John Schwarz, the Co-founder and Chairman of the Board of Visier, a software analytics provider focused on providing insights into people, discusses the importance of utilizing people data in driving business growth. He shares a story of a mining company experiencing worker injuries and how they were able to turn the situation around by analyzing HR data to identify the root cause of the problem, which was fatigue due to long hours and lack of days off. By taking action to reduce overtime and focus on employee alertness, the company not only kept workers safe but also saw a significant boost in productivity.
People data, which includes information gathered about employees from recruiting to performance and training, is often overlooked and dismissed as less important than financial and business data. However, people account for most of the cost of running a business and are directly tied to the results, making it essential for CEOs and management to understand and utilize people analytics. Despite the proven benefits of using real-time data analytics in driving revenue growth, many organizations still resist utilizing people data to its full potential.
The main challenge in utilizing people data is the protection and privacy of sensitive information, which is often only accessible to HR professionals. Traditionally, HR departments have focused on compliance and process rather than strategic business decisions, leading to a disconnect between business performance and people performance. Additionally, people data is often stored in separate systems from business data, making it difficult to integrate and use effectively for decision-making.
To overcome the challenges in utilizing people data, a cultural shift is needed within organizations to encourage data-savvy decision-making and to break down silos between HR and other departments. By integrating HR and business data, companies can identify causal connections between people management and company performance, leading to actionable insights and recommendations. AI technology can also play a role in enhancing people analytics by providing real-time insights and recommendations based on data analysis.
Overall, the key takeaway is that by harnessing people data and using it to drive business decisions, companies can achieve significant growth and improvement in performance. As seen in the case of the mining company, digging into people data can lead to valuable insights that not only benefit employees but also enhance productivity and overall business success. By embracing a data-driven culture and utilizing the latest technology, organizations can unlock the full potential of their people data and drive sustainable growth.
