by Konstantin Tskhay​

Feb 18, 2026

State of People Analytics 2025-2026:
Survey Results

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Hi Friends,

As many of you know, I continue to serve on the HR.com People Analytics Advisory Board. Every year, we survey organizations—from startups to the Fortune 500—to map the current state of our discipline. We’ve just kicked off planning for the 2026-2027 period, but first, we need to look at the data from this past year.

The results are a bit of a reality check.

​Here is the "State of the Union" for People Analytics.

1. The Value Gap is Widening

We spend an incredible amount of money, time, and effort on HR Tech. We rave about our "predictive models." Yet, we are falling behind in realizing actual value.

• In 2023: 57% of organizations saw value
• In 2024: 48% of organizations saw value
• In 2025: Only 45% are extracting value today

Moreover, this year, we saw only 23% of the organizations feeling like they are being effective at designing and implementing processes to get the value out of people analytics.

Clearly, the people analytics impact is not keeping up with the investment yet. And the culprit is the insight gap.

2. We Need to Bridge the Gap Between "Data" and "Action"

Our ability to generate data is not the problem.

Our ability to change the business is.

In our sample, over half of companies (50-54%) can generate and understand data. However, only 1/3 are able to measure the impact of their programs and make constructive changes.

In my experience teaching People Analytics, the response is always the same: It’s not about the fancy tools.

It’s about asking the right questions and communicating the results to leadership in a way they care about.

3. Economic Headwinds are the Agenda

People Analytics is more tethered to the broader economy than most HR practitioners realize.

Because we are in a "low hiring, low firing" regime, the focus on retention has diminished. Similarly, DEIB focus has fallen behind due to shifting political pressures. Instead, we are seeing a return to the "Efficiency & Effectiveness" basics:

• Recruitment (Cost per hire)
• Performance (Productivity)
• Engagement (Sentiment)

Interestingly, I rarely speak to CHROs and HR leaders who talk about the economy and zoom out from their organization to see a broader economic headwinds. When I do, it is always a great conversation.

4. Data Quality is the Foundation (But Not the Finish Line)

57% of organizations list "Collecting Data Consistently" as their top priority. This makes sense—you can’t run a regression if the "Start Date" in the contract doesn't match the HRIS.

But once you move past data cleaning, the real challenge is Communication.

The overarching theme of this year's report is clear:

We know how to collect the data. We don't know what to do with it.

5. Spreadsheets are Still King

I often wonder:

Why the obsession with complex dashboards?

Most People Analytics wins are simple. They are achieved by taking HRIS data, processing it in a spreadsheet, and wrapping it in a clear presentation.

This year we have a new player, however:

• AI!

While 25% of participants are using AI to process data (which is the future!), we still have big questions to answer:

1. Can we trust AI outputs?
2. Does HR have the statistical knowledge to audit these models?

Thus far, the answer is no in my experience. But I believe it will get better quickly and all at once in time.

So, with that, here are my takeaways:

People Analytics has evolved from an ambiguous "hype" concept into a pragmatic discipline.

We have made massive progress in cleaning and collecting data. Our next investment must be in curiosity and communication.

We need to ask the right questions and drive the outcomes the business actually cares about.

So I invite you to ask yourself today:

People Analytics for what?

K

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

#1

If you’re still looking to get started in People Analytics, I recommend starting with my affordable course:

​Practical People Analytics: Build data-driven HR programs to 10x your professional effectiveness, business impact, and career. This comprehensive course will teach you everything from building an HR dashboard for business results to driving growth through more advanced analytics (i.e., regression). Join your peers today! ​
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#2

If you are looking for support in your human capital programs, such as engagement, retention, and compensation & benefits, and want to take a more data-driven approach, contact me at Tskhay & Associates for consulting services. Or simply reply to this email!