Ten Inconvenient Truths About People Analytics

I have worked in People Analytics across multiple organizations for over seven years. Here are ten things I learned the hard way:

1. There isn’t a clear distinction between Reporting and Analytics for most HR organizations:

As a People Analytics professional, you may have expected your role to be more analytics-driven, but you often run reports and manually create dashboards. This can be disappointing, but it’s not necessarily a setback. It's important to remember that not every organization is mature enough for fully functional People Analytics, and it takes time to get there. Suppose you find yourself in a situation where you are creating reports and dashboards. In that case, I encourage you to view it as an opportunity to build your analytics organization from the ground up. Start with the reports and work towards the analytics-driven role you envisioned.

2. More likely than not, you will need to create your own HR data and data governance strategy:

Although many HR organizations have already incorporated HR data architecture and governance as part of their strategy, some are only beginning their People Analytics and data journey. So, you may be responsible for teaching your stakeholders about the importance of HR data, its storage, and data governance. The sooner you prepare for this, the easier it will be to discuss the analytics value chain and the required inputs.

3. You won’t start with 100% buy-in from the whole HR team:

Change can be difficult, especially when accepting new things in the workplace. Even if the HR leadership team had the best intentions in creating the People Analytics function and role, it is unlikely that they could get 100% buy-in from the entire HR team on the necessity of this role. Therefore, do not assume that just because a role is created for People Analytics, the organization is ready to support all the work you will be doing. The first part of your job will likely be to advocate for people analytics to those who may not see its value.

4. People like dopamine over cortisol:

If you have ever wondered why some HR resources prefer to tackle fire drills rather than taking the time to diagnose issues and identify solutions with you, you are not alone. Based on my observations, the answer is relatively simple: the dopamine hit we receive when we get a shout-out or a "thank you" from a business leader outweighs the cortisol we expect to experience when we undertake a longer-term project that may not have an immediate result. The trick here is not to force your HR team to sit through the analytics project with you but rather to figure out how you can create the same dopamine effects when they engage in analytics (e.g., perhaps they work with a leader who will praise them for data visualizations) and create a win-win scenario.

5. Reward drives action:

The idea “for the betterment of the organization” can only motivate us to a certain extent, particularly when we have other daily tasks to manage (see #4). Therefore, before implementing any analytics initiatives, it is crucial to consider the benefits for all key stakeholders. Answering the question “What is in it for me?” for your critical stakeholders will help ensure the success of your analytics initiatives.

6. Data happens at the intersection of people and technology:

I don't know how else to tell you this: you can't do People Analytics simply by focusing on numbers and technology. Context is crucial when it comes to people. Also, it's impossible to champion People Analytics without understanding how technology and business processes drive data collection and presentation. As People Analytics practitioners, we possess unique skills to effectively navigate the intersection of technology, processes, and the human context. All three elements are essential to our work, and we need all of them to deliver value to the organization.

7. Most HR processes are designed without thinking about data:

I wondered why exit interview information was scattered across various locations at some organizations. When I started designing business processes for HR Operations, I finally understood the reason behind this. When developing and reviewing HR processes, it's common to prioritize ease of use. This is understandable because HR departments have traditionally been asked to achieve more with fewer resources. Therefore, it's natural for us to avoid adding extra workload to our team's responsibilities. When I reach my sixth round of end-to-end process reviews as a process designer, I often struggle with the debate of where a task box should be. At this point, I scarcely have the brain capacity to think about the data collection process and what we will do with the data afterward. Therefore, People Analytics practitioners must be involved in the end-to-end design of HR processes.

8. Trust is crucial and takes work:

It is easier for people to digest and process information from a source they trust. So, before presenting your new model that showcases the potential for bias in hiring decisions based on function, it's essential to invest time and effort in building trust with your audience. Otherwise, it may be easier for your audience to poke at your model and tell you about all the reasons why 3% of your data input is inaccurate and how, in 1% of the cases, your model doesn’t hold true.

9. The role of HR is evolving, but not everyone is growing with it:

Over the past 20+ years, how HR is taught in schools has become vastly different from what is required to be a successful HR practitioner today. The role of HR has undergone a rapid transformation in the last five years, with the emergence of analytics, skills data, automation, AI, and other technologies. However, given the hectic nature of our day-to-day work, it can be extremely challenging to stay on top of these changes and keep up with the constantly evolving nature of this function. More likely than not, you may be collaborating with stakeholders who still believe that the primary role of HR is to handle employee relations issues. It's essential to remember that as a People Analytics practitioner, your responsibility is not to pass judgment but rather to educate and promote awareness. This way, as you develop and expand People Analytics, you will also enhance your organization's HR function.

10. You will need to stick your foot in the door more often than you expect:

It's not uncommon for HR leaders to view People Analytics as a siloed function. Consequently, you may find yourself in situations where you must proactively invite yourself to a meeting or participate in a slightly uncomfortable conversation, explaining how People Analytics is relevant to the topic. It's best to embrace and push through that awkward feeling because it won't disappear. Trust me when I say it's much easier to sit through an uncomfortable conversation that lasts 5-10 minutes than it is to find out months later that the system was never designed to collect the necessary data for future analysis you are responsible for.