Strategy & LeadershipBoardroom RelationshipsThe seven reasons why HR teams are investing in analytics

The seven reasons why HR teams are investing in analytics

Here are the motives (good and bad) for organisations investing in HR analytics. What's your reason?

Why are HR teams looking at bringing analytics into their decision making?

Perhaps more importantly, why do you and your organisation want to invest in workforce analytics?

Answering this question properly is the key to gaining real value from the process, or potentially failing to realise anything of critical importance.

The investment into HR analytics needs to be made with careful consideration and a clear goal.

However, this is not always the case and as a result it risks becoming isolated or detached and irrelevant to overall business goals.

 

How Pizza Hut combined HR and marketing to produce market leading results

 

Speaking at the People Analytics conference IBM Smarter Workforce vice president Jonathan Ferrar explained the seven purposes he had identified for companies to develop HR analytics:

 

Competitive edge

One global financial services company based in New York told Ferrar: “The reason that we exist is and why every analytical function exists is for the competitive edge.”

Top-down

Sometimes the demand comes from the top of the organisation. The CEO or one of the C-suite asks a question and that triggers the action.

What's Hot

Establishing an Organization Guidance System

Strategy & Leadership Establishing an Organization Guidance System

1y Dave Ulrich

Establishing an Organization Guidance System

Dave Ulrich, Norm Smallwood and Alan Todd break down Organization Guidance Systems - what they are, and why they are essential to HR's role in busines...

View article
2020: HRD Thought Leaders on the biggest trends of the year to come

Strategy & Leadership 2020: HRD Thought Leaders on the biggest trends of the year to come

1y Michael Hocking

2020: HRD Thought Leaders on the biggest trends of...

Dave Ulrich, Jill Christensen, Jon Ingham, Katrina Collier and more HRD Thought Leaders predict the trials and transformations that will face the work...

View article
HRD Summit UK 2020 - Sneak Peek

HRD Summit UK HRD Summit UK 2020 - Sneak Peek

1y Joe Talora

HRD Summit UK 2020 - Sneak Peek

With the HRD Summit 2020 fast approaching, HRD Connect takes a look at what to expect at this year’s landmark event. View article

Amanda Cusdin, Sage: The Big Conversation and real cultural transformation

HRD Live Podcasts Amanda Cusdin, Sage: The Big Conversation and real cultural transformation

1y Michael Hocking

Amanda Cusdin, Sage: The Big Conversation and real...

In this week's HRD Live Podcast, Amanda Cusdin, Chief People Officer, Sage, sat down Michael Hocking, Editor, HRD Connect, to discuss Sage's mammoth c...

View article
HRD Best of 2019: Culture and Engagement

Engagement HRD Best of 2019: Culture and Engagement

1y Michael Hocking

HRD Best of 2019: Culture and Engagement

As 2019 comes to a close, we look back at the top 10 culture and engagement articles, podcasts and interviews of the year. View article

Do You Possess the Top Two Most In-Demand Skills?

Learning & Development Do You Possess the Top Two Most In-Demand Skills?

1y Jill Christensen

Do You Possess the Top Two Most In-Demand Skills?

Jill Christensen, Employee Engagement Expert, Best-Selling Author and HRD Thought Leader, breaks down the two most important skills in the workplace, ...

View article

Regulatory

A UK financial services company wanted to focus on the analytics of integrity and conduct as it relates to regulatory compliance.

Operational efficiency

This is a very common approach and can include how different elements of major companies work together to lead to operational efficiencies.

Cost pressures

Ferrar noted this was probably the second most popular area of analytics at present – focusing purely on cost aspects of the business. “I was talking to one head of analytics two weeks ago where they are doing a whole aspect on real estate. In that real estate they are looking at the efficiencies of their buildings from a workforce-workplace point of view,” he said.

Humanistic

Although rarer, analytics practitioners are keen to emphasise that the end results affects people. In some cases analytics work is undertaken to try and improve the work or working environment.

HR for HR

The most common reason for analytics work, and one which Ferrar believes is a problem, is undertaking analytics projects to satisfy requests from other parts of the HR function. Addressing only HR-related requests, such as the return on investment of a training programme, risks ignoring the real needs of the business and what senior leaders need to know.

 

What has Walmart learned from HR analytics?

 

Comments are closed.

What's Hot

Establishing an Organization Guidance System

Strategy & Leadership Establishing an Organization Guidance System

1y Dave Ulrich

Establishing an Organization Guidance System

Dave Ulrich, Norm Smallwood and Alan Todd break down Organization Guidance Systems - what they are, and why they are essential to HR's role in busines...

View article
2020: HRD Thought Leaders on the biggest trends of the year to come

Strategy & Leadership 2020: HRD Thought Leaders on the biggest trends of the year to come

1y Michael Hocking

2020: HRD Thought Leaders on the biggest trends of...

Dave Ulrich, Jill Christensen, Jon Ingham, Katrina Collier and more HRD Thought Leaders predict the trials and transformations that will face the work...

View article
HRD Summit UK 2020 - Sneak Peek

HRD Summit UK HRD Summit UK 2020 - Sneak Peek

1y Joe Talora

HRD Summit UK 2020 - Sneak Peek

With the HRD Summit 2020 fast approaching, HRD Connect takes a look at what to expect at this year’s landmark event. View article

Amanda Cusdin, Sage: The Big Conversation and real cultural transformation

HRD Live Podcasts Amanda Cusdin, Sage: The Big Conversation and real cultural transformation

1y Michael Hocking

Amanda Cusdin, Sage: The Big Conversation and real...

In this week's HRD Live Podcast, Amanda Cusdin, Chief People Officer, Sage, sat down Michael Hocking, Editor, HRD Connect, to discuss Sage's mammoth c...

View article
HRD Best of 2019: Culture and Engagement

Engagement HRD Best of 2019: Culture and Engagement

1y Michael Hocking

HRD Best of 2019: Culture and Engagement

As 2019 comes to a close, we look back at the top 10 culture and engagement articles, podcasts and interviews of the year. View article

Do You Possess the Top Two Most In-Demand Skills?

Learning & Development Do You Possess the Top Two Most In-Demand Skills?

1y Jill Christensen

Do You Possess the Top Two Most In-Demand Skills?

Jill Christensen, Employee Engagement Expert, Best-Selling Author and HRD Thought Leader, breaks down the two most important skills in the workplace, ...

View article