{"id":6820,"date":"2023-05-02T08:15:00","date_gmt":"2023-05-02T15:15:00","guid":{"rendered":"https:\/\/bwblogdev.wpengine.com\/9-best-practices-for-implementing-people-analytics\/"},"modified":"2024-10-16T04:39:21","modified_gmt":"2024-10-16T11:39:21","slug":"9-best-practices-for-implementing-people-analytics","status":"publish","type":"post","link":"https:\/\/www.betterworks.com\/magazine\/9-best-practices-for-implementing-people-analytics\/","title":{"rendered":"People Analytics Strategy: 12 Practices to Strengthen Your HR"},"content":{"rendered":"\n<div class=\"wp-block-ht-block-toc is-style-contrasted htoc htoc--position-wide toc-list-style-plain\" data-htoc-state=\"closed\"><span class=\"htoc__title\"><span class=\"ht_toc_title\">Table of Contents<\/span><span class=\"htoc__toggle\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\"><g fill=\"#444\"><path d=\"M15 7H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><path d=\"M15 1H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1zM15 13H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><\/g><\/svg><\/span><\/span><div class=\"htoc__itemswrap\"><ul class=\"ht_toc_list\"><li class=\"\"><a href=\"#h-what-is-people-analytics\">What is people analytics?<\/a><\/li><li class=\"\"><a href=\"#h-12-effective-ideas-for-your-people-analytics-strategy\">12 effective ideas for your people analytics strategy<\/a><ul class=\"ht_toc_child_list\"><li class=\"\"><a href=\"#h-align-people-analytics-with-business-objectives\">Align people analytics with business objectives<\/a><\/li><li class=\"\"><a href=\"#h-set-realistic-expectations\">Set realistic expectations<\/a><\/li><li class=\"\"><a href=\"#h-partner-with-peers-across-the-organization\">Partner with peers across the organization<\/a><\/li><li class=\"\"><a href=\"#h-establish-a-data-governance-structure\">Establish a data governance structure<\/a><\/li><li class=\"\"><a href=\"#h-conduct-efficient-research\">Conduct efficient research<\/a><\/li><li class=\"\"><a href=\"#h-leverage-additional-data-sources\">Leverage additional data sources<\/a><\/li><li class=\"\"><a href=\"#h-find-an-effective-mix-of-analytical-tools\">Find an effective mix of analytical tools<\/a><\/li><li class=\"\"><a href=\"#h-communicate-the-value-of-people-analytics-to-stakeholders\">Communicate the value of people analytics to stakeholders<\/a><\/li><li class=\"\"><a href=\"#h-foster-a-culture-of-data-literacy\">Foster a culture of data literacy<\/a><\/li><li class=\"\"><a href=\"#h-encourage-data-based-decision-making\">Encourage data-based decision-making<\/a><\/li><li class=\"\"><a href=\"#h-transform-data-into-action\">Transform data into action<\/a><\/li><li class=\"\"><a href=\"#h-constantly-monitor-for-compliance\">Constantly monitor for compliance<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#h-how-can-a-people-analytics-strategy-improve-your-hr-performance\">How can a people analytics strategy improve your HR performance?<\/a><\/li><\/ul><\/div><\/div>\n\n\n\n<p>Technology is integrated into every aspect of human resource management, generating millions of data points to inform your workforce decisions. But to make the most of that data, you need a people analytics strategy.<\/p>\n\n\n\n<p>People analytics uses HR and business datasets to generate insights and quantify the effectiveness of your workforce. This data comes from HR software, such as performance management systems and applicant tracking systems, but it can also come from productivity software and communications systems that employees work in every day When HR leaders combine this information with other organizational data and properly analyze it, the resulting insights help organizations take a <a href=\"https:\/\/www.betterworks.com\/magazine\/hr-data-intuition\/\">data-driven approach to understanding the precursors to productivity and solving workforce problems<\/a>.&nbsp;<\/p>\n\n\n\n<p>People analytics requires specialized HR systems and procedures to generate useful and actionable insights. Meticulous planning, an open mind, and the willingness to change course are important soft skills for enterprise HR teams looking to take full advantage of people analytics\u2019 potential.<\/p>\n\n\n\n<p>Learn more about people analytics, including 12 best practices for designing and executing your people analytics strategy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-people-analytics\">What is people analytics?<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.betterworks.com\/magazine\/how-ai-is-transforming-hr-the-future-of-people-analytics\/\">People analytics<\/a> is the practice of using data to measure and analyze the performance, attitudes, and behaviors of employees in an organization. It is a subset of business analytics that focuses on people-related data such as employee surveys, data measuring engagement, turnover, and performance.&nbsp;<\/p>\n\n\n\n<p>People analytics combines data from multiple sources to understand the impact your people have on business processes. These insights can help you make better decisions about workforce staffing and talent management.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-12-effective-ideas-for-your-people-analytics-strategy\">12 effective ideas for your people analytics strategy<\/h2>\n\n\n\n<p>Apply these ideas to ensure a standardized approach to collecting, reporting, and analyzing \u200crelevant employee data when <a href=\"https:\/\/www.betterworks.com\/magazine\/6-hurdles-to-overcome-when-implementing-people-analytics\/\">implementing people analytics<\/a>.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-align-people-analytics-with-business-objectives\"><strong>Align people analytics with business objectives<\/strong><\/h3>\n\n\n\n<p>Work closely with your peers in leadership to identify how people analytics supports the business and drives outcomes. Take your cues from the \u200cbusiness strategy: What are your organization\u2019s biggest upcoming strategic priorities? How can your people data and analytics strategy improve those outcomes?<\/p>\n\n\n\n<p>If an overarching business goal is to increase production efficiency, for example, then the goal for your people analytics project might be to increase employee engagement by 10% over the next 12 months on the assumption that engaged employees tend to be more productive and efficient.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-set-realistic-expectations\"><strong>Set realistic expectations<\/strong><\/h3>\n\n\n\n<p>Implementing HR analytics isn\u2019t a magic bullet. Analytics solutions are great for assessing where you stand, how to improve HR processes, and how to support the business. But all of this takes time.<\/p>\n\n\n\n<p>Before you can conduct data analysis, much less implement a course of action, you must put key elements into place. You need to select the right HR analytics software tools, redesign internal processes to collect the best data and educate critical stakeholders. And all of that is before you collect and analyze data.<\/p>\n\n\n\n<p>Your people analytics team will need time up front to determine the scope, direction, and techniques that work best for analyzing data. They\u2019ll compare that information against HR metrics and the HR data collection itself. This work isn\u2019t easy, and your team has finite time and resources. They can\u2019t accept every request from throughout the business.<\/p>\n\n\n\n<p>To avoid overwhelming your people analytics team, confirm your priorities early on \u2013 and remind people of them as new requests come in. As your people analytics program matures, you can invest in training and resources so business leaders and front-line managers can self-service their basic analytics needs effectively.<\/p>\n\n\n\n<p>Progress might seem slow at first, but if you\u2019re deliberate in your people analytics implementation, your patience will be rewarded.<\/p>\n\n\n<div class=\"lazyblock-recommendedread-1Oozk9 align  wp-block-lazyblock-recommendedread\">        <div class=\"recommended-read-notice\">Recommended Read<\/div> \n        <div class=\"recommended-read-box\">\n            <div class=\"recommended-read-image\">\n                <img decoding=\"async\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/06\/Hyphen_Blog_Drive-Smarter-Insights-From-Employee-Feedback-With-Machine-Learning-NLP.png\" alt=\"\">\n            <\/div>          \n            <div class=\"recommended-read-text\">\n                <div class=\"recommended-read-categories\"><a href=\"\/employee-engagement\/\">Employee Engagement &amp; Retention<\/a> | <a href=\"https:\/\/www.betterworks.com\/magazine\/category\/vantage-point\/technology\/\">Technology<\/a><\/div>\n                <div class=\"recommended-read-title\">Drive Smarter Insights From Employee Feedback With Machine Learning &#038; NLP<\/div>\n                <div><a class=\"recommended-read-cta\" href=\"https:\/\/www.betterworks.com\/magazine\/drive-smarter-insights-from-employee-feedback-with-machine-learning-nlp\/\">Read Now<\/a><\/div>\n            <\/div>\n        <\/div>\n        <\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"h-partner-with-peers-across-the-organization\"><strong>Partner with peers across the organization<\/strong><\/h3>\n\n\n\n<p>Leaders in departments such as finance, operations, and marketing can contribute to your data strategy by offering unique perspectives into the organization&#8217;s current state and how they use data. These outside perspectives help you identify which people analytics questions are most important, which have traditionally gone unaddressed, and what data points you need to answer those questions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-establish-a-data-governance-structure\"><strong>Establish a data governance structure<\/strong><\/h3>\n\n\n\n<p>Before you can make the most of your HR analytics dataset, you have to prepare for effective and compliant data management. Organizations have to decide whether to store data on-premise via physical media, use cloud solutions from&nbsp;<a href=\"https:\/\/thectoclub.com\/tools\/best-cloud-service-providers\/\" target=\"_blank\" rel=\"noreferrer noopener\">reputable providers<\/a>, or some mix of on-premises and <a href=\"https:\/\/www.economize.cloud\/guides\/gcp\/cloud-storage\/overview\" target=\"_blank\" rel=\"noreferrer noopener\">cloud storage<\/a>. Talk to your peers in IT to review your options for data access and storage.<\/p>\n\n\n\n<p>There\u2019s always some risk involved when dealing with people data, especially in jurisdictions with data privacy laws such as the EU\u2019s General Data Protection Regulation (<a href=\"https:\/\/www.breachlock.com\/resources\/blog\/understanding-gdpr\/\" target=\"_blank\" rel=\"noreferrer noopener\">GDPR<\/a>). Establish data management\/governance policies that define individual and collective responsibilities for managing data. Train anyone collecting or engaging with workforce data on how to maintain data accuracy, uniformity, security, and reliability.<\/p>\n\n\n\n<p>At the organizational level, encourage the company to create a committee to oversee business data concerns. This committee should include HR, IT, security, legal, and operations. These stakeholders can design governance policies based on the business&#8217; specific needs and risks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-conduct-efficient-research\"><strong>Conduct efficient research<\/strong><\/h3>\n\n\n\n<p>In today\u2019s interconnected world, collecting data isn\u2019t a problem. Millions, even billions, of data points are available through every software tool, and data collection is a cumulative process. But endless reams of information won\u2019t do your business much good if you have poor data quality or lots of noise in your dataset.&nbsp;<\/p>\n\n\n\n<p>Be selective in the data you collect and analyze. For people analytics purposes, concentrate on data and processes that drive business outcomes in a measurable way.&nbsp;<\/p>\n\n\n\n<p>For example, if you\u2019re looking at performance management, here are some questions you might ask:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What data points are automatically collected through your performance management system or added by managers?&nbsp;<\/li>\n\n\n\n<li>Is the system prompting the most useful inputs, like performance progress over time or each team member\u2019s skills and competencies?&nbsp;<\/li>\n\n\n\n<li>Are manager-employee conversations happening often enough to generate meaningful data?<\/li>\n<\/ul>\n\n\n\n<p>If you\u2019re trying to figure out what metrics are most valuable, look at key performance indicators (KPIs) and other quantitative tools that show progress toward business goals. Don\u2019t waste time tracking HR metrics that don\u2019t add value to the business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-leverage-additional-data-sources\"><strong>Leverage additional data sources<\/strong><\/h3>\n\n\n\n<p>In addition to the data generated by your HR tech stack, include data from other internal sources (such as systems of productivity, like Salesforce, or systems of interaction, like Microsoft Teams). Other important business metrics to feed into your <a href=\"https:\/\/www.thoughtspot.com\/data-trends\/analytics\/data-analytics-tools\" target=\"_blank\" rel=\"noreferrer noopener\">data analytics tools<\/a> include financial performance, skills data, sales data, operations data, employee sentiment from internal pulse surveys, and customer satisfaction surveys.<\/p>\n\n\n\n<p>External data can also prove valuable, whether that\u2019s industry benchmarks, publicly available people data, or something else that offers context and comparison. Industry reports and competitive analysis data, for example, can help you determine how effective your people strategy is compared against peers and competitors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-find-an-effective-mix-of-analytical-tools\"><strong>Find an effective mix of analytical tools<\/strong><\/h3>\n\n\n\n<p>As you determine what people analytics tools you need, experiment with what\u2019s on the market, and take advantage of free trial periods to minimize the financial commitment. Many vendors will work with you to determine whether their software is the right fit for your organization. You can also contract with a knowledgeable consultant during the selection process.<\/p>\n\n\n\n<p>Besides HR analytics tools, a good place to start is with an up-to-date enterprise resource planning (ERP) platform. An ERP unites all of the business\u2019s key functions, producing an integrated dataset. Choose an ERP with adaptable, scalable HR modules.<\/p>\n\n\n\n<p>Ideally, you\u2019ll find a single people analytics solution that can address multiple needs, like data mining and data analysis. But that\u2019s not always possible, so be aware of how your ERP integrates with other tools, including your HR tech stack and people analytics tools.<\/p>\n\n\n\n<p>Look for comprehensive solutions from reputable vendors with good track records and excellent customer service. When reviewing people analytics software options, bring additional stakeholders into the conversation. IT and security will be tracking these systems, for instance, so you\u2019ll want their input as you decide.<\/p>\n\n\n\n<p>Finally, evaluate each solution for the user interface. Your employees will have to use these tools, and they need interfaces that are easy to learn and simple to use. Your investment will go to waste if business leaders and HR professionals dislike using your workforce analytics tools or struggle to use them effectively.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-communicate-the-value-of-people-analytics-to-stakeholders\"><strong>Communicate the value of people analytics to stakeholders<\/strong><\/h3>\n\n\n\n<p>Educate executives, managers, and employees on the power of <a href=\"https:\/\/www.cloudtalk.io\/blog\/65-of-organizations-will-make-fully-data-driven-decisions-by-2026-here-are-3-key-reasons-to-join-them\/\" target=\"_blank\" rel=\"noreferrer noopener\">data-driven decision-making<\/a>. Each of these stakeholder groups will require a different approach if you want their buy-in. Executives likely want a high-level overview of the bottom-line impact of people analytics. Managers might have more granular questions about the strategy, as they\u2019ll help collect data and will use the resulting insights to help their teams become effective.<\/p>\n\n\n\n<p>Besides stakeholder-specific education, develop messaging around the general benefits of people analytics. Explain how this field provides insights into organizational performance to help your people make better decisions. Offer people analytics strategy examples so leaders can see how other companies have found success. And to make people analytics personal for employees, \u200cshow how data-driven insights unlock opportunities for professional growth.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-foster-a-culture-of-data-literacy\"><strong>Foster a culture of data literacy<\/strong><\/h3>\n\n\n\n<p>People analytics is dependent on sound, insightful data to drive the entire process. Unfortunately, the people data generated by an organization\u2019s workforce has traditionally been viewed as subtle and qualitative \u2014 difficult to integrate within a quantitative system that\u2019s dependent on KPIs.&nbsp;<\/p>\n\n\n\n<p>But that belief is outdated. People data can be gathered, analyzed, and transformed using targeted, immediate feedback that reveals even nuanced data points within an employee base.&nbsp;<\/p>\n\n\n\n<p>Showing the value of people analytics is part of the culture shift your organization needs to make. Employees must feel empowered to use data to make decisions that drive collaboration and innovation throughout the organization. Success builds on itself, as employees see how data-driven decision-making drives organizational outcomes in their day-to-day work.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-encourage-data-based-decision-making\"><strong>Encourage data-based decision-making<\/strong><\/h3>\n\n\n\n<p>Most workplace decisions should be made with data and other evidence, rather than through emotional reactions or intuition. Uninformed decisions are risky. Effective people analytics strategies solve this problem by letting you experiment with talent management processes with more information and less risk. Companies should aim for solutions that enable businesses to shift to analytics focused on business outcomes and performance.<\/p>\n\n\n\n<p>\u201cMost people analytics today is transactional \u2014 focused on reporting compliance measures, not strategic impact,\u201d says Arnaud Grunwald, chief product officer at Betterworks.<\/p>\n\n\n\n<p>Strategic people analytics, like those enabled by <a href=\"https:\/\/www.betterworks.com\/press\/betterworks-and-visier-team-up\/\">Betterworks Advanced Analytics<\/a>, give HR the capacity to measure the strategic impact of people initiatives.<\/p>\n\n\n\n<p>No decision is without risk, and no one has a perfect track record. But a data-driven approach to decision-making ensures that you take a grounded, rational approach, track your progress, and make adjustments over time to produce consistently strong outcomes.<\/p>\n\n\n\n<p>For each talent analytics use case, use a core set of three or four key results as the basis of HR\u2019s strategy and decision-making. Analyze key metrics such as attrition, absenteeism, recruiting, and other quantitative measures that affect the workforce and your organization.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-transform-data-into-action\"><strong>Transform data into action<\/strong><\/h3>\n\n\n\n<p>Raw data needs context that everyone can understand so they can use those insights to make better business decisions. To benefit from people analytics, your data has to tell a story. It fills in the blanks for the first and second acts of the narrative and, when interpreted correctly, provides direction for the final act. A narrative communicates your findings to key stakeholders. Translating the data and analysis into narrative form helps you glean meaningful insights, determine the right course of action, and communicate those conclusions to others. You can take it one step further by thinking about how to use data visualizations to help communicate your story. Tools like Betterworks Advanced Analytics, for example, can bring data to life with data visualizations that support your narrative and prompt stakeholders to act.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>When you\u2019ve effectively gathered people data, workforce analytics will reveal the most effective next steps.<\/p>\n\n\n<div class=\"lazyblock-recommendedread-ZqMx2P align  wp-block-lazyblock-recommendedread\">        <div class=\"recommended-read-notice\">Recommended Read<\/div> \n        <div class=\"recommended-read-box\">\n            <div class=\"recommended-read-image\">\n                <img decoding=\"async\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/04\/EmpowerHR-Preview-QA-Paul-Rubenstein-of-Visier-Thumbnail.jpg\" alt=\"\">\n            <\/div>          \n            <div class=\"recommended-read-text\">\n                <div class=\"recommended-read-categories\"><a href=\"https:\/\/www.betterworks.com\/magazine\/category\/vantage-point\/ai-people-analytics\/\">AI &amp; People Analytics<\/a> | <a href=\"\/okrs\/\">Strategic Alignment &amp; Execution<\/a><\/div>\n                <div class=\"recommended-read-title\">Paul Rubenstein: \u2018HR Data Is Business Data\u2019<\/div>\n                <div><a class=\"recommended-read-cta\" href=\"https:\/\/www.betterworks.com\/magazine\/paul-rubenstein-hr-data-is-business-data\/\">Read Now<\/a><\/div>\n            <\/div>\n        <\/div>\n        <\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"h-constantly-monitor-for-compliance\"><strong>Constantly monitor for compliance<\/strong><\/h3>\n\n\n\n<p>All industries are subject to data and information regulations. Every organization needs an internal vetting process that ensures your data collection, analysis, and use falls within compliance standards and guidelines. And for regulations like GDPR, compliance is an ongoing process.<\/p>\n\n\n\n<p>Data compliance takes numerous forms: clear policies, training on data practices, delegated monitoring and reporting responsibilities, and a single system to track \u200cdata within the organization. This system should be able to detect suspicious or unauthorized activities. Schedule regular compliance checks to ensure that the organization is adhering to \u200cdata governance policies.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"580\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2022\/05\/People-Analytics-Strategy-12-Practices-to-Strengthen-Your-HR-SEO-Blog-Internal-1024x580.jpg\" alt=\"12 Ideas fro Your People Analytics Strategy Graphic\" class=\"wp-image-90747\" srcset=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2022\/05\/People-Analytics-Strategy-12-Practices-to-Strengthen-Your-HR-SEO-Blog-Internal-1024x580.jpg 1024w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2022\/05\/People-Analytics-Strategy-12-Practices-to-Strengthen-Your-HR-SEO-Blog-Internal-980x555.jpg 980w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2022\/05\/People-Analytics-Strategy-12-Practices-to-Strengthen-Your-HR-SEO-Blog-Internal-480x272.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-can-a-people-analytics-strategy-improve-your-hr-performance\">How can a people analytics strategy improve your HR performance?<\/h2>\n\n\n\n<p>Your people analytics strategy provides actionable, data-driven insights to help everyone in the organization make better decisions. People analytics takes your data and helps you put it to work \u2014 proactively identifying what\u2019s working and what needs to be improved, as well as developing targeted initiatives that drive business outcomes.<\/p>\n\n\n\n<p>By leveraging the power of data, people analytics can create a competitive advantage for your organization. You&#8217;ll make better real-time decisions about talent, workplace policies, and strategic business direction. With the right implementation and adequate support, your people analytics strategy will become an invaluable asset for driving business impact through HR.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.betterworks.com\/magazine\/how-people-analytics-will-take-hr-to-the-next-level\/\">Discover how to use people analytics to take HR to the next level<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Explore nine big data analytics best practices for designing and executing your people analytics strategy.<\/p>\n","protected":false},"author":111,"featured_media":90748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"Data requires a buy-in from every level of an organization to reveal it\u2019s true impact. Like many other aspects of modern industry, half measures prevent an enterprise from reaching maximum productivity, expanding its customer base, or elevating its brand. Analytics and the data that drives it is no different, requiring cohesive, comprehensive adoption across the entire organization, from marketing and logistics to finance and HR. Any weak link that heavily relies on intuition or other outdated forms of strategizing is doing the whole enterprise a disservice.\n\n<!--more-->\n\nIn looking specifically at the data and processes that stem from an organization\u2019s workforce -- people analytics -- what might be rooted in HR has a widespread effect on every level of an enterprise. <a href=\"https:\/\/www.betterworks.com\/people-analytics-reveals-top-reasons-for-attrition-and-it-isnt-compensation\/\">People analytics,<\/a> the usage of data sets that allow companies to quantify the broad-ranging effectiveness of their workforce, requires specialized systems and procedures to generate useful and actionable insights.\n<h2><strong><span style=\"color: #4dc6d1;\">Have a Plan<\/span><\/strong><\/h2>\nTo make the most of people analytics, organizations are well-served taking a deliberate and systematic approach in establishing a foundation across an enterprise, earning that ever-important buy-in from departments and personnel, and implementing systems that transform people data into authentic, revealing insight.\n\nLeveraging our own expertise in critical feedback platforms and people analytics, Betterworks Engage has put together a set of nine best practices to best integrate people analytics within an organization. As you\u2019ll see, meticulous planning, an open mind, and flexibility to change course all go a long way in helping an enterprise take full advantage of the prescient insights afforded by people analytics.\n<h2><span style=\"color: #4dc6d1;\"><strong>1. Foster Data-Based Decision Making<\/strong><\/span><\/h2>\nSuccess stems from effective decision-making that takes all available information into account and makes intelligent choices for the betterment of the organization. In the era of big data and analytics, organizations now have access to a wealth of precise, real-time information to base their decisions. Fostering a decision making culture across an enterprise that utilizes targeted data as its primary driver establishes a sound foundation for people analytics to grow from.\n\nA culture that holds people analytics as a pillar is one that encourages innovative thought and spirit, is open-minded to calculated risk-taking, and places a continuous emphasis on learning and development. Enterprises that place sufficient attention and effort to data-based decision display a set of <a href=\"https:\/\/blog.capterra.com\/how-to-build-a-data-driven-decision-making-culture\/\" target=\"_blank\" rel=\"noopener noreferrer\">similar characteristics<\/a>, including:\n<ul>\n \t<li>Decision makers prioritize an evidence-based strategy rooted in authentic, pertinent data rather than intuition<\/li>\n \t<li>Technology and appropriate metrics actively monitor for accountability and transparency in action and performance<\/li>\n \t<li>Individuals and teams utilize hypothesis testing to make informed decisions and learn from mistakes<\/li>\n \t<li>Management uses KPIs to gauge individual, group, departmental, and organizational performance, tracking trends and making real-time changes as dictated by the data<\/li>\n<\/ul>\nWhile the KPIs will obviously change according to the audience and needs, emphasizing their importance is a critical component of maintaining a focus on data throughout the enterprise. Organizations that continue to educate their workforce on the metrics, why they\u2019re so vital to operations, and how they fit into the larger picture will develop an understanding across their employees and teams that people analytics flourish within.\n<h2><span style=\"color: #4dc6d1;\"><strong>2. Data Management<\/strong><\/span><\/h2>\nPeople analytics only reaches its potential within an enterprise if the data that drives it is properly organized and managed. In fact, this notion has traditionally been a significant barrier to organizations, not historically lacking for the data itself but, instead, lacking the ability to gather and analyze it in a cohesive and productive manner. Use these basic <a href=\"https:\/\/www.analyticsinhr.com\/blog\/hr-analytics-implementation-step-by-step-approach\/\" target=\"_blank\" rel=\"noopener noreferrer\">best practices<\/a> to manage data and give your people analytics systems an efficient and effective base to operate from:\n<ul>\n \t<li>Establish data governance policies that define and dictate individual responsibilities over the accuracy, uniformity, and reliability of an enterprise\u2019s data<\/li>\n \t<li>Since HR will likely task IT with the upkeep of the analytics systems, IT should also align the different datasets and definitions to the proper stakeholders, including IT itself and HR but also finance, accounting, and any other department that is reliant on specific subsets of data<\/li>\n \t<li>Use a core set of <a href=\"https:\/\/www.analyticsinhr.com\/blog\/human-resources-key-performance-indicators-hr-kpis\/\" target=\"_blank\" rel=\"noopener noreferrer\">three or four KPIs<\/a> as the basis of HR\u2019s strategy and decision making, including the active monitoring and analysis of key metrics like attrition, absenteeism, recruiting, or any other quantitative measures that impact the workforce and organization<\/li>\n<\/ul>\n<h2><span style=\"color: #4dc6d1;\"><strong>3. Find an Effective Mix of Analytical Tools<\/strong><\/span><\/h2>\nThe market for data mining, analysis, and visualization tools grows by the day. In theory, such an abundance of choices in analytical platforms should make it easy for organizations to assemble an ideal mix that makes gathering, interpreting, and transforming people data into actionable insights easy. However, such a dizzying variety often leaves many enterprises on the outside looking in as they procrastinate in decisions or, perhaps even worse, land on solutions that don\u2019t sync well with one another and are fraught with inefficiencies.\n\nOvercoming technology barriers and finding an effective mix of analytical tools is an essential step in <a href=\"https:\/\/www.betterworks.com\/6-hurdles-to-overcome-when-implementing-people-analytics\/\">implementing people analytics<\/a>. To that point, <a href=\"https:\/\/www.visier.com\/hr-leadership\/why-data-is-the-key-to-strategic-hr-decisions\/\" target=\"_blank\" rel=\"noopener noreferrer\">recent research<\/a> has shown that 44% of organizations recognize that inadequate investment in HR-oriented platforms has made people analytics more challenging to utilize sufficiently.<img class=\"alignnone\" style=\"width: 1000px; margin: 20px 0px 0px;\" src=\"https:\/\/cdn2.hubspot.net\/hubfs\/2242239\/Hyphen-Blog_9-Best-Practices-for-Implementing-People-Analytics_Quotes2.jpg\" alt=\"Effective Mix of Analytical Tools\" width=\"1000\" height=\"200\" \/>\n\nLikewise, 54% of surveyed enterprises state that unreliable, imprecise, and poorly organized data also add to their people analytics difficulties. Obviously, many enterprises are failing to identify that effective mix of analytical tools to fully leverage<a href=\"\/blog\/how-ai-is-transforming-hr-the-future-of-people-analytics\" target=\"_blank\" rel=\"noopener noreferrer\"> people analytics<\/a>. A few simple tips can help organizations resolve those issues and quickly put people analytics to work in a far more beneficial manner.\n<ul>\n \t<li>Experiment with different modern tools and take advantage of free trial periods to minimize the financial impact of your choices<\/li>\n \t<li>Start with an updated or newer version of an ERP platform with sufficient and adaptable HR modules that are scalable and readily communicate with the most useful analytical systems<\/li>\n \t<li>Look for comprehensive solutions from reputable vendors with good track records and excellent customer service that can address multiple needs like data mining and analysis within a single platform<\/li>\n \t<li>Place particular consideration towards the UI, choosing solutions that are user-friendly and don\u2019t create another barrier to widespread adoption of people analytics in the enterprise due to a confusing interface and functions<\/li>\n<\/ul>\n<h2><span style=\"color: #4dc6d1;\"><strong>4. Use Questions and Unknowns as a Guide<\/strong><\/span><\/h2>\nEvery successful journey begins by knowing where you want to end up and then planning the best route. From an enterprise perspective, this notion is fulfilled by having a thorough understanding of goals as well as any deficiencies preventing an organization from reaching its maximum potential. For that reason, finding two or three central questions or unknowns responsible for primary pain points is a useful starting point for developing a stronger relationship with data and the insights it provides.\n\nOnce participants have identified these unknowns, the data required to reveal the drivers behind the pain points can be instrumental in developing ongoing processes that continually collect, interpret, and leverage vital data. From an HR and management perspective, some of those <a href=\"https:\/\/www.analyticsinhr.com\/blog\/question-human-resources-analytics\/\" target=\"_blank\" rel=\"noopener noreferrer\">enlightening questions<\/a> typically include:\n<ul>\n \t<li>Does my workforce contain the talent needed to reach organizational goals?<\/li>\n \t<li>Which current employees have the highest ceilings?<\/li>\n \t<li>How much is <a href=\"\/how-people-analytics-can-help-solve-attrition\" target=\"_blank\" rel=\"noopener noreferrer\">attrition<\/a> costing the organization?<\/li>\n \t<li>How is the employee experience and culture affecting individual and enterprise performance?<\/li>\n<\/ul>\nDepending on the specific weaknesses within any given culture, the very act of compiling and analyzing data needed to answer those questions on an ongoing basis can be an incredibly powerful driver of a robust people analytics strategy.\n<h2><span style=\"color: #4dc6d1;\"><strong>5. Efficient Research<\/strong><\/span><\/h2>\nAs mentioned, organizations aren\u2019t lacking for data in this hyperconnected, digitized world. The problem, of course, is that seemingly endless reams of information still don\u2019t do an enterprise much good if it doesn't use targeted, insightful data as the focal point to research and strategy. For people analytics purposes, a good rule of thumb is to concentrate on data and processes that can <a href=\"https:\/\/www.hrdive.com\/news\/five-ways-hr-really-can-impact-business-strategy\/407391\/\" target=\"_blank\" rel=\"noopener noreferrer\">add value to the organization<\/a> in some way.\n\n<img class=\"alignnone\" style=\"width: 1000px;\" src=\"https:\/\/cdn2.hubspot.net\/hubfs\/2242239\/Hyphen-Blog_9-Best-Practices-for-Implementing-People-Analytics_Quotes3.jpg\" alt=\"Efficient Research\" width=\"1000\" height=\"200\" \/>\n\nLook at organizational goals relative to the workforce, employee-based goals to obtain, and use KPIs and other quantitative tools to make certain all analytical efforts address areas that need to be monitored and improved to add value. Otherwise, it\u2019s too easy to get caught up in an ocean of data and lose both focus and impact.\n<h2><span style=\"color: #4dc6d1;\"><strong>6. Transform the Data to Action<\/strong><\/span><\/h2>\nThe best data tells a story. It fills in the blanks for the first and second acts of the narrative and, if interpreted correctly, provides a distinct direction for the final act. Put another way, assuming you\u2019ve effectively gathered your people data by letting precise and immediate feedback chart your course, <a href=\"\/blog\/6-hurdles-to-overcome-when-implementing-people-analytics\" target=\"_blank\" rel=\"noopener noreferrer\">people analytics<\/a> will reveal the most effective next steps in the process. Data that sits idly by and never gets transformed into action is just as useful as no data or insight at all. Aside from efficiency and productivity metrics, converting your data into actionable insight has other benefits as well, including:\n<ul>\n \t<li>Forms formidable strategic insights when coupled with the experience and business acumen of an organization\u2019s management talent<\/li>\n \t<li>Provides strong evidence to employees and other stakeholders that data is an essential component to operations and people-based decision making, further solidifying the foothold that people analytics can realize within the organization<\/li>\n \t<li>HR and other stakeholders can substantiate their decision making regarding personnel or other facets of the workforce with pertinent data that led to the actions taken<\/li>\n<\/ul>\n<h2><span style=\"color: #4dc6d1;\"><strong>7. Have Realistic Expectations<\/strong><\/span><\/h2>\nIf an enterprise is new to people analytics or overhauling their existing processes, retaining realistic expectations is important. Utilizing something as powerful as data-driven people analytics can play a pivotal role in maximizing an organization\u2019s workforce, but a stable foundation must first be established so an enduring, beneficial system is built on top of it.\n\n<img class=\"alignnone\" style=\"width: 1000px;\" src=\"https:\/\/cdn2.hubspot.net\/hubfs\/2242239\/Hyphen-Blog_9-Best-Practices-for-Implementing-People-Analytics_Quotes4.jpg\" alt=\"Realistic Expectations\" width=\"1000\" height=\"200\" \/>\n\nThe majority of any people analytics project is spent on determining the scope, direction, and techniques best utilized as well as the data collection itself. Beneficial technology, efficient internal procedures, and an informed, cohesive perspective amongst the different stakeholders must first be inline before analysis and subsequent action take place. All of these various components take time and effort but, on the bright side, become far faster and more streamlined with practice. Patience is, in fact, a virtue and will be well-rewarded if an organization is deliberate in its implementation of an efficient, purposefully designed people analytics framework.\n<h2><span style=\"color: #4dc6d1;\"><strong>8. Constantly Monitor for Compliance<\/strong><\/span><\/h2>\nAll industries are subject to data and information regulations, some are just more stringent than others. No matter what industry an enterprise serves, there must always be an internal vetting process that ensures an organization\u2019s data collection, analysis, and utilization falls within compliance standards and guidelines.\n\n<img class=\"alignnone\" style=\"width: 1000px;\" src=\"https:\/\/cdn2.hubspot.net\/hubfs\/2242239\/Hyphen-Blog_9-Best-Practices-for-Implementing-People-Analytics_Quotes1.jpg\" alt=\"Monitor for Compliance\" width=\"1000\" height=\"200\" \/>\n\nAn enterprise\u2019s legal team and other relevant parties should be a part of the overall data throughput, particularly as it concerns people analytics and potentially sensitive information. Given the harsh spotlight placed on social media and marketing firms in recent months concerning data privacy -- as well as <a href=\"https:\/\/www.shrm.org\/resourcesandtools\/legal-and-compliance\/employment-law\/pages\/global-gdpr-hr.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">GDPR<\/a> and other regulatory forces -- it simply makes good business sense to maintain a constant eye on compliance guidelines. Otherwise, both the legal ramifications and damage to a brand can be devastating.\n<h2><span style=\"color: #4dc6d1;\"><strong>9. Use Continuous Feedback to Drive the Process<\/strong><\/span><\/h2>\nPeople analytics is dependent on sound, insightful data to drive the entire process. Unfortunately, the people data stemming from an organization\u2019s workforce has traditionally been viewed as subtle and qualitative, difficult to integrate within a quantitative system that is dependent on KPIs and other metrics for guidance and transparency. However, those traditional notions are no longer limiting forces in <a href=\"\/blog\/how-people-analytics-will-take-hr-to-the-next-level\" target=\"_blank\" rel=\"noopener noreferrer\">an effective people analytics strategy<\/a>.\n\nPeople data can now be gathered, analyzed, and transformed using targeted, immediate feedback that reveals even nuanced data points within an employee base. Employers that fully leverage such abilities are those that collect feedback on a continuous basis, not just once or even sporadically. When an enterprise is constantly collecting and transforming feedback, it is perpetually driving action and growth as well.\n\nThis is precisely where Betterworks Engage\u2019s feedback solutions can lend such a competitive advantage in maximizing both the individual contributions of a single employee as well as the overall workforce. Through frequent <a href=\"https:\/\/www.betterworks.com\/do-employee-engagement-surveys-really-work-6-common-reservations\/\" target=\"_blank\" rel=\"noopener noreferrer\">surveys<\/a>, pulse polls, heat maps, and other technology-driven tools, Betterworks Engage gives enterprises immediate insights that efficiently identify strengths, weaknesses, and rising trends that can be integrated into an overarching people analytics strategy that is forward-looking, precise, and rooted in real-time data.\n\nOrganizations that best leverage the wide-reaching abilities of people analytics will be more agile, efficient, and informed than the competition. Using Betterworks Engage's<a href=\"https:\/\/www.betterworks.com\/employee-feedback-foundation-to-a-better-employee-experience\/\" rel=\"noopener noreferrer\">\u00a0feedback tools<\/a> ensures the data feeding the people analytics is authentic, pertinent, and immediate. With Betterworks Engage\u00a0as a partner in your enterprise\u2019s analytics strategy, you\u2019ll always have the vital information needed to make the most of your workforce and talent.","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[3559,3307],"tags":[],"featured_location":[],"industry":[],"class_list":["post-6820","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai-people-analytics","category-performance-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.1 (Yoast SEO v23.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>12 Ideas for Implementing a People Analytics Strategy<\/title>\n<meta name=\"description\" content=\"People are the most important part of your business. 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