Actually, HR, this IS Your Problem
There are many ways to categorize HR teams and HR leaders. In my (possibly overly) simplified view of the world, I usually like to categorize based on the Span of Stuff. The Span of Stuff, in my perspective, is defined by the amount of periphery topics and projects HR chooses to participate in that do not present as HR problems in the beginning but can have significant impacts on the organization. A lean span can look like an HR organization focused on ER/LR issues, getting the workforce paid, and ensuring all employee-facing policies are current. A broad span can look like an HR organization participating in conversations around customer demand forecasting, enterprise system implementation, cost center structure redesign, etc.
Like all metrics we use in HR, the number doesn’t mean much by itself, and it is not a binary indication of good/bad. I think it is a measure of HR’s willingness to be “at the table” through participation, which could be the vibe for some organizations and not so much for others (not judging here). When I see a lean span, it indicates that the organization prefers to have a more traditional HR organization focused on People Operations, in which case HR—and therefore People Analytics—tends to become the informed party on most decisions and order receivers on organizational decisions. When there is a wider span, it tends to come from HR organizations that actively participate in business discussions and are elevating the People element as a lever in everyday business operations.
The Span of Stuff HR chooses to operate on is neither good nor bad inherently, as either end of the spectrum has its pros and cons (pick your poison). However, in organizations where I have seen the People Analytics function thrive tend to have a wider Span of Stuff, and I’d like to look at a few cases of why that is.
IT
What it can sound like: [insert non-HR system here] is not part of our scope; IT can decide what and how they want to solve this
Why this is an HR problem: in this day and age, every system an organization uses impacts the workforce’s experience in one way or another. While we can debate all day long where Change Management should sit in an organization, HR usually owns the end-to-end workforce experience and, thus, all possible impacts on the workforce experience. So, while the system change may not directly relate to HR, its impacts on employees are an HR problem to solve.
Why this is a People Analytics problem: If HR data is business data, then any change in how the business data is defined, gathered, stored, interpreted, etc., will impact how People Analytics solves enterprise-level challenges.
Legal
What it can sound like: The legal team can choose the external firm they want to work with. They will be interacting more with external counsel anyway.
Why this is an HR problem: 9/10 times, HR Generalists and Analysts work directly with external law firms on ER/LR issues, compliance filings, pay equity analysis, etc. I am not sure about others, but if I must hang out with external counsel at that frequency, I would like to at least ensure I get along with them and that we have similar value systems and philosophies regarding employment-related legal challenges.
Why this is a People Analytics problem: three words: pay equity analysis. It needs to be done under legal guidance in most organizations, and more often than not, it is done with support from external counsel.
Procurement
What it can sound like: Procurement can look for the vendor / negotiate the contract. We don’t need to get directly involved in this.
Why this is an HR problem: While I love the Procurement function, I would never expect them to be experts in HR or HR infrastructure or workforce experience (I mean, have we all seen recent diagram depictions of all HR vendors on the market?!). HR needs to be involved in two aspects: 1) having a down-selected list of preferred HR vendor solutions, and 2) helping the enterprise understand the potential people impacts of any solution being considered because almost nothing can be done today without impacting the workforce in some form.
Why this is a People Analytics problem: If you have ever sat through a Procurement-led Analytics SaaS provider RFP process, you will understand why this is a People Analytics problem. If you have not yet, I sincerely hope you never have to experience that. It is a character-building exercise, to put it mildly.
Finance
What it can sound like: Finance can decide what they want to do with the cost centers; we don’t need to be a part of it.
Why this is an HR problem: Cost center structure is a huge part of organizational hierarchy. Are you genuinely going to outsource parts of organizational design and organizational effectiveness to Finance? Because by not being a part of this conversation, that is effectively what HR is doing
Why this is a People Analytics problem: Financial data is a significant input to People Analytics. FP&A and People Analytics almost have to stay attached at the hips to drive meaningful outcomes to the business.
Business Operations
What it can sound like: Why do we need to be part of the customer demand forecasting process? The business will tell us how many people they need us to hire for the next quarter.
Why this is an HR problem: One of the foundational questions any HR leader needs to be able to ask/answer is, “How does the business make money?” The ability of HR to provide value in an organization is predicated on that answer, as HR owns one of the most significant value levers in an organization—its people. Without understanding customer demand and how that is forecasted, how can HR help the organization move forward to meet its business goals?
Why this is a People Analytics problem: Because we can’t do strategic workforce planning without understanding the demand side of the equation
At the end of the day, I believe that every HR team wants to be “at the table” with the business. However, whether we arrive at the table by waiting for an invitation or by leaning in and proving our value to the organization is a choice all HR organizations must make. That choice will impact the success of the People Analytics function and determine the HR team’s ability to drive and influence change across the business.