People Analytics’ Awkward Place on Org Charts

So, we have some great news and some quirky news in People Analytics. The great news is that more and more organizations are adopting People Analytics and hiring dedicated resources. The quirky news is that if you ask ten organizations where People Analytics belongs on the org chart, you will probably get ten different answers.

Thus, the understated problem of where People Analytics belongs in an organization is created. I have seen some teams place it with Talent Acquisition, some with Org Effectiveness, others with HR Technology, and a few with Total Rewards. Perusing People Analytics job postings recently has become an interesting exercise of “Oh, I wonder where this organization is tossing the challenges of People Analytics into?” What I, unfortunately, don’t see as often as I’d like is when People Analytics roles report directly to the CHRO/HR leader.

Here’s the thing: People Analytics professionals have advocated, and—for the most part—the HR industry has agreed that People Analytics should be as critical to the CHRO as FP&A is to the CFO/CEO in an organization. We don’t usually see FP&A resources placed 2-4 org layers under the CFO, so why is it normal/accepted to have People Analytics resources 2-4 levels removed from the CHRO?

The real problem here isn’t the titling or the actual organizational leveling of People Analytics; it’s the fact that for People Analytics to be successful in an organization (i.e., not a check-the-box and follow-the-trend exercise), there must be dedicated strategic intention behind it. The People Analytics function isn’t mature enough yet where, like Total Rewards, it’s a no-brainer for the HR team to have, and there is a generally accepted definition of what the function does. When you bury a function that requires dedicated attention too far in an organization, it is easy to lose sight of the function and the original intention of creating the People Analytics function/role.

Having spoken with one too many People Analytics practitioners who shared that the role they are in today is not the role they signed up for or envisioned, now is a good time as any to share what I think HR functions and leaders need to ask themselves before they create People Analytics roles/teams in their organizations and hire resources to fill them:

What Returns (ROI) Are You Looking to Receive from Your People Analytics Function?

Don’t build and create a People Analytics team just for the sake of it; not every organization needs one or should prioritize one. Determine if there is a legitimate business need for the function first. Also, remember that having HR Data and Reporting Analysts is okay. You don’t always need a People Analytics team. The worst thing you can do to a People Analytics practitioner is hire them under a People Analytics title and then have them perform data and reporting tasks.

Are You Ready to Uncover the Good/Bad/Ugly of Your Organization?

People Analytics professionals are incredibly good at generating/testing hypotheses and uncovering insights. That said, only some things revealed by People Analytics will be positive at the onset; some insights will likely highlight challenges the organization is experiencing. Before you set up a People Analytics function, think about whether you and your team are ready for the change management effort all the insights may require and if your organization is prepared to experience some of the changes these insights will bring to light.

Are You Ready to Act on the Data?

Insights require action; otherwise, you are undertaking a costly science experiment. People Analytics professionals understand that not every uncovered insight will get prioritized and acted on by the organization. Still, it is always good practice to have a set of criteria for insights that will be acted on vs. those that may get deprioritized. Side note: anyone who has worked for more than a year in People Analytics knows that “let’s see how this goes” usually means “this is not going to happen.” So, just be direct when setting expectations on actions that may/may not be taken on insights.

Are You Ready to Invest in Resources and Infrastructure?

Excel, PPT, Tableau, PowerBI, [insert other free tools here], etc., are great for the short term when setting up the People Analytics function. In the long run, People Analytics requires infrastructure and resource investment to be successful. Determine if you and your organization are ready to make that long-term commitment.

Is Your Team Ready for a Large Change Management Exercise?

Implementing People Analytics is one of an HR organization's more considerable change management efforts. Not every HR team member will endorse the idea. There is a high potential of uncovering issues that may have gone unnoticed. Only some business leaders are ready to have a challenging conversation about the not-so-great things about their organization. So, when you invest in People Analytics, please remember that you also need to invest time in change management efforts.

Can You Stick with It Long Term?

To paraphrase Matthew Hamilton: People Analytics isn’t like a sprint or a marathon because that implies there is a definitive end. It’s like running away from zombies. You may need to speed up or slow down sometimes, but you never stop moving and evolving.

Doing People Analytics isn’t just about the investment you are making and the job you are posting now. It is a multi-year, long-term investment. Decide if your organization is ready for this activity and change before hiring your People Analytics team.

To HR leaders reading this: please entertain these questions for a moment before you create a dedicated People Analytics role or team. This function is relatively new to HR, and plenty of eager resources want to dive head-first into People Analytics. Please look at what you want to solve with People Analytics so that all parties sign up for this effort for the right reasons.

To People Analytics practitioners reading this: it might be good to sprinkle a few of these questions into your following interview to determine if the role fits what you are looking for.