I’m writing the introduction to the May edition of the Data Driven HR Monthly on a flight to London from Mexico City. Together with Jonathan Ferrar, I was in Mexico to conduct an Insight222 workshop with the HR Leadership Team of one of the world’s largest global consumer goods companies. The workshop was composed of a number of modules including: consulting with data, prioritisation and data governance. It was the culmination of a month of notable milestones both within Insight222 and the external market:
This month’s collection features new research from the likes of Microsoft, McKinsey, and the Talent Strategy Group, as well as resources from practitioners in companies including Mastercard, EY, Novartis, IBM, Intuit, Lego, Ericsson, and Marks & Spencer.
The Journey to the Skills-Based Organization
Transform your HR strategy with skill-based insights
Advancements in technology and evolving market demands are reshaping the skills landscape, making the transition to skill-based essential for organisations to remain competitive. Yet, despite widespread recognition of its value, research by Deloitte showed that less than 20% of companies have embarked on this transformative journey toward becoming a skill-based organisation (SBO).
Wondering where to start? Our guide, "Getting Started with Skills," is designed for HR leaders on this journey, covering three actionable steps:
This journey is about setting a new direction for your organisation, one that is agile, resilient, and ready for the future.
Read our latest guide today. Download now
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As AI and Generative AI continue to dominate HR conversations, it's essential to explore practical applications, benefits, and challenges. Register to join me for an Insight222 webinar on June 13. In the webinar, Jasdeep Kareer, PhD (née Bhambra) Andrew Elston Justin Shemeley and I will discuss:
Register for The Role of AI in HR People Analytics webinar.
The Insight222 People Analytics Trends study is now in its fifth year, and has grown to be the biggest and most important annual study in the field of people analytics. We have now opened the survey for 2024, which is intended to gain insights into: (1) People analytics operating model, roles, and technology. (2) Measuring the value of people analytics. (3) AI in HR.
If you are the people analytics leader at your company and would like to participate in the People Analytics Trends study for 2024, click this link and please complete the survey by Sunday 23 June.
Participate in the Insight222 People Analytics Trends Survey for 2024.
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Enjoy reading the collection of resources for May 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 April’s compendium (including those in the Comments section).
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MICROSOFT AND LINKEDIN - AI at Work Is Here. Now Comes the Hard Part
We’ve come to the hard part of any tech disruption: moving past experimentation to business transformation. Just as we saw with the advent of the internet or the PC, business transformation comes with broad adoption. Organizations that apply AI to drive growth, manage costs, and deliver greater value to customers will pull ahead.
Microsoft’s 4th annual Work Trend Index, in partnership with LinkedIn provides a comprehensive view of how AI is not only reshaping work, but the labour market more broadly. Three key findings are described in depth: (1) Employees want AI at work—and they won’t wait for companies to catch up. (2) For employees, AI raises the bar and breaks the career ceiling. (3) The rise of the AI power user—and what they reveal about the future. The report contains a series of powerful insights, visualisations, and analysis – such as the impact of AI skills on hiring (see FIG 1). I also recommend watching Johnny C. Taylor, Jr., SHRM-SCP, CEO of SHRM, talking to Kathleen Hogan and Jared Spataro about the integration of AI in enhancing work at Microsoft, insights on AI adoption strategies, and addressing the balance between AI opportunities and workforce implications.
FIG 1: The New Hiring Imperative: AI Aptitude Takes Centre Stage (Source: Microsoft Work Trends, 2024)
ANSHUL SHEOPURI AND LUCRECIA BORGONOVO - At the inflection of AI and HR: How Mastercard is equipping employees for the AI era
We recognize the best way to build trust is to bring our employees along with us on our AI journey, ensuring they are made aware of and educated about our commitment to responsible and ethical AI — in addition to the benefits that AI can bring to their day-to-day experiences and overall career path.
Anshul Sheopuri and Lucrecia Borgonovo share five areas where Mastercard is using AI to improve the way their employees work, grow and manage their careers: (1) AI as career coach. (2) AI as wellbeing guide. (3) AI as workflow assistant. (4) AI as co-pilot. (5) AI as workforce planning partner. For more insights, particularly with regards to how Mastercard is using AI in Unlocked, its internal talent marketplace, I recommend watching the recording of the CHRO Panel at the recent Gloat Live event in New York, where I moderated a panel featuring Michael Fraccaro, Mastercard’s chief people officer, as well as Tanuj Kapilashrami and Tamla Oates-Forney.
MCKINSEY - A new future of work: The race to deploy AI and raise skills in Europe and beyond
Up to 30 percent of hours worked could be automated by 2030, boosted by gen AI, leading to millions of required occupational transitions
An insightful McKinsey study, which explores labour markets in ten European countries and the United States, in the years to 2030 given factors including labour shortages, productivity challenges, and the inexorable rise of technology. The report identifies four key priorities for companies: (1) Understand the potential: Leaders need to understand the potential of how AI and gen AI can augment and automate work. (2) Plan a strategic workforce shift: Once they understand the potential of automation technologies, leaders need to plan the shift toward readiness for the automation and AI era. (3) Prioritise people development: To ensure that the right talent is on hand, leaders could consider strengthening their capabilities to identify, attract, and recruit future AI and gen AI leaders in a tight market. (4) Pursue the executive-education journey on automation technologies: Leaders also need to undertake their own education journey on automation technologies to maximise their contributions during the coming transformation. (Authors: Eric Hazan, Anu Madgavkar, Michael Chui, Sven Smit, Dana Maor, Gurneet Singh Dandona, and Roland Huyghues Despointes).
FIG 2: Source - McKinsey
JEREMIE BRECHEISEN - What Companies Don’t Know About How Workers Use AI
Managers influence 70% of team engagement and they can ensure that your AI strategy supports the organization’s goals and expectations in terms of innovation, agility, and productivity.
Jeremie K Brecheisen presents Gallup research, which finds that leaders do not fully understand their employees’ use of, and readiness for, AI. The study finds that seven in 10 employees never use AI in their job, with only one in 10 saying they use AI on a weekly basis or more often. Brecheisen offers three recommendations for leaders to find the right balance of control and trust around AI, including measuring how their employees currently use AI, cultivating trust by empowering managers, and adopting a purpose-led AI strategy that is driven by the company’s purpose instead of a rules-heavy strategy that is driven by fear.
FIG 3: Could AI improve how work gets done? (Source: Gallup)
HEIDI GRANT, GINNIE CARLIER, AND FRANK GIAMPIETRO - Using Data to Design Your Hybrid Work Policies | JOSE MARIA BARRERO, NICHOLAS BLOOM, SHELBY BUCKMAN, AND STEVEN J. DAVIS - Survey of Working Arrangements and Attitudes (SWAA) (May 2024)
In their article for Harvard Business Review, Heidi Grant, Ginnie Carlier, and Frank Giampietro outline how EY has taken a data-driven approach to questions around hybrid work. Their data comparing the performance and well-being of hybrid employees with their fully in-person and remote counterparts has yielded often surprising insights. For example, EY found that hybrid employees who spent 40% to 60% of their time in person experienced higher well-being, belonging, skills development, and engagement when compared to fully remote or in-person employees. The article also provides guidance on how enabling teams to co-create and commit to ways of working drives work-life balance and wellbeing. Read alongside the May 2024 update of the WFH Research report by Jose Maria Barrero, Nick Bloom, Shelby Buckman, and Steven J. Davis, which amongst its many highlights, finds that 66% of workers use an office at least once a month (see FIG 4).
FIG 4: Source – wfhresearch.com
PEOPLE ANALYTICS
PIETRO MAZZOLENI - Blueprint for Balance: IBM’s Guide to Managing and Protecting People Data
In another edition of what it proving to be consistently one of the best newsletters of 2024 – People Data Platform – Pietro Mazzoleni shares the three core principles of how IBM manages and protects people data (see FIG 5). He explains how his team effectively secures data, strikes a balance between protection and accessibility, and establishes clear ownership of every piece of data.
FIG 5: Three core principles for managing and protecting people data (Source: Pietro Mazzoleni)
MCKINSEY - Master data management: The key to getting more from your data
Master data management can give organizations a leg up by allowing them to easily organize and access data about customers, suppliers, products, and employees.
An essential read for HR and people analytics professionals looking to bring their people and other organisational data together to drive value for the company, customers and employees. The article by Aziz Shaikh Holger Harreis Jorge Machado and Kayvaun Rowshankish, provides findings from a McKinsey study on how large companies organise, use, and mature their master data management (MDM). It includes examples of how MDM creates value in five ways (e.g. how MDM standardises data across entities to provide a unified view across various systems), common challenges (e.g. poor data quality – see FIG 6), and guidance on how to implement MDM effectively (e.g. establishing a robust data governance model to maintain integrity and reliability of MDM capabilities).
FIG 6: MDM quality issues (Source: McKinsey)
ANNETT ZIPPEL AND PATRICK COOLEN - Finding the right People Analytics Leader for your organization | MARTHA CURIONI - People Analytics for HR: Demystifying People Analytics | SERENA HUANG - Winning Over Gen Z: How AI & Data Can Create the Ideal Workplace | RORY O’GALLAGHER - Bridging Surveys and Conversations with Generative Listening Tools | WILLIS JENSEN - Moving Beyond Correlation to Causation in People Analytics | LOUISE BAIRD - How To Use People Analytics to Improve Manager Effectiveness
In recent editions of the Data Driven HR Monthly, I’ve featured a collection of articles by current and recent people analytics leaders. Six are highlighted here. (1) In an interview with Annett Zippel of KennedyFitch, Patrick Coolen shares insights on the components of a successful people analytics practice, how to get started, and the skills to look for and build in a people analytics leader. (2) Martha Curioni outlines a five-step methodology to undertake a people analytics project, with the first step perhaps being the most important: Define the Problem Statement. (3) Serena H. Huang, Ph.D. provides guidance on how AI and data can help create effective wellbeing and DEI strategies that resonate with Gen Z. (4) Rory O'Gallagher breaks down the what, why, and how of generative employee listening tools, including how they differ from traditional surveys, how to integrate them into your employee listening ecosystem, and how they will evolve. (5) Willis Jensen sets out the challenges of establishing causation in people analytics and provides guidance on how to get past these challenges such as identifying actionable variables (see FIG 7). (6). Louise Baird, Head of People Analytics at Marks & Spencer, offers practical steps on how to drive manager effectiveness through people analytics.
FIG 7: Examples of non-actionable and actionable variables in people analytics (Source: Willis Jensen)
NORM SMALLWOOD AND DAVE ULRICH - HR Transformation: Common Pitfalls and Tried and True Tips
Not developing the HR professionals to do strategic work is the #1 reason HR Transformation fails
Norm Smallwood, Dave Ulrich and The RBL Group outline four common HR Transformation pitfalls and tips to overcome each: (1) HR transformation is about transforming the entire HR Department to create value for the business. (2) It requires an understanding of the work that creates value for the business and then designing the organisation and building HR leaders and professionals to enable it (see FIG 8). (3) Invest in providing HR professionals with frameworks, tools, and shared language to do strategic work – “For impact on the business, HR must invest in itself.” (4) Capabilities are the link between business strategy and HR actions.
FIG 8: Source – The RBL Group
ZAC UPCHURCH | TALENT STRATEGY GROUP – CHRO Trends 2024: Insights from the Fortune 200 Chief Human Resources Officer and Chief People Officer Changes
Zac Upchurch presents the key findings from the seventh annual edition of The Talent Strategy Group’s CHRO Trends report. Three of the ten trends are: (1) A Decline In CHRO/CPO Appointments - 2023 had the fewest Fortune 200 CHROs/CPOs appointments since the report’s inception, with 22 new CHROs/CPOs appointed in 2023. (2) The Rapid Increase in Internal Succession - 73% of 2023 appointed CHROs/CPOs came to the role via internal succession, a rate not seen since 2017. (3) The HRBP as the CHRO/CPO Stepping Stone - The vast majority of the 2023 CHRO/CPO appointments consisted of individuals that served in a HRBP role prior to their CHRO/CPO appointment.
FIG 9: Internal vs. External CHRO/CPO hires in 2023 (top) and from 2017-2023 (bottom) (Source: Talent Strategy Group)
JAY DORIO - How to Empower HR Through Data Literacy | BRENT DYKES - Data Storytelling Arc: Demystifying Narrative Structure In Data Stories | NANCY DUARTE - How to Create Slides That Suit Your Superiors: 11 Tips | GANES KESARI - The Enduring Power of Data Storytelling in the Generative AI Era | COLE NUSSBAUMER KNAFLIC - How HR professionals can Master Storytelling with Data
As Jay Dorio reveals in his article, which is based on Insight222 research on how to build data literacy in HR at scale, storytelling is one of the five core skills HR professionals need to build to improve their data literacy. Four resources I recommend on storytelling are: (1) Brent Dykes analyses alternative narrative models for data storytelling and presents his Data Storytelling Arc (see FIG 10). (2) Nancy Duarte outlines 11 tips for preparing slides for an internal presentation, which includes four things you must have in every exec’s slides: start with an executive summary, have a logical organisation, make it skimmable, and focus on concise insights. (3) Ganes Kesari presents a 2x2 (see FIG 11) to help select the best approach to drive decision-making with data. (4) In a recent episode of the Digital HR Leaders Podcast, Cole Nussbaumer Knaflic discusses the transformative power of storytelling in the context of people data and analytics.
FIG 10: Data Storytelling Arc (Source: Brent Dykes)
FIG 11: What kind of decision are you making? Four Situations (Source: Ganes Kesari)
AMANDA EVANS - Applying People Analytics To Organizational Design
Amanda Jane Evans draws on recent collaborative research by Andrea Derler, Ph.D. of Visier Inc. and Amy C. Lewis, PhD to demonstrate how people analytics can inform actions on team size that drive business performance. The research highlighted that smaller teams—specifically those with six to 10 members—tend to harbour more high performers and have lower resignation rates (see FIG 12). In her article, Amanda explains that people analytics revealed that smaller teams at Partners Group are more likely to be successful in scenarios with direct client contact where high expectations for performance and stakeholder management are set. Amanda also explains how the firm proactively uses people analytics to analyse span of control during business transformation.
FIG 12: Smaller teams have lower resignation rates (Source: Visier)
MCKINSEY - To defend against disruption, build a thriving workforce
To build a thriving workplace, leaders must reimagine work, the workplace, and the worker.
Generative AI provides organisations – and HR professionals – with the opportunity to reimagine work, the workplace and the worker. In their article, the McKinsey team of Jacqui Brassey, PhD, MA, MAfN (née Schouten), Aaron De Smet, Emily Field, Taylor Lauricella, and Brooke Weddle, break down what a ‘thriving culture’ is (and what it isn’t) and offer five actions companies can adopt to maximise healthy work environments, team effectiveness, and employee well-being so that more workers can reach their peak performance.
FIG 13: Employee segments as a share of an organisation’s workforce (Source: McKinsey)
DAWN KLINGHOFFER - The Key to a Thriving Workforce? A Smart Approach to AI
What we find is that AI is really there to help you take friction and toil out of the system, and to remove the drudgery of work. And when people are able to remove some of that drudgery, we see that they’re more productive, and they thrive more.
Dawn Klinghoffer, Global Head of People Analytics at Microsoft, shares insights from the company’s recent Employee Signals survey. The findings not only highlighted the tangible benefits of thriving, but also identified a key catalyst for fostering it: access to AI. The article then highlights how thriving – and access to AI – has a positive impact on three indicators of high performance: (1) Meaningfulness (incorporating AI into the day correlated to a 20% jump in scores relating to meaningful work). (2) Empowerment. (3) Energy (scores on energy-related questions for those using AI jumped almost 27%). Dawn also shares the ABCs of thriving with AI: Accelerate alignment, Be inclusive, and Cultivate collective growth. This is another example of how Microsoft’s comprehensive approach to employee listening (see FIG 14) – coupled with the sponsorship of the CEO, Satya Nadella, leads to insights that drive positive outcomes for the business and the workforce. For more on Microsoft’s approach to employee thriving, listen to Dawn in conversation with me on the Digital HR Leaders podcast: How Microsoft Created A Thriving Workforce By Going Beyond Employee Engagement.
FIG 14: Microsoft’s Employee Listening Ecosystem (Source: Dawn Klinghoffer)
EMILY PELOSI AND PAIGE MCGLAUFLIN - Intuit’s ‘head of employee listening’ talks about the science of worker feedback—and the art of asking the right questions
In an interview with Fortune, Emily Pelosi, PhD, Head of Employee Listening at Intuit, discusses why her role was created, what it involves, and how she helps Intuit’s leaders harness employee feedback to make better and more informed decisions based on data. Two areas that really resonate, are (1) how Emily partners closely with Intuit’s CEO and chief people officer to shape their bi-annual survey and take action on the results. (2) the importance of asking the right questions.
BENJAMIN LAKER AND STEFANIA MARIANO - The Unexpected Upsides of Letting Employees Define Their Jobs | JACKSON ROATCH - The Work-GPT Paradox, AI and Job Crafting
Job crafting creates an environment of autonomy, encouraging employees to take initiative and innovate.
Three resources about ‘job crafting’, which in the article by Benjamin Laker and Stefania Mariano is described as: “Job crafting is a proactive approach where employees reshape their roles to infuse more meaning and engagement into their work.” Their article describes the three primary components – task crafting, relational crafting, and cognitive crafting – and discusses the benefits, challenges and considerations for implementing job crafting successfully. In the second article, Jackson Roatch explains how using AI more can enable employees to use job crafting to make their jobs 5-10% better. He cites research by Amy Wrzesniewski, as well as the work of Ravin Jesuthasan, CFA, FRSA and John Boudreau in deconstructing jobs, to provide an example of how AI can shape the role of a data analyst (see FIG 15). Finally, for more on job crafting, I recommend listening to Dan Cable in discussion with me on the Digital HR Leaders podcast: How to Help People Love What They Do At Work.
FIG 15: Using AI to ‘job craft’ the role of the data analyst (Source: Jackson Roatch)
ALLAN H. CHURCH, JAMES SCRIVANI, AND MARKUS GRAF - Unleashing The Power of Assessments for Leaders and their Organizations
Based on their experience of working with assessment tools in organisations such as PepsiCo and Novartis, Allan Church, Ph.D. Jim S. and Markus Graf present a three-step guide to building an effective, impactful and meaningful assessment system: (1) Focus Assessments on Future Capabilities Needed for Your Organisation. (2) Take a Multi-Trait, Multi-Method Approach to Assessment, aka Use Multiple Lenses. (3) Unlock the Value of Assessment Insights for Leaders, Teams, and the Organisation (see FIG 16).
FIG 16: The Three Levels of Assessment Insights (Source: Church et al)
MCKINSEY - In the spotlight: Performance management that puts people first
Companies that focus on their people’s performance are 4.2 times more likely to outperform their peers, realizing an average 30 percent higher revenue growth and experiencing attrition five percentage points lower.
While effective performance management systems support employees to develop, new research by McKinsey finds that most companies fall short of best practices. In their article, Amaia Noguera Andrea Pedroni Asmus Komm and Simon Gallot Lavallée provide insights on how leading companies approach performance management across four elements - goal setting, performance reviews, ongoing development, and rewards (see FIG 17). The article also digs into five enabling factors: (1) Ensure that performance management systems are agile. (2) Provide regular feedback. (3) Establish an effective fact base. (4) Maintain rating and differentiation. (5) Employ gen AI.
FIG 17: Designing a performance management system (Source: McKinsey)
CATHERINE COPPINGER - Manager Effectiveness: 5 Metrics That Matter More than eSat Scores
Catherine Coppinger presents findings from Worklytics research on manager effectiveness, which highlights the top drivers of low and high manager satisfaction (see FIG 18). The article also recommends metrics for measuring manager effectiveness, which are based on five things top-performing managers tend to do: (1) Provide regular coaching. (2) Define and implement reasonable team norms. (3) Support their team (without micromanaging). (4) Elevate and unblock their team via network connections. (5) Routinely engage with team members in-person. For more insights on this topic, listen to Catherine on a recent episode of the Digital HR Leaders podcast: How to Use Passive Data to Enhance Manager Effectiveness. I also recommend checking out the deck Philip Arkcoll and Michael Arena presented recently at Society for Industrial and Organizational Psychology (SIOP): The ONA Hype Cycle: Why this Time is Different.
FIG 18: The drivers of lower and higher manager satisfaction (Source: Worklytics)
Much of the innovation in the field is driven by the vendor community. I’ve picked out a few resources from May that I recommend readers delve into:
FIG 19: The shift from experience-based to skill-based hiring (Source: Arctic Shores)
FIG 20: Source - Lattice
KEN OEHLER - Unlocking the Power of Personality – Ken Oehler presents new research from RADICL, which explores the link between personality traits and areas such as hybrid collaboration, trust, employee experience, and productivity. A fascinating read.
FIG 21: Source - RADICL
FRESIA JACKSON, HEATHER WALKER, AUBREY BLANCHE-SARELLANO - Workplace Diversity, Equity, and Inclusion 2024 Report – Culture Amp’s Workplace DEI Report is always an insightful read and the 2024 edition is no exception. As Aubrey Blanche-Sarellano writes in the Foreword: “DEI has become both a buzzword and the target of significant backlash.” The report by Fresia Jackson, Heather Rose Walker, PhD and the team provides detail on five key findings including: (1) Perception of DEI in the workplace is falling globally. (2) Intersectionality has a compounding effect. (3) Embedding DEI into existing programs has a bigger impact.
FIG 22: Source – Culture Amp
In another month of high-quality podcasts, I’ve selected four gems for your aural pleasure:
NEHA UPADHYAYA – Building an Impactful People Analytics Practice
I recently had the privilege of attending the Wharton People Analytics Conference - thanks to Matthew Bidwell, Laura Zarrow, and team. All the sessions from the event can now be viewed including this one featuring Neha Upadhyaya presenting the findings of interviews and surveys of people analytics leaders. The talk presents the initial findings, including the trends they've uncovered, and the pitfalls to avoid in order to build and sustain an impactful people analytics team.
ANISH LALCHANDANI – The Skills Advantage: A Human-Centered, Sustainable, and Scalable Approach to Reskilling
In the ‘Book of the Month’, Anish Lalchandani breaks down ‘why’ companies should make the paradigm shift towards a skill-centric approach, ‘how’ it contributes to business success, and provides guidance on ‘what’ steps practitioners can take with regards to Agility, Awareness, Application and Alliances in building a comprehensive reskilling strategy. The book is an indispensable guide for HR leaders looking to embrace a successful skills-based approach.
STEFANO DI LAURO, AIZHAN TURSUNBAYEVA, GILDA ANTONELLI. AND LUIGI MOSCHERA - Disrupting human resource management with people analytics: a study of applications, value, enablers and barriers in Italy
In their paper, Stefano Di Lauro, Aizhan Tursunbayeva, PhD, GRP, Gilda Antonelli, and Luigi Moscheraexplore the adoption and impact of people analytics in Italy. Key findings suggest that people analytics, particularly descriptive, is growing, and that benefits are being enjoyed at both an organisational and employee level.
FIG 23: People Analytics value for organisations in Italy (Source: Di Lauro et al)
May saw four episodes of the Digital HR Leaders podcast - with two each sponsored by our friends at Worklytics and Crunchr. Thank you to Philip Arkcoll and Laura Morris from Worklytics and Ralf Bovers and Dirk Jonker from Crunchr for your partnership and support.
LOOKING FOR A NEW ROLE IN PEOPLE ANALYTICS OR HR TECH?
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 525 roles.
THANK YOU
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:
