This article continues the discussion from People Analytics 101 Part 1: An Introduction to People Data.
Research from Bersin by Deloitte, based on over 7,000 responses from global HR practitioners, shows that people analytics has the biggest gap between importance and readiness of any HR challenge - a 32-point difference. This is the first time people analytics has made it onto the list, and the bottom five issues are all influenced by a shift to a digital, data economy and its impact on HR.
Why the analytics gap exists
More companies are going digital and it is increasingly important that HR understands how they should be supporting this process. Although analytics can require some very complex and different skills to those that HR practitioners traditionally have, a lot of the heavy lifting can be done with programs that make the task easier, or with temporary specialist input from within your own business intelligence team or from outside the business.
The real challenge with analytics - and the part of it that HR can excel at - is asking the right questions of the data. This does not require technical skills, but it does require some critical and creative thinking.
What questions should we ask of the data?
The most important skill in people analytics is not statistical analysis - it is knowing what to ask. Start with the questions your business leaders are already asking: Who are our highest performers? Where are our succession gaps? What is driving attrition in our top talent? Which roles have the highest impact on business outcomes?
Then go further. The greatest value in people analytics is created by giving the business questions they have not thought to ask - questions that reveal patterns, predict risks, and surface opportunities that would otherwise remain hidden.
Storytelling with HR data
HR stories are no different from any other kind of story. They should stimulate discussion, offer insights that surprise, and keep people interested in what is happening - but more importantly, what will happen in the future.
A good HR data story does not just report what happened. It explains why it happened, what it means for the business, and what should be done about it. When HR can tell that kind of story - backed by data - they earn a permanent seat at the strategic table.