The new report out of the UK also finds that widespread adoption of people analytics is low, even if the benefits maybe be tangible.
New research from the UK’s Chartered Institute of Personnel and Development (CIPD) reveals that companies using people analytics often see stronger business performance.
The report, “People Analytics: Driving Business Performance with People Data,” surveyed 3,852 business professionals across the world. It found that a large number of companies have hesitated to adopt these analytics and that the industry must work to improve both user skills and confidence.
- 54% of respondents had access to people data and analytics
- 39% had no access to this data for decision-making purposes
- 52% of those who identified as HR professionals said their company uses this data to solve business problems
- 42% of respondents who identified as finance professionals said they had access to people data
- 75% of HR professionals use people data to solve performance and productivity issues
- 65% of those who work for a company that uses people/ data analytics said they have strong business performance
- 32% of those working for a company that does not use people/ data analytics report strong business performance
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“It’s hugely encouraging to see that the use of people analytics in organizations is leading to positive outcomes. The more access to HR and non-HR professionals have to people data, the higher they rate their organization’s performance,” says Edward Houghton, Human Capital and Governance Adviser for the CIPD.
He recognizes that the industry faces clear challenges with data access and HR function confidence and capabilities. “We need to see greater investment in the skills needed to understand people data and we need to encourage the use of people analytics across different functions in organizations, and in finance in particular. HR must lead the development of cultures that share a ‘common language’ when it comes to people data and a shared understanding and appreciation of the positive impact people data can have on business outcomes.”