According to the Allianz Risk Barometer 2023, the shortage of a skilled workforce is among the top 10 business risks globally. At the same time, the workforce is the biggest cost of doing business. Thus, every organization benefits from smart workforce analytics to manage workforce-related risks proactively.
Overcoming personnel challenges requires analytical skills and a deep understanding of employee motivations and retention.
We know from employee surveys that several critical events are decisive for how employees perceive the HR department in their company. Through the structured application of people analytics, companies can gain comprehensive insights at these critical moments, react in time, and optimize the experience of their employees.
The strategic implementation of people analytics provides a competitive advantage through accurate, data-driven people management that reduces workforce-related risks and contributes to the overall success of an organization. Our people analytics framework uses a holistic approach to help you better understand your ambitions and the status quo.
To pave the way for a powerful people analytics function, we have identified six steps to get you there:
It is crucial to focus on questions that generate added value and to understand business-critical challenges to use people analytics effectively.
After identifying key questions, it is crucial to understand the limitations of the data, achieve quick wins, and plan further measures for data management. Investing in reliable and ethical data is essential for the success of people analytics.
Joint governance of business and HR functions and a democratic approach encourage collaboration and transparency for greater effectiveness but require specific skills from all involved.
Introducing people analytics requires a deliberate, step-by-step approach focusing on initiatives that can be implemented in the short term and the establishment of a data-driven corporate culture. A positive response to the first steps enables an expansion to the entire organization to achieve long-term ambitions through an iterative approach.
A suitable analysis tool should only be selected once the business use cases, available data, management structure, and long-term goals have been clearly defined.
Regardless of where you are in the process of setting up people analytics, everyone involved should have a common understanding of where you stand and a shared vision for the level of ambition you want to achieve in the medium term.