Should People Analytics be HR’s responsibility?

This question is a fundamental one in People Analytics. Whose job is it?

Most frequently, it’s HR’s job to manage the collection, analysis and distribution of people data – that’s pretty clear. However, the responsibility for taking the actions that are recommended within the data most often lies with line managers and leaders.

The potential that now exists to leverage employee data is something that HR should relish, hang on to and own.

A report by the Corporate Research Forum (CRF) states that 69% of organisations with 10,000 or more employees have a people analytics team. The popularity of people analytics can be attributed to its ability to inform managerial decisions. You don’t have to be a large organisation, however, to have access to this powerful tool.

What is the point of People Analytics?

A people analytics approach means that the organisation collects and uses employee and business data of all kinds, collectively and in a co-ordinated way, to make evidence-based business decisions that align with business strategy and improve business performance.

That’s where the potential lies for today’s HR functions. Many have struggled for years to make the case for investing in, e.g., leadership development programs, improved recruitment practices or career paths. People Analytics makes this possible.

What is the scope of People Analytics?

While HR analytics focuses solely on employee data within the HR department, people analytics typically also includes data from elsewhere in the business. That means that HR can see the impact of HR and management practices on business results.

So, half of the data loaded into the hopper would be demographic, turnover, absence, wellness, survey data, and information from mentoring and training—those things that might traditionally ‘belong’ to HR. But it also draws on business data from other sources, such as financial, production management, sales, and customer complaints or ratings.

Why it’s so important for People Analytics to be kept within the HR function

Some observers argue that the greater focus on business issues means that People Analytics does not belong in the HR function. However, like us many writers and thinkers hold the belief that the human resources function must prioritise the development of people analytics as a crucial component of a more capable and strategic business function.

Recent changes in the world of work make this even more important, e.g. the emergence of hybrid working, generational changes, increased automation, and the rise of AI. Instead of relocating people analytics outside of HR, most argue that it should remain within HR, aided by a new generation of HR professionals who are more data-driven and business-savvy.

What is your opinion on HR’s ownership and championing of people analytics?