Since the early 1900s, organizations have used a wide range of performance management tools to boost employee productivity and engagement. These include everything from performance reviews and surveys to OKRs and goals.
Many companies don’t track the effectiveness of their people programs, despite years of expectations from corporates that managers implement them. They lack a comprehensive understanding of whether or not their long-term efforts to improve employee engagement and performance are effective.
The future of HR is about harnessing data to help inform business strategy and organisational goals, rather than just collecting it for its own sake.
People Analytics can be a valuable tool for HR departments. It allows them to become a strategic partner with the executive team in managing their most important asset — their people.
The Power of People Analytics
By addressing each employee’s needs, people management strategies can increase employee engagement and productivity. Performance reviews help employees understand their performance and areas for improvement. Weekly reports inform employees about the progress of the team project so that they can keep track of their own tasks.
Data-based insights can be used to make positive changes in an organisation. They will ensure that all people management programmes, no matter what the team or department is, are on track and they will increase the effectiveness and participation of the different performance management tools across the company.
The right data will help organisations improve their employee programmes in the following ways:
1. Accountability of managers
Managers play a crucial role in the puzzle of performance. They act as the glue that holds performance strategy to execution. According to OECD research, ill-equipped management costs the UK economy 84 billion pounds sterling. Gallup also found that a good manager can increase profits by 48 percent.
Data on people programmes allows companies to compare how teams and departments perform, identify trends and link them to managers or leaders and take appropriate action to correct any deficiencies. The metrics of a people programme can be used by companies to hold managers accountable in their performance reviews. They can create accountability for setting goals, investing in the growth of their team, and so on.
2. Culture issues: uncover them
Data can sometimes reveal larger-picture issues, such as where managers are not meeting expectations or complying with programs for people. Managers who fail to complete the steps in a performance-management process, do not provide regular feedback and one-on-ones with their teams, or have consistently low team engagement scores may be exhibiting this behavior. These data sources are tracked by performance management software, which can then be integrated to reveal patterns.
3. Reexamine people programmes
The best-intentioned people programmes might have been launched, but the direction or execution may not have supported the original intention. Data analytics can reveal whether an initiative is still working.
4. Highlights of achievements
The right data on people performance allows organisations to celebrate and recognise business success. For example, the department that has the highest scores for engagement or the manager who creates detailed development plans for his team members. Instead of creating silos, there should be connectivity. For example, companies should recognize high-performing managers for their high retention rates and employee satisfaction on their team.
Finding the Right People Data
1. Adoption metrics
Adoption metrics are a way to measure how many people are actually taking action. They can give a good overview of the company’s human resources programs. It’s not enough to have participants for a program to be effective. But without healthy participation, it’s unlikely that the programme will achieve its goals.
It’s possible to collect this data without using a technology solution, but the spreadsheets are often siloed and make it hard to track employee performance in real-time. The right technology allows organisations to track the frequency with which employees report their progress, as well as look at trends in order to improve their people programs.
2. Surveys
It can be challenging to connect the results of Engagement, Pulse, or other ad-hoc surveys (onboarding, benefits or organizational change) to other data sources. The HR tech platforms make it easier to analyze the data at a granular level. Connecting engagement survey data with reviews can show how top performers feel, and tying it to employee retention will quantify the true costs of low engagement.
3. Feedback and One-on-Ones
Managers can regularly communicate with direct reports through one-on-ones or written feedback. Amber Panting is the Head of People for Wolf & Badger. She says that “our standard one-toone is aimed to foster trust and understanding and highlight both pain and progress, with opportunities for constructive and positive feedback.”
Data analytics can show who is conducting one-on-ones, giving feedback at the recommended frequency and who could improve. By providing powerful features that facilitate scheduling, documentation and follow-up, the right HR tech could be a game changer.
5. OKRs are also known as goals, KPIs or Objectives
Companies have required employees to set goals, and to make progress in OkRs , for years. However, they don’t always monitor the progress of their workers.
Tools for people analytics can track participation and progress sharing rates, which will help HR leaders identify departments and teams that may need extra help to make progress.
The key to measuring impact
As the old saying goes “what gets managed gets measured.” The most important thing to do when determining the effectiveness of your people programs is to articulate the strategic goals. This will allow you measure what really matters. Do you think it’s important that your employees understand how their goals relate to the company strategy? In their performance evaluations, ask about this clarity. Do you highlight how managers build inclusive and engaged teams in your presentations? Hold them accountable using engagement survey results. These metrics enable you to focus your attention on the impact and intent of programmes for people, rather than their superficial completion.
People program analytics is a vital tool for HR teams, as they strive to find the best way to keep employees engaged while simultaneously showing leadership that their work matters to the business and its bottom-line. The ROI of HR tech is achieved when HR leaders optimise engagement strategies for the company and cultivate a more satisfied workforce.
