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5 Beliefs that can derail your progress in People Analytics   [Part 3]

Last week, we explored two more beliefs, barriers and excuses that can impede your progress when it comes to People Analytics, and what you can do about them.

This week, we will discuss number 5 and our bonus item. Here's a re-cap of the list: 

  1. People Analytics is really complex - do we have to go it alone?
  2. People Analytics means advanced statistics, mathematics and predictive models - and this scares the heck out of us.
  3. Can't my (new) HR Systems provide these analytics?
  4. IT is the Go-To group for business intelligence and analytics in our company.
  5. I don’t have the budget.
  6. HOLIDAY BONUS - To be revealed :)

5. I don't have the budget for People Analytics

The excuse of not having the budget for People Analytics runs counter to the value-driven mindset and the customer-centric approach your organization strives towards every day.  And we all know people run the business.  
 
So, if your job is people, how can you not secure the budget to understand what's going on with your employees and your programs? How can you not invest in understanding (getting the data) and then using the data and the insights to drive improvements for the business?
 
Your sales team gets up every morning with the sole purpose of making a sale; marketing with the view on creating impactful content that resonates with your target market, engineering with the view of creating a differentiated product in the marketplace. 
 
You get the picture.
 
A large chunk of HR's job today (I use "HR" to cover all aspects of talent management and the so-called traditional HR), in my opinion, should be focused on this same objective. 
 
Create value.
 
And when there is a strong return on investment, HR leadership should pursue the funding, incubating and hopefully scaling of that capability in the same way that your company founders pursued their value-creating opportunity which you now work for.
 
My perspective is that progressive businesses are looking for HR to not only keep them out of regulatory trouble and make a perfect payroll run - which are table stakes - they are looking for HR to help drive increases in revenue, decreases in costs, and to actively help them make investments where they can benefit from the best ROI.
 
  • Increase Revenue - through ensuring your key value-creating positions (like sales reps) are filled consistently, in a timely/proactive fashion with the right people who have a lower chance of turning over
  • Decrease Costs - by having laser focus on those segments of your organization who have inordinately high turnover - resulting in increased costs of turnover and impacts to productivity
  • ROI Driven Investments in People - using data to prove which recruiters are making the best decisions, which hiring managers are getting their new team members up to productivity faster, and the relative value of each recruitment channel (actual productivity by dollar spent with each recruitment channel)
While the approach to getting budget will depend on your specific company culture, here are some basic thoughts on how to get People Analytics funded:
 
  1. The Head of HR should convince the CEO/COO/Executive Team to champion the following cause - this is universal so please copy and paste if it works for you..."HR will start to make better use of data to make smarter hiring decisions, retain key employees and increase company-wide productivity."
  2. With CEO alignment, start small. 
  3. Focus on 1 project with low hanging fruit - with one of the Line of Business heads as your first key client/champion.
  4. Prove your worth with this project. Ensure there is a balance of quantitative and qualitative understanding, consultative alignment and engagement, driving to a decision and implementing change.
  5. Solicit help from the right influencers from Finance who are good with numbers and have credibility to sell value propositions and good investments.
  6. See where it goes from here.
 The best approach for not having the budget for important things is simple...validate that it's important to you and others, and then find a way to get it funded.
 
The ultimate question is.....is data-driven decision making and People Analytics important to you and your business?
 
 

6. Holiday Bonus

 Over the past 3 weeks, we have explored 5 beliefs, barriers and excuses that can impede your progress when it comes to People Analytics.
 
But there's one more - and some might call it the "elephant in the room".
 
While it's natural and logical to find systematic and corporate barriers when it comes to People Analytics, the last barrier or excuse is often a little too close-to-home to be recognized.
 
Sorry to say this so close to the festive season, and here's a little bit of tough love... it's you.
 
You are the barrier.
 
Only you, as the Head of HR, lead of Talent Acquisition, HR Business Partner or Compensation Analyst can adopt a more data-driven, business-savvy and value-creating approach to HR.
 
I invite you to contact me if you'd like to hear and have live conversations with HR leaders who have gone through this journey, have flourished from it, and who have seen HR transform itself from order-taker and policy-maker to value-creator.
 
So to bring it back to the holiday and the joy of giving. 
 
I encourage you to get right to it and give your company and business colleagues the gift of data-driven HR in 2017. 
 
You won't regret it.
 

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10 Minute Demo People Analytics

Topics: 5 Minute Fridays