach to Delivering Measurable Business Impact Through People Analytics.
In the podcast, Jenny explains the opportunities for leaders in people analytics.
“Historically, HR departments have been run by wonderful people – who are great people people. They are great at the human interaction, they are great at being empathetic, and about caring how people feel”.
However, Jenny continues, if we want to move forward, we need to move beyond that in order to become more effective.
This is reflected in the CHRO roles. These roles are increasingly being filled by people who haven’t spent all of their career working in HR – but instead in other disciplines like marketing or finance. This is already happening more than 50% of the time.
According to Jenny, “the number 1 reason is the lack of expertise in data and analytics”.
4. The HR value chain
Our number four is an in-depth explanation of one of the core concepts in HR analytics: the HR value chain.
One of the critical challenges that HR is facing is how to proof that it adds value to the business. The HR value chain provides an excellent framework for doing so.
The HR value chain is split up into three parts, efficiency metrics, effectiveness metrics, and business metrics.
The efficiency metrics say something about how efficiently HR is running its processes. However, they don’t say anything about how well HR is doing its job. To examine this, we need to look at effectiveness metrics.
The effectiveness metrics measure to what degree HR is hitting it’s most important targets. Of course, this is not something that HR does alone. Together with line managers, HR strives to increase employee engagement, retention, lower absence, et cetera.
However, this is not enough. In the end, HR needs to add value to critical business goals. The goals will differ from organization to organization – but the key element is that whatever HR is doing, it should align its activities and desired outcomes with the organization’s business goals.
When this is done right, the impact of HR processes and outcomes on business objectives can be measured using analytics.
To read more about the HR value chain, click here.
3. Why psychological knowledge is essential to succeed with People Analytics
In this brief article, Morten Kamp Andersen describes why psychological knowledge is essential to success in people analytics.
Morten is a well-known writer in the people analytics space, with his own website MortenKamp.com. He has published a number of articles that are often quoted, including his characteristics of a superhero workforce analytics team.
One of the skills in this team is psychology skills. If these skills are not present, the people analytics team will be prone to bias and unable to understand analytics results.
In his article, he gives an example of the ‘effort justification’ bias. Curious how this bias impacts people’s behavior and how Zappos uses it to engages its employees?
Read the article here.
2. The 4 Guiding Principles of a Successful Continuous Listening Program
In this article, Laura Stevens explains the characteristics of continuous listening.
Contiguous listening is the constant collection and combination of critical data sources to enhance company performance.
According to Laura, continuous listening is characterized by 4 C’s.
- Coordinated and cross-functional programs
- Continuously collect and combine a variety of different data sources
- Company performance
- Customer centricity
To read about what these characteristics entail and how continuous listening can impact your people data-gathering capabilities, check out the article here.
1. Linking talent to value
Our number 1 article is McKinsey’s Linking Talent to Value, written by Mike Barriere, Miriam Owens, and Sarah Pobereskin.
The article starts with an example of a key account manager who played a critical role in the organization – but whose role was a blind spot for the CEO. When the account manager left, the organization struggled to recover.
Critical roles like these aren’t always located at the top of the organizational hierarchy. Correctly identifying this talent and linking it to the value they represent is essential for the viability of the company.
The article continues using multiple examples to explain how critical roles can be identified and linked to actual value.
To read the full article, click here.