Within the HR department, workforce analytics (or people analytics), has been a growing trend.
In fact, it’s still a part of HR that is finding its feet. Many companies have put workforce analytics in place, while a large group are planning on doing so in the near future.
As I write this, the world is gripped by the COVID-19 pandemic and the ripple effects for all of society. Everyone has their role to play in rebuilding once we get through, and I can see HR analytics having a critical role in providing analysis and advice to companies.
Here are some of the trends this year in workforce analytics:
#1. Things are getting more personal
HR analytics is great for providing analysis of large datasets for workplaces and fishing out any underlying trends. However, our access to technologies also allows us to be more “human-centric,” meaning we can do more to create better workplaces for individuals.
Trust has perennially been a factor when it comes to getting good data, especially as it refers to how we can encourage employees to give us what we need. One way to demonstrate that their trust is warranted is by making those people-centric choices or policies as a result of the data we get.
What examples can I think of? It could be virtually anything that pertains to the makeup of your workforce and how you can improve conditions for employees (which as we know, tends to pay off for employers too). Let’s say you have a lot of parents with school-age children; perhaps you find a way to be more flexible with scheduling so that they can spectate at after-school activities, for example.
Outside of that work-life balance scenario, of course there are factors that can help to improve the work performance of individuals. A more granular view of workforce analytics might show you who can benefit from certain training, or who has potential to go down a certain career track.
These sorts of things move beyond measuring overall employee sentiment or the obvious KPIs, such as tenure, productivity or absenteeism. If we’re going to be more employee centric, we need to demonstrate that by asking, “how will this analytics effort benefit employees?”
#2. Charters for people analytics
Speaking of gaining the trust of employees and generally following good HR analytics practices, as more companies use the discipline, more are putting together their own charters for doing so.
There’s a lot to consider when it comes to using HR analytics the “right” way. For example, you have to think about how data is collected, the purpose for collecting it, who gets to see it, whether individuals are identifiable and the overall quality of the data.
I wrote about the various ethical concerns for HR analytics a while back and those sorts of factors need to be considered in any sort of charter or set of rules for an organisation. Most employees are open to providing data, but they have to feel that it is for their benefit and that the company can be trusted with it.
You should also consider things like how to ensure data won’t be biased in some way, especially if you use any form of AI (artificial intelligence) in your analysis. There have been several examples of bias built into AI algorithms, simply because of their data sources. For example, if most of your employees in a particular role have a certain background, particular university they attended or degree held, AI can “learn” that they represent the ideal candidate for the role. It’s an in-built bias.
A charter helps people analytics to create a guiding framework Click To Tweet#3. Data from work apps
More workplaces have enabled remote work, or at least use the apps which can allow their workforce to get critical work done at any time. Off the top of my head, apps like Microsoft Teams and RSA Token are making an appearance on employee smartphones. There are probably dozens of other business-related apps you could name.
Apps like these produce a lot of personal data that could potentially be interesting to use for workforce analytics purposes, but of course ethics and data protection are huge considerations here, too.
Organisations should be careful to only access the data they need and not to cross personal lines. For example, a smartphone has location tools built-in – would it be ethical to tap into those and track the locations of employees? Personal privacy has to be respected as well.
#4. A focus on skills
Organisations have always had some sort of focus on skills, but in this age of automation, skills are a currency more than ever. HR analytics is in a position to gather data and analyse skill distribution and need for individuals and the company as a whole.
Automation doesn’t necessarily mean that thousands lose their jobs to machines, but that different skills are required for a new set of jobs (hey, HR analytics is one of them!). Skills are a focus for workforce planning and learning initiatives.
There are many examples but here’s just one I know of. An electrical company that still employs meter readers knows that, as infrastructure is replaced, there won’t be a need for them much longer. Meters are going digital and will be able to be read automatically and remotely.
The company has been transparent about this year’s planned upgrades. They have been proactive about informing their meter readers and giving them the chance to gain new skills early. For some, this might involve a total change of industry, but others have opted to upskill in areas that the company identified it will need people.
By being proactive and conducting skills analysis, the company is able to plan for their workforce of the future. They’re able to look at which skills they need to hire for and what they can develop internally. In this sense, workforce planning is happening well ahead of the need.
Outside of workforce planning, skills analysis also plays an important role in mergers and acquisitions, location strategy and learning and development. It’s an area where HR analytics can help organisations to get a competitive edge.
Final thoughts
I know these are uncertain and frightening times right now, but I’m hopeful for the future once this pandemic is over. Many of you are probably working from home now, while perhaps others are unable to work under the circumstances.
Many HR teams are currently part of pandemic plans for their workplaces and especially playing a role in supporting employees at this time. The role of analytics in workforce planning may be more important now than ever. These are unprecedented times and the human impacts must be managed.
While many operations are on a temporary pause, we know we’ll be back and we’ll be strong together. I wish you all the very best of health through these challenging circumstances.