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People Analytics: Need and Reality Don’t Jibe

Study reveals status of People Analytics implementation in U.S. organizations

March 11, 2021

FOR IMMEDIATE RELEASE

Scottsdale, Ariz. – While most HR professionals know which business performance metrics are critical to drive organizational success, many do not have the data, tools, or ability to do so today, according to WorldatWork’s “People Analytics Study.” Results dovetail with findings from the earlier “Study on HR Organization Structure.” The People Analytics study provides a comprehensive overview of 30+ metrics and their perceived level of importance in four categories: Total Rewards, HR operations, learning and development and talent. Proficiency in People Analytics, the most-used HR analysis software tools, and People Analytics staff structures and headcounts were also assessed. (Journalists: email kstrauss@worldatwork.org for a copy.)


Sample findings:

  • There is a disconnect between which data should be measured and what is being measured.
    • 36% of organizations measure productivity vs. 86% deem it important.
    • 41% of organizations measure compensation effectiveness vs. 81% deem it important.
    • 17% of organizations measure traits for success vs. 70% deem it important.
    • 36% of organizations measure business satisfaction with HR performance vs. 75% deem it important.
  • Few organizations report advanced People Analytics proficiency. When asked, “how would you rate your organization’s People Analytics proficiency,” only 6% of respondents say their organizations have very good knowledge or mastery of prescriptive analytics. In comparison, 45% of respondents report their organizations have very good knowledge or mastery of descriptive analytics.
  • People Analytics does not typically have a dedicated team, and is informally performed by HR staff (33%) or without a dedicated structure (24%).
  • Total Rewards metric types used by organizations include incentive plan effectiveness (30%); base compensation effectiveness (41%); benefits participation rate (62%), among others.

“Organizations want better insights to make faster decisions. Our study shows dramatic gaps between the current state of People Analytics and where we need to be,” says Scott Cawood, CEO, WorldatWork. “Narrowing these gaps through increases in data tracking and analytic capabilities is critical for HR teams if they are to meet the desired level of impact on organizational operations and performance. HR is making numerous shifts in the way it delivers value, and people analytics is on the critical path. To remain competitive and improve performance, organizations will need to accelerate their adoption and effective utilization of People Analytics to more effectively respond to current and future needs in the workplace.”


Methodology
WorldatWork collected survey data over 12 days ending on 1/24/21. A total of 993 responses were received, representing organizations of different sizes and across multiple industries. The demographics of the survey sample and the respondents are similar to the WorldatWork membership and customer base as a whole. The typical WorldatWork member works at the managerial level or higher in the headquarters of a large company in North America.

About
WorldatWork is the leading global nonprofit organization for professionals engaged in the critically important practice of Total Rewards. We serve those responsible for cultivating inspired, engaged, productive, and committed workers in effective and rewarding workplaces. We guide them in the design and delivery of Total Reward programs with our education and certification; idea exchange; thought leadership; knowledge creation; information sharing; research; advocacy; and networking.

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