I’m just about to go out on vacation in the South of France for three weeks (hurrah!) and with growing evidence that taking a vacation improves physical and mental wellbeing, I’m looking forward to having time to relax, reflect and recharge. Before I go, I’m looking forward to the release this week of our new Insight222 research study: Building the People Analytics Ecosystem: Operating Model v 2.0 (click on the link to register to receive a copy).
Other highlights in July included:
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I’m not here to beat up on SHRM, but their flabbergasting decision to drop ‘Equity’ from its approach to ‘Inclusion, Equity and Diversity’ seems to have achieved the notable feat of being universally unpopular. To take this decision at a time when DEI is under sustained attack from politicians and when a growing number of prominent companies are backtracking from previous DEI commitments seems peculiar to say the least. It has led some commentators to conclude that SHRM’s surprise move is politically motivated rather than being driven by their stated objective, which SHRM explained as: “By emphasizing Inclusion-first, we aim to address the current shortcomings of DE&I programs, which have led to societal backlash and increasing polarization.” Whatever SHRM’s motive if, as likely, this decision by such an influential body undermines DEI then it is not only unhelpful but bad for employees, bad for organisations, and bad for society. As Shujaat Ahmad writes in his coruscating analysis:
Equity is one of the most clear, tangible measures for culture change on systemic discrimination. Without it, DEIB is lost in a maze of good intentions and half-baked commitments.
Enjoy reading the collection of resources for July and, if you do, please share some data driven HR love with your colleagues and networks. Thanks to the many of you who liked, shared and/or commented on June’s compendium.
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Access the new Insight222 study here: Building the People Analytics Ecosystem: Operating Model v 2.0 - or by clicking on the image below.
JENS BAIER ET AL - How Work Preferences Are Shifting in the Age of GenAI
When it comes to GenAI’s impact on jobs, talent is aware but unafraid. Although only 5% think that GenAI will replace their jobs, 60% anticipate that they will need to reskill significantly. Most say that they will need help to understand what skills to build.
For the first time since its inception a decade ago, BCG’s Decoding Global Talent study finds that job security is ranked by workers as their number one work preference (see FIG 1). Analysis revealed that workers who expressed concern about the impact of GenAI on their jobs were more likely to prioritise job security. They also recognise the importance of learning, with 60% of workers anticipating they will need to reskill significantly. As the study highlights, to attract and retain talent, organisations will need to solve a complex puzzle. They must anticipate the impact of technology on their workforce and offer robust reskilling programs to help employees stay competitive. (Authors: Jens Stefan Baier Orsolya Kovacs-Ondrejkovic Dr. Tobias Zimmermann Pierre Antebi Dr. Susan Gritzka Sacha Knorr Vinciane Beauchene Carmen Márquez Castro Zoë McFarlane Anja Bates Niharika Jajoria Julie Bedard and Ashish Garg).
FIG 1: What workers value most in a job, 2014-2023 (Source: BCG)
NICOLE SCOBLE-WILLIAMS ET AL - Generative AI and the future of work: Boundless Potential
It’s ‘humans with machines’ and not humans or machines that will transcend leading organizations.
An insightful and comprehensive report by the Deloitte AI Institute on the seismic impact of generative AI on the future of work. The report is structured into three chapters each designed to answer a key question. (1) What is generative AI and how is it being used? (2) What is generative AI’s likely impact on jobs? (3) What are the strategies to prepare organisations for change? There are a ton of insights, case studies and frameworks to learn from. Three that resonated especially with me were: (1) The explanation of the difference between work, jobs, tasks and skills (see FIG 2). (2) Guidance for organisations on how to break down jobs in the generative AI era. (3) The five-step framework for adopting a researcher’s mindset for human-generative SI integration: a) hypothesis formation, b) data collection and analysis, c) broad organisational experimentation, d) iterative testing and feedback, and e) strategy refinement. Authors: Nicole Scoble-Williams GAICD Diane Sinti Jodi Baker Calamai Björn Bringmann Laura Shact Greg Vert Tara Murphy and Susan Cantrell)
FIG 2: Work vs Jobs vs Tasks vs Skills (Source: Deloitte)
JUSTIN SHEMELEY, ANDREW ELSTON, AND JASDEEP KAREER - Transforming HR and People Analytics with AI
AI helps us reclaim capacity for more complex workforce strategy questions. It enables us to identify internal mobility opportunities and conduct scenario planning and hypothesis testing.
In their article, Justin Shemeley Andrew Elston and Jasdeep Kareer, PhD (née Bhambra), summarise some of the key takeaways from the recent Insight222 webinar I moderated on how AI is transforming HR and people analytics. The topics covered include: (1) The current landscape of AI in HR. (2) Short- and long-term impacts on the HR operating model. (3) AI’s role in workforce planning and development. (4) Essential Skills for Leveraging AI in HR. (5) How to build a strong foundation for AI adoption. The article also provides the answers to the questions posed by those that attended the webinar. You can access the entire webinar recording here: Transforming HR and People Analytics with AI.
FIG 3: Demystifying AI in HR and People Analytics (Source: Insight222)
RAVIN JESUTHASAN - Achieving the productivity promise of generative AI requires redesigning work
When he coined The Productivity Paradox, Robert Solow outlined two fundamental reasons why new technologies often don’t deliver on their promise. First, early versions of technologies are often flawed and unsuitable for widespread adoption – this applies less to GenAI. In his thoughtful article, Ravin Jesuthasan, CFA, FRSA tackles Solow’s second reason, which relates to the architecture of work. He outlines that to address this issue, organisations need to undertake systemic work redesign through deconstructing the work, redeploying tasks and creating new ways of working. Ravin cites the six-step framework (see FIG 4) he advanced together with John Boudreau in their book, Reinventing Jobs, and describes the potential productivity gains arising as a result.
FIG 4: Achieving the optimal combinations of humans, automation and AI (Source: Jesuthasan and Boudreau)
DELOITTE - 2023 High-Impact People Analytics Research
Prioritizing PA customers means understanding their needs—and how those needs align (or don’t) with the function’s capabilities and broader business priorities.
A new report by Eric Lesser Peter DeBellis and Marc Solow based on a 2023 study by Deloitte of more than 400 organisations across 18 countries presents a People Analytics Maturity Model (see FIG 5) and discusses six key findings. These are: (1) People Analytics has become an organisational imperative. (2) Data culture is the single biggest predictor of people analytics performance. (3) Tech investments mean nothing without human capability (and vice versa). (4) Today’s challenges demand more data from more sources. (5) An expanding customer base means new demands on the people analytics function. (6) People data is business data – treat it as such.
FIG 5: High-Impact People Analytics Maturity Model (Source: Deloitte)
CATHERINE COPPINGER - 4 New Ways to Model Work
With the rise of distributed work, managers are being asked to work in a fundamentally different way than they’ve worked before
In her article, Catherine Coppinger of Worklytics, discusses four new ways to model how work gets done – and how it could be done better: (1) Workday Intensity – see FIG 6 - (“We measure intensity as time spent on digital work as a % of overall workday span”). (2) Work-Life Balance. (3) Manager Effectiveness (“With the rise of distributed work, managers are being asked to work in a fundamentally different way than they’ve worked before”). (4) Sales Effectiveness (“With sales stalling, People Analytics teams are increasingly being asked to weigh in on what can be done to reaccelerate revenue growth”). For more insights on the manager effectiveness topic, listen to Catherine on a recent episode of the Digital HR Leaders podcast: How to Use Passive Data to Enhance Manager Effectiveness.
FIG 6: Workplace Intensity: How do remote and in-office days compare (Source: Worklytics)
PREETHIKA SAINAM, SEIGYOUNG AUH, RICHARD ETTENSON, AND BULENT MENGUC - The High Cost of Misaligned Business and Analytics Goals
It is not only the level of analytics that matters, but also how aligned analytics capabilities are with business goals.
What does success in analytics really mean and how should companies measure it? This was the mission of a study by Preethika Sainam Seigyoung Auh Richard Ettenson PhD and Bulent Menguc. While they found that creating a data-driven culture, adopting advanced analytics capabilities, and employing a well-developed data strategy were all important, the key ingredient is the degree of alignment between business goals and analytics capabilities. Their article presents findings from the study, the differences between misaligned and aligned companies, the cost of misalignment (see FIG 7) and how to measure alignment in seven areas: (1) Culture, (2) Alignment with strategy, (3) Leadership commitment, (4) Operations and structure, (5) Employee empowerment, (6) Proactive market orientation, and (7) Skills and competencies.
FIG 7: The Cost of Misalignment (Source: Sainam et al)
ANDRÉS GARCÍA AYALA - People analytics at the heart of AI’s successful workplace adoption | LEA MIKUS – Five Steps to Kick-Start People Analytics | WILLIS JENSEN - What Makes a Good People Analytics Metric? | RAJA SENGUPTA – 1000 Generative AI Prompts for HR | GUILLAUME LHOTE - The Role of Talent Intelligence in Pharma
In recent editions of the Data Driven HR Monthly, I’ve featured a collection of articles by current and recent people analytics leaders. These act as a spur and inspiration to the field. Five are highlighted here. (1) In his compelling article, Andrés García Ayala, Group Head of People Analytics and Strategic Workforce Planning at Legal & General, discusses five reasons why People Analytics needs to be at the heart of AI’s successful adoption and implementation in the workplace. (2) In a LinkedIn post, Lea Mikus unveils five recommendations to kick-start people analytics in your organisation including getting started by focusing on answering one strategic business question through your people data. (3) In an edition of his excellent Making People Analytics Real Substack, Willis Jensen digs into what makes a ‘good’ and a ‘bad’ people analytics metric (see FIG 8). The secret? Ask yourself: “Can I make a line chart of the metric?” (4) Raja Sengupta provides an invaluable resource for HR and people analytics professionals in a 130 page booklet comprising 1,000 AI prompts for HR across ten HR topics. (5) Guillaume Lhote, Talent Intelligence Lead at Takeda, details the critical role of talent intelligence in the pharmaceutical industry – thanks to Toby Culshaw for highlighting this resource.
FIG 8: Examples of HR metrics (Source: Willis Jensen)
DAVE ULRICH - Update on HR Business Partner Model Continuing Evolution and Relevance
In the last seven years, HR’s contribution to the business has evolved and is increasing. The HR contribution comes from individual HR professionals who have the competencies to fully engage in business conversations. The HR contribution also comes from HR functions, practices, and analytics increasing stakeholder value.
There’s no one better informed to comment on the evolution of the HR business partner (HRBP) model than Dave Ulrich, given he coined and popularised the model in his seminal 1997 book, Human Resource Champions. In his article, Dave details nine evolutions that are combining to reshape and elevate the future role of the HRBP including these five: (1) People and organisation concerns have evolved to be more central to business success. (2) Talent has evolved to pay increased attention on worktask and meaning (see FIG 9). (3) Leadership has evolved to front-line leaders and emerging competencies. (4) HR delivery has evolved to AI–enabled HR (5) HR analytics has evolved from benchmarking to guidance.
FIG 9: From ‘Workforce’ to ‘Worktask’ (Source: Dave Ulrich)
SERENA HUANG - AI in HR: Missing the Forest for the Trees
By focusing on strategic workforce planning, responsible and ethical AI, and clear ownership for AI adoption, HR can become the strategic AI champion the organization needs.
In her From Data to Action LinkedIn newsletter, Serena H. Huang, Ph.D. bemoans the narrow focus of much of the discussion about AI in HR on automation and cost efficiency. Instead, Serena urges a bolder approach, presenting three ‘big-picture issues’ centred on organisational readiness that HR should focus on: (1) Strategic Workforce Planning (e.g. LinkedIn recently estimates that 55% of jobs will be augmented or disrupted by GenAI – see FIG 10). (2) Responsible and Ethical AI. (3) Clear Ownership: Who is Driving the AI Train? Thanks to Serena for highlighting the recent Digital HR Leaders podcast episode with IBM CHRO Nickle LaMoreaux in her article, where Nickle expanded on IBM’s Responsible AI policy and how this is applied to HR. You can listen to the whole episode here: How IBM Uses AI to Transform its HR Strategies.
FIG 10: GAI’s expected effect on LinkedIn members’ skills globally (Source: LinkedIn Economic Graph Research Institute)
CHIEF ETHERIDGE – 3 Strategies to Position HR for Innovation
Only 28% of HR employees agree that their HR function encourages them to take risks, even if they result in failure. This risk aversion is a major obstacle to innovation.
As the preface for this paper by Chief Etheridge for Gartner states, HR is under pressure to develop innovative solutions for a unique set of organisational challenges such as incorporating new ways of working, establishing digital workplaces, and leveraging artificial intelligence. The paper outlines three strategies HR can implement: (1) Define Innovation’s Value and Benefits to HR. (2) Embed Innovation Networks in HR (see FIG 11 for example from Toyota). (3) Establish Structured Innovation Process for HR (with an example from Fannie Mae).
FIG 11: How Toyota directly infuses HR with expertise and skills (Source: Gartner, adapted from Toyota)
MCKINSEY - Help wanted: Charting the challenge of tight labour markets in advanced economies
Companies and economies will need to boost productivity and find new ways to expand the workforce
A comprehensive study by McKinsey on how labour markets in the G8 countries are among the tightest in two decades and are set to get worse as workforce continue to age. The study is packed full of insights, visualisations and charts and is a must-read for anyone involved in workforce planning, recruiting, talent intelligence and people analytics. Four actions are recommended for companies and policy makers: (1) Focus on skilling and reskilling, including attracting talent from unconventional pools, offering more flexible work, and internal mobility. (2) Encourage foreign-born workers with programs to properly integrate them into the workforce (one to note given the hysteria about immigration in all of the eight countries in the study). (3) Shape retirement policies to encourage people to work beyond standard retirement ages and take steps to attract more women into the workforce. (4) Prioritise investment in AI and automation to unlock productivity. (Authors: Anu Madgavkar Olivia White Sven Smit Chris Bradley Ryan Luby and Michael Neary).
FIG 12: 4 scenarios for GDP growth 2023-30 (Source: McKinsey)
JORGE TAMAYO, LEILA DOUMI, SAGAR GOEL, ORSOLYA KOVÁCS-ONDREJKOVIC, AND RAFFAELLA SADUN - Designing a Successful Reskilling Program
In today’s fast-changing work landscape, the ability to reskill will become increasingly vital to staying competitive.
In this article, written as a follow up to their award-winning “Reskilling in the Age of AI”, Jorge Tamayo Leila Doumi Sagar Goel Orsolya Kovacs-Ondrejkovic and Raffaella Sadunshare the results of a reskilling survey that they conducted with chief human resources officers and business leaders, and discuss six paradigms on reskilling. These are: (1) Reskilling is a strategic imperative. (2) Reskilling is the responsibility of every leader and manager. (3) Reskilling is a change management initiative. (4) Employees want to reskill – if programs are attractive. (5) Reskilling takes a village. (6) To reskill successfully, you need to be able to analyse and measure the benefit of your interventions and investments.
ALLIE NAWRAT - Standard Chartered: ‘The people agenda is a strong enabler of the performance of the bank’ | ALLAN SCHWEYER, BARBARA LOMBARDO, MATT ROSENBAUM, AND PETER SHEPPARD - The Long but Rewarding Journey to Becoming a Skills-Driven Organization | JOSH BERSIN - TechWolf Accelerates Corporate Skills Tech Market With $43 Million Round | MARC EFFRON - Is the Juice Worth the Squeeze? Questions About Becoming a Skills-based Organization | DELOITTE - The skills-based organization: A new operating model for work and the workforce
Following the positive reaction to the MIT/Mercer study, Strategic Shift: Skills-Powered Organizations in the Age of AI, I included in the June edition of Data Driven HR Monthly, as well as the LinkedIn Live I participated in last week with Ravin Jesuthasan and Tanuj Kapilashrami, I thought it helpful to include a ‘special’ in the July edition of Data Driven HR Monthly on skills-based organisations. Six resources are included. (1) Tanuj Kapilashrami, Chief Strategy and Talent Officer at Standard Chartered, sits down with Alexandra Nawrat of UNLEASH to outline how the shift to being a skills-first employer is enabling business outcomes at the bank. (2) The Conference Board provides a compelling case study of Ericsson’s journey to becoming a skills-based organisation, which has seen skills become the language of the employee experience at the company (see FIG 13) – authors: Allan Schweyer Barbara Lombardo Matt Rosenbaum and Peter Sheppard. (3) Josh Bersin takes his cue from the latest round of investment in TechWolf plus the acquisition of SkyHive by Cornerstone by Cornerstone OnDemand to provide an overview of the burgeoning skills technology market as it moves from ‘pioneer stage’ to ‘early maturity’ (see FIG 14). (4) Marc Effron details 17 considerations for companies seeking to embark on the journey to becoming a skills-based organisation. (5) The Deloitte team of Susan Cantrell Michael Griffiths Robin Jones and Julie Hiipakka present their seminal operating model for a skills-based organisation (see FIG 15).
FIG 13: Skills are the language of the employee experience at Ericsson (Source: Ericsson)
FIG 14: Source – Josh Bersin
FIG 15: The skills-based organization: A new model for work and workforce (Source: Deloitte)
DERRICK P. BRANSBY, MICHAELA J. KERRISSEY, AND AMY C. EDMONDSON - New Hires’ Psychological Safety Erodes Quickly
Psychological safety is not the default in any workplace, and those who need it most — newcomers — are also most vulnerable to losing it.
Research finds that psychological safety is especially important for new hires as it enables them to overcome the challenge of admitting fallibility, tackle a steep learning curve and embrace new perspectives. So, it is concerning that in their new study, Amy Edmondson Derrick Bransby and Michaela Kerrissey identify a fascinating pattern: On average, newcomers joined their organisation with higher psychological safety relative to their more tenured colleagues, then lost it and waited years to reach levels comparable to when they arrived. Nevertheless, the study also found that departments with high psychological safety among colleagues help reduce that decline and facilitate quick recovery for new hires (see FIG 16). The article also discusses why newcomers are vulnerable to losing psychological safety and presents strategies to help preserve their early willingness to speak up.
FIG 16: Contrast between employees in departments with high and low psychological safety (Source: Bransby et al)
CHRISTINA BRADLEY, LINDY GREER, AND JEFFREY SANCHEZ-BURKS - When Your Employee Feels Angry, Sad, or Dejected
Leaders must be able to respond in a supportive manner to the emotions of their employees. That requires them to learn how to handle others’ feelings in different contexts, be more aware of their own behavior, and hone their skills. If they can master those three things, the result will be a healthier, more successful organization.
In their article for Harvard Business Review, three researchers from Michigan’s Ross School of Business provide a roadmap to leaders for providing employees with emotional support. As Christina Bradley Lindy Greer and Jeffrey Sanchez-Burks outline, the right response depends heavily on context, in particular, whether someone (1) is working on a time‑sensitive goal and (2) seems to be coping (see FIG 17).
FIG 17: Figuring out how to respond to an employee’s emotions (Source: Bradley et al)
MICHAEL ARENA, ANDRAS VICSEK, JOHN GOLDEN, AND SCOTT HINES – Cultivating Culture in a Hybrid Context
Because connections are more fragile in hybrid workplaces, it is increasingly important that managers understand the network dynamics of company culture.
Many companies are concerned about the impact of remote and hybrid work on their culture. In their article, Michael Arena Andras Vicsek John Golden, Ph.D. and Scott Hines, PhD, explore how cultural behaviours form and spread across organisations in three work modes: a physical environment, a remote environment, and a hybrid model. They find that prominent cultural behaviours tend to cluster in discernible patterns in each of these modes. The article discusses ways – and provides examples – on how to restore bridges between teams, harness influencers to facilitate change, engage exemplars to model desired behaviours, and reengage the hearts and minds of employees, to improve collaboration, wellbeing and outcomes. One example in the article describes how a large consumer products company launched a series of in-person events to restore bridging connections between their teams in parallel with a reengagement strategy to rebuild their employees’ sense of owning the company’s purpose. This enabled the company to increase connections by 37 percent and positive energy by 20 percent.
FIG 18: Shift of Positive Energy across Work Modes (Source: Arena et al)
DANIEL STILLMAN - The Four Quadrants of Employee Performance
In his essay, Daniel Stillman distils Shake Shack head honcho Danny Meyer’s Four Quadrants of Employee Performance to help explain how to harness the hiring, retention and development of talent to scale company culture intentionally. The four quadrants (see FIG 19) are: (1) Can and Will (“water these flowers”). (2) Can’t and Will (“coach them”). (3) Can’t and Won’t (“put the candle underneath their rear end”). (4) Can and Won’t (“The hardest one…”). For more from Danny Meyer, I recommend watching him in conversation with Adam Grant at the recent Wharton People Analytics Conference, where they discussed: The Hidden Potential of Frontline Workers.
FIG 19: The Four Quadrants of Employee Performance (Adapted by Daniel Stillman from Danny Meyer)
ROUVEN KANITZ, MAX REINWALD, KATERINA GONZALEZ, ANNE BURMEISTER, YIFAN SONG, AND MARTIN HOEGL - 4 Ways Employees Respond to DEI Initiatives
In their article for Harvard Business Review, Rouven Kanitz Max Reinwald Katerina Gonzalez Anne Burmeister Yifan Song and Prof. Dr. Martin Hoegl present their research, which finds that employees respond to DEI initiatives in four ways (see FIG 20): excited supporters, calm compliers, torn shapers, and discontented opponents. The article outlines each of the four profiles, and provides guidance to managers on how they can use the typology to segment their employees, effectively understand the range of responses, and tailor specific interventions to address them.
FIG 20: The 4 Ways Employees Respond to DEI Initiatives (Source: Kanitz et al)
Much of the innovation in the field continues to be driven by the vendor community, and I’ve picked out a few resources from July that I recommend readers delve into:
FIG 21: Current State of Management: Employee vs. Manager Perspectives (Source: Gallup)
FIG 22: The building blocks of performance management (Source: Culture Amp)
FIG 23: Source – Joseph Ifiegbu
In another month of high-quality podcasts, I’ve selected five gems for your aural pleasure: (you can also check out the latest episodes of the Digital HR Leaders Podcast – see ‘From My Desk’ below):
TIM PEFFERS – How to measure productivity
For those of you who haven’t consumed Random Walks in HR, along with Heather Whiteman, Ph.D., Tim Peffers produces the best video blogs in the people analytics field. In this video, Tim builds on his premise that “people analytics will never deliver on its promise without being able to measure individual productivity”, by presenting his proposal to develop a new metric – Productivity Against Replacement (PAR), which as Tim explains is inspired by Bill James’ WAR (Wins Above Replacement) metric.
MARTIN R. EDWARDS, KIRSTEN EDWARDS, AND DAISUNG JANG – Predictive HR Analytics: Mastering the HR Metric
Having a third edition of a book published is an impressive achievement – and testament to the quality of material. In this third edition of Predictive HR Analytics, Martin Edwards, Kirsten Edwards, and Daisung Jang provide a clear, practical and accessible framework for understanding people data, flourishing with people analytics, and using advanced statistical techniques. Predictive HR Analytics has been adopted by more than 20 universities across the world as a core or recommended text in HR and business analytics courses, and it’s clear to see why.
July saw the first four episodes of series 40 of the Digital HR Leaders podcast, which is kindly being sponsored by our friends at HiBob – thanks to Louis Gordon. Additionally, July also saw the publication of a new article in Workday’s Smart CHRO magazine.
We have a pretty strong belief that a flexible work model benefits the business and our ability to serve our patients, and it allows employees to have a better work-life integration experience as well.
I’d like to highlight once again the wonderful resource created by Richard Rosenow and the One Model team of open roles in people analytics and HR technology, which now numbers over 500 roles – and has now been developed into a LinkedIn newsletter too
David Green ?? is a globally respected author, speaker, conference chair, and executive consultant on people analytics, data-driven HR and the future of work. As Managing Partner and Executive Director at Insight222, he has overall responsibility for the delivery of the Insight222 People Analytics Program, which supports the advancement of people analytics in over 90 global organisations. Prior to co-founding Insight222, David accumulated over 20 years experience in the human resources and people analytics fields, including as Global Director of People Analytics Solutions at IBM. As such, David has extensive experience in helping organisations increase value, impact and focus from the wise and ethical use of people analytics. David also hosts the Digital HR Leaders Podcast and is an instructor for Insight222's myHRfuture Academy. His book, co-authored with Jonathan Ferrar, Excellence in People Analytics: How to use Workforce Data to Create Business Value was published in the summer of 2021.
I'll be speaking about people analytics, the future of work, and data driven HR at a number of upcoming events in 2024:
More events will be added as they are confirmed.
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