Results Hub
Business Impact of People Analytics
Interim findings, September 2018
In July 2018 we embarked on a mission to create a hub for the People Analytics Industry - showcasing the Business Impact, Methodologies and Techstack being used in the HR industry's fastest evolving discipline.
The survey is still live and we anticipate the final conclusions will evolve as we drive even greater participation - however we wanted to share some early observations & data as some of you enter budget season! Thank you to all who have taken part and we hope you find these initial insights useful in planning your own People Analytics strategies for 2019. If you would like more information please just get in touch - and we will of course update the findings later in the year.
Also just a few notes of thanks to those who have supported this research - particularly the team at Insight222 (Jonathan Ferrar, David Green & Ian Bailie), Richard Goff @ The People Director Partnership and also Gavin Walford-Wright from DAMAC Group.
Help us Crowdsource
People Analytics
Knowledge & Insight
This Research
project is still ongoing
Join the debate
Participants ... so far
Conducted in partnership with
People Analytics Industry Guru's
CHRO's, HRBP's & Functional HR Leaders / Specialists
People Analytics professionals
Participants from UK, Europe, US & Middle East
44% participants work for Global businesses
Representing 15 core industries...
Automotive
Construction
Education
Financial Services
Food & Beverage
Healthcare & Pharmaceuticals
Hospitality, Hotels & Theme Parks
Human Resources
Manufacturing
Pharmaceuticals
Heavy Industry
Real Estate & Property Development
Professional Services
Management Consulting
Technology, Internet & Electronics
28% have more than 50K total workforce
26% have a workforce between
500 to 1000
Business Impact
Substantial Impact
56%
Substantially improved HR Credibility & Impact
41%
Substantially reduced Human Capital Risk
28%
Substantially improved Employee Engagement & eNPS
23%
Substantially improved Workforce Productivity
13%
Substantially increased Revenues
16%
State they have increased profits by more than $1m as a direct result of People Analytics insights
6%
State they have increased profits by more than $10m in the last 12 months alone
Minimal or No Impact
58%
Little or no impact on Revenue
50%
Little or no impact on EBITDA
42%
Little or no impact on Customer Satisfaction
31%
Little or no impact on Organisational Culture
29%
Little or no impact on Workforce Productivity
31%
State they are as yet NOT able to quantify the financial impact of their People Analytics activities & insights
Workforce Insights
High Impact Insights:
50%
Workforce Planning - Headcount, Outsourcing & Payroll Costs
23.5%
Workforce Productivity & ROI
21%
Employee Retention & Attrition
18%
Recruitment, Selection & Assessment
13%
Talent Management & Succession Planning
We examined the Top 5 ranked Employee Life-cycle Insights - where participants have identified the greatest business value from their People Analytics efforts when looking purely at 'People' related data
Key advice: Start with the business problem, what are you trying to solve and how can insight into your workforce help
To help visualise the #1 Ranked 'People & 'Workforce' insights.
Note 23% answered N/A indicating
Workforce insights hadn't as yet been able to deliver tangible business value. It's important to ask the right question...
...However a number of additional themes appear when you examine the Top 5 ranked responses in a little more detail
In particular noting Organisation Design & Structures, Employee Experience, Compensation, Social Collaboration,
Workforce Diversity, Working Conditions & Performance Management
Methodologies, Tools & TeckStack
Diagnostic Analysis and Descriptive Analytics are still perceived to have a greater impact than either Predictive or Prescriptive Analytics
And when we asked about the specific technologies being used here's what participants have told us.
Excel still reigns - but several tools are gaining traction - and shows the huge amount of choice in the market place.
Whilst this may be true - it could also perhaps be a reflection of the lack of adoption/relative immaturity of both Predictive and Prescriptive Analytics practice in the HR industry?
Note the significant number of organisations 'Considering' or 'Procuring' People Analytics solutions.
This supports Analyst predictions that the People Analytics sector is expected to grow exponentially - becoming a US $2.5bn+ industry by 2020 with a CAGR of 16%+
Interesting to note the vastly different TechStack families that have been highlighted too. From social media sites, desktop apps to best of breed SaaS tools. The mainstream BI tools are also being adopted as are the dedicated & specialist Machine Learning / AI platforms. Pure play People Analytics Platforms are also building market traction.
We also asked about your #1 People Analytics Technology ...the one you couldn't do without!
Visier currently tops the WordCloud pile - with several other tools mentioned
Data Integration
16%
Only 16% of respondents said their integration of Workforce data with Financial, Customer and Commercial data was either very or extremely effective
The Future
We also asked a little about the Future.
16%
Blockchain is yet to hit the mainstream Radar in HR teams thus far it seems - but some organisations are now looking at this seriously
91%
Agreed or Strongly Agreed that People Analytics is a priority focus in the next 1-3 years
