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The name of this trend—“people analytics”—brings together HR and business data to improve and inform management, business, and HR decisions throughout the company.
While HR organizations have been talking about building analytics teams for several years, in 2016 we see a major leap forward in capabilities.
Why is this?
Driven by competitive pressures and the greater availability of more integrated systems, organizations are aggressively building people analytics teams, buying analytics offerings, and developing analytics solutions.
First, companies are rapidly adopting more integrated cloud-based HR systems, enabling them to examine HR data in an integrated way for the first time. Nearly 40 percent of all global firms are either replacing or plan to replace their core HR systems over the next two years.
Second, people with analytics backgrounds are coming into HR.
Third, nearly every ERP vendor and talent management provider now offers off-the-shelf analytics tools, and many include embedded models.
Experienced consultants are sharing ideas and bringing expertise to companies new to the domain.
Finally, CEOs are pressing their CHROs to build this capability
We expect the trend toward analytics-driven HR to continue gathering strength over the coming year. As this happens, analytics will penetrate deeper within HR, extending beyond talent acquisition to learning and development and operations.
However, providing great data and insights is only part of the solution. The real value is in turning that insight into change that delivers business value, which requires sound change management practices.
Rewrote Lady Gaga Video and used “Can I get some Hands”- which is a cheesesteak culture. Used to have a culture of “no cell phones” in front of guest, in Kitchen we don’t allow it for safety reasons. They do this at the end of their shift, beginning of shift.
“New Restaurant Openings” – we send 50 high performers to open a new restaurant. Hype. Tiger Team – stocks, sets up new systems, builds an amazing community. New restaurant which is opening can keep all this info. How we roll the perfect strawberry for a cheesecake. “learning channel” to look for videos.
If we embed video into training, they get credit for it. They’re all excited to be publishing this.
Right now we’re doing a video on culture, and we want the consistency across all sites, so we’re created the “you’re so cheesecake” channel – “why you’re so cheesecake” I take pride in the food that I make for every guest.
What are you using – are you using these?
Data and analytics are key to solving many of the top challenges we identify in these trends: engagement, leadership, learning, and recruitment.
Still too few organizations are actively implementing people analytics capabilities to address complex business and talent needs.
Three in four companies (75 percent) believe using people analytics is important, but just 8 percent believe their organizations are “strong” in this area—almost no change over 2014.
Why is this?
Leading companies are using analytics to gain a competitive advantage by understanding all elements of the workforce, including to:
Understand and predict retention
Boost employee engagement
Expand talent sources and improve quality of hires
Profile high performers in sales and customer service
Yet, our survey confirms that most organizations have been slow to get started, showing very little progress in implementing analytics. In fact, this year’s study shows that there has been little year-over-year improvement in analytics capabilities.
People analytics, a capability built over years, is one of the biggest differentiating factors for high-performing HR organizations today. Without early, substantial investments, it is difficult to get traction. Companies must therefore make a serious commitment to this discipline, search for robust solutions from their core system vendors, and hire people into HR who have an interest and background in analytics and statistics.
(c) Bersin and Associates
The full Human Capital Trends 2016 report goes much deeper. You’ll find stories of how leading companies are leveraging these trends for competitive advantage. And if this all seems overwhelming, we’ve incorporated practical advice for companies and HR leaders on where to start.
Our advice is straightforward: [Josh, I need your help here, too.]