We are headed towards a form of HR where customization (or personalization) is key. Some call it ‘consumerization of HR’. People Analytics expert Rob van Dijk refers to it as ‘HR for one’. It’s a logical next step in the evolution of HR, where business-driven HR goes hand in hand with people-centric HR.
When hearing about People Analytics, we usually think of how the use of analytics can have a positive impact on the company and its HR department. In other words, how can the employers use data to gain new insights on people topics and affect their organization? But what if the employees could also use and benefit from the insights and outcomes of People Analytics practices?
I am not saying it is a bad thing to use People Analytics from an employer’s perspective! Analytics is a great method to maximize the effects of human capital on critical business objectives. Let’s consider three real examples of People Analytics success.
- Example 1. A subsidiary of a large Dutch retailer in FMCG used People Analytics to research the effects of investments in training and development on business outcomes. The researchers found that training the employees of a shop thhas a positive impact on the financial performance of that particular shop. E.g. After one year, the return-on-investment of one training was more than 400%.
- Example 2. PostNL, a Dutch postal company, used People Analytics to design the ideal profile of a mail carrier. Thanks to this analysis, PostNL optimized its recruitment process and reduced its recruitment costs. They are now able to target, from the beginning, the right people for this job. Fun fact: the ideal profile is actually the one of an older man with a dog because he would be strong, fit enough, friendly and would not mind being outside, even during bad weather.
- Example 3. Retailer Clarks is our third example. This shoe company used People Analytics to analyze the relationship between engagement and organizational performance. They discovered that a 1%-point score improvement in engagement equals to an increase of 0.4% in business performance, measured in financial turnover. In addition, the studies found that other factors, such as the size of the team, also influence (positively or negatively) engagement and performance. (More cases like Clarks can be found in this report on Strategic Workforce Analytics by Corporate Research Forum)
Read the full article here: People-Centric Analytics