Source: Digitalhrtech

A List of Companies Successfully Implementing People Analytics

Why People Analytics/ HR Analytics?

HR Analytics or People Analytics correlates people data with business data. The key goal is to provide data on the impact the HR Department has on an organization and then developing strategies in better decision making

HR Systems like ServiceNow, Workday each are growing at over 30%, ADP launched its NextGen HCM, SAP acquired Qualtrics for $8Billion, and private equity players are investing billions of dollars on Next Gen HR Systems (Kronos, Saba, Ultimate Software, Infor and others).

Why are companies investing so much on HR software more than ever?

In present times, a talent constraint environment, companies are pouring money into tools to better support, empower, recruit and develop their people. The HR software market is over $50 Billion in size and goes over $300 Billion when we add up other tools for learning, employee management, recruiting.

The process of people analytics
Source: HRTechnologist

Benefits of People Analytics/ HR Analytics

#1 – Strengthen Decision Making

Traditionally HR has been rather subjective while making decisions. With People Analytic you get more data, empowering more decision making. It gives a competitive edge to the organization whose decisions are based on statistics and are more likely to succeed.

#2 – Improve Retention

It is no secret that retention costs more than employee acquisition, and about 86% of business leaders are majorly worried about employee retention (Deloitte Human Capital Trends Report 2016).

People analytics predicts the employee who is likely to leave giving organizations a proactive approach to encourage or motivate them. Predictive retention is without question the biggest benefits of people analytics.

#3 – Drive Accountability

One of the most vital parts of people analytics is data presentation. Employees being presented with easy to understand reports ensuring transparency which further ensures accountability.

#4 – Explode Silos

People Analytics breaks through the silos providing cross-departmental employees to interact in a meaningful way.

#5 – Increase Employee Satisfaction

Josh Bersin, an HR expert, notes that the average Glassdoor company rating is only 3.2 out of 5 – which is strange.

People Analytics can have real analytics in this area by identifying how employees feel working with an organization.

#6 – Hire Better People

“Hiring the best talent” seems like a blunt and bold claim, but People Analytics promises to deliver it.

Through predictive assessments for performance, in comparison to the top performers of an organization. One can leverage this data while hiring new people which looks like a better approach than the traditional subjective judgement.

#7 – Pinpoint More Fruitful Sourcing Pools

On average, it takes 52 days to fill an open position making sourcing candidates a challenge to hiring success. Talent acquisition certainly gives a competitive edge to an organization by hiring the right people. People analytics can identify the areas that yield the highest performing candidates, for example, specific institutions, specific companies, or previous job titles.

#8 – Secure Buy-In Into HR

HR is still often thought of as a reactive function with limited usefulness. People Analytics allow HR to take an increasingly strategic role allowing them to make decisions that shape company direction.


Companies using HR Analytics/ People Analytics

1. Google

Google has an analytical and data-driven approach to its HR system. Its “people analytics” is a mix of quantitative and qualitative data analysis combining human feedback with hard numbers. Due to its proper implementation, the company has been shaped as a great organization. Google claims on its website that it “use[s] people analytics as a foundational building block that informs everything we do to find, grow and keep Googlers.”

Google's People Analytics
Source: Slideshare

This strategy is stepped ahead to the usual traditional manual strategies with processes backed by data. It also increases the participation rate and helps engage and motivate employees who know that their feedback is going to create an impact on human resource across the company. Google’s HR department – people operations -determines employee behaviours and skills through Project Oxygen using employee feedback and performance ratings. It also determined the different kinds of leadership styles.

Oxygen Eight

From this, Google was able to create a benchmark “Oxygen Eight Behaviours for Great Managers” to train and select its company leaders. The best part about this is it adds a human layer of analysis in determining where your best leaders are and other companies could make use of it too.

Whereas, in Project Aristotle, the strategy was applied to entire teams to determine which team were more effective and why? This blend of human experience and hard data was solely responsible for the outperformance of the team.

All in all other companies can take a note from this and focus more on why teams perform better rather than just tracking performance. The best part why it works is because employees know that their feedback and participation is responsible for the winning formula.

Google’s project like “building blocks” of the HR system is a further step to understanding what a people led strategy can do for your own company.

2. Juniper Networks

There approach towards people analytics has been “Fall in Love with the problem not the solution”.

Juniper Networks, Steven Rice, Executive VP, HR
Source: Castlighthealth

And following some imperative questions asked by an engineer in Bangalore that led them to brainstorm

  • How should a company do performance management if it really believes in its talent and wants to raise everyone’s game?
  • And why would a company that seeks to differentiate itself through talent use the same performance evaluation tool everyone else does?

Lucky them neuroscience had just entered the business world. Their research later clarified why forced rankings were undermining the desired culture of trust, risk-taking, and collaboration. Also, providing another angle for exploring the complexities of talent systems, values, and culture.

This made them the 1st global company to let go of forced rankings metric back in 2011. They rather made a shift to the Best Talent from the bell curve. Replacing annual reviews with recurrent conversations for career aspirations, goals, areas for improvement. Today more than 97% of its employees are considered “Best Talent”, their talent management’s effort is to put the right capabilities in the right places to achieve their business goals.

3. Wal-Mart

There are four segments that makeup what analytics engine comprises:

Data Mining and Modelling – This is where the mathematicians and statisticians work on models to help with predictions or “evidence-based decisions”

Research – this revolves mainly around unstructured data. This captures the “voice of the workforce”, a global program surveying across entire Walmart.

Prototype and Visualization – concepts, ideas, and thoughts are developed to put data to use in business issues.

Test and Learn – Once the proof of concept has been developed. It’s tested and later moved to production.

All of this is underpinned by continuous measurement of the team’s work impact. One thing that is taken seriously is feedback!

Walmart's Vision and Mission for people analytics
Source: InnovativeEnterprise

4. Microsoft

Microsoft has been going through an evolution in HR analytics. It got into the HR tech market by acquiring LinkedIn. At present, their focus is on data-driven HR as a best practice, within and also offering solutions to their customers.

The most innovative thing in using Analytics in HR is to develop a statistical profile of those employees who are most likely to quit. And, eventually provide them with direction through discussions for growth by mentors within the company. Microsoft has achieved a milestone by reducing the attrition rates by more than half. It has adopted the same tactics to other areas of its business too. Thereby improving the performance of employees significantly and ROI of organization.


Conclusion To HR Analytics

Thanks to the new age HR analytics software and business analytics tools for driving better company culture. HR can use the data to better understand what impacts the factors such as engagement, performance, and compensation to keep a pulse on the health across the organization. HR Analytics/ People Analytics is a huge hop for HR, but it is still at a stage where everyone is talking about it, but only a few are implementing it.

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