The best HR & People Analytics articles of 2023 (Part 2 of 2)Last week, I published Part 1 of the 10th annual compilation of my 60 best resources on people analytics and HR of 2022. Thanks to all of those who shared, commented on and reposted Part 1. It is much appreciated.
Part 2, herein, covers resources on the following five topics: vi) the evolution of HR, HR operating models and the CHRO, vii) building a data driven culture in HR, viii) workforce planning, skills, and talent marketplace, ix) leadership and culture, and x) diversity, equity, inclusion and belonging.
To recap, Part 1 covered five topics: i) the future of work and people strategy, ii) workplace design and strategy, iii) AI and the world of work, iv) people analytics, and v) employee experience, listening and wellbeing. You can also catch up with previous editions for the last decade: 2014, 2015, 2016 2017, 2018, 2019, 2020, 2021 and 2022 (Part 1 and Part 2).
I hope you enjoy reading the selections for 2023. If you do, please subscribe to my weekly Digital HR Leaders newsletter, which is published every Tuesday via Insight222, and tune in to the Digital HR Leaders podcast, which returns on January 16 with a special episode featuring Dawn Klinghoffer, Thomas Hedegaard Rasmussen, and Jeremy Shapiro on the outlook for people analytics in 2024.
vi) THE EVOLUTION OF HR, HR OPERATING MODELS AND THE CHRO ROLE
DAVE ULRICH, JOE GROCHOWSKI, NORM SMALLWOOD, JOE HANSON, AND ERNESTO USCHER - What Makes an Effective HR Function? An HR Value Logic
A glut of research was published in 2023 on the evolution of the HR operating model from the likes of McKinsey, Deloitte and Mercer. Most lean on the pioneering work of Dave Ulrich and his colleagues back in 1995, in what is now commonly referred to as the ‘Ulrich model’. As such, this immensely insightful article by Dave and his colleagues at RBL: Joe Grochowski, Norm Smallwood, Joseph Hanson, and Ernesto Uscher is a must-read for anyone reviewing their HR operating model. The article defines the value HR provides to stakeholders, analyses some of the recent research on HR operating models, couples this with The RBL Group’s own research, and provides guidance on steps to a more effective HR function (see FIG 24) and a diagnostic of ten dimensions of HR effectiveness (see FIG 25) to improve the value HR can create. A tour de force.
HR is not about HR but about the value HR creates for stakeholders
FIG 24: Steps To An Effective HR Function? (Source: The RBL Group)
FIG 25: Assessment of Ten Dimensions of HR Effectiveness (Source: The RBL Group)
SANDRA DURTH, NEEL GANDHI, ASMUS KOMM, AND FLORIAN POLLNER – HR’S new operating model: A new approach to human resources
Excellent analysis from McKinsey based on qualitative interviews with over 100 chief human resources officers on how the HR operating model is changing to drive value in today’s volatile business environment. In the article the team of Sandra Durth, Neel Gandhi, Asmus Komm, and Florian Pollner identify and describe five HR operating model archetypes (see FIG 26). The authors explain how these operating models are premised on eight innovation shifts, with each archetype typically based on one major innovation shift and supported by a few minor ones.
In large, diversified organizations, CHROs may find that different archetypes fit the differentiated needs of specific businesses better and may adopt a combination of HR operating models.
FIG 26: Five emerging HR operating models (Source: McKinsey)
MARC EFFRON | TALENT STRATEGY GROUP – HR Operating Model Report 2023
There is a wealth of insights from Marc Effron and his team at The Talent Strategy Group in their report on how more than 200 companies are structuring and operationalising HR. Insights include: (1) 86% of CHROs report to the CEO, which certainly helps answer the perennial ‘seat at the table’ question, (2) HR is growing across all parts of the function - for example, the support ratio for HRBPs to employees has decreased, (3) From a people analytics perspective, the study finds that 35% of people analytics leaders report to the CHRO, which mirrors the rise we have seen in our Insight222 People Analytics Trends researchyear on year since 2020, and (4) However, as the report states:
The fact that People Analytics reports more frequently to Shared Services and Other HR Functions than to the CHRO or Talent Management suggests a potential misunderstanding of the strategic role of the function. It may also, however, suggest that the COE is providing more reporting and less true analytics in many organizations.
FIG 27: CoE reporting lines to the CHRO (Source: Talent Strategy Group, HR Operating Model Report 2023)
KATHI ENDERES - Building the Dynamic Organization: Critical for the Post-Industrial Era
Kathi Enderes breaks down findings from research she and Josh Bersin have conducted with Gloat. It highlights that instead of designing a company around jobs, Dynamic Organizations instead organise around people and skills. Kathi’s article provides a framework (see FIG 28), a maturity model, and data on the impact of Dynamic Organizations. I recommend reading this alongside the subsequent research published by Josh and Kathi on Systemic HR, which Josh summarises in this podcast.
FIG 28: A framework for a Dynamic Organization (Source: Josh Bersin Company)
ELLYN SHOOK, YUSUF TAYOB, AND LAURIE HENNEBORN - The CHRO as a growth executive Article | Full Report
Research by Accenture finds that by unlocking the growth combination of data, technology and people, companies can generate a premium of up to 11% on top-line productivity, with the people element making up 7% of that alone. However, the study also finds that just 5% of large, global organisations are realising this. The spearhead of the companies that are is a new breed of CHRO – the ‘high-res CHRO’ - one that is stepping up to lead their C-suite peers in connecting data, technology and people and cultivating collaboration. The report details how to spot and support High-Res CHROs, how they effect change, and provides guidance on the way forward. The report is co-authored by Ellyn Shook, Yusuf Tayob, and Laurie Henneborn, MSLIS, and features contributions from a number of CHROs including Giuseppe Addezio, Christine Deputy , Kerry Dryburgh, Lauren Rusckowski Duprey, Darrell Ford, Francine Katsoudas, and Donna Morris.
FIG 29: Three things High-Res CHROs do differently to put the forces of change to work (Source: Accenture)
JONATHAN GORDIN, SHARI CHERNACK, KAREN SHELLENBACK, AND YAMILE BRUZZA | MERCER - Evolving the CHRO role in a rapidly changing world of work
41 percent of CHROs wish they had had a greater depth of knowledge in people analytics before stepping into their roles. That is a standout finding from Mercer’s 2023 CHRO report. Many CHROs also conceded that they wish they had assumed the role with a greater understanding of business and strategy. The report, by Jonathan Gordin, Shari Chernack, Karen Shellenback, and Yamile Bruzza, also digs into the growing importance of technology and analytics including the need for CHROs and their leadership teams to upskill themselves and act as role-models in areas such as data literacy, how the CHRO role will evolve (see also FIG 30), actions to develop HR leaders, and key attributes of CHROs.
The ability to understand the business you are in is critical to success as a CHRO — the people strategy must be an extension of the business strategy
FIG 30: How the CHRO role will evolve (Source: Mercer)
ROB BRINER - Aligning HR with the business through the evidence-based HR process
Rob Briner makes the case for evidence-based practice and how it applies to HR, explaining what it is and why it is effective. Rob breaks down six key steps in the evidence-based HR process (see FIG 31). He then applies the evidence-based approach to a case study to understand and solve high employee turnover.
FIG 31: The Evidence-Based HR Process (Source: Rob Briner)
vii) BUILDING A DATA-DRIVEN CULTURE IN HR
NAOMI VERGHESE AND JONATHAN FERRAR - Upskilling the HR Profession: Building Data Literacy at Scale Article | Full Report
In conversations I have with chief human resources officers, people analytics leaders and other senior human resources executives, improving the data literacy of HR professionals continues to be a challenge. A study by my Insight222 colleagues Naomi Verghese and Jonathan Ferrar, highlights four key findings to support organisations seeking to build data literacy in HR at scale: (1) Role-modelling by the CHRO and HRLT is essential (see FIG 32), (2) responsibility for upskilling should sit with the people analytics leader, (3) Five skills form the core of data literacy for HR, and (4) Companies should invest appropriately for a multi-year upskilling programme of between $600 and $800 per HR full-time equivalent. Download the full report here.
FIG 32: Source: Upskilling the HR Profession: Building Data Literacy at Scale (Source: Insight222)
MADHURA CHAKRABARTI AND TAMARA MCBRIDE - The analytics escape room game: On being fast followers
As Madhura Chakrabarti, PhD and Tamara McBride state: “Upskilling HR in data fluency was always an important part of our People Insights and Analytics roadmap at Syngenta.” Their article outlines the journey Syngenta has taken over the last three years, which has seen over 200 participants complete their ‘analysis paralysis’ simulation. Madhura and Tamara share their three key lessons in relation to building a data driven culture in HR: (1) Go beyond HR (“our non-HR colleagues did a wonderful job in spreading the word internally whereby demand started accelerating within and outside HR”), (2) Make it part of a bigger journey (see FIG 33), and (3) Shift to a virtual experience but keep the in-person offering alive when needed. For more from Madhura on how Syngenta is building a data driven culture in HR, I recommend listening to her discussion with me on the Digital HR Leaders podcast: How Syngenta Successfully Upskilled Their HR Function Into Data-Literacy.
FIG 33: Building data fluency in HR at Syngenta (Source: Madhura Chakrabarti and Tamara McBride)
JAAP VELDKAMP AND HELEEN GOET - How to determine your success KPIs in HR
Jaap Veldkamp and Heleen Goet describe the process followed at ABN Amro for establishing a link between each HR service and its impact on business outcomes. It outlines a ‘define your success’ workshop conducted between the people analytics team and HR at the bank to align each service to output and outcomes (see example in FIG 34). The article also highlights two benefits of this approach: (1) It leads to better collaboration between various teams in HR. (2) It magnifies the broader advisory role of people analytics.
FIG 34: Source: Jaap Veldkamp and Heleen Goet
RJ MILNOR - 10 Metrics to Unlock Value in Your Organization | ERIC LESSER AND CHARIS CHAMBERS - Key HR metrics for chief human resources officers
Two insightful articles highlighting progressive HR metrics. (1) RJ Milnor presents ten people metrics focused on help companies and HR leaders to unlock value (rather than cut costs). (2) Eric Lesser and Charis Chambers highlight five critical areas where CHROs need access to key HR metrics, data, and insights on demand to provide a snapshot of the current state of the work, workforce, and workplace (see FIG 35).
FIG 35: Five key areas of insights and metrics for CHROs (Source: Deloitte)
BRENT DYKES - Elephant In The Room: Data Storytelling Is More Than Just Data Visualization
Brent Dykes uses the Buddhist parable of the Elephant and the Blind Men to highlight the overemphasis typically placed on the visualisation element of data storytelling at the expense of the two other key components: facts (from data) and a storyline (narrative) – see FIG 36. Brent’s article breaks down each of these three elements, their relationship to each other, and provides guidance on how to shift from a ‘visualization-centric view’ to a ‘balanced view’. A must-read for anyone in the people analytics field, as well as HR professionals looking to hone their data storytelling skills.
FIG 36: What is data storytelling (Top), How to shift data storytelling from a visualization-centric to a balanced view (Bottom) (Source: Brent Dykes)
viii) WORKFORCE PLANNING, SKILLS, AND TALENT MARKETPLACE
WORLD ECONOMIC FORUM - The Future of Jobs Report 2023
The fourth edition of the World Economic Forum’s Future of Jobs Report is an absolute treasure trove of data, insights, and visualisations based on data from 803 companies and 11.3m workers. The report explores how jobs and skills will evolve over the next five years, and how the Fourth Industrial Revolution will continue to shape the world of work. There are too many highlights to list them all here are some standout ones for me: (1) 23% of jobs are expected to change by 2027, with 69 million new jobs created and 83 million eliminated (see FIG 37), (2) 44% of individual worker skills will need to be updated by 2027, (3) The three key drivers of job change are the green transition (driving growth), technology (driving growth and decline), and the economic outlook (driving decline), and (4) Analytical thinking and creative thinking are regarded as the top two in-demand skills of 2023. Kudos to the authors of the report: Attilio Di Battista, Sam Grayling, Elselot Hasselaar, Till Alexander Leopold, Ricky LI, Mark Rayner and Saadia Zahidi.
FIG 37: 23% of today’s jobs will change by 2027 (Source: World Economic Forum)
AMY WEBB - How to Prepare for a GenAI Future You Can’t Predict
Futurist Amy Webb outlines a framework to help leaders anticipate how — and when — their workforce will need to change in order to leverage AI (see FIG 38). The framework should help those involved in workforce planning partner with leaders to develop scenarios for the future of the business. Moreover, Amy also provides a three-step guide for leaders to navigate the current uncertainty: (1) Temper expectations about what generative AI can and will do for your business. (2) Evaluate what data your company is generating and how it would today, and in the future, be used by generative AI. (3) When it comes to AI, leaders must shift their focus from the bottom line to top line.
FIG 38: The IDEA Framework (Source: Amy Webb)
DELOITTE - Managing workforce risk in an era of unpredictability and disruption
A hugely insightful collaboration between Deloitte and Harvard Professor Joe Fuller, which breaks down the increasing number of risks facing organisations in our disruptive world, the impact these have on the workforce, and what some leading companies are doing to help mitigate these risks. The article presents a framework for workforce risk (see FIG 39) as well as findings from a survey of 875 C-suite leaders, executives, and independent board members to explore how senior leaders view and address workforce risk. Findings include that most companies don’t have a definition nor expertise on workforce risk, those companies that do address workforce risk focus on short-term objectives rather than strategically planning for tomorrow’s challenges, and boards and C-suites provide limited oversight over workforce risk. The research does identify Pioneers – around one in ten leaders that view workforce risk factors more holistically and spread responsibility for effectively measuring and managing these risks throughout the organisation. (Authors: Joseph Fuller, Michael Griffiths, Reem J., Michael Stephan, Carey Oven, Keri Calagna, Robin Jones, Susan Cantrell, Zac Shaw, and George Fackler).
To perform at their best and meet evolving business needs, organizations should have a workforce planning process that helps establish the right people in the right place at the right time, for the right cost. To accomplish that, they should plan for succession, cultivate new talent pipelines, and deploy workers against emerging business priorities fluidly.
FIG 39: A framework for workforce risk (Source: Deloitte)
ROBERT MOTION AND COLE NAPPER - What’s Old is New: The Quest for Excellence in Workforce Planning
As Robert Motion and Cole Napper highlight in their treatise on the topic, workforce planning is both an art and a science that has its root in data and strategy. Their article offers six lessons on the topic: (1). Strategy is hard, but that doesn’t make WFP impossible. (2) Workforce planning can both help fight and respond to the Wall Street earnings cycle pressure. (3) Process is necessary, but don’t overdo it. (4) Analytics is and will continue to be king. (5) Winning the war for talent requires Talent Intelligence. (6) We can’t fall in love with our own ideas.
As WFP practitioners, influencing with data is THE key to gaining credibility with the business. It shows that WFP is not “touchy-freely HR”, but data-driven and quantified.
RICHARD ROSENOW - The SOAPI Framework - A New Lens for Modern Workforce Planning
Richard Rosenow is one of the best thinkers in our field and demonstrates it with his paper for One Model introducing his SOAPI framework for workforce planning. As he explains, it is a methodology that offers a structured method to break workforce planning into component parts. Each component represents a pillar, collectively forming the discipline of workforce planning. These are: (1) Strategy, (2) Operations (3) Analytics, (4) Planning, and (5) Intelligence. The paper breaks each of these down, and details what happens if one of these pillars is missing (see FIG 40).
FIG 40: Source - Richard Rosenow, One Model
MERCER – Building and sustaining a thriving Talent Marketplace
The Talent Marketplace is one of the hottest topics in the field of talent management, which makes this report by Mercer as timely as it is important. The report is informed by a survey, interviews with early adopters, and best practices for realising the vast potential of a talent marketplace. The report covers: (1) The business case, (2) How companies can use and launch talent marketplaces, (3) Outcomes and ROI realised by early adopters including Unilever, (4) Guidance on the change management required to achieve stakeholder alignment, and (5) Tips to get started and sustain momentum. Kudos to the authors: Ravin Jesuthasan, CFA, FRSA, Rupali Gupta, Chitralekha Singh, Brian Fisher, Marcus Downing, Paul Habgood, Nicole Peichl, Lewis Garrad, and Wan Yee Choo. For more on talent marketplace, I recommend listening to two 2023 episodes of the Digital HR Leaders podcast with Tanuj Kapilashrami (How Standard Chartered is Unlocking the Power of Skills in the Workplace) as well as Jeff Schwartz and Jeroen Wels (Navigating the Talent Marketplace of the Future).
Implementing a talent marketplace requires a radical rethink of work itself and involves far more than implementing a new technology.
FIG 41: Finding the sweet spot for success with talent marketplaces
BO COWGILL, JONATHAN M.V. DAVIS, B. PABLO MONTAGNES, PATRYK PERKOWSKI, AND BETTINA HAMMER - How to Design an Internal Talent Marketplace
Between them Bo Cowgill, Jonathan Davis, Pablo Montagnes, Patryk Perkowski, and Bettina Hammer have designed, implemented, and evaluated internal talent marketplaces (ITMs) for more than a decade in the private, non-profit, and public sectors, with partners across the globe. In their article for Harvard Business Review, they break down the four key benefits of ITMs: (1) Reduced replacement costs with examples from Teach for America and Schneider Electric, (2) Better placement within a large workforce with an example from the US Department of Defense, (3) More opportunities for generalists, and (4) Better aggregation of insights – with both the latter two documenting examples from Google. The authors explain how to build (e.g. technology, change, culture and data) and optimise (e.g. nudges, incentives and executive oversight) ITMs, connect their successful adoption to best practices and recommend ways to align employees’ preferences with the company’s needs.
Companies that fare the best with internal talent marketplaces are in industries with high worker-replacement costs and have employees who tend to be generalists.
ix) LEADERSHIP AND CULTURE
GEORGE WESTERMAN AND ABBIE LUNDBERG - Why Companies Should Help Every Employee Chart a Career Path
Multiple studies find that lack of career advancement is the top reason employees provide for leaving their employers. Perhaps not surprisingly George Westerman and Abbie Lundberg found in their previous research a gap between the career development support many companies claim to provide and the lived experience of the typical worker. In their new article, the authors highlight two false narratives of career development that they find are prominent in many companies: “managers are responsible to develop their employees’ careers” and “we empower employees to own their career development.” While these ideals sound good, the reality is somewhat different. The authors then outline a career development process comprised of three elements designed to work for employees at all levels of the organisation and bring these to life with a number of case studies. The three elements are: (1) Make opportunities and pathways visible, (2) Provide opportunities to learn and practice, and (3) Deliver rich feedback and coaching.
Leaders must do much more to help employees see a future with the company and a path to advance toward that future.
McKINSEY - Performance through people: Transforming human capital into competitive advantage
When organisations invest in employees, the returns are not always quantifiable. Yet some firms are much more effective than others at turning human capital into a tangible competitive advantage, according to research by McKinsey. The study finds that the best companies – ‘People + Performance (P&P) Winners’ – are good at developing their workforce and delivering outstanding financial performance. The report details how P+P Winners possess a distinctive organisational signature (see FIG 42): they are more resilient, better at attracting, developing and retaining talent, have more effective leadership and more inclusive cultures. The report has a litany of insights across its 40 pages, including a blueprint on how companies can transform their organisational capital. (Authors: Anu Madgavkar, Bill Schaninger, Dana Maor, Olivia White, Sven Smit, Hamid H. Samandari, Jonathan Woetzel, Davis Carlin, and Kanmani Chockalingam.)
P+P Winners deliver a better workplace experience, and they are engines of upward mobility for the employees who pass through them
FIG 42: P&P Winners possess a distinctive organisational signature (Source: McKinsey Global Institute)
CONSTANCE NOONAN HADLEY, MARK MORTENSEN, AND AMY EDMONDSON - Make It Safe for Employees to Speak Up — Especially in Risky Times
In their article for Harvard Business Review, Connie Noonan Hadley, Mark Mortensen, and Amy Edmondson emphasise the importance of fostering a culture of psychological safety within organisations. They argue that during challenging and uncertain times, such as crises or periods of change, employees need an environment where they feel comfortable expressing their concerns, ideas, and dissenting opinions. The article provides practical steps for leaders to create psychological safety, such as encouraging open dialogue, actively listening, and addressing biases that may inhibit honest communication. Constance, Mark and Amy highlight the benefits of fostering a culture where employees feel safe to speak up, including improved decision-making, innovation, and employee well-being.
Psychological safety — the belief that one can speak up without risk of punishment or humiliation — is what enables employees to use their voices, and it’s more important than ever that leaders build it.
FIG 43: Why employees are reluctant to use their voices (Source: Constance Noonan Hadley, Mark Mortensen, and Amy Edmondson)
PER HUGANDER - Take a Skills-Based Approach to Culture Change
A persuasive article on how taking a skills-based approach to culture change can lead to lasting positive changes in behaviour and organisational performance. Drawing from a Harvard case study of SEB, a Nordic bank, Hugander Per highlights the successful application of the late, great Edgar Schein's Organizational Culture Model (see FIG 44). By emphasising the development of specific skills like active listening, coaching, and empathetic communication among its leaders, SEB achieved a cultural transformation characterised by collaboration and openness. This approach aligns culture change efforts with tangible behaviours, ensuring more effective and enduring transformations within organisations.
FIG 44: Edgar Schein’s Organizational Culture Model (Source: MIT Sloan Management Review)
TRACY THURKOW AND ADÉLAÏDE HUBERT - Organizations Don't Change Behavior, People Do
Tracy Thurkow and Adélaïde Hubert-Verley write about the role behavioural science can play in any successful transformation or change management initiative: “Behavioral science can help you create a change-embracing environment through nudges, feedback loops, and reinforcement.” Their article provides a timely reminder that organisations cannot change behaviour; only people can. To achieve successful behaviour change they argue, individuals need to be motivated and equipped with the necessary skills and resources. Organisations should focus on creating a culture that supports and encourages the desired behaviour change, providing clear guidance and incentives for individuals, and enabling them to practice and refine their new behaviours over time (see FIG 45).
Behavioral science helps to inspire and engage people in embracing change
FIG 45: Making the behaviour possible requires removing frictions and implementing enablers, signals, and reinforcers (Source: Bain & Company)
JONATHAN KNOWLES, B. TOM HUNSAKER, AND MELANIE HUGHES – The Role of Culture in Enabling Change
While culture is often described as “how we do things around here”, Jonathan Knowles, Dr. Tom Hunsaker, and Melanie Hughes posit in their article that “It’s more helpful to think of culture as the nervous system of an organization.” They highlight that one of the most important responsibilities of HR is to analyse the aspects of culture that are enabling or hindering performance. They proceed to explain that the first step is to investigate the type of change the team, business unit or organisation requires, and then document three approaches to making such changes: (1) Reinforce magnitude. (2) Reimagine activity. (3) Rethink direction (see also FIG 46)
FIG 46: Effective Cultures are Context Adaptive (Source: Knowles et al)
TOMAS CHAMORRO-PREMUZIC - How to Strengthen Your Curiosity Muscle
The opening keynote at the recent Workday Rising EMEA event in Barcelona by Dr Tomas Chamorro-Premuzic was based on his recently published book, I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique, which I highly recommend. Tomas is a prolific writer, and in one of his recent articles, for Harvard Business Review, he writes about one of the most critical and sought after dimensions of talent: curiosity – a skill that is vital for leadership effectiveness, learning, and career development. In the article, Tomas shares five recommendations to develop our curiosity muscle: (1) Ditch all excuses. (2) Find the right angle. (3) Change your routine. (4) Experiment. (5) When bored, just switch. For more from Tomas, please tune in to his recent conversation with me on the Digital HR Leaders podcast: How AI Can Unlock Human Potential and Make Work More Meaningful.
While we may not know what tomorrow’s jobs will be, employees’ motivation and ability to upskill and reskill for those jobs will significantly increase if they are curious.
STACIA GARR AND PRIYANKA MEHROTRA - What’s Holding Back Manager Effectiveness, and How to Fix It
While manager effectiveness is a top priority for leaders and HR teams, research by Stacia Sherman Garr and Priyanka Mehrotra for RedThread Research finds that organisational support for managers is on the wane. Based on analysis of a survey of more than 700 employees across a wide range of industries, Stacia and Priyanka identified seven practices that are most important in driving manager effectiveness (see FIG 47) – four practices under the control of managers themselves, and three under the auspices of senior leaders and HR. The article also details three key actions organisations — particularly senior leaders and HR teams — can take to address gaps in support and develop more effective managers.
FIG 47: Seven factors driving manager effectiveness (Source: RedThread Research)
EMILY FIELD, BRYAN HANCOCK, AND BILL SCHANINGER - Don’t Eliminate Your Middle Managers | EMILY FIELD, BRYAN HANCOCK, STEPHANIE SMALLETS, AND BROOKE WEDDLE - Investing in middle managers pays off—literally
Two articles featuring insights from one of the best books of 2023: Power to the Middle: Why Managers Hold the Keys to the Future of Work authored by Bill Schaninger, Ph.D., Bryan Hancock. The first provides a clarion call to organisations that rather than viewing middle management as ripe for cutting in turbulent times they should instead reimagine the role of the middle manager, helping them to fully understand their value, and then train, coach, and inspire them to realise their potential as organisational linchpins. The second article, co-authored with Stephanie Smallets, Ph.D. and Brooke Weddle, provides data highlighting that organisations with more top-performing middle managers have much better financial outcomes (see FIG 48). The article also provides five steps to strengthening middle manager performance: (1) Optimising organisational ‘spans’, (2) Resetting manager roles, (3) Pivoting to capability building, (4) Drilling down into manager experience, and (5) Building in accountability mechanisms.
Human capital is at least as important as financial capital, and middle managers, who recruit and develop an organization’s employees, are the most important asset of all—essential to navigating rapid, complex change. They can make work more meaningful, interesting, and productive, and they’re crucial for true organizational transformation.
FIG 48: Organisations whose managers exhibit strong behaviours realise better bottom-line performance (Source: McKinsey)
x) DIVERSITY, EQUITY, INCLUSION AND BELONGING
McKINSEY - Diversity matters even more: The case for holistic impact
The fourth report in a McKinsey series stretching back to 2015, investigating the business case for diversity. The main takeaway is that the 2023 study finds that the business case is the strongest it has been yet with leadership diversity being convincingly associated with business performance, societal impact and employee experience (see FIG 49). The full 52 page report details case studies from the likes of IHG Hotels & Resorts, DHL Group, and Air New Zealand, as well as presenting five levers for change for moving from commitment to action. (Authors: Dame Vivian Hunt, Sundiatu Dixon-Fyle, Celia Huber, Maria del Mar Martinez, Sara Prince, and Ashley Thomas.)
FIG 49: The business case for diversity on executive teams and financial outperformance (Source: McKinsey)
DONALD SULL AND CHARLES SULL - The Toxic Culture Gap Shows Companies Are Failing Women
Donald Sull and Charlie Sull continue their fascinating work on toxic culture (see previous articles here) by this time focusing on research that finds women are 41% more likely to experience toxic workplace culture than men (see FIG 50). The article provides a number of cuts, powerful visualisations and analysis of the data including possible reasons why women are more likely to cite toxic culture, the elements that drive the toxic culture gender gap, and how the gap varies by industry and occupation.
FIG 50: Toxic Culture Is the Largest Culture Gap Between Women and Men (Source: Culture X)
JAMES ROOT, ANDREW SCHWEDEL, MIKE HASLETT, AND NICOLE BITLER - Better with Age: The Rising Importance of Older Workers
Compelling research from Bain & Company highlighting that in the G7 group of countries, older workers will exceed a quarter of the workforce by 2031 (see FIG 20). Despite this shift, the study also finds that only a small number of organisations have programs in place to integrate older workers into their talent systems. As well as providing compelling data and visualisations on this trend, the authors (James Root, Andrew Schwedel, Mike Haslett, and Nicole Bitler Kuehnle) provide guidance on three steps to empower older workers: (1) Retain and recruit older workers by understanding what motivates them at work. (2) Reskill them for your next 10 years of capability needs. (3) Respect their strengths and allow them to do what they do best.
Creating roles that benefit both older workers and the company is not just the right thing to do, it’s also a business imperative.
FIG 51: Share of workers age 55 and older in 2011, 2021 and 2031 (Source: Bain & Company)
LILY ZHENG - To Make Lasting Progress on DEI, Measure Outcomes
Organisations that are generating value through diversity, equity and inclusion (DEI) understand the importance of metrics and KPIs, but even some of these struggle to identify the right ones. The objective of Lily Zheng’s article in Harvard Business Review is to provide guidance to companies seeking to make tangible and lasting progress on DEI goals. Three actions are recommended related to tracking metrics. (1) Recognise the importance of outcome metrics beyond demographics. (2) For each category that you choose to measure, develop a theory of change to identify tailored proxy metrics. (3) To ensure that these findings result in lasting outcomes, create a plan in advance for using data to follow up and take action. Thanks to Frances Frei for highlighting Lily’s excellent article.
EDWARD CHANG, ERIKA KIRGIOS, JAMES ELFER, KATRYN WRIGHT, AND GUUSJE LINDEMANN - Why You Should Start A/B Testing Your DEI Initiatives
In their article, Edward Chang, Erika Kirgios, James Elfer, Katryn Wright, and Guusje Lindemann draw on their experience as academics and consultants who have studied the issue extensively, to present the benefits of targeted A/B testing for DEI initiatives. The authors cite company examples that they’ve been involved with, including one with Ericsson to improve internal mobility amongst female employees. They also offer practical guidance for companies interested in doing testing of their own.
The more DEI experiments you conduct, the more you’ll learn about what works and what doesn’t, and the faster you’ll make progress on equality at work.
FROM MY DESK
Below are another selection of six articles I penned or co-penned in 2023. Part 1 contains seven other articles I authored in 2023.
12 Opportunities for HR in 2024 – As the title suggests, this article draws on our research at Insight222 and other studies to document 12 opportunities for HR to continue its progress from support function to strategic partner in 2024 (see also FIG 52).
FIG 52: 12 Opportunities for HR in 2024 (Source: David Green)
Exploring the Future of Skill-based Organisations - Andreas De Neve ?, CEO at TechWolf, shares insights with me on how HR leaders can make an impact on their business by addressing skill shortages and creating the foundation of a skill-based organisation.
10 Key Learnings from the Wharton People Analytics Conference 2023 - In this article, I share ten key learnings from the 2023 Wharton People Analytics Conference. For more on this event, I recommend listening to this episode of the Digital HR Leaders podcast, which was recored at Wharton PAC and features Prasad Setty and Dawn Klinghoffer as well as contributions from: Tanu Dixit, Matthew Malter Cohen, Sandy Zou, Jessica Smith, Ayanna Matlock, and Garima Khator: People Analytics, Now and the Future: Insights from Wharton PAC.
Data democratization: David Green on upskilling HR to become data-driven - An interview with Benjamin Broomfield of HRD Connect where I shared Insight222 research on leading practices for data-driven HR, from communities of practice to data literacy, interpretation, and storytelling.
What’s Wrong with People Data? - An interview with Jennifer E. Sigler, PhD, author of TI PEOPLE’s and FOUNT Global, Inc.’s 2022 The State of Employee Experience report to discuss the issues identified in the study in relation to people data. These centred on two key findings: HR is using data that isn’t really suited to improving EX, and they’re taking too much responsibility for EX.
The Importance of Ethics in People Analytics for Leading Companies - Naomi Verghese and I explore the critical topic of ethics, which is one of the eight characteristics of Leading Companies in People Analytics identified in the 2023 Insight222 People Analytics Trends study. In the article, Naomi and I outline three key practices on ethics adopted by Leading Companies in their people analytics work. (1) Strong Ethical Principles - including the development of an Ethics Charter. (2) Open Communication – including the ‘Fair Exchange of Value’. (3) Ethics Oversight – including the institution of an ethics and privacy council.
The “Fair Exchange of Value” is a key mantra for people analytics teams. If employees understand how their data will be used and see the benefit, it is far more likely that they will contribute data.
THE DIGITAL HR LEADERS PODCAST
In addition, we published 40 episodes of the Digital HR Leaders Podcast in 2023! A huge thank you to all the guest and sponsors, who in order of appearance were: Diane Gherson Dave Ulrich Ian Bailie Susan Cantrell Michael Griffiths Tanuj Kapilashrami Amy Gallo Jeroen Wels Jeff Schwartz Gloat Dr Tomas Chamorro-Premuzic Carmen Whitney Orr Phil Willburn Daniela Seabrook Caroline O'Reilly Workday Lauren Guthrie Christina Norris-Watts Doug Shagam Oliver Shaw Alexis Fink Don Miller Jesse Jacks Orgvue Aashish Sharma Dr. Ella F. Washington Ian White Aaron Falcione Prasad Setty Dawn Klinghoffer ChartHop Heather E. McGowan ?️??️⚧️ Karen Dillon Rob Cross Philip Arkcoll Ian OKeefe Elizabeth J. Altman Robin Jones Worklytics Lexy Martin Yves Van Durme Paul Rubenstein Ashish Pant Wendy Cunningham Peter Meyler Visier Inc. Nick Dalton Piyush Mehta Alicia Roach Chris Hare Nick Bloom Alex Browne eQ8 Jacob Morgan Madeline Laurano Sarah Reynolds Paulo Pisano Hebba Youssef and HiBob.
THANK YOU
Thanks to all the authors and contributors featured here in Part 2, and also in Part 1 (available on January 14) as well as across the monthly collections from 2023 – see January, February, March, April, May, June, July, August, September, October, November and December - your passion, knowledge and expertise continues to inspire. Thanks also to my colleagues at Insight222, the guests and sponsors of the Digital HR Leaders Podcast in 2023 and the great many of you that share and engage with the content I share. It’s much appreciated. I wish you all well for a happy, healthy, and successful 2024.
ABOUT THE AUTHOR
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.
SEE ME AT THESE EVENTS
I'll be speaking about people analytics, the future of work, and data driven HR at a number of upcoming events in 2024:
Jan 25 - The Strategic Agenda for HR in 2025 (webinar - register here)
Feb 28 - People Analytics World 2024: Exploring the Potential of Analytics and AI in Employee Experience (Zurich)
March 4-6 - Gloat Live! (New York)
March 14-15 - Wharton People Analytics Conference (Philadelphia)
April 19-20 - People Analytics World (London)
May 7-9 - UNLEASH America (Las Vegas)
September 24-26 - Insight222 Global Executive Retreat (Colorado, US) - exclusively for member organisations of the Insight222 People Analytics Program
October 16-17 - UNLEASH World (Paris)
More events will be added as they are confirmed.
精选
2024年01月14日
精选
The best HR & People Analytics articles of 2023 (Part 1 of 2)
Ten years ago, I stumbled upon an idea of collating a year-end compendium of 20 people analytics and data-driven HR articles from the previous 12 months and publishing it on LinkedIn.
Back then it was a challenge to find 20 articles. Today, it is an even bigger challenge to limit myself to 60 articles - such has been the growth of people analytics in the last decade. Indeed, as I reminisced by reading the nine collections to date for 2014, 2015, 2016 2017, 2018, 2019, 2020, 2021 and 2022 (Part 1 and Part 2), it became abundantly clear that the development in the field has been staggering.
The progress of people analytics has been mirrored by the human resources field in general as it transforms from a support function to a strategic partner. As I wrote in my article, 12 Opportunities for HR in 2024, the field has a huge opportunity to lead the way to a more productive, inclusive, healthier, and humane future of work. People analytics needs to play a pivotal role in this mission.
The 60 articles are assembled into two instalments: Part 1, which follows here has the first five sections: i) the future of work and people strategy, ii) workplace design and strategy, iii) AI and the world of work, iv) people analytics, and v) employee experience, listening and wellbeing. Part 2 has the second group of five topics: vi) the evolution of HR, HR operating models and the CHRO, vii) building a data driven culture in HR, viii) workforce planning, skills, and talent marketplace, ix) leadership and culture, and x) diversity, equity, inclusion and belonging.
I hope you enjoy reading the selections for 2023. If you do, please subscribe to my weekly Digital HR Leaders newsletter, which is published every Tuesday via Insight222, and tune in to the Digital HR Leaders podcast.
(i) FUTURE OF WORK AND PEOPLE STRATEGY
MCKINSEY - The State of Organizations 2023: Ten shifts transforming organizations
Let’s start with what’s on the mind of CEOs and business leaders. Research from McKinsey identified ten of the most important organisational shifts that businesses need to address today (see FIG 1), which are likely to shape business and people strategy in the coming years. A significant takeaway is how many of the ten shifts are either primarily a talent topic or one where talent is a significant element. This reinforces the importance of an effective HR function that is focused on employee experience, premised on developing a thriving, inclusive and healthy culture, and powered by people data and analytics. (Authors: Dr. Patrick Guggenberger, Dana Maor, Michael Park, and Dr. Patrick Simon).
Getting organizations right is not just about individual companies and institutions; it’s about the broader well-being of society.
FIG 1: Ten shifts transforming organisations (Source: McKinsey)
DIANE GHERSON – The New Deal of Work | SHRM PEOPLE + STRATEGY - Rethinking Work and the Workplace
Diane Gherson guest edits the fall edition of People + Strategy magazine, articulating in her editor’s preface that: “New work models, new business requirements and new employee expectations are coming together at full speed, putting at risk our status quo arrangements in the organization—and even the role and scope of HR.” These themes flow through all of the articles in the edition including: (1) David Rock on what neuroscience can teach us about the tug of war between employers and employees on the return to office debate. (2) Josh Bersin examining the implications of “blowing up” the traditional model for full-time long-term employees (see FIG 2). (3) RJ Milnor presents four questions for CHROs about the growth of fractional work and its impact on talent strategy. (4) Judith Wiese explaining how Siemens replaced performance reviews with a new concept built on dialogues focused on growth.
New work models, new business requirements and new employee expectations are coming together at full speed, putting at risk our status quo arrangements in the organization—and even the role and scope of HR.
FIG 2: Creating a Strategic Workforce Plan (Source: Josh Bersin)
BCG AND THE WORLD FEDERATION OF PEOPLE MANAGEMENT ASSOCIATIONS - Creating People Advantage 2023: Set the Right People Priorities for Challenging Times Article | Full Report
BCG’s bi-annual Creating People Advantage is consistently one of the best studies in our field. Two findings that stand out from the 2023 report are: (1) Only 35% of HR professionals agree that their company’s people management function is using relevant digital technologies. (2) Just 30% say that HR is using data and analytics to anticipate people challenges. This is despite People and HR strategy, planning, and analytics, being ranked as the #1 future people management topic (see FIG 3). The report also outlines five recommendations for people management leaders: (1) Leverage data to accurately plan for talent supply and demand. (2) Get better at talent acquisition. (3) Invest in upskilling and reskilling the current workforce. (4) Unlock value through AI. (5) Focus on change management and organizational development. (Authors: Jens Stefan Baier, Vinciane Beauchene, Julie Bedard, Jean-Michel Caye, Dr. Philipp Kolo, Fang Ruan, Alexander Alonso, PhD SHRM-SCP, Anthony Ariganello, Kai H. Helfritz, Bob Morton, Chartered CCIPD, Lucas van Wees, and Wilson Wong.)
FIG 3: Ranking of future importance of nine people management topics (Source: BCG)
ADAM GRANT AND TE-PING CHEN - What CEOs Are Getting Wrong About the Future of Work—and How to Make It Right
In an interview with Te-Ping Chen of The Wall Street Journal, Adam Grant cites research on how employee performance and retention improves in a hybrid environment to urge leaders to experiment more when it comes to testing new ways of working. Grant advises leaders to think like scientists when making decisions: “Every opinion you hold at work is a hypothesis waiting to be tested. And every decision you make is an experiment waiting to be run.” He also explains how employees can catalyse change from within and highlights the promise of the four-day week - a concept Grant has long championed: “Every experiment I have seen on reducing work hours suggests that people are as productive, if not more productive. I’d much rather have people do six focused hours a day or four focused days a week than eight distracted hours or five unmotivated days.”
So many leaders just implement decisions. It is like life is an A/B test, but they just ran with the A, and didn’t even realize that there was a possible B, C, D, and E. Too many leaders feel like their decisions are permanent. As opposed to saying, “We’re going to test and learn.”
ELIZABETH J. ALTMAN, DAVID KIRON, JEFF SCHWARTZ, AND ROBIN JONES - Manage Your Workforce Ecosystem, Not Just Your Employees
In their article based on their book – Workforce Ecosystems, Elizabeth J. Altman, David Kiron, Jeff Schwartz, and Robin Jones, introduce the concept of an integrated workforce ecosystem. They highlight the three types of issues that need to be resolved: (1) Structural design (concerned with the division of labour, goals, and incentives). (2) Politics (relating to resources, power, and status). (3) Culture (affecting individuals’ search for identity and meaning). They then present a four phased approach to effectively orchestrate a workforce ecosystem (see FIG 4) and provide additional guidance on each phase. For more on this topic, tune in to Elizabeth and Robin on an episode of the Digital HR Leaders podcast: How to Build a Thriving Workforce Ecosystem.
FIG 4: Four Phases of Orchestrating an Integrated Workforce Ecosystem (Source: Elizabeth J. Altman, David Kiron, Jeff Schwartz, and Robin Jones)
DELOITTE - Beyond productivity: The journey to the quantified organization
A quantified organization takes a strategic approach to measuring what it should, not just what it can. It takes a responsible approach to using new data sources and AI tools to create value for stakeholders across the organization, improving workforce trust and driving the organization forward to new levels of financial, reputational, and operational performance.
This Deloitte report is divided into three sections: (1) New data, New Opportunities (2) Creating Shared Value with Data (based around four levels of shared value for individuals, teams, the organisation, and society - see FIG 5), and (3) Trust (based on four principles of responsibility). (Authors Arthur Mazor, Steve Hatfield, Philippe Burger, Simona Spelman, Nicole Scoble-Williams, and Robin Jones)
FIG 5: Four levels of Shared Value (Source: Deloitte)
PLACID JOVER - The Future of Work is Flexible
Placid Jover presents three innovations Unilever is making to embrace a move from owning to accessing talent. (1) The Skills Passport (“As companies jostle to build a complete picture of what they need and how to get there, we’re fast learning that the real currency is skills”). (2) The Internal Talent Marketplace (“We have already seen a 40% increase in productivity and a significant reduction in attrition directly linked to Flex Experiences”). (3) The Pixelated Workforce (“Breaking down work into its core elements or “pixels”, then dividing those up between permanent staff and contractors, with the AI recommending teams or individuals for missions based on how they work with others as well as how they perform”). For more from Placid, I recommend listening to: How Unilever is Creating New Ways of Working for Its Employees.
As companies jostle to build a complete picture of what they need and how to get there, we’re fast learning that the real currency is skills
ii) HYBRID WORK AND WORKPLACE DESIGN
PETER JOHN LAMBERT, NICHOLAS BLOOM, STEVEN DAVIS, STEPHEN HANSEN, YABRA MUVDI, RAFFAELLA SADUN, AND BLEDI TASKA - Research: The Growing Inequality of Who Gets to Work from Home
Data increasingly shows a growing divide in terms of who gets to work from home. In their HBR article, Peter John Lambert, Nick Bloom, Steven J. Davis, Stephen Hansen, Yabra Muvdi, Raffaella Sadun, and Bledi Taska, Ph.D. present research on job postings, which finds remote work is far more common for higher paid roles, those that require more experience, are full-time, and require more education. Managers should be aware of this divide, as it has the potential to create toxic dynamics within teams and to sap morale. For more from Nick Bloom, tune in to his conversation with me on the Digital HR Leaders podcast: Unmasking Common Myths Around Remote Work, and check out the latest monthly data at WFH Research.
FIG 6: Work-from-home opportunities are more common for highly-paid jobs (Source: Lambert, Bloom et al)
LYNDA GRATTON - Redesigning How We Work
In the follow-up to her seminal How to Do Hybrid Right article, Lynda Gratton cautions that the post-pandemic transition to new structures, practices and processes for hybrid work will take years. Indeed, the changes to workplace practices and norms will likely be more significant than anything that has happened in generations. Lynda offers four fundamental questions to guide organisations into this new phase of redesigning how we work: (1) What are our overarching values and principles? (2) What is special about the people we employ, the job we do, and the customers we serve? (3) What isn’t working, and what are the problems we’re trying to solve? (4) What experiments have we tried that we can share with others, and what are other companies doing that we can learn from?
Now that we know the transition to hybrid work will require a long period of constant experimentation and learning, companies should gather and analyze high-quality data if they want to understand what they’re learning, how work is getting done, and how employees are feeling.
MICHAEL ARENA - Effective Strategies for Intentional Collaboration in the New World of Work
Michael Arena discusses effective strategies for intentional collaboration in the modern workplace. He introduces the concept of Adaptive Teaming, which involves dynamically forming and restructuring teams to meet specific project needs. Four intentional collaboration modes are identified. (1) Discovery encourages knowledge exploration and idea generation. (2) Development focuses on individual and collective skill growth. (3) Diffusion promotes effective communication and knowledge sharing. (4) Delivery ensures efficient project execution. By incorporating these modes, Michael articulates how organisations can enhance adaptive teaming practices and succeed in the evolving world of work.
Adaptive teaming is a collaborative approach in which teams intentionally come together, shift, and reform based on the specific needs and challenges of a project or task.
MICROSOFT - In the Changing Role of the Office, It’s All about Moments That Matter
When does in-person matter? That was one of the key research questions Dawn Klinghoffer told me that her team was helping Microsoft to answer when she appeared on the Digital HR Leaders podcast towards the end of 2022 (see How Microsoft Created A Thriving Workforce By Going Beyond Employee Engagement). A few months on, the research highlighted three key times when bringing employees and teams together in person creates lasting connection at Microsoft: (1) Strengthening team cohesion. (2) Onboarding to a new role, team, or company (see FIG 7). (3) Kicking off a project. The article provides data points and examples of each with contributions from Karen Kocher, Jared Spataro and Maryleen Emeric Leal, with the latter providing a memorable analogy on the power of in-person time:
You have to think of your social capital like a battery. The longer you go without having in-person interaction, the lower the charge gets on your battery. These moments that matter—like a team week—allow us to recharge the battery.
FIG 7: Meeting In-Person Has Clear Benefits for New Hires
iii) AI, MACHINE LEARNING, GENERATIVE AI AND THE WORLD OF WORK
MICROSOFT WORK TREND INDEX – Will AI Fix Work? | KATHLEEN HOGAN - Microsoft’s Chief People Officer shares how AI will impact workers
Microsoft presents three key findings related to the question: ‘Will AI Fix Work?’ (1) Digital debt is hindering innovation, with organisations struggling to fully leverage AI technologies due to outdated systems and processes e.g. the study finds workers spend two full days a week on email and in meetings. (2) There is a shift towards a new AI-employee alliance, where employees see AI as a tool for augmentation rather than replacement. (3) Every employee needs AI aptitude, highlighting the importance of upskilling and fostering a culture of AI literacy to empower employees to effectively collaborate with AI technologies. Kathleen Hogan distils this into three elements to realise the benefits of AI for employees quickly: fostering an agility-based culture, reimagining how we work, and investing in deeper human skills.
AI is the defining technology of our time, creating a massive paradigm that will transform the way we work with even greater impact than the introduction of the PC
FIG 8: AI’s Productivity Promise (Source: Microsoft Work Trends)
BCG - How Generative AI Will Transform HR
“Generative AI has done what no other technology trend has: accelerate HR’s engagement with artificial intelligence.” BCG highlights three key areas for HR in relation to generative AI: (1) How GAI can transform HR into a more strategic function through increased self-service, enhancements to employee productivity and experience, personalisation of HR programs, and using skills data to power the talent ecosystem. (2) Its potential to deliver a 30% increase in productivity across the employee lifecycle (see FIG 9). (3), The dual role for HR leaders in driving generative AI transformation – for the enterprise and for the HR function itself. (Authors: Julie Bedard, Katie Lavoie, Renée Laverdière, Allison Bailey, Vinciane Beauchene, and Jens Stefan Baier.
Executive teams are looking to HR to be a deeper, more insightful partner throughout the business.
FIG 9: The potential of Generative AI to deliver productivity gains across the employee lifecycle (Source: BCG)
MERCER - Generative AI will transform three key HR roles
Generative AI (GAI) is set to reshape the HR function with a study by Mercer finding that 58% of firms plan to use GAI in HR by 2024. The article reimagines three HR roles – HRBPs, the L&D specialist and the Total Rewards leader - to highlight the impact of GAI. The study estimates that 36% of the HRBP role could be augmented or replaced - generating potential savings of $30,000 per annum. The authors debate the broader opportunity for GAI (see FIG 10) and makes the critical point that instead of seeing GAI as a tool to reduce headcount, HR leaders should instead look to develop an optimal blend of human and tech to reimagine the HR function of the future. (Authors: Ravin Jesuthasan, CFA, FRSA, Helen White, Kate Bravery, Jason Averbook, and Todd Lambrugo).
Generative AI may not cause job reductions, but there is no doubt that HR professionals who use it will be more in demand than those who don’t.
FIG 10: The changing nature of work and the transformative role of generative AI (Source: Mercer)
ANDREW MARRITT AND DAVID GREEN - The Impact of GPT and Generative AI Models on People Analytics | ANDREW MARRITT - GPT for People Analytics: Four concepts you need to know
Two articles featuring Andrew Marritt on the role of generative AI in people analytics. In the first article, Andrew and I explore what GPT models are, where they will be used in people analytics, the importance of training data, the weaknesses of LLMs, and more. While in the second article, Andrew highlights four concepts people analytics professionals need to know: i) Prompting (“the best way of finding a good prompt is by experimentation”), ii) Context Windows, iii) Fine Tuning, and iv) Embeddings.
The big shift for most PA teams is that using these large language models really requires engineering skills over traditional data science skills
iv) PEOPLE ANALYTICS
INSIGHT222 - Investing to Deliver Value: A New Model for People Analytics | Article | Full Report | Diagnostic
The key findings of the fourth annual Insight222 People Analytics Trends study, which was informed by a survey of 271 global companies were: (1) People analytics continues to grow despite a challenging global economy. (2) Measuring and delivering value, from people analytics efforts, is key for the impact of the function. (3) Developing relationships with C-suite and senior stakeholders is essential to deliver on key business priorities. (4) There are eight defined characteristics that Leading Companies display to create impact (see FIG 11). Kudos to my colleagues and authors of the report: Jonathan Ferrar, Naomi Verghese, and Heidi Binder-Matsuo, as well as the practitioners who contributed case studies: Jane Puckey, James Reynolds, Sharon Doherty (she/her), Alan Susi, Jaesun HA, Laura Wright Shubert, and Eden Britt.
FIG 11: The eight characteristics of Leading Companies. Source: Insight222 People Analytics Trends Report 2023
THOMAS RASMUSSEN, MIKE ULRICH, AND DAVE ULRICH - Moving People Analytics From Insight to Impact
While I wouldn’t normally include a resource that isn’t open access in this compendium, I’m making an exception for this must-read paper by Thomas Hedegaard Rasmussen, Mike Ulrich and Dave Ulrich, which can be accessed for a very worthwhile fee of £29.00. The abstract to the paper (see below), which can be considered a follow up to the seminal paper, authored by Thomas and Dave, which was published in 2015: How HR analytics avoids being a management fad, provides a compelling narrative.
HEIN KNAPPEN - Boosting Growth: How People Analytics Elevates Enterprise Value
Hein J.M. Knaapen, formerly chief human resources officer at ING and now Managing Partner, Europe at CEO.works, provides a compelling narrative on the profound impact of people analytics on business success. Hein sets out that when used effectively, people analytics (1) Uncovers strategic opportunities driven by effective people management. (2) Provides actionable insights into performance challenges. (3) Enhances employee engagement and productivity. (4) Establishes a robust link between business needs and HR solutions.
People analytics helps build a more solid bridge between business needs and HR interventions. It values evidence over assumptions. It moves HR professionals from supporting the overall business to providing specific, data-driven solutions to true business challenges.
PATRICK COOLEN - Establishing people analytics as a common practice (part I)
Patrick Coolen presents his model for people analytics (see FIG 12), which is based on his ten-year career as Head of People Analytics at ABN Amro and his recent Ph.D. research (see first paper). In the article, Patrick provides a deeper dive on the first component of his model - People Analytics FIT, where he emphasises that “To be successful in people analytics, having strategic fit or alignment is not enough.” As such, Patrick outlines three other areas in addition to Strategic FIT: Internal FIT, Organisational FIT, and Environmental FIT. You can also read Part 2, where Patrick discusses the benefits of integrating evidence-based HR services as an important step in establishing people analytics as a common practice.
To be successful in people analytics, having strategic fit or alignment is not enough
FIG 12: Establishing People Analytics as a common practice (Source: Patrick Coolen)
ANGUS BAUER - Human capital management research: how people are our greatest asset ARTICLE | FULL REPORT
A fascinating study by Schroders, the Saïd Business School, and the California Public Employees’ Retirement System (CalPERS), which sets out the case that: “human capital can act as a clear driver of company productivity and profitability and that companies with durable management frameworks create stronger returns and value for investors.” Angus Bauer lays out the key findings in his article, including the top one: “Human capital is a critical source of competitive advantage and fundamental resilience.” The full report provides evidence, models, and visualisations to answer four key questions: (1) What is human capital and why should investors care? (2) How can we measure human capital and its effects on performance? (see FIG 13) (3) Can we assess the financial materiality of human capital? (4) How can organisations drive positive change in human capital management?
FIG 13: Source - Schroders
LEXY MARTIN – How People Analytics Unlocks Manager Effectiveness: The Next Driver of Value
A compelling report from Visier Inc. written by the incomparable Lexy Martin, which finds that data makes people managers more effective and more human while supporting them to deliver productivity and profitability. The report clocks in at 33 pages and is crammed full of insights and examples from several leaders including Dawn Klinghoffer, Eden Britt, Melissa Arronte, Matthew Hamilton, Anna Lena Fritzsche, and Michael Salva, Intriguingly, the report also provides a worked example of a 10k person organisation and the value that can be realised by successfully democratising people data to managers. The study finds that this amounts to $400 million in cost savings, and almost $200 million in revenue expansion (see FIG 14). For more, tune in to Lexy in discussion with me on the Digital HR Leaders podcast: How to Democratise Data for People Manager Effectiveness.
Data makes people managers more effective and more human while supporting them to deliver productivity and profitability.
FIG 14: Value table of savings and revenue (Source: Visier)
TINA PEETERS, KARINA VAN DE VOORDE, AND JAAP PAAUWE - The effects of working agile on team performance and engagement
Tina Peeters, PhD, Karina Van De Voorde, and Jaap Paauwe present their paper on agile ways of working, which won the outstanding paper award in the 2023 Emerald Literati Awards. The paper found that working agile improves psychological safety, which consequently increased engagement and performance.
MAX BLUMBERG - What to Avoid When Choosing a People Analytics Operating Model
A short but instructive article by Max Blumberg (JA) ?? on the key areas to consider when evaluating whether to implement a people analytics model including trust, investment and the extent of change management required.
Regulations continue to evolve - models that appear compliant today may not be tomorrow.
PEOPLE ANALYTICS PRACTITIONER COLLECTION: BEN TEUSCH - An incomplete starter's guide to attrition metrics | LAURA STEVENS - Playtime is over. Moving People Analytics beyond the hype. | AMIT MOHINDRA - Shapely Values: Game Theory in People Analytics | LYDIA WU - Seven Lessons I Learned About People Analytics | ADAM MCKINNON AND MARTHA CURIONI - Using AI to Make Better Promotion Decisions | STEVEN COMINGDEER – Integrating Data Science into Your People Analytics Function | GIOVANNA CONSTANT - - Can Synthetic Data Be the Ethical Game-Changer for People Analytics? | SCOTT REIDA - Zero-based workforce planning with ChatGPT in Tableau
2023 saw a growing number of people analytics leaders and practitioners writing about their work, which is to be celebrated as they typically act as a spur and inspiration for others in the field. Eight are showcased here: (1) Ben Teusch, part of Meta’s people analytics team, provides a helpful to attrition metrics (see FIG 15). (2) Laura Stevens PhD distils three critical abilities that provide the foundation to help people analytics teams establish credibility and enhance their impact including the ability to focus on the right problem (Does it relate to company strategy? Can we scale it?). (3) Amit Mohindra explores how people analytics can benefit from the connection between cooperative game theory and machine learning (4) As part of her excellent 'Oops, did I think that out loud' series of articles, Lydia Wu documents seven lessons she has learned from working in the people analytics field – my favourite is: “Stakeholders are more important than numbers”. (5) Adam McKinnon, PhD. and Martha Curioni outline how people data together with machine learning can play an important role in enhancing the conditions for minimising bias in decision making at all stages of the employee lifecycle. (6) Steven Comingdeer explains how Accenture has fully integrated data science skills and talent into its people analytics function, and the benefits it has provided. (7) Giovanna Constant discusses the practical advantages of applying synthetic data in People Analytics. (8) Scott Reida, provides a practical and open-source guide on zero-based workforce planning with inputs from ChatGPT and outputs in Tableau.
FIG 15: A guide to attrition metrics (Source: Ben Teusch)
v) EMPLOYEE EXPERIENCE, LISTENING AND WELLBEING
AARON DE SMET, MARINO MUGAYAR-BALDOCCHI, ANGELIKA REICH, AND BILL SCHANINGER - Some employees are destroying value. Others are building it. Do you know the difference?
According to McKinsey, employee disengagement and attrition could cost a median-size S&P 500 company between $228 million and $355 million a year in lost productivity (see FIG 16). The authors (Aaron De Smet, Marino Mugayar-Baldocchi, Angelika Reich, and Bill Schaninger, Ph.D.) then demonstrate how by segmenting employees into six archetypes across a spectrum of satisfaction, engagement, performance, and well-being, companies can re-engage workers, improve productivity, and amplify the impact of top performers.
FIG 16: The cost of employee attrition and disengagement (Source: McKinsey)
MICHAEL MANKINS, ERIC GARTON, AND DAN SCHWARTZ - Purposeful Work: The Secret Weapon in the New War for Talent
Writing for Bain, Michael C. Mankins, Eric Garton, and Dan Schwartz explain that the primary reason why employee attrition remains high and most employee retention strategies fail is because of a fundamental misunderstanding of what motivates most of us to work – namely meaning, purpose and engagement in what we do (see FIG 17). The authors outline three keys to purposeful work: (1) Make work interesting, (2) Connect jobs to the company’s mission, and (3) Build learning into work, and then describe each of these highlighting examples from Walmart, USAA and Shopify.
FIG 17: The Employee Value Pyramid (Source: Bain & Company)
TI PEOPLE - The APEX model: How organizations can systemically improve employee experience Website | Summary Report
I always learn from TI PEOPLE’s research and analysis on employee experience ever since the company was formed by Volker Jacobs in 2016. In their 2023 study, Stephanie Denino, André Fortange, Timo Tischer and Maris García, present the APEX (Activities driving the Practice of EX) model, which is comprised of 3 focus areas, 6 goals and 28 activities (see FIG 18). The model is designed to identify what it takes to improve EX in ways that are sustainable and replicable. Two important threads run through the model: being data-driven and human-centred. The report also covers big questions like “Is an EX leader essential?” and explains that guided by this model, EX leaders can bring about an EX-centric operating system in their organisations.
FIG 18: The APEX model for Employee Experience (Source: TI People)
NICK LYNN – Listening Strategies and Conversation
The ever-thoughtful Nick Lynn presents a framework to support organisations looking to establish conversation as a key component of their culture and employee listening strategy (see FIG 19). As Nick explains, the issue leaders are trying to address when looking to adopt a continuous employee listening strategy is: “How do we build trust and encourage employee voice?” Nick’s model and article breaks this down and highlights how to reach the upper right ‘Conversation’ quadrant through focusing on the Why, the What, the When and the How, and by involving people to the max. I also recommend subscribing to Nick’s EX Leadership Newsletter.
FIG 19: Source: Nick Lynn
PHIL ARKCOLL - The Importance of Passive Listening
Philip Arkcoll of Worklytics extols the virtues of combining active listening (via surveys) with passive listening tools that allow forward-thinking organisations utilising both to understand the real-time behavioural drivers of employee attitudes. For more from Phil, tune in to his discussion with me on the Digital HR Leaders podcast: How to Successfully Lead the Return to Office.
FIG 20: A model for continuous employee listening (Source: Worklytics)
EMILY KILLHAM - The State of Employee Listening 2023 Article | Full Report
Emily Killham presents the second annual State of Employee Listening report by Perceptyx. Findings include: (1) Over 3 out of 5 leaders place a higher value on listening during a recession. (2) 70% of organisations studied now do some type of listening event at least once a quarter. (3) 7 in 10 organisations plan to further accelerate their listening over the next year. The report also presents the employee listening maturity model (see FIG 21), which has four types of approaches: Episodic listeners (20% of companies surveyed), Topical listeners (30%), Strategic listeners (27%), and Continuous conversationalists (23%).
FIG 21: Employee Listening Maturity (Source: Perceptyx)
ROB CROSS AND KAREN DILLON – The Hidden Toll of Microstress
Reading this article by Rob Cross and Karen Dillon gave me a real a-ha moment. It’s all about ‘microstress’ – small moments of stress that seem manageable on their own but compound over time. In this taster from their book, The Microstress Effect: How Little Things Pile Up and Create Big Problems — and What to Do About It, Cross and Dillon outline the science behind why microstress can be so debilitating and induce a ripple effect (see FIG 22), introduce 14 key microstresses that hold us back, and offer solutions and guidance for reducing microstresses in your life while maintaining your relationships. For more on this topic, listen to Rob and Karen on the Digital HR Leaders podcast: Empowering HR and People Analytics Leaders in Managing Microstress.
Microstresses may be hard to spot individually, but cumulatively they pack an enormous punch
FIG 22: The Ripple Effect of Microstress (Source: Rob Cross and Karen Dillon)
THOMAS ROULET AND KIRAN BHATTI - Well-Being Intelligence: A Skill Set for the New World of Work
According to data cited by Thomas Roulet and Kiran B. from the University of Cambridge, absence and mental health issues continue to rise in the workplace. They contend that this requires a greater focus on well-being and present their concept of well-being intelligence for managers as a skill set and tool to understand and improve their own and employees’ well-being (see FIG 23). The model summarises the core skill sets of well-being intelligence: (1) Identifying core mental health challenges, such as stress and anxiety; (2) Acknowledging their root causes; and (3) Designing approaches to address them at the individual, team, and organisational levels.
Organizations that promote well-being intelligence don’t just create a healthier and more productive workforce; they build a competitive advantage for the future.
FIG 23: The Overlapping Circles of Well-being Intelligence (Source: Thomas Roulet, Kiran Bhatti, MIT Sloan Management Review)
DAWN KLINGHOFFER AND KATIE KIRKPATRICK HUSK - More Than 50% of Managers Feel Burned Out
Following on from their companion piece With Burnout on the Rise, What Can Companies Do About It?, Dawn Klinghoffer and Katie Kirkpatrick-Husk PhD turn their attention to manager burnout. With more than 50% of managers experiencing burnout, this is a significant challenge that requires fixing. Dawn and Katie highlight some of the causes of manager burnout, the different ways it can be harmful and the impact of the three burnout dimensions of exhaustion, cynicism, and professional efficacy. The article also presents five ways to mitigate manager burnout: meaning, learning and career development, flexible work, psychological safety and support, and self-care.
When a manager is experiencing all three dimensions (exhaustion, cynicism, and professional efficacy), they are 5.3 times more likely to leave the company compared to a manager experiencing none.
FROM MY DESK
Below is a selection of seven articles I penned or co-penned in 2023:
Four Elements to Building Data Literacy in HR at Scale - Data literacy is set to be the most in-demand skill in the workplace by 2030, with 85% of C-suite executives believing that being data-literate will be as important in the future as the ability to use a computer is today. This applies just as much for HR practitioners as it does to other business professionals. This article presents the key findings of research by Insight222 on four elements to building data literacy in HR at scale – plus links to access the full report.
Why the future of HR is rooted in skills and people analytics - In an article developed in partnership with Gloat, we investigate how people data and analytics is reshaping talent management and the world of work. A big thank you to Ruslan Tovbulatov, Nicole Schreiber-Shearer, and Maya Finkelstein for collaborating on this.
52% of the companies we surveyed are using talent marketplaces and skills inference technologies to bring skills, learning, and careers together to create better mobility for employees and bridge talent gaps.
How to Ensure AI in HR is Fair, Effective and Explainable - Guru Sethupathy, CEO at Fairnow, explains to me why it is vital that the use of AI in HR is fair, effective, and explainable. We also examine the implications of ChatGPT on HR, people analytics and the future of work and how HR is already using machine learning and AI – for example in recruitment.
HR organisations that use AI well will have an advantage in the battle for talent. But to realise this potential, you will need to be well-managed and invest in governance.
5 common people analytics challenges (and how to overcome them) - An interview I did with Kat Boogaard for Culture Amp, on the challenges today’s HR teams face in leveraging people analytics – as well as how they can effectively overcome them.
The History of People Analytics and Its Impact on The Future of Work - This was fun. I joined my old friend Ian Cook at Visier for an episode of The Human Touch podcast for a rich conversation on the past, present and future of people analytics, which was partly inspired by this article: A History of People Analytics in Five Ages.
Influencing the World of Work: Key learnings from The Insight222 Global Executive Retreat 2023 - My round-up of the key learnings from the Insight222 Global Executive Retreat in Colorado, which was held in September 2023 and attended by 60 people analytics leaders and senior HR executives from global organisations.
How ONA and Leadership Development Can Support Businesses in a Recession - Francisco Marin, CEO at Cognitive Talent Solutions, and I discuss how ONA can support organisations during periods of economic uncertainty. Francisco also shares two examples on how ONA: (1) Supported a private network of hospitals to identify and leverage the knowledge of informal leaders during the pandemic. (2) Helped a technology company identify that a new manager had not been accepted by their team.
READ PART 2
Part 2 of my 60 best people analytics and HR articles of 2023 will be published as part of this newsletter next week (on January 14).
THANK YOU
Thanks to all the authors and contributors featured here in Part 1, and also in Part 2 (available on January 14) as well as across the monthly collections from 2023 – see January, February, March, April, May, June, July, August, September, October, November and December - your passion, knowledge and expertise continues to inspire. Thanks also to my colleagues at Insight222, the guests and sponsors of the Digital HR Leaders Podcast in 2023 and the great many of you that share and engage with the content I share. It’s much appreciated. I wish you all well for a happy, healthy, and successful 2024.
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