Most organizations have yet to fully develop their People Analytics capabilities, with only 10% successfully driving Business value through it!

?? The goal of people analytics is to solve complex business problems, which requires going beyond data analysis to drive actionable outcomes.

?? Over the past two decades, people analytics has evolved into a profession, fueled by the explosion of data and the increasing importance of human capital in business success.

?? Despite this, only 6% of business managers are equipped to analyze and explain data, and just 12% of companies provide data interpretation training.

?? High-performing people analytics teams adopt a business-centric, holistic approach, focusing pragmatically on driving actions.

As companies advance in systemic business analytics, their focus shifts from measuring HR efficiency to addressing key business challenges, according to a new interesting research published by The Josh Bersin Company in partnership with Visier Inc. using data ??from a survey of 469 organizations in 50 countries representing 10 million employees, along with numerous in-depth discussions and interviews.

?What is Systemic business analytics?

Researchers define “Systemic business analytics” as a strategy that enables companies to transition from reactive reporting to proactive problem-solving. This approach significantly enhances business, people, and organizational outcomes. Companies excelling in this area are far more likely to surpass financial targets, achieve high workforce productivity and engagement, foster innovation, and adapt effectively to change.

???? In this analytics approach, companies adopt a pragmatic strategy that cultivates a data-driven culture, encourages actionable insights, and continuously develops analytics capabilities to drive outcomes across all business areas.

?Alarming statistics in People Analytics Strategy

?? Researchers have uncovered alarming statistics about data in most organizations lacking a People Analytics strategy:

? Only 9% of organizations integrate people, operational, work, and sales data and standardize metrics across different HR and business systems.

? Only 44% of organizations share data-driven insights with line managers and only 15% with employees.

? Only 6% of people managers are equipped to analyze and explain data, yet only 12% of companies offer data interpretation training.

? Only 7% of companies are effectively using predictive modeling and data storytelling capabilities.

? 70% of people analytics teams are tasked with tactical reporting, while strategic planning, talent intelligence, and skills analytics remain underdeveloped.

? Only 4% of companies have a strategy for incorporating generative AI into people analytics, and most are not applying AI at all

?? These concerning statistics clearly indicate that many organizations are far from leveraging their HR data to drive business results and add value. Meanwhile, those with mature People Analytics teams are significantly ahead of their competitors, enjoying crucial advantages.

?The advantages of having a mature People Analytics team

Researchers have discovered that organizations proficient in systemic business analytics are:

• 3x more likely to exceed financial targets
• 3x more likely to delight customers
• 8x more likely to have high workforce productivity
• 8x more likely to be highly diverse and inclusive
• 4x more likely to engage and retain employees
• 7x more likely to innovate effectively
• 9x more likely to adapt well to change

?? Finally, researchers outline three key steps in the Journey to Systemic Business Analytics :

?? Identifying and prioritizing the most important business challenges.

This involves collaborating with the C-suite to get the leadership perspective, building consulting capabilities to advise business leaders in operational decisions, and using a variety of employee listening channels and employee activation to get the voice of the internal customer

?? Deeply understanding root causes and the problems behind the problems

The most successful organizations fall in love with the problem, not the solution. They spend enough time determining what’s under the covers of presenting problems and identifying root causes, all with a focus on action-taking.

?? Driving for operational and strategic actions.

Rather than stopping their work at providing leaders with interesting insights, people analytics teams must identify stakeholders and accountable parties, elicit commitment to change, and work across the HR team to empower business leaders to assign resources and implement change.

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As a People Analytics practitioner and leader, the findings of this report don’t surprise me. I’ve observed that the maturity level of People Analytics remains quite low in most organizations, particularly in Europe. One crucial point missing from this report—likely due to its association with a People Analytics software vendor—is the necessity for organizations to appoint a People Analytics leader. This leader is essential for crafting an adaptable People Analytics roadmap within a data-driven strategy. The success of a People Analytics journey doesn’t hinge on tools or consulting firms alone; it depends on placing the right People Analytics professionals in key positions to understand and leverage your data and strategy effectively !

??Thank you The Josh Bersin Company researchers team for sharing these insightful findings: Josh Bersin Kathi Enderes

Dave Ulrich

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