What do Future People Analytics Teams Need to Look Like to Address the Business Outcomes?
Analytics has been used by businesses across functions for decades. However, analytics in human capital management has been on the rise since 2010. Most teams trace their origins to an ad hoc business need, gaining credibility over the last few years. Today, most organizations have caught up to this trend and can now be mapped along the People Analytics Maturity Model(Exhibit 1). 84% of leaders think people analytics is important for business, 72% invested in people analytics and many more have joined henceforth. The purpose of people analytics within organizations is established. However, only about 25% of organizations believed people analytics significantly improved productivity, or resulted in cost savings, or increased employee engagement. Within HR, people analytics has been evolving at an accelerated pace. There is a pressing need for organizations to strategically develop this capability for competitive advantage. What do the future people analytics teams need to look like to address the business outcomes? In order to answer this question, it is important to understand the business ask of people analytics teams and what it means for teams to provide strategic business oriented people analytics as against descriptive, ad-hoc or diagnostic reporting.
