Why people analytics are paramount
Gain insight from thought leader Michael D. Lieberman about getting back to basics as digital transformation unfolds
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Almost one-third of businesses or 31 percent are planning to invest in business intelligence and data analytics in the next 12 months, according to PEX Report 2024-25. Business intelligence dashboards are used by almost two-thirds of organizations with data visualization and process intelligence coming second and third respectively.
"OPEX and transformative growth hinges on the strategic use of advanced data analytics and business intelligence," Madhu Kittur, industry analyst, told PEX Network.
Clearly, data is a big deal nowadays. As HR Exchange Network prepares for the All Access: Digital Transformation in HR webinar series, data becomes one of the words in the word cloud. People analytics is necessary storytelling and allows HR leaders to validate their seat at the C-suite table. It provides a way to explain decisions and make informed decisions. With advanced technology helping humans more easily gather disparate data and make sense of it, the data becomes currency.
Recently, HR Exchange Network spoke with Michael D. Lieberman People Analytics: Statistical Case Studies for Human Resources (independently published, August 2024), who reminds people that getting down to the basics of data analytics is vital to everyone's success. Discover his ideas:
HREN: Why should professionals entering HR analytics learn basic statistics?
ML: Statistical literacy is essential for making informed HR decisions. HR analytics tools require a solid foundation in statistics to interpret data effectively. Without understanding the basics, it's difficult to properly analyze workforce data or make evidence-based decisions about employee programs.
HREN: What techniques are commonly used in HR analytics and why were they chosen?
ML: Many techniques used in HR analytics were adapted from marketing research. The focus should be on desired outcomes rather than specific techniques. Regression analysis and sequence waiting are particularly useful for analyzing employee benefits and performance metrics. The key is selecting methods that answer your specific business questions.
HREN: What advice would you give to beginners in HR analytics to avoid feeling overwhelmed?
ML: Take a step back to understand the question and desired outcome before diving into data. Know what event you're analyzing and what insights you're trying to gain. Think of analytics as storytelling with numbers - you're using data to convey insights that drive decisions.
HREN: How can HR professionals approach changing performance review systems?
ML: Consider testing different types of performance reviews or adding new elements to your existing system. Apply design thinking principles to statistical modeling, making it an iterative process of refining ideas based on feedback and results.
HREN: How is people analytics relevant to the broader business?
ML: Happier employees lead to more profitable businesses. HR analytics helps maximize efficiency by understanding and minimizing costs related to turnover, onboarding, and other HR expenses. This data-driven approach allows HR leaders to make stronger business cases for people-focused initiatives.
HREN: What final advice would you give to HR professionals about analytics?
ML: There's tremendous momentum in the people analytics industry right now. HR professionals should develop data fluency to make better decisions and communicate more effectively with leadership. Balance soft skills with data literacy - both are necessary for success in modern HR.
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