Chapter 3 People Analytics and Human Capital Trends

What continues to be a significant barrier in the use of people analytics?

finding or developing the right talent

Those organizations using AI-aided tools and technologies to collect, integrate and analyze data represent:

the organizations that are most mature in using people analytics

The success of a people analytics program lies not just in data interpretation, but in what other area?

the skill set of the HR business partners and staff

The success of a people analytics program relies on data interpretation and:

the skillset of the HR business partners, analysts, and staff

Deloitte's 2018 Global Human Capital Trends survey results indicate

the use of workforce data to analyze, predict, and improve performance has exploded in practice and importance over the last few years

Where human capital trends are concerned, enterprises are going to need to adapt, because:

the ways people live and work are changing dramatically

Purpose of people analytics:

Provide HR and business leaders with actionable people insights that improve business outcomes

Patrick Coolen's Best Practices

Rule 2: Focus on business relevance Rule 3: Generate actionable insights Rule 5: Involve legal & compliance Rule 6: It's a process Rule 8: Success requires balance

Data Analyses

Run models Discuss intermediate results Decide on extra analyses Run final models

Approximately how long have people analytics been in use by businesses?

Since about 2001

HR metrics

Specific indicators that are used to measure progress or achievement.

HR needs to respond to which four dimensions to prepare their organizations for the future?

mindset, focus, lens, and enablers

People Analytics

*Application of analytics to people data or, to avoid the circular reference, insights derived from an organization's employee data* -A data-driven approach to people-related decisions and practices *supports effective action on a range of high-priority issues including diversity, gender pay equity, skills gaps, and retention rates*

Coolen's 4 step approach to the people's analytic process

1. Intake and Design 2. Data Cleaning 3. Data Analyses 4. Sharing Insights

Intake and Design

Contracting senior management Contracting legal Determine business question Determine data sources Approving research proposal

Data Cleaning

Data collection Connecting datasets Descriptive analyses Design models

Your department is developing a people analytics pilot plan and you've been tasked with identifying potential implementation challenges. Which of the following points would you include in your report?

Develop an education plan to address the HR mindset

Sharing Insights

Discuss final models Interpret insights Create business presentation Discuss with business Advise business on insights Incorporate insights in strategies or activities

You're drafting a briefing for HR management on metrics and people analytics. Which of the following best addresses the relationship between the two?

HR metrics are inputs to the people analytics process

Human Resource leaders are concerned about which of the following, in regard to people analytics?

HR professionals aren't skilled enough in data interpretation to understand its implications

At Nielsen, people analytics showed the lack of internal mobility was an issue where employee retention was concerned. How were people analytics used to solve the issue?

HR professionals reviewed the analytics and then developed an internal mobility program, which decreased turnover by almost 50%

At Nielsen, people analytics showed lack of internal mobility was an issue where employee retention was concerned. How were people analytics used to solve the issue?

HR professionals reviews the analytics and then developed an internal mobility program, which decreased turnover by almost 50%

In her role as an HR leader, Ayesha has delivered some spectacular business outcomes using people analytics. What challenge might she face now that this has occurred?

Her business leaders may have unrealistic expectations around people analytics capabilities

Which of the questions below are CHROs attempting to strategically answer for their organizations with people analytic data?

How do we identify and predict our next group of successful leaders

If a company was looking to set up a new distribution center, how could it leverage people analytics to help decide on the location?

People analytics could provide data on the employees to work at the distribution center in that geographic area

When were people analytics first used by a company?

In 2001, when Merck first started using people data to inform decisions

Companies are greatly expanding the type, nature, and level of data to analyze. What does this behavior indicate?

It illustrates the accelerating pace of people analytics production

If we're examining data and we know that 16% of all employees have been put on some sort of corrective action plan, what is the first problem we have with this information?

It's just one data point, so we don't know if that's low or high

Up until recently, 10-15% of large organizations were engaged in building people teams and databases. Where is that number today?

It's risen to 69% of all large organizations

You are having lunch with a HR colleague and mention an article you read on people analytics. Your colleague isn't familiar with the concept and asks you to clarify. Which of the following statements best defines people analytics?

People analytics is the process of deriving insights from an organization's employee data

Organizations are at different levels of maturity when t comes to adopting people analytics. Those organizations that are using AI-aided tools and technologies to collect and analyze data are classified as:

Level 4, the most mature in using people analytics data

How is the term "people analytics" defined?

People analytics are insights derived from an organizations employee data

Your HR team is discussing potential applications for people analytics. Which of the following statements best summarizes the strategic potential of people analytics?

People analytics can impact a broad range of human resource and organizational issues

What is the key distinction of people analytics when it's compared to HR metrics?

People analytics makes the connection between people drivers and business outcomes

Your manager has asked you to summarize the implications of people analytics for HR professionals. Which of the following points should you include in your summary?

There is a significant people analytics skills gap

Nielsen used twenty pieces of data to determine a solution to its employee turnover issue. How do we classify those twenty pieces of data?

They are classified as HR metrics

As a business leader, Jackie has always relied on her intuition when it comes to hiring new people, moving them into new roles, and engaging them to stay on board with the company. Which of the following statements is true?

This is a challenge when it comes to implementing people analytics

Business leaders want to rely on "gut feelings" when making HR decisions. Which of the following is a true statement?

This reliance is reason why implementing people analytics can be challenging

Why do companies want to use people analytics in their business

To provide and business leaders with actionable people insights that improve business outcomes

A best practice in people analytics suggests that it's not enough to just identify the problem. An HR professional must also:

generate actionable insights

People analytics is a process and ____________________________________can take up 75% of project timeframe

honing in on the research question and model, selecting the data, and so on

Among the best practices of people analytics is understanding that it's a process. What can take up to 75% of your project time?

honing in on the research question, developing the model, selecting the data, and so on.

People analytics can be described as:

insights derived from an organization's employee data

As a best practice in people analytics, what should you request for projects resulting from your analysis?

legal approval

People Analytics are used in business to:

provide business leaders and HR with actionable people insights that improve business outcomes

People analytics are used in business to:

provide business leaders and HR with actionable people insights that improve business outcomes

When compared to HR metrics, the key distinction of people analytics is:

that it makes the connection between people drivers and business outcomes

Which of the following is a significant barrier in the use of people analytics?

the ability to find or develop the right talent for interpreting data