People Analytics Expectations Vs. Reality:
How Do We Close the Gap?

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Hi, All!

This week in People Analytics:

• Please fill out The State of People Analytics Survey​
• ​Eitan Vesely from Watercooler chatted about AI in HR this week
• I am on the SteerCo for Tech Talent North​

In other words, a lot has happened.

Yet, over the last two weeks, I've been going back to 2023 and wondering why there is such a disconnect between what HR leaders expect and what HR functions deliver.

So, today, you get some musings from me on the subject and recommendations on what to do about it.

The Expectation vs. Reality Gap

A study by Insight222 revealed that 85% of HR leaders expect their teams to use data daily.

Indeed, it goes without question: having data to inform decisions is better than not having data.

But why is that?

Going back to first principles, we live in an uncertain world with uncertain events and uncertain musings of our employees that affect their engagement, motivation, desire to stay, and ultimately impact.

So, statistics, numbers, and data create certainty by simply quantifying and reducing this uncertainty, painting a road to the likely outcome.

In other words, if you don't know your decision, you must look at the data to inform your options.

Otherwise, you can do ANYTHING without knowing if it will matter.

Okay, now that we have established the why for HR...

So...

Why do only 22% of organizations feel effective with People Analytics?

Think of it:

If a leader asks for something, it gets done.

But is that only a theory?!

Reasons for the Gap

1. Data Literacy:
   • Many HR professionals lack the necessary data literacy skills. Understanding statistical methods and interpreting data correctly is crucial for making data-driven decisions. HR teams may find data intimidating or confusing without proper training, leading to underutilization of available data. Moreover, learning something like analytics takes way too much time that we need to find while fighting fires.
2. Technology:
   • Effective HR analytics require robust technology. Many organizations may not have the tools or systems to collect, analyze, and interpret HR data efficiently. Going a step further, advanced analytics require you to step away from Excel and move to Python, R, and One Model, which require time and money to sustain.
3. Organizational Culture:
   • A culture that does not prioritize data-driven decision-making can hinder the adoption and effectiveness of HR analytics. Resistance to change and a lack of support from leadership can be significant barriers. For example, we all know leaders who refute data because it does not fit their narrative. This discourages the use of data in organizations and encourages pleasing the leader mentality.
4. Quality of Data:
   • Poor data quality can undermine analytics efforts. Inaccurate, incomplete, or outdated data can lead to incorrect conclusions and ineffective strategies. Reliable and clean data is the foundation of influential analytics. And as we all know, data quality is a big problem we face daily.

Let's now talk about how to close these gaps

1. Build Data Literacy:
   • Send your HR team training programs, enroll them in online learning, or bring a data literacy trainer in-house to train your team quickly. The price tag might seem high initially, but you will quickly recoup the cost with gained efficiency and impact.
2. Invest in Technology:
   • Spend time integrating the right systems and connecting with your BI and IT teams to help you create a constant pulse on the business with data.
3. Data-Driven Culture:
   • Lead by example. Leaders set the tone in their organization. So, they should demand data, challenge it, and ensure your team knows you only make decisions with data. This will set the right tone for your organization.
   • ​
4. Improve Data Quality:
   • Clean up the data. Yes, it's annoying, cumbersome, and painful. But you need to feel the pain to never deal with messy data again. One data cleaning day will ensure you organize your data next time around.

With that, I am off on holiday next week. We will see if I write another one.

Ciao for now.

K

Whenever you’re ready, there are 2 ways I can help you:

#1

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#2

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