While most HR professionals know which business performance metrics are critical to drive organizational success, many do not have the data, tools or ability to do so today.
This is according to WorldatWork’s “People Analytics Study,” which found that while 86% of the 993 organizations surveyed believe measuring productivity is important, just 36% do so. The full survey provides a comprehensive overview of 30-plus metric types and their perceived level of importance in four categories: total rewards, HR operations, learning and development and talent.
The findings reveal a disconnect between which data should be measured and what is actually being measured by organizations.
“Organizations want better insights to make faster decisions. Our study shows dramatic gaps between the current state of People Analytics and where we need to be,” said Scott Cawood, CEO of WorldatWork. “Narrowing these gaps through increases in data tracking and analytic capabilities is critical for HR teams if they are to meet the desired level of impact on organizational operations and performance.”
To highlight this sentiment, the survey found that 75% of the HR respondents believe measuring business satisfaction with HR performance was important, but just 36% of organizations do so. Additionally, just 41% of organizations measure compensation effectiveness while 81% deem it important and just 17% of organizations measure traits for success, but 70% deem it important.
The survey also found that few organizations report advanced people analytics proficiency. When asked, “how would you rate your organization’s people analytics proficiency,” only 6% of respondents said that they have very good knowledge or mastery of prescriptive analytics. In comparison, 45% of respondents report they have very good knowledge or mastery of descriptive analytics.
People Analytics is most often unstructured in organizations, informally performed by HR staff (33%) or without a dedicated structure (24%). Total rewards metric types used by organizations include incentive plan effectiveness (30%); base compensation effectiveness (41%); benefits participation rate (62%), among others.
“HR is making numerous shifts in the way it delivers value, and people analytics is on the critical path,” Cawood said. “To remain competitive and improve performance, organizations will need to accelerate their adoption and effective utilization of people analytics to more effectively respond to current and future needs in the workplace.”
About the Author
Brett Christie is the managing editor of Workspan Daily.