TL;DR:
- People Analytics has evolved into Systemic People Analytics, leveraging AI to inform business decisions.
- Companies struggle to collect and analyze comprehensive people data beyond traditional HR metrics.
- Lack of integrated data hinders the identification of skills, well-being drivers, performance factors, and leadership potential.
- Access to real-time people-related data is crucial to avoid detrimental outcomes like unexpected layoffs.
- Systemic HR calls for holistic problem-solving and the integration of talent acquisition, onboarding, and career programs.
- The primary skill required for HR departments is analytics, but many organizations lack integrated data.
- Three options to implement Systemic People Analytics: self-directed approach, utilizing existing HCM platforms, or investing in integrated People Analytics platforms.
- Visier, Charthop, OneModel, and CruncHR offer specialized solutions for HR data integration and comprehensive analysis.
- People Analytics platforms complement AI-driven Talent Intelligence systems, focusing on real-time analysis of core transactional data.
- Systemic People Analytics bridges the gap in data availability for effective talent management.
- Visier’s AI-powered conversational intelligence tool, Vee, empowers business professionals with systemic analytics accessible via MS Teams and Slack.
Main AI News:
In the realm of People Analytics, a significant evolution has taken place. Traditionally, this field was characterized by engagement surveys, retention studies, and input from industrial and organizational psychologists. However, a new era has emerged, thanks to a new breed of vendors harnessing the power of AI. Termed “Systemic People Analytics,” this approach consolidates all people-related data within organizations to drive crucial business decisions.
Historically, companies have faced challenges in collecting, cleaning, and analyzing data about their workforce. While HR departments excel at tracking employee counts, turnover rates, and basic performance metrics, they often struggle to delve deeper into the vast realm of HR analytics. Identifying crucial skills, understanding the drivers of well-being, pinpointing factors contributing to high performance, and developing models to assess leadership potential has remained elusive goals. Though there are existing tools and assessments to assist HR business partners, retrieving the precise data required to address specific challenges can be arduous.
Recent revelations by Mark Zuckerberg, Meta CEO, shed light on this issue. Zuckerberg learned only in February that the average manager at Meta had three direct reports. Had he possessed ongoing access to comprehensive people-related data, coupled with team performance, salaries, and turnover metrics, he could have anticipated the need for structural adjustments. Similar situations have befallen companies like Salesforce and Amazon.
Instances like these are commonplace. A global restaurant chain, for instance, lacks an accurate count of its full-time, part-time, and franchise employees. To address this deficiency, they are embarking on an extensive Human Capital Management (HCM) replacement initiative. Likewise, a major online e-commerce company experiences a significant increase in turnover but struggles to determine the underlying cause.
In a recent interview with the CHRO of the world’s largest IT and recruiting firm, we explored the concept of Systemic HR. We advocated for a new model that encourages HR professionals to adopt a holistic approach to problem-solving, rather than relying on single-point solutions. The CHRO agreed, and her organization is currently merging Talent Acquisition and Learning and Development teams to foster systemic recruiting, internal mobility, onboarding, and career programs.
When asked about the most crucial skill their HR department needs, the CHRO responded with “analytics.” The problem, she explained, lies in the lack of integrated data necessary for informed decision-making regarding employees’ goals, career progression, and developmental needs. In her tech-driven company, HR business partners must request reports from IT, a process that often takes weeks.
It is imperative to rectify this issue. In an era defined by talent shortages, burnout, and a myriad of employee challenges, integrated data is essential. In a recent gathering of People Analytics experts, we unanimously agreed that a new model is necessary. Referred to as “systemic people analytics,” this approach consolidates all people-related data, including metadata, into a unified platform.
Consider the following: People costs, such as payroll, benefits, real estate, and HR operations, typically constitute the most significant discretionary expenses for companies. Surprisingly, most organizations demonstrate greater proficiency in measuring inventory components than in integrating data about their workforce. Why is this the case? The answer lies in the complexity of the problem at hand.
Systemic People Analytics calls for the aggregation of almost all available data, encompassing employee time tracking, email traffic, organizational network data, and skills, into a unified metadata-centric system. This enables organizations to access any required information, sort and filter it according to various dimensions, and analyze trends by drilling up or down and even going back in time.
Unfortunately, traditional HCM platforms are ill-suited for such tasks since they were not designed with this level of complexity in mind. Instead, a new layer of software is necessary—a layer built on multidimensional analysis, point-and-click charting, AI capabilities, and a robust metadata structure tailored explicitly for HR purposes.
Let us delve into metadata for a moment. Every company that has developed an HR data warehouse or even a comprehensive HR spreadsheet has encountered the primary challenge of establishing clear definitions and data dictionaries for each data element related to people. Every data point must have a time-series view, a precise definition, and a shared understanding among users. For instance, does “turnover” refer to the number of employees who left during a specific year, or does it specifically pertain to “regrettable turnover” among individuals rated above a certain threshold? Clarity and consistency are paramount.
So, how can we implement Systemic People Analytics? The People Analytics community comprises some of the brightest, tech-savvy HR professionals. They comprehend these challenges and are eager to tackle them head-on. However, they are often hindered by inadequate data platforms, a disjointed HR system landscape, and a lack of prioritization from IT. It is time to overcome these obstacles and forge ahead.
There are three potential avenues to consider, each with its unique set of challenges. First, organizations can embark on a self-directed approach. This option entails a significant time investment and requires dedicated IT teams. Cleaning up data, establishing a data dictionary, selecting appropriate tools (ETL, analytics, big data, reporting), and building customized dashboards and reports are all part of this laborious process. Unfortunately, progress often falters as IT resources become scarce, leading to increased expenses.
Second, organizations can leverage their existing HCM platforms. Platforms such as Workday, SuccessFactors, and Oracle offer open analytics tools. However, these tools are primarily designed for data capture and analysis rather than facilitating transformation, metadata management, end-user reporting, and non-tabular data handling. Although these platforms are beneficial, even SuccessFactors, which acquired a company specializing in these capabilities, has not consistently achieved success across all its clients. Implementing such an approach would likely be an IT-driven project.
Lastly, and notably, the recommended approach is to invest in an integrated People Analytics platform. Leading the charge in this arena is Visier, accompanied by impressive solutions from Charthop, OneModel, and CruncHR. These platforms are purpose-built to address the precise requirements of organizations. Their expertise lies in HR data integration from multiple sources, multidimensional analysis, and comprehensive reporting and analysis to provide unparalleled insights.
While most of these platforms began as reporting systems, they have since evolved into full-fledged solutions. The clients we have engaged with have reported astounding outcomes. For instance, we recently interviewed one of the largest battery manufacturers, with over 9,000 employees projected to grow to 20,000 within five years. By utilizing Visier, the company’s HR leader uncovered inconsistencies between overtime pay, bonus decisions, and rewards in relation to manufacturing productivity and quality metrics. By linking manufacturing data with people data seamlessly (a capability offered out-of-the-box by Visier), she effectively demonstrated mismanagement within their teams.
Interestingly, she revealed that prior to employing this platform, managers were hesitant to accept her insights. This challenge is common, as business leaders often question data that lacks integrated “systemic” analytics. Consequently, decisions are delayed as leaders request a return to the drawing board. Platforms that generate real-time analyses based on comprehensive people-related data awaken business leaders to critical insights.
Many organizations already possess dashboards for periodic reviews and advisory sessions. However, a systemic people analytics platform takes it a step further. It equips managers and their analysts with real-time data, allowing them to swiftly identify and address problems without requiring the involvement of a team of PhDs. Furthermore, these platforms offer time-series analysis, enabling users to analyze past trends and pinpoint the causes of issues.
How does Systemic People Analytics intersect with Talent Intelligence and AI? Currently, these systems operate independently. AI-driven talent intelligence platforms, such as Eightfold, Seekout, Beamery, and Gloat, excel at candidate identification, skill inference, and building performance and leadership models. These platforms “learn from data” to create unbiased models that group individuals based on predefined criteria.
People Analytics platforms, on the other hand, focus on core transactional data. Through statistical analysis, they enable users to view, analyze, and report on urgent issues in real time. While AI will eventually permeate the analytics domain (Visier is on the cusp of unveiling its own AI assistant, which promises to be impressive), the current focus remains distinct for these systems.
Why emphasize this distinction now? As we transition to a future defined by Systemic HR, data will prove to be a critical limiting factor. To effectively implement the 4R model for talent acquisition (Recruit, Retain, Reskill, Redesign), HR business partners must be able to evaluate candidate pipelines, turnover drivers, required skills, internal talent pools, and team productivity simultaneously. Without robust data, we are navigating blindly, akin to the predicament many tech companies encountered when they were over-hired by thousands.
Consider this: We are entering an era spanning decades where talent shortages will reach unprecedented levels. As organizations seek rare and emerging skills, the imperative of retaining existing talent will intensify. Just as manufacturing and marketing teams possess detailed data on customers and supply chains, a similar level of granularity will become imperative for managing people.
Today, Visier unveils Vee—a groundbreaking conversational intelligence solution powered by AI and integrated with the Visier People platform. Vee leverages generative AI to enable business professionals to pose questions and receive comprehensive systemic analytics information effortlessly. Leveraging Visier’s metadata-based, multidimensional platform, Vee empowers users to access actionable insights for informed decision-making. Integrating seamlessly with MS Teams and Slack, this innovative solution provides pervasive access to systemic people analytics for every business partner, HR advisor, and even business manager across the organization.
Conclusion:
The rise of Systemic People Analytics and AI-powered solutions like Visier’s Vee revolutionize the market. Organizations now have the opportunity to harness comprehensive people data, gain real-time insights, and make informed decisions. By integrating data, addressing talent challenges, and empowering business leaders, Systemic People Analytics paves the way for strategic talent management and competitive advantage in the era of talent shortages and evolving workforce dynamics.
