Will Chatbots Take Over HR Tech? Paradox Sets The Pace.在快速发展的人力资源技术领域，Paradox.ai 已成为领跑者，其先进的对话式人工智能平台彻底改变了招聘流程。通过利用自然语言处理和人工智能，Paradox.ai 提供了一个全面的解决方案，涵盖了从最初的职位申请到入职的整个招聘过程。该平台不仅简化了筛选和面试安排等繁琐流程，还提升了应聘者的整体体验，显著改善了招聘时间和招聘质量指标。
Paradox.ai 由亚伦-马托斯（Aaron Matos）于 2016 年创立，目前为联合利华、CVS Health 和通用汽车等大客户提供服务，实现了 90% 以上的招聘流程自动化。
Paradox.ai 凭借其强大的集成能力和大幅缩短招聘时间、降低招聘成本的能力，在人力资源技术领域充分体现了对话式人工智能的变革力量。
Chatbots used to be tinker-toys. You type, try to get help, but usually result in “please call support.” Well all this has changed.
Thanks to advanced NLP (natural language processing) and AI (retrieval-augmented generation) chatbots are entire applications. They can answer complex questions, search databases, and invoke transactions on your behalf.
Pretty soon we’ll be able to ask our phones “please find me a flight to Los Angeles next Tuesday morning” and the system will check your location and calendar, look at flights, and book you a seat.
Where is this going in HR? Well the leader in this space is Paradox.ai, a company that pioneered the application of conversational AI in recruiting. And their system “defines the category.”
Let me explain.
Recruiting Is The Perfect Market For Conversational AI
Recruiting is a goldmine for automation. When you post a job, applicants want to ask many predictable things: “How much does it pay?” “What are the hours?” or “What uniform do I need” or “What are the benefits?”
The recruiter, a person devoted to filling positions, has to answer all these questions and more. They have to screen candidates, schedule interviews, check for qualifications, and look at credentials, experience, and more. It’s time-consuming, error-prone, and filled with wasted time. (That’s why talent acquisition teams have many “scheduler” and admins.)
The average “time to hire” is over 45 days and often the process goes on for months. And throughout the experience the job seeker is left wondering “when will they call back” or “what else do I need to know?”
(CEOs cite hiring as the third most time-wasting process in companies, following emails and meetings, estimated at “40% wasted time.”)
Paradox uses Conversational AI to solve this problem. And because this is a “narrow but deep” space, the system does many things we can learn from in all our AI efforts.
Paradox was founded by Aaron Matos in 2016. Aaron’s vision was to transform the candidate experience, revolutionizing the way candidates apply to jobs. Today Paradox has become a complete Conversational AI Recruitment Platform (chat to apply, scheduling, candidate support, ATS, assessments, onboarding, career site, and more), serving clients like Unilever, CVS Health, Pfizer, L’Oreal, Nestle, McDonald’s FedEx, Compass Group, Disney, and General Motors.
The platform automates tasks such as screening for requirements, interview scheduling, reminders, offers, and new hire onboarding. And because it’s so easy to use, it helps companies radically improves time-to-hire and quality of hire. Based on my conversations with clients, Paradox can automate more than 90% of the end-to-end hiring process, saving hiring managers hours every week and increasing candidate conversion by more than 10 times.
But this innovation did not happen overnight. As you know, going to a candidate website and looking for a job is a frustrating process. There are often hundreds of jobs listed, a complex scrolling website and very hard to even determine what job to apply for.
You might argue that the website paradigm for job applications was never really a good idea in the first place. People don’t want to browse for jobs: they want to apply for a job that’s best for them. So the first thing Paradox did was create an easy to use assistant (Olivia) so candidates could ask questions and schedule interviews. And this meant that Paradox had to build integrations with every ATS and personal email and calendar tools out there.
Then, as companies started to use Paradox for scheduling, the company added more. Today Olivia, the chatbot, can integrate with background check vendors, schedule interviews, deliver assessments (Paradox acquired a conversational assessment Traitify designed for this), and function as an ATS … all from a mobile phone. In many ways Paradox can be “the integration platform” for candidates and recruiters, stitching together the messy systems behind the scenes.
This turned into a massive opportunity. Just as the Google Assistant or Siri hopes to be our single contact with the internet, Paradox partners with systems of record like Workday, SAP, and Oracle to bring conversational AI to any company. The company’s revenues have grown 11 times in the last four years, and are now nearly doubling each year.
For customers Paradox has been amazing. As the candidate pipeline speeds up (by an order of magnitude), clients get higher quality candidates with dramatically reduced staff. (Staffing administrators can almost go away.)
Consider high-volume hiring companies. These businesses (McDonald’s, Compass Group, Neighborly, FedEx, Disney) hire service-related workers on a regular basis. Their revenue is dependent on having enough people. With Paradox they can set up a “continuous recruitment process,” one that even hires people the same day they apply.
Paradox has become essential to these companies growth, often paying for itself in less than a year (through reduced hiring staff, reduced spend on job ads, and reduced turnover.)
Today, as Paradox built out its ATS, customers can rely on the platform to integrate front end tool (job portals and candidate support) to back end tools scheduling, ATS, onboarding) most of which are legacy. One of our clients has 27 recruiting tools and they anticipate replacing more than half of them with a platform like Paradox.
What about higher level white collar roles? Paradox works here too. General Motors uses Paradox along with Workday (ATS), (branded Evie) to redesign the process.
Interview Scheduling: Evie automates scheduling of phone screens and interviews between recruiters, candidates, and internal teams. This has reduced the time taken for interview scheduling from an average of five days to 29 minutes.
Candidate Experience: Evie interacts with candidates from the moment they land on GM’s career site until the completion of their interview. Candidates appreciate the immediate communication from Evie after they apply or complete an interview, and enjoy the autonomy to select and change interview times.
Efficiency and Cost Savings: The automation of interview scheduling has led to a major reduction in the cost of external contractors for coordination.
Career Site Interaction: Evie sits on GM’s career site, answering questions from potential candidates about jobs, benefits, and company culture. This interaction enhances the candidate’s experience and provides them with immediate responses to their queries.
Where Is Paradox Going
The company is perfectly positioned to continue its growth as companies look for AI solutions to improve the productivity and effectiveness of recruiting. And demand is high: the 2024 PwC CEO survey found that recruiting was considered the #3 “most bureaucratic process” by CEOs (following email and meetings).
The impact on recruiters? All positive. Clients tell us they can redeploy hiring staff to help recruiters focus on the most important part of their job: talking with candidates.
But there’s a much bigger story. When a job candidate is handled efficiently and effectively the process becomes a brand-builder for the candidate, improving quality of hire. Ambitious job seekers will not put up with (or wait for) a messy, confusing hiring process. So not only is the process faster and more efficient, the quality of hire goes up.
Companies are desperately looking for AI solutions that work. As Paradox has proven, when you focus deeply on the problem, conversational AI can be transformational.
Listen to my conversation with Adam Godson (CEO) and you’ll hear the details. This is where the HR Tech market is going.
Josh Bersin :劳动力市场已完全改变：您真的准备好了吗？Josh Bersin 最新撰文谈到，随着以婴儿潮一代为主的劳动力队伍的衰落和具有独特期望和职业模式的新一代的崛起，劳动力市场发生了巨大的变化。这一新劳动力的特点是偏好组合职业和副业，他们要求尊重、灵活性和精心设计工作的机会。企业在适应这些变化时面临着挑战，职位普遍空缺，人员流动增加。文章强调，企业需要采用一种动态的组织模式，优先考虑授权、内部流动性和员工积极性，以便在这个新的劳动力市场中茁壮成长。这种适应的关键在于了解劳动力现在寻求的是成长、灵活性以及他们的价值观与工作之间有意义的结合。
英文原文如下，推荐了解
The labor market has changed before our eyes. Employers and HR teams better watch out.
Over the last five decades baby boomers defined the workforce. Today things could not be more different, and this change impacts all of us.
I was born in the 1950s, growing up in a world where the middle class experienced steadily increasing standards of living. My father was a scientist, my mother sold art, and my brother and I had a nice middle-class life.
This included a three stage career: education | work | retirement. I went to college, studied hard, and got a good job as an engineer. My career went on a predictable path. I worked for Exxon and then IBM – each company giving me training, development, and potential for long-term career. I met many great people, learned about work, got married and had a family.
My cohort, the baby boomers, was huge. Companies built entire talent systems for us – onboarding, training, predictable career growth, developmental assignments, leadership development, and retirement programs. We strapped ourselves in and enjoyed the journey.
Fast forward to now: things are very different.
Today’s working population bulge (median age 33, born in the early 1990s,) entered the workforce in a disrupted world. They joined companies during a boom, experienced the pandemic in their 20’s, and live in a world where everything is on the internet. While my generation revered our employers, these workers see every corporate mistake in real-time. They expect their bosses to earn their respect, otherwise they’ll “quietly quit” or start moonlighting on the side.
While my generation expected to work for only a few employers during a career, today people build what Lynda Gratton calls “a portfolio career.” More than 2/3 of workers have side-hustles and their resume is filled with projects, businesses, activities, and professional interests. If you look at the LinkedIn profiles of most high performers they look like personal journeys, far different from the linear career paths we had in the past.
While most of these changes came slowly, the end result is profound: the expectations, needs, and demands of workers are different. And businesses have struggled to keep up. Companies have vast amounts of unfilled positions, we suffer high turnover in almost every role, and labor unions are growing in number.
What do companies do? We have to accept and understand that the labor market has totally changed.
We live in a world where employees will live into their 100s. Young workers are postponing getting married and having children and they see their career as a long series of experiences. The norms of a long-term linear career have ended: people try new things, change industries, and live in what I call a “pixelated” job market.
And rather than blindly trust employers, people bring high expectations to work. Young workers don’t expect to “become the job,” they want the job to “become them.” (Often called “job crafting.”) And given the shortage of workers in every role, this trend is just getting bigger.
While economists believe the job market will soften and employers will have more power over time, I think those days are over. Life just isn’t going back to the way it was. Despite the growth of AI, companies are more dependent on their workforce than ever. And with 70% of the jobs now service-related (healthcare, retail, hospitality), employees really are our product.
I look at it this way. Companies and employers live in a pool of labor: it’s the needs and expectations of people who decide what we can and should do. People are upset about inflation. They’re worried about climate change. They want CEOs to behave ethically. And they want flexible work that lets them live a joyful life.
And every year the workforce becomes more educated and connected. (The percentage of US workers with degrees has gone up to 54%, up from 38% fifteen years ago.) People know about the company’s financial results or other issues far before an announcement even comes out.
While many of these trends are obvious, many companies aren’t ready. Last year I talked to the CHRO of Boeing and he told me the problems were highlighted by employees years ago. They simply were not listening, and now they’re a company in crisis. And that leads to the topic of “employee activation.”
In the old days senior leaders made decisions, workers carried out the orders. Ideas and strategies were “top-down.”
Today much of the intelligence we need to grow our companies is sitting with front-line workers. We need to “activate employees” and listen to them directly. The worker in the store, plant, or front office who feels frustrated by some system or process is the person who should advise us what to do. The old idea of “management by walking around” must come back. (Our Org Design Superclass explains this in detail.)
I don’t mean chaos, holacracy, or lack of controls. Successful companies have a clear mission, a series of strategic initiatives, and budgets to hold people accountable. But they empower everyone to be a leader, unleashing power from the bottom up. (Come to Irresistible and learn about how Marriott and Delta airlines exemplify this model.)
The key is building what we call a “Dynamic Organization” – one which is flat, team-centric, connected, and accountable. Our research shows that only 7% of companies operate this way: most are still very hierarchical and slow to adapt. But change is coming, as companies like Delta, Marriott, Telstra, Unilever, Novartis, Seagate, and Bayer have found out.
(This week the CEO of Bayer announced a radical transformation to a team-centric management model, dramatically reducing the number of “bosses.”)
A dynamic organization does two things well. First, it adapts to change, sees new markets, and mobilizes quickly for change. But even more importantly, it empowers people, encourages internal mobility, and focuses on meritocracy, skills, and collaboration to thrive. (Read about Talent Density to learn more.)
While these ideas are not new, urgency is critical. Employees demand growth, flexibility, and agency – and we can’t deliver it unless our reward and development systems change. Today more than 70% of US jobs are in the service sector: health care, retail, entertainment, and transportation. If we don’t empower people in these roles our products and services will suffer.
Let me conclude with this: we just woke up in a totally new labor market. If you don’t focus on empowerment, growth, and employee activation, talent will just go elsewhere.
专栏
2024年03月31日
专栏
推荐：The best HR & People Analytics articles of March 2024024年3月，David Green带领我们深入了解了人力资源和人力分析的最新趋势。在欧洲和美国的几场关键活动中，他强调了人力分析在提升员工体验、AI在工作场所的角色、以及四天工作周趋势的增长中的转型作用。此外，Culture Amp对Orgnostic的收购和在Culture First Leaders Forum上的见解，突出了培养适宜的组织文化对于未来工作的战略重要性。Green的观点强调了HR需要采用数据驱动策略，以实现有效的劳动力规划、技能发展和组织增长。
2024 HR TRENDS AND PREDICTIONS
KATE BRAVERY, JOANA SILVA, AND JENS PETERSON - Workforce 2.0: Unlocking human potential in a machine-augmented world – Mercer Global Talent Trends 2024
The world of work is in full metamorphosis, forever changed by the seismic shifts of the past few years and accelerated by the imminent human-machine teaming revolution. Just as organizations were settling into a new normal — with a focus on hybrid working, comprehensive health and well-being, digitalization, and upskilling — Generative AI (Gen AI) burst onto the scene.
Those are the opening words from the Mercer Global Talent Trends 2024 report, which has recently been published. As ever, the study, which is based on a survey of more than 12,000 executives, HR leaders, employees, and investors, and is authored by Kate Bravery Joana Silva and Jens Peterson is an absolute must-read. The study highlights a disconnect between what HR is prioritising for the 2024 people agenda and the initiatives that executives believe will have the most impact on business growth (see FIG 1). The study highlights four priorities that firms that outpace their competitors are focusing on: (1) Driving human-centric productivity. (2) Anchoring to trust and equity. (3) Boosting the corporate immune system. (4) Cultivating a digital-first culture. My tip to enjoy the study: find a couple of hours, make yourself a cup of tea and have a pen and paper to hand.
FIG 1: HR priorities for the 2024 people agenda (Source: Mercer Global Talent Trends 2024)
FIG 2: Drivers and drainers of employee productivity(Source: Mercer Global Talent Trends 2024)
HYBRID, GENERATIVE AI AND THE FUTURE OF WORK
BRIAN ELLIOTT - Return-to-Office Mandates: How to Lose Your Best Performers
There is mounting evidence that mandates don’t improve financial performance. Instead, they damage employee engagement and increase attrition, especially among high-performing employees and particularly those with caregiving responsibilities.
That’s according to Brian Elliott in his latest column in MIT Sloan Management Review, which highlights that the workers most likely to be turned off by return-to-office mandates are the company’s highest performers. Elliott highlights the link between factors such as pressure from investors and the CEO echo chamber with RTO pronouncements, as well as how only one in three executives believe that RTO has had even a slight impact on productivity. He recommends instead focusing on productivity rather than physical presence (see FIG 3) and how this can inspire a boom loop in engagement as opposed to a doom loop in trust. Finally, Elliott presents findings from the Future Forum and i4CP, highlighting the negative impact of RTO mandates, before offering guidance on how to build an outcomes-driven organisation: “The bottom line is that when trust is balanced with accountability, people and organizations will thrive.”
FIG 3: Focus on Productivity, Not Physical Presence (Sources: Future Forum, Centre for Transformative Work Design, and Slack)
AARON DE SMET, SANDRA DURTH, BRYAN HANCOCK, MARINO MUGAYAR-BALDOCCHI, AND ANGELIKA REICH - The human side of generative AI: Creating a path to productivity
As teams start using gen AI to help free up their capacity, the middle manager’s job will evolve to managing both people and the use of this technology to enhance their output.
A fascinating new study from McKinsey, which provides analysis on workers who are at the forefront of gen AI usage (which as FIG 4 shows is dominated by those in non-technical roles) and dives into the job factors and skills these workers say they need. The authors emphasise how firms can enhance productivity by crafting jobs that put people before tech – rather than the other way around. They conclude that companies that set a people-centric talent strategy will give themselves a competitive edge as more workers and jobs are affected by the changes gen AI brings. The article is rich with data and powerful visualisations – kudos to the authors: Aaron De Smet Sandra Durth Bryan Hancock Marino Mugayar-Baldocchi and Angelika Reich ).
FIG 4: Workers who use generative AI as part of their jobs comprise a much larger group than those who hold traditionally technical roles (Source: McKinsey)
PETER CAPPELLI, PRASANNA (SONNY) TAMBE, AND VALERY YAKUBOVICH - Will Large Language Models Really Change How Work Is Done?
LLMs are much more complicated to use effectively in an organizational context than is typically acknowledged, and they have yet to demonstrate that they can satisfactorily perform all of the tasks that knowledge workers execute in any given job.
In their article, Peter Cappelli Prasanna Tambe and Valery Yakubovich look at the use and challenges of integrating Large Language Models (LLMs) in organisations, and present practical recommendations on how to work with LLMs successfully. The five challenges outlined in the article are: (1) The Knowledge Capture Problem. (2) The Output Verification Problem. (3) The Output Adjudication Problem. (4) The Cost-Benefit Problem. (5) The Job Transformation Problem – How will LLMs work with workers? Guidance includes developing and circulating standards for the use of LLMs in organisations, establishing a central office to produce important LLM output, and providing training to users.
NICK BLOOM – Why WFH is a win-win-win | WFH research update (March 2024)
Nick Bloom’s recent post on LinkedIn highlighting his research on why remote working is a win for firms (due to increased productivity of $20,000 a year for each remote day a week), employees, and society is extremely compelling. I also recommend reading Nick’s latest monthly data for March, which includes numerous insights such as that workers in their 50s and 60s are fully onsite more often than younger workers. For more from Nick, please tune in to his discussion with me on the Digital HR Leaders podcast: Unmasking Common Myths Around Remote Work.
FIG 5: Workers in their 50s and 60s are fully onsite more often than younger workers (Source: WFH Research)
PEOPLE ANALYTICS
PIETRO MAZZOLENI - Transforming HR: How IBM measures the success of its people data platform investments
For those of you who haven’t already subscribed to Pietro Mazzoleni’s People Data Platform newsletter, where he unpacks insights from transforming IBM's internal data platform for people analytics, I highly recommend you do. In this edition, Pietro walks through the three tiers of Key Performance Indicators (KPIs) IBM uses to evaluate investments in Workforce 360, its people data platform (see FIG 6). Watch out for an upcoming episode of the Digital HR Leaders podcast, where I discuss with CHRO Nickle LaMoreaux how IBM is augmenting HR programs with AI. The episode will air from April 9.
FIG 6: Three tiers of KPIs to evaluate investments in a people data platform (Source: Pietro Mazzoleni)
NAOMI VERGHESE - Influencing C-Suite and Board Decisions with People Analytics Insights
Naomi Verghese shares key learnings from the recent Peer Meeting for member companies of the Insight222 People Analytics Program, hosted by HSBC in their global headquarters in London. The Peer Meeting, which was attended by over 60 people analytics leaders and practitioners from more than 40 companies focused on two of the key findings from the Insight222 People Analytics Trends study for 2023: influencing senior stakeholders and measuring value. In her article, Naomi covers four topics: (1) how to implement a people analytics operating model that drives business outcomes (based on insights shared at the Peer Meeting by Rob Etheridge and Bec Aoude). (2) how to use AI to democratise insights from people data, using an example of work Andrew Elston has led at HSBC. (3) how Microsoft’s employee listening ecosystem (see FIG 7) helped the firm identify the moments that matter for in-person collaboration (insights from a session led by Dawn Klinghoffer), and (4) how to influence the board of directors, with insights from Justine Thompson. If you would like to learn more about our People Analytics Program, contact us today.
FIG 7: Microsoft’s employee listening ecosystem (Source: Dawn Klinghoffer, Microsoft)
BRENT DYKES - The Future Of Data Storytelling Is Augmented, Not Automated
Brent Dykes continues his rich vein of writing with an article exploring whether AI tools should be used to automate data storytelling. He provides reasons why data storytelling can’t or shouldn’t be automated including for reasons of oversimplification, transparency and trust, and the fact that storytelling is essentially a human skill. Instead, Brent advocates that the path forward should be augmented data storytelling, and lays out a powerful illustration of how this would work (see FIG 8)
The most powerful person in the world is the storyteller. The storyteller sets the vision, values, and agenda of an entire generation that is to come.
FIG 8: Data storytelling comparisons: Humans vs. AI (Source: Brent Dykes)
HALLIE BREGMAN – Where should People Analytics sit in an Organisation? Part 1 & Part 2 | WILLIS JENSEN – Can Data Cleaning be Automated? | COLE NAPPER - Universal Models & People Analytics | ALEXANDER LOCHER - How to harness the value of people data and operational HR insights | ANGELA LE MATHON, STACIA GARR, AND DANI JOHNSON - Generating Value from People Data
In recent editions of the Data Driven HR Monthly, I’ve been featuring a collection of articles by current and recent people analytics leaders. These act as a spur and inspiration to the field. Five are highlighted here. (1) If you don’t already follow Hallie Bregman, PhD on LinkedIn, you really should. Hallie regularly publishes thoughtful and insightful posts on topics important to the field. The two I’ve included here look at the pros and cons of situating people analytics in or outside HR. (2) Willis Jensen analyses whether AI will reduce the amount of data cleaning undertaken by people analysts given that much of this work involves judgement without hard, fast or consistent rules. (3) Cole Napper, who I’m looking forward to co-chairing People Analytics World with in London in April – also with Michael M. Moon, PhD – explains how many of the models we use in people analytics are borrowed from other disciplines. (4) Alexander S. Locher highlights some of the current trends in people analytics (see FIG 9) and offers guidance on how to harness value from your people data. (5) Angela LE MATHON, VP People Data and Analytics, shares how GSK generates value with their people data, how they’re using AI to gather information, and how skills verification ties in with Stacia Sherman Garr and Dani Johnson of RedThread Research.
FIG 9: Current trends in people analytics (Source: Alexander Locher, EY)
THE EVOLUTION OF HR, LEARNING, AND DATA DRIVEN CULTURE
JO IWASAKI, KAREN EDELMAN, AND YASMINE CHAHED - Time to rethink talent in the boardroom
Just over a third of board and c-level executives believe their workforce related discussions are adequate to meet their organisation’s needs. That’s the standout finding from a new global survey by Jo Iwasaki Karen Edelman and Dr Yasmine Chahed for Deloitte of 500 board members and C-suite executives in more than 50 countries on corporate governance and talent. The three top insights from the study were: (1) Many boards could be focusing more on talent-related issues. (2) Most organisations are just starting to think about their AI strategies. (3) Amplifying the talent experience will require boards to adopt a broader perspective.
FIG 10: Workplace related topics that are top board priorities (Source: Deloitte)
DAVE ULRICH - Pre-flections on GenAI and HR: Where to Go and How to Get There
GenAI will help shape HR’s future by offering both information symmetry to synthesize and optimize the past and present and information asymmetry to create and guide the future.
Dave Ulrich offers some initial reflections on what the journey could look like for applying GenAI to HR work, as well as some possible actions to drive progress (see example in FIG 11 for ‘Talent’). Dave also highlights four important considerations to manage the risk and realise the opportunity of GenAI in HR. (1) Who should champion, sponsor, participate in, and be accountable for this journey? (2) What individual skills and organisation capabilities will be required to make GenAI in HR happen? (3) What will be the regulatory and legal policies and risks associated with the effort? (4) What metrics of value-added GenAI for HR will be most useful and tracked?
FIG 11: Examples of GenAI/HR initiatives in the Talent domain (Source: Dave Ulrich)
HEIN KNAPPEN - How HR Adds to Enterprise Value
Hein J.M. Knaapen, a former chief people officer himself, shares his perspectives on the crucial role HR plays in driving business value, and offers practical advice to CHROs on how to make this a reality. Hein highlights the four people priorities that connect to value: (1) Performance management, (2) Succession management, (3) Leadership development, and (4) Capability building, providing guidance on each.
Value creation should be the focus. Nothing else. And only four people priorities connect to value: performance management, succession management, leadership development and capability building.
WORKFORCE PLANNING, ORG DESIGN, AND SKILLS-BASED ORGANISATIONS
STEFAN HIERL - Identifying the AI Potential in Your Organization: A Strategic Approach
Leveraging Generative AI to assess the AI Potential in a workforce helps businesses go beyond just talking about how AI might change jobs.
As Stefan Hierl astutely observes in his excellent article, in the rush to jump on the AI bandwagon, many companies fall into the trap of overlooking a critical preliminary step: conducting a systematic evaluation of where AI can deliver transformative value. In his article, Stefan outlines a five-step approach to quantify the potential of AI to support organisations identify opportunities for automating and augmenting work activities. The five steps (see FIG 12), which Stefan outlines in detail are: (1) Decomposing roles by breaking down each role into its main activities and respective time shares. (2) AI potential assessment – estimating the potential of AI at the activity level. (3) Expert validation – cross-verifying the generative AI findings with domain experts. (4) Identify high-value areas – creating an overview where AI can significantly enhance workforce productivity (see example in FIG 13). (5) Use case development – exploring specific AI applications to capitalise on identified potential.
FIG 12: Five steps to perform an activity based AI potential assessment (Source: Stefan Hierl)
FIG 13: AI potential by role – example (Source: Stefan Hierl)
MATT SIGELMAN, JOSEPH FULLER, AND ALEX MARTIN - Skills-Based Hiring: The Long Road from Pronouncements to Practice
For all its fanfare, the increased opportunity promised by Skills- Based Hiring was borne out in not even 1 in 700 hires last year (2023).
This is one of the standout findings from a new study by Matt Sigelman and Alex Martin of The Burning Glass Institute and Joseph Fuller from Harvard Business School. Their analysis reveals three categories of firms, who have publicly stated they have removed degree requirements in hiring, based on their actual hiring outcomes: (1) Skills-based hiring leaders (e.g. Cigna) – who have increased their share of non-degree hires in the roles analysed by nearly 20%. (2) In name only (e.g. Bank of America) – 45% of firms studied have made the shift in name only with no meaningful difference in actual skills-based hiring. (3) Backsliders e.g. Uber) – 20% of the firms analysed had made short-term gains by dropping degree requirements, but the change doesn’t stick. The report also highlights the roles best positioned for skills-based hiring (see FIG 14).
FIG 14: The roles best positioned for skills-based hiring (Source: Sigelman et al)
JORDAN PETTMAN - How to Accelerate the Impact of Strategic Workforce Planning (SWP) through the Organisation Strategy Ecosystem
Jordan Pettman, one of my colleagues at Insight222, knows a thing or two about workforce planning. In his recent article for myHRfuture, Jordan explores how strategic design can be brought to life through an integrated ecosystem (see FIG 15) encompassing four components: (1) Organisation strategy, (2) Operating model, (3) Organisation design and strategic workforce planning, and (4) Organisation effectiveness.
FIG 15: The Organisation Strategy Ecosystem (Source: Jordan Pettman, Insight222)
EMPLOYEE LISTENING, EMPLOYEE EXPERIENCE, AND EMPLOYEE WELLBEING
JACQUELINE BRASSEY, LARS HARTENSTEIN, BARBARA JEFFERY, AND PATRICK SIMON – Working nine to thrive
One of the few positives to emerge through and since the pandemic has been a stronger focus on employee health and wellbeing. According to new research by Jacqui Brassey, PhD, MA, MAfN (née Schouten) Lars Hartenstein Barbara Jeffery and Dr. Patrick Simon, on behalf of the McKinsey Health Institute, improving employee health and wellbeing doesn’t just benefit workers and organisations, it could generate between $3.7 to $11.7 trillion in global economic value (see FIG 16). Their article focuses on six drivers of health that employers can influence - social interaction, mindsets and beliefs, productive activity, stress, economic security, and sleep – and provides guidance on how organisations can move the dial on each.
FIG 16: Improving global employee health and wellbeing could create up to $11.7 trillion in economic value (Source: McKinsey Health Institute)
LEADERSHIP, CULTURE AND LEARNING
LINKEDIN LEARNING – Workplace Learning Report 2024: L&D powers the AI future
As AI reshapes how people learn, work, and chart their careers, L&D sits at the center of organizational agility, delivering business innovation and critical skills.
Aligning learning programs to business goals emerges as the top L&D focus area for 2024 in LinkedIn Learning’s annual report on the L&D field, which is based on analysis of LinkedIn behavioural data and focus interviews with L&D professionals around the globe. The report is structured into three chapters: (1) The State of L&D (the study finds that a strong learning culture derives retention, mobility, and promotion. – see FIG 17), (2) Skills agility (the study finds that only 33% of organisations have internal mobility programs), and (3) How L&D succeeds) with priorities #1 and #2 being to lean into analytics and build the right metrics – see FIG 18). The report features contributions from the likes of: Amanda Nolen (who asks: “What if Chief Learning Officers become Chief Skills Officers”), Chris Louie Geraldine Murphy Terri Horton, EdD, MBA, MA, SHRM-CP, PHR Alexandra Halem Ekpedeme "Pamay" M. Bassey Shruti Bharadwaj and Dani Johnson.
FIG 17: Business outcomes and learning culture (Source: LinkedIn Learning)
FIG 18: How L&D tracks business impact (Source: LinkedIn Learning)
AYSE KARAEVLI AND SERDEN ÖZCAN - Make Better Allies of Your Workforce
When the board takes the recommendations of employee advisory groups seriously and incorporates them into decisions, employees become more empowered, and their perspectives become embedded into their company’s long-term objectives.
In their article for MIT Sloan Management Review, Ayse Karaevli and Serden Ozcan present findings from their interviews with board directors, CEOs, CFOs, and employee representatives to understand how to manage conflict and engage workers. From their analysis, Ayse and Serden identified three strategies effective leaders use to include employees (see FIG 19): (1) Identify mutual goals and interests, (2) Foster inclusive decision processes, and (3) Give employees strategic responsibilities. The article then describes each of these in detail with examples from the likes of ThyssenKrupp, Allianz, Siemens, and Bayer before highlighting the importance of employee advisory groups, engagement with board members and the role of committees and task forces to imbue governance and participation.
FIG 19: Three Strategies to Avert Workforce Controversies (Source: Ayse Karaevli and Serden Özcan)
DIVERSITY, EQUITY, INCLUSION, AND BELONGING
SUNDIATU DIXON-FYLE, MASSIMO GIORDANO, TANIA HOLT, TUNDE OLANREWAJU, DARA OLUFON, AND SANDRA SANCIER-SULTAN - Ethnocultural minorities in Europe: A potential triple win
Greater inclusion of ethnocultural minorities could fill talent gaps and spur company growth, increase economic empowerment of these groups, and generate benefits for the economy and broader society.
Despite the anti-immigration policies of many current European governments (that includes you, Rishi Sunak), stagnant economies, tight labour markets, and shrinking working populations mean that immigration is key to unlocking economic growth. In their superb analysis for McKinsey, Sundiatu Dixon-Fyle Massimo Giordano Tania Zulu Holt Tunde Olanrewaju Dara Olufon and Sandra Sancier-Sultan provide data insights on what they classify as ethnocultural minorities in Europe, and their (mostly challenging) experiences. The authors also provide guidance for companies on ethnocultural minority employee inclusion across five dimensions (see FIG 20).
FIG 20: Companies can consider ethnocultural minority employee inclusion across five dimensions (Source: McKinsey)
HR TECH VOICES
Much of the innovation in the field continues to be driven by the vendor community, and I’ve picked out a few resources from March that I recommend readers delve into:
ANDREA DERLER, PETER BAMBERGER, MANDA WINLAW, AND CUTHBERT CHOW - When New Hires Get Paid More, Top Performers Resign First - To attract talent to the organisation, employers often pay new hires more than they pay equivalent workers in the same role. Analysis by the Visier Inc. team of Andrea Derler, Ph.D. Peter Bamberger Manda Winlaw and Cuthbert Chow shows that in these times of increasing pay transparency, this strategy risks your high-performers resigning.
ANDREW PITTS AND CHAD MITCHELL - Exploring a few largely untapped sources of data for passive Organizational Network Analysis – This article by Andrew Pitts and Chad Mitchell of Polinode looks at a number of data sources that are typically overlooked for ONA including: 360 reviews, peer to peer recognition tools, opportunity marketplaces, and talent intelligence data.
FRANCISCO MARIN - Key Considerations for Defining the Scope of an ONA Pilot – Francisco Marin of Cognitive Talent Solutions provides a helpful guide to defining the scope of an ONA pilot including tips on clarifying the objective, data privacy and securing executive sponsorship.
HAKKI OZDENOREN AND JOHN BOUDREAU – Is the Future of Work Lost in Translation – John Boudreau joins forces with Hakki Ozdenoren of Revelio Labs to conduct analysis on resumes and jobs mentioning the ‘future of work’, with HR featuring prominently (see FIG 21).
FIG 21: A diverse set of roles contribute to the Future of Work (Source: Revelio Labs)
PODCASTS OF THE MONTH
In another month of high-quality podcasts, I’ve selected five gems for your aural pleasure: (you can also check out the latest episodes of the Digital HR Leaders Podcast – see ‘From My Desk’ below):
JAMIL ZAKI, BRYAN HANCOCK, BROOKE WEDDLE, AND LUCIA RAHILLY - It’s cool to be kind: The value of empathy at work – In this episode of McKinsey Talks Talent, Jamil Zaki (author of The War for Kindness) joins Bryan Hancock Brooke Weddle and Lucia Rahilly to make the case for investing in empathic behaviour—for reasons including higher productivity, a stronger workplace culture, and better organisational health—as well as to discuss how to go about cultivating kindness at work.
CAL NEWPORT AND ADAM GRANT – How to be productive without burning out – Cal Newport discusses insights from his new book, Slow Productivity: The Lost Art of Accomplishment Without Burnout, with Adam Grant on WorkLife. They dig into the data on productivity, debate the benefits and drawbacks of doing fewer things (and spending less time on email and social media), and discuss individual habits and organisational practices for preventing burnout and promoting worthwhile work.
JOSH BERSIN - Why “Talent Density” Is So Critical In Business Today – Fresh from discussing his Dynamic Organizations research at Gloat Live, Josh Bersin discusses why ‘Talent Density’ is becoming one of the key strategies for growth.
DONNA MORRIS AND LARS SCHMIDT - Inside Walmart’s Bold Strategy to Transform Retail Work – Walmart’s chief people officer, Donna Morris, joins Lars Schmidt on his Redefining Work podcast to discuss how Walmart is not just navigating but leading the revolution in workplace technology—with people firmly at its core. This was an especially insightful listen as only two days before I had seen Marty Autrey speaking at the Wharton People Analytics conference on how Walmart provides data-based nudges to its store managers to help them drive business outcomes and enhance employee experience.
RYAN HAMMOND, COLE NAPPER AND SCOTT HINES - Turnover Prediction, ML Ethics, & The HiQ Story – Ryan Hammond shares the epic story of HiQ Labs with Directionally Correct hosts Cole Napper and Scott Hines, PhD, as well as insights from his practitioner and academic backgrounds including how to ethically use internal and external data to do turnover prediction.
VIDEO OF THE MONTH
TANUJ KAPILASHRAMI, MICHAEL FRACCARO, TAMLA OATES-FARNEY, AND DAVID GREEN – CHRO Panel: Delivering against the transformation imperative
March’s Video of the Month proved to be a highlight for me as it features me moderating the CHRO Panel at the recent Gloat Live event in New York. The panel was comprised of Tanuj Kapilashrami Michael Fraccaro and Tamla Oates-Forney, and featured discussion on the increasingly pivotal role of the CHRO in business transformation, lessons learnt and successes from transitioning to a skills-based organisation, and how technology can enable a culture of inclusivity and opportunity.
BOOKS OF THE MONTH
With a lot of travelling back and forth from the US in March, I found time to dig into two new books, which I recommend to readers of this newsletter:
MARC SOKOL AND BEVERLY TARULLI – Strategic Workforce Planning: Best Practices and Emerging Directions
Strategic workforce planning – the process of looking forward, assessing how to compete and win in your chosen market or business arena, and linking those insights to your existing and potential future workforce – is core to any institution that aspires to sustain itself over time.
Those are the opening words of Marc Sokol and Beverly Tarulli, Ph.D., the editors of an indispensable new volume of SIOP’s Professional Practice Series. It provides an overview of SWP, covering best practices, methodologies and new directions in the field as well as featuring contributions and case studies from a stellar list of contributors. These include: Sheri Feinzig Alexis Fink Adam Gibson Brian Heger Adam McKinnon, PhD. Kanella Salapatas and Dave Ulrich. Grab yourself a copy!
SALVATORE V. FALLETTA – Creepy Analytics: Avoid Crossing the Line and Establish Ethical HR Analytics for Smarter Workforce Decisions
In Creepy Analytics, Dr. Salvatore Falletta provides a thoughtful approach to HR Analytics that is both evidence-based and ethical – ensuring that organisations get the insights they need while respecting employee privacy. The book is built around the author’s seven-step HR Analytics Cycle (see FIG 22) and is well-researched. Thanks to Salvatore too for referencing Excellence in People Analytics several times, particularly in relation to the guidance Jonathan Ferrar and I offer around governance and the development of an ethics charter. As Alec Levenson opines in his endorsement of the book: “Falletta has done a masterful job addressing some of the most important ethical issues for workforce analytics.”
FIG 22: The HR Analytics Cycle (Salvatore V. Falletta)
RESEARCH REPORT OF THE MONTH
MAX BLUMBERG, ALEC LEVENSON, AND DAVE MILLNER - A Strategically Aligned HR Operating Model
In their recently published paper, three eminent and progressive thinkers in our field – Max Blumberg (JA) ?? Alec Levenson and Dave Millner – set out a pivot in how HR is structured and works in order to more closely align the function to the capabilities required for successful strategy execution. They present a new HR structure (see FIG 23) designed around four key pillars, before describing each pillar in detail and providing some diagnostic steps to implement this new operating model.
FIG 23: A new HR structure (Source: Blumberg, Levenson, and Millner)
FROM MY DESK
March saw four episodes from Series 37 of the Digital HR Leaders podcast, sponsored by our friends at Culture Amp - thank you to Ellisa Packer and Jodie Evans, a round-up of series 36 and a guest appearance by yours truly on the Future Work/Life podcast:
DAVID GREEN AND OLLIE HENDERSON - Driving growth in people and businesses using data – In a role reversal, it was my turn in the hotseat as I joined Ollie Henderson on his Future Work/Life podcast to talk people analytics, talent marketplaces, AI, hybrid work models and the future skills required by HR professionals.
DORIE CLARK - How to Embrace Long-Term Thinking in HR Leadership – Dorie Clark and I discuss how to pivot to long-term thinking, how to prioritise effectively, and why embracing failure can drive innovation and creativity.
DIDIER ELZINGA - How to Prove the ROI of a Positive Company Culture – Didier Elzinga joins me to discuss ways of engaging the board on culture topics, the relationship between a healthy culture and business performance, and how to demonstrate the ROI of culture and engagement initiatives.
ROB BRINER - What is Evidence Based HR and Why is it Important? – Rob Briner shares the principles of evidence-based HR, how it differs from people analytics, and offers recommendations to chief people officers on how they can incorporate EBHR into their work.
LOUISE MILLAR AND OLIVIA EDWARDS - Actionable People Analytics Strategies to Influence Senior Leadership – In a powerful example of people analytics in practice at a SME, Louise Millar and Olivia Edwards share insights from the people analytics journey at Chetwood.
DAVID GREEN – How will AI transform the role of HR? – A round-up of series 36 of the Digital HR Leaders podcast, with insights from episodes featuring Dawn Klinghoffer Jeremy Shapiro Thomas Hedegaard Rasmussen Serena H. Huang, Ph.D. Luke Farrugia Kaz Hassan Eric Siegel and Bernard Marr.
THANK YOU
Thomas Kohler for including the February edition of Data Driven HR in his round-up of HR resources.
Reb Rebele for referencing me in his post about the Wharton People Analytics Conference – you were missed, Reb.
Olimpiusz Papiez for providing a great set of takeaways on the Digital HR Leaders podcast episode with Dawn Klinghoffer, Jeremy Shapiro, and Thomas Rasmussen on People Analytics, AI and ML.
Peter Johnson for including me in his list of HR thought leaders.
Mokkup.ai for including my article on How Will AI Impact People Analytics in 2024 and Beyond? in their collection of Top 14 reads for Data Professionals.
Thinkers360 for including me in their list of the Top 50 B2B Thought Leaders, Analysts & Influencers You Should Work With In 2024 (EMEA)
Joveo for including me in their list of Top 9 Twitter Influencers Every Talent Acquisition Specialist Should Follow
To the following people who sharing the February edition of Data Driven HR Monthly. It's much appreciated: Allison Ardianto Eakkasit Toratana Jillian Meade David Balls (FCIPD) Kingsley Taylor Military Veterans of LinkedIn Robin Carlin Amy C. Lewis, PhD Russ Fatum Kouros Behzad Emily Klein Madison Clary Robert Rogowski Phillip M. Randall, PhD, CPG Gord Johnston MA, BHJ, BA, CHRP ANDRES CAMPOVERDE Aravind Warrier Francisca Solano Beneitez Satya Prakash Pandey Malgorzata (GOSIA) LANGLOIS Dr. Zohaib Azhar (PhD-HR) Jane Datta David McLean John Lawson Alice Damonte Martha Curioni Vipul M. Mali ↗️ Jens Keuter Phil Inskip Andrew Smith MBA Ekta Vyas Ph.D Oswaldo Machado Bill Brown Barry Marshall Paola Carranco Murthy Nibhanipudi VS Jaana Saramies ? Robert Houghton Aysegul Tigli Indre Radzeviciute Radha Jeevan Melissa Hopper Fritz Tina Peeters, PhD Morten Hartvig Berg Pedro Pereira Gavin Wiseman
UNLOCK THE POTENTIAL OF YOUR PEOPLE ANALYTICS FUNCTION THROUGH THE INSIGHT222 PEOPLE ANALYTICS PROGRAM
At Insight222, our mission is to make organisations better by putting people analytics at the centre of business and upskilling the HR profession The Insight222 People Analytics Program® is your gateway to a world of knowledge, networking, and growth. Developed exclusively for people analytics leaders and their teams, the program equips you with the frameworks, guidance, learnings, and connections you need to create greater impact.
As the landscape of people analytics becomes increasingly complex, with data, technology, and ethical considerations at the forefront, our program brings together over one hundred organisations to collectively address these shared challenges.
Insight222 Peer Meetings, like this event in London, are a core component of the Insight222 People Analytics Program®. They allow participants to learn, network and co-create solutions together with the purpose of ultimately growing the business value that people analytics can deliver to their organisations. If you would like to learn more, contact us today.
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.
专栏
2024年03月31日
专栏
世界幸福报告能教给我们关于工作的什么? What The World Happiness Report Teaches Us About Work最新《世界幸福报告》揭示，尽管经济增长，美国幸福感下降。研究强调，高薪并非幸福的关键，而公平薪酬、良好的企业文化才是。特别是年轻人，受到气候变化、政治纷争等影响，幸福感低落。企业需关注文化建设、弹性工作，关照员工心理健康。工作场所的信任、社区感和公平至关重要。我们要反思：真正的幸福是什么？
我每年都认真研读《世界幸福报告》，今年的报告特别引人深思。以下是我对一些关键发现的解读。
首先，美国的幸福指数（10分满分）降至第23位，比全球最幸福的国家芬兰低了13%。实际上，在过去15年中，美国的幸福度几乎下降了8%，呈现出持续的年降趋势。对于我们这些生活在美国的人来说，这可能并不陌生：坏消息、政治争斗以及人们在价值观上的分歧似乎无处不在。
这一切发生的同时，美国的GDP增长却持续领先世界上大多数主要经济体。这意味着我们作为一个国家正在变得更加富裕，却显著地变得不那么幸福（下文将详细解释）。
从企业角度来看，这个观点很简单：仅仅提高薪资并不能使人们感到更加幸福。尽管每个人都希望得到公平的报酬，但高薪酬并不直接转化为高参与度。我们2023年的《薪酬公平终极指南》发现，与薪酬水平相比，薪酬公平与员工参与度的关联性高出7倍。
其次，报告指出，在美国，年轻人的幸福感明显低于老年人（这一点并非在所有国家都适用，但在大多数发达国家中是这样的）。在美国，30岁以下人群的幸福评分为6.4，而60岁以上人群的评分为7.3，幸福度低了12%。我们对年轻人的这一低幸福评分使美国在全球青年幸福排行榜上仅位列第62位，远低于我们的总体排名。
这反映出我在上周播客中讨论的现象。如今的年轻工作者担忧全球变暖，他们在年轻时就经历了疫情的冲击，他们对于战争、通货膨胀、社会问题以及政治不和感到沮丧。埃德曼信任度量尺表明，年轻人认为相比政府，企业在为社会带来创新方面更值得信赖，高出近20%。但令人担忧的是，这种信任程度也在下滑。
从企业的视角来看，这进一步强化了播客中提到的观点：我们（美国）的劳动力中位年龄现已达到33岁。这表明许多关键员工对生活的热情有所下降，这迫使雇主需要采取更多措施。我们对企业文化、员工福祉、工作灵活性和个人成长的关注，现在比以往任何时候都显得更为重要。这就是像四天工作周、灵活工作时间以及其他诸多福利（如生育支持、儿童看护、心理健康、健身、财务福利）变得越来越普遍的原因。
（最新的劳动统计局数据显示，我们在福利上的支出占工资总额的31.1%，比三年前的29%有所增加。在信息行业，这个比例高达35.5%，是有史以来的最高值。）
此外，重点强调：对企业来说，重振早期职业发展计划至关重要。许多企业在20世纪60、70年代建立了这些计划，但随后这些计划逐渐被忽视。如果你正在从大学招聘顶尖人才，并投资于校园招聘（这一趋势正在上升），那么确保你有一个坚实的1-2年发展计划、工作轮岗以及面向年轻人的群体参与计划是非常重要的。我最近与康卡斯特讨论了他们的计划，他们的早期职业发展计划正在直接为他们的领导力管道做出贡献。
第三，也是最引人注目的一点是，报告强调了社会关系和信任在幸福感中的巨大作用。进行这项研究的学者团队发现，幸福感的“坎特里尔阶梯”（一个简单的“你觉得自己多幸福”的1-10评分问题）可以分解为六个贡献因素：
人均GDP（财富）、社会支持（密切关系的数量和质量）、预期寿命（健康）、生活选择的自由（按个人意愿生活的能力）、慷慨（向他人给予金钱和时间的倾向）以及腐败感知（相信“系统”是公平的）。
这些因素对幸福的贡献度大开眼界。
令人惊讶的是，社会关系是幸福感的最大贡献者，而健康只占大约1.4%。请注意，第二重要的因素是对腐败的感知或者说是公平感，这解释了为什么薪酬公平非常重要。我们再次发现，财富对幸福感的影响相对较小。
这对我们的工作有何启示？
这里有一些简单的启示：
关系很重要。如果管理层和主管不能建立起团队合作感，员工便会感到不适。尽管我们面临财务和运营压力，但我们仍需抽时间了解员工、倾听他们的声音，并与他们共度愉快时光。通过聚集人员并创建跨功能团队，我们即使在远程工作情况下也能建立社交关系。
信任至关重要。我曾在高层领导贪婪、不忠、不诚实的环境中工作过，公司内的每个人都能感觉到这一点。信任是经年累月建立起来的资产，我们必须不断地进行投资。通过道德、诚实和倾听来培养信任，你的领导模式中包含了这些元素吗？
薪酬的影响可能比你想象的要小。虽然每个人都希望赚更多钱，但人们更希望感觉到奖励是公平且慷慨的。因此，不应仅仅过度奖励表现突出的员工，而忽视其他人的努力。
生活选择的自由极为重要。众多研究显示，与薪资相比，员工更加重视工作的灵活性，因此，考虑将四天工作周和灵活工作选项作为你的雇佣政策的核心部分是非常重要的。
多年前，我在一个人力资源领导者的大型会议上发表了关于企业公民责任的演讲。我指出，公司就像小型社会一样，如果我们的企业“社会”不公平、不透明、不自由，那么我们的员工就会感受到痛苦。演讲结束时，我不确定听众的反应如何，但来自宜家的一大群人向我走来，给了我一个热情的拥抱。宜家这家公司，深深植根于瑞典的社会主义文化，是地球上最长久的公司之一。他们真心相信集体思维、公平和对每个个体的尊重。
原文来自：https://joshbersin.com/2024/03/what-the-world-happiness-report-can-teach-us-about-work/
Josh Bersin谈How To Create Talent Density 如何打造人才密度
Josh Bersin发表文章谈到：在过去几年里，我注意到大公司的表现开始不如小公司。我们现在看到苹果和谷歌都出现了这种情况，而微软应对这一挑战也有相当长的一段时间了。 随着公司的发展，帮助我们推动组织绩效的一个重要理念就是人才密度。这篇文章讨论了人才密度的概念，即公司中技能、能力和表现的质量和密度。强调传统的员工绩效评估模型已导致平庸。建议采用人才密度方法，包括招聘增加或乘数效应的人才，基于帕累托分布管理绩效，以及专注于赋权、反馈和领导力。文章强调，为了创新和市场竞争力，尤其在AI和技术进步的背景下，维持高人才密度的重要性。
In this (long) article, I want to talk about a new concept called Talent density. And as I pondered the concept I think it represents one of the more important topics in management. So I hope you find it as interesting as I do.
First of all, the concept of talent density, pioneered by Netflix by the way, is simple.
Talent Density is the quality and density of skills, capabilities and performance you have in your company.
So, if you have a company that is 100% high performers, you’re very dense. If you have a company that’s 20% high performers, you’re not very dense. It’s easy to understand, but hard to implement, because it gets to the point of how we define performance, how we select people to hire, how we decide who’s going to get promoted, how we decide who’s going to work on what project and how we’re going to distribute pay.
So before I explain talent density, let’s talk about the basic beliefs most companies have. Most organizations believe that they’re operating with a normal distribution or bell curve of performance. I don’t know why that statistical model has been applied to organizations, but it has become almost a standard policy. (Academics have proven it false, as I explain below.)
Using the bell curve, we identify the “mean” or average performance, and then categorize performance into five levels. Number ones are two standard deviations to the right and number fives are two standard deviations to the left.
The people operating at level one get a big raise, the people operating at level two get medium raise, the people operating at level three get an average raise, the people operating at level four get a below average raise and the people operating at level five probably need to leave. Lots of politics in the process, but that’s typically how it works.
As I describe in The Myth of The Bell Curve, these performance and pay strategies have been used for decades. And at scale they create a mediocrity-centered organization, because the statistics limit the quantity and value of 1’s. If you’re operating at 1 level and you get a 2, you’ll quit. If you’re operating at 3 level, you’re probably going to coast. You get my drift. And since the bulk of the company is rated 2 or 3, most of the managers are in the middle.
As the saying goes, A managers hire A people, B managers hire C people. So over time, if not constantly tuned, we end up with an organization that is almost destined to be medium in performance.
Now I’m not saying every company goes through this process, but if you look at the productivity per employee in large organizations it’s almost always below that of smaller organizations. Why? Because as organizations grow, the talent density declines. (Netflix, as an example, example, generates almost $3M of revenue per employee, twice that of Google and 10X that of Disney. And they are the only profitable streaming company, with fewer than 20,000 employees and a $240 billion market cap.)
The traditional model was fine in the industrial age when we had a surplus of talent, jobs were clearly defined, and most employees were measure by the “number of widgets they produced.” In those days we could swap out a “low performer” for a “high performer” because there were lots of people in the job market.
We don’t live in that world anymore. The world we now live in has sub 4% unemployment, a constant shortage of key skills, and a growing shortage of labor. And thanks to automation and AI, the revenue or value per person has skyrocketed, almost an order of magnitude higher than it was 30 years ago.
So we need a better way to think about performance in a world where companies with fewer people can outperform those who get too big. Look at how Salesforce, Google, Apple, who are essentially creative companies, have slowed their ability to innovate as they get bigger. Look at how OpenAI, who is a tiny company, is outperforming Google and Microsoft.
Today most businesses outperform through innovation, time to market, customer intimacy, or IP – not through scale or “harder work.”
How do we maintain a high level of talent density when we’re growing the company and hiring lots of people? Netflix wrote the book on this, so let me give you the story.
First, the hiring process should focus on talent density, not butts in seats. Rather than hire someone to “fill a role” we look for someone who is additive or multiplicative to the entire team. Hire someone that challenges the status quo and brings new ideas, skills, and ideas beyond the “job” as defined. Netflix values courage, innovation, selflessness, inclusion, and teamwork, for example. These are not statements about “doing your job as defined.”
Netflix’s idea is that each incremental hire should make everybody else in the company and everybody else in the team produce at a higher level. Now this is a threatening thing for an insecure manager because most managers don’t want to hire somebody that could take their job away. But that’s why we have this problem.
Second, we need to manage or create some type of performance management process that is built around the Pareto distribution (also called the Power Law) and not the normal distribution. In the Pareto distribution or the power law, we have a small number of people who generate an outsized level of performance, you can call it the 80/20 rule or the 90/10 rule. (20% of the people do 80% of the work)
Studies have shown that companies and many populations work this way, and it makes sense. Think about athletes, where a small number of super athletes are 2-3 better than their peers. The same thing is true in music, science, and entertainment. It’s also true in sales and many business disciplines.
Research conducted in 2011 and 2012 by Ernest O’Boyle Jr. and Herman Aguinis (633,263 researchers, entertainers, politicians, and athletes in a total of 198 samples). found that performance in 94 percent of these groups did not follow a normal distribution. Rather these groups fall into what is called a “Power Law” distribution.
In every population of human beings there are a few people who just have God-given gifts to outperform in the job, and they just naturally seem to be far better than everyone else.
Bill Gates once told the company that there were of the three engineers that he felt made the company of Microsoft. And I’ve heard this in many other companies, where one software engineer and the right role can do the work of 10 other people.
Now, this is not to say that everybody will fall into one level of the Pareto distribution. At a given point in time in your career, you may be in the 80% and over time, as you learn and grow and find the things that you’re naturally good at, you’ll end up in the 20%. But in a given company this is a dynamic that’s constantly taking place. And that’s what Netflix is doing – constantly working on talent density.
What does this mean for performance management? It means that in order to care for a population like this, we have to hire differently, avoid the bell curve, and pay high performers well. Not just a little more than everybody else, a lot more. And that’s what happens in sports and entertainment, so why not in business.
If you look at companies like Google, Microsoft, and others, there are individuals in those companies that make two to three times more than their peers. And as long as these decisions are made based on performance, people are fine with it.
What obviously does not work is when person making all the money is the person who’s the best politician, best looking, or most popular.
And that leads me to item three: In the Netflix culture there’s a massive amount of empowerment, 360 feedback, candor and honesty. You’ve probably read the Netflix culture manifesto: it’s all about the need for people to be honest, to speak truth, to give each other feedback, and to focus on judgement, courage, and accountability. Netflix only recently added job levels: they didn’t have job levels for many years.
Giving people feedback is a challenge because it’s uncomfortable. So this has to to start at the top and it has to be done in a developmental, honest way. This does not mean people should threaten or disparage each other, but we all need to know that at the end of a project or the end of the meeting it’s okay for somebody to tell us “here’s what was great about that and here’s what wasn’t great about it.”
One of the most important institutions in the world, the US military lives, eats and dies by this process. If you’re in the military and you mess something up, you can guarantee that somebody’s going to tell you about it, and you’re going to get some help making sure you don’t do it again. We don’t have life or death situations in companies, but we can certainly use this kind of discipline.
The fourth thing that matters in talent density is leadership and goal setting. One of the things that really gets in the way of a high performing company is too many individual goals, too many siloed projects and responsibilities and people not seeing the big picture.
If your goal setting and performance management process is 100% based on individual performance you are sub-optimizing your company. Not only does this work against teamwork, but there really isn’t a single thing in a company that anybody can do alone. So our performance management research continuously shows that people should be rewarded for both their achievements as well as that of the team. (Here’s the research to explain.)
Why is talent density important right now? Let me mention a few reasons.
First, we’re entering a period of low unemployment so every hire is going to be challenging. And thanks to AI, companies are going to be able to operate with smaller teams. What better time to think about how to “trim down” your company so it’s performing at its best?
Second, the transformations from AI are going to require a lot of flexibility and learning agility in your company. You want a highly focused, well aligned team to help make that happen. And while AI will help every company improve, your ability to leverage AI quickly will turn into a competitive advantage (think back about how web and digital and e-commerce did the same).
(I firmly believe the companies with the most ingenious applications of AI will disrupt their competitors. I’m still amazed at Whole Food’s hand recognition checkout process: I can see self-service coffee, groceries, and other retail and hospitality coming.)
Third, the post-industrial business world is going to start to devalue huge, lumbering organizations. Many big companies just need a lot of people, but as Southwest Airlines taught us long ago, it’s the small team that performs well. So if you can’t break your company into small high-performing teams, your talent density will suffer.
When the book is written on Apple’s $10 Billion car, I bet one problem was the size and scale of the team. We’ll see soon enough. By the way, I still recommend everyone read “The Mythical Man-Month,” which to me is the bible of organizing around small teams.
What if you’re a healthcare provider, retailer, manufacturer, hospitality company? Does talent density apply to you? Absolutely! Go into a Costco and see how happy and engaged the employees are. Then go into a poorly run retailer and you’ll feel the difference.
In my book Irresistible I give examples of companies who embrace what I call “the unquenchable power of the human spirit.” Nobody wants to feel like they’re underperforming. With the right focus on accountability and growth we can help everyone out-perform their expectations.
Now is a time rethink how our organizations work. Not only should we promote and reward the hyper-performers, the Pareto rule and Talent Density thinking encourage us to help mid-level performers learn, grow, and transform themselves into superstars.
Let’s throw away the old ideas of bell curve, forced distribution, and simplistic performance management. Companies that push for everlasting high performance are energizing places to work, they deliver outstanding products and services, and they’re great investments for stakeholders.
AI中文翻译：
在这篇篇幅较长的文章中，我想探讨一个被称为“人才密度”的新概念。思考此概念时，我认为它是管理领域中极其重要的议题之一。希望您能像我一样发现其趣味性。
首先，Netflix首创的“人才密度”概念其实很简单。
人才密度指的是公司内部技能、能力和表现的质量与密集程度。
换句话说，如果你的公司全是高绩效人才，那么你的“人才密度”就很高。如果只有20%是高绩效人才，那么你的“人才密度”就不高。这个概念虽然容易理解，但实际执行起来却颇具挑战，因为它涉及到我们如何定义绩效、招聘员工的标准、晋升决策、项目分配以及薪酬分配。
在详细解释“人才密度”之前，让我们先看看大多数公司的基本信念。许多组织相信，他们的员工表现遵循一个正态分布或钟形曲线。这个统计模型为何被广泛应用于组织之中，我并不清楚，但它几乎已成为标准做法。（实际上，如我下文将解释的，学术研究已证明这一模型是错误的。）
采用钟形曲线，我们确定平均表现（即“平均线”），然后将员工的表现划分为五个等级。表现最好的被归为一级，标准为右偏两个标准差；表现最差的被归为五级，左偏两个标准差。
一级表现者获得大幅度加薪，二级表现者获得中等加薪，三级表现者获得平均水平的加薪，四级表现者加薪低于平均，五级表现者可能就需要离开公司了。虽然这个过程充满了政治操作，但这就是它通常的运作方式。
正如我在《钟形曲线的神话》中所述，这些关于绩效和薪酬的策略已经使用了数十年。而且，当这些策略在大规模下实施时，它们会造成以平庸为中心的组织文化，因为这种统计方法限制了顶尖人才的数量和价值。如果你是一级表现者却被评为二级，你很可能就会选择离职。如果你是三级表现者，你可能就会选择安于现状。你应该明白我的意思了。而且，由于大部分员工的评级为二级或三级，大多数管理者也就处于中等水平。
常言道，A级的管理者招聘A级人才，B级的管理者则招聘C级人才。因此，如果不持续进行优化调整，组织最终几乎注定会变得中庸。
我并不是说每家公司都会经历这一过程，但如果你查看大型组织的员工生产率，通常都低于小型组织的生产率。为什么呢？因为随着组织规模的扩大，“人才密度”往往会下降。（以Netflix为例，其每名员工创造的收入几乎为300万美元，是Google的两倍，是迪士尼的十倍。他们是唯一盈利的流媒体公司，员工不足20,000人，市值2400亿美元。）
在工业时代，人才供过于求，工作职责明确，大多数员工的表现以“生产的产品数量”来衡量。那个时候，低绩效者可以轻松地被高绩效者替换，因为劳动市场上有大量的人才可供选择。
但我们不再生活在那个时代了。在我们现在的世界里，失业率低于4%，关键技能持续短缺，劳动力整体也日益减少。而且，得益于自动化和AI技术，每位员工创造的收入或价值比30年前高出了几个数量级。
因此，在一个人员更少的公司可以超越体量更大的公司的世界中，我们需要一种更好的绩效思考方式。看看Salesforce、Google、Apple这些本质上依靠创新的公司，随着规模扩大，它们的创新能力如何变缓。再看看OpenAI，尽管是一个小公司，却在超越Google和Microsoft。
如今，大多数企业通过创新、市场响应速度、客户亲密度或知识产权而非规模或“更加努力的工作”来实现超越。
在我们不断发展公司并招聘大量人员的同时，我们如何保持高水平的“人才密度”？Netflix在此领域有着开创性的工作，让我来分享一下他们的故事。
首先，招聘过程应专注于提高“人才密度”，而不是仅仅为了填补空缺。我们寻找的不是简单地“填补一个角色”的人，而是能够为整个团队带来正面或倍增效果的人才。我们寻找的是那些能够挑战现状、带来新观点和技能，并超出传统“工作定义”的人。例如，Netflix重视勇气、创新、无私、包容和团队合作等价值观，并不仅仅是“完成既定工作”。
Netflix的理念是，每一次新增的招聘都应该使公司内每个人和团队的每个成员的生产力得到提升。这对于那些缺乏安全感的管理者来说可能是个挑战，因为大多数管理者并不希望招聘可能会取代他们的人。但正是这种思维方式导致了我们当前的问题。
其次，我们需要建立或改进一种围绕帕累托分布（也称作幂律分布）而非正态分布的绩效管理流程。在帕累托分布或幂律分布中，少数人贡献了超出常规的绩效水平，这可以称作80/20规则或90/10规则。（即20%的人完成了80%的工作）
研究显示，许多公司和人群实际上都是以这种方式运作的，这是合理的。想想那些在体育、音乐、科学和娱乐领域表现出色的人，其中少数顶尖人才的表现是同龄人的两到三倍。销售和许多商业领域也是如此。
2011年和2012年由Ernest O’Boyle Jr.和Herman Aguinis进行的研究（涵盖了633,263名研究人员、艺术家、政治家和运动员，共198个样本）发现，这94%的群体的表现并不遵循正态分布，而是呈现所谓的“幂律分布”。
在每个人群中，总有少数人因为天赋异禀，在工作中表现出色，自然而然地比其他人优秀得多。
比尔·盖茨曾经对微软说过，他认为公司中的三名工程师是公司的基石。我也在许多其他公司听到过类似的故事，其中一位软件工程师在合适的位置上可以完成其他十人的工作量。
这并不意味着每个人都将被归入帕累托分布的某一层级。在你职业生涯的某个阶段，你可能处于80%的群体中，但随着你不断学习、成长并找到自己真正擅长的领域，你最终可能进入20%的群体。但在任何一个公司，这种动态都在不断发生。这就是Netflix一直在努力提升“人才密度”的原因。
这对绩效管理意味着什么？这意味着，为了照顾这样一个群体，我们必须采取不同的招聘方式，避免使用钟形曲线，并且为高绩效者提供丰厚的薪酬。这不仅仅是支付比其他人稍微多一点的薪水，而是要多得多。这在体育和娱乐领域已经是常态，那么为什么不可以应用到商业领域呢？
如果你观察Google、Microsoft等公司，你会发现，这些公司中的个别人物赚取的收入是他们同事的两到三倍。只要这些决策基于绩效，大家通常都能接受它。
当然，不起作用的情况是，赚取高薪的是那些最擅长政治、外表最出众或最受欢迎的人。
这就引出了第三点：在Netflix的文化中，存在着大量的授权、360度反馈、直率和诚实。您可能已经读过Netflix的文化宣言，它强调人们需要诚实、坦诚、互相提供反馈，并专注于判断力、勇气和责任感。直到最近，Netflix才引入了职级制度——在很多年里，他们根本没有职级制度。
提供反馈是挑战性的，因为这会使人感到不适。因此，这个过程必须从高层开始，并以一种促进发展、诚实的方式进行。这并不意味着人们应互相威胁或贬低，但我们都需要明白，在项目结束或会议结束时，对方告诉我们“这是成功之处，这是失败之处”是完全可以接受的。
美国军队是世界上最重要的机构之一，它依靠这种过程生存、发展和克服困难。如果你在军队犯错，你可以确信会有人告诉你，并且你会得到帮助以确保你不会再犯同样的错误。虽然公司里没有生死攸关的情况，但我们完全可以借鉴这种纪律性。
在“人才密度”中很重要的第四点是领导力和目标设定。阻碍高绩效公司发展的一个常见问题是过多的个人目标、孤立的项目和职责，以及员工无法看到整体大局。
如果你的目标设定和绩效管理过程完全基于个人表现，那么你就在削弱你的公司。这不仅阻碍了团队合作，而且实际上没有什么是公司内任何人能够独立完成的。因此，我们的绩效管理研究不断表明，人们应该同时因其个人成就和团队成就而获得奖励。（这是相关的研究。）
为什么“人才密度”在当前尤为重要？我来列举几个原因。
首先，我们正处于一个失业率低的时期，因此每次招聘都将是一个挑战。而且，随着AI技术的帮助，公司将能够以更小的团队运作。在这样一个时刻，有什么比考虑如何“精简”你的公司、使其发挥最佳表现更合适的时机呢？
其次，随着AI的变革，你的公司将需要极大的灵活性和学习适应能力。你需要一个高度专注、良好协调的团队来实现这一目标。而且，尽管AI将帮助每个公司提高效率，但你快速应用AI的能力将变成一个竞争优势（回想一下网站、数字化和电子商务如何实现了同样的事情）。
（我坚信，那些能够巧妙应用AI的公司将会颠覆它们的竞争对手。我对Whole Foods的手掌识别结账过程仍感到惊讶：我预见到自助服务咖啡、杂货及其他零售和酒店业务的出现。）
第三，后工业时代的商业世界将开始贬低庞大、笨重的组织。许多大公司只是需要大量员工，但正如西南航空所示，小团队的表现通常更好。因此，如果你无法将你的公司划分为小型高效团队，你的“人才密度”将受到影响。
当有关Apple的100亿美元汽车项目的书籍编写时，我敢打赌问题之一将是团队的规模和规模。我们很快就会发现。顺便说一下，我还是推荐每个人阅读《神话般的人月》，对我而言，这本书是关于围绕小团队进行组织的经典之作。
如果你是医疗服务提供者、零售商、制造商或酒店业者，“人才密度”是否适用于你？当然适用！走进一家Costco，看看员工是多么的开心和投入。然后走进一个管理混乱的零售商，你就能感受到区别。
在我的书《不可抗拒》中，我列出了那些拥抱我所称之为“人类精神不可磨灭力量”的公司的例子。没有人愿意觉得自己表现不佳。通过适当的关注责任和成长，我们可以帮助每个人超越他们自己的期望。
现在是时候重新考虑我们的组织如何运作了。我们不仅应该提升和奖励顶尖表现者，帕累托法则和“人才密度”思维还鼓励我们帮助中等表现者学习、成长，并将自己转变为明星。
让我们抛弃旧的钟形曲线、强制分配和简单化绩效管理的想法。不断追求高绩效的公司是充满活力的工作场所，他们提供卓越的产品和服务，并且对投资者而言是极好的投资。
The best HR & People Analytics articles of February 2024
I’m writing the introduction to this month’s compendium in New York, ahead of two events this week in the Big Apple.
Firstly, I’m attending Gloat Live (thank you Ruslan Tovbulatov and the Gloat team), where I’ll be hosting a panel of three chief people officers – Michael Fraccaro Tanuj Kapilashrami and Tamla Oates-Forney– as well as sharing Insight222 research on building a data driven culture in HR. Also taking place this week is the Winter Peer Meeting for North American member companies of the Insight222 People Analytics Program, which is being hosted by Sally Masseyand Courtney McMahon at Colgate-Palmolive’s headquarters on Park Avenue.
After a weekend back in the UK for my birthday, I’ll be heading back to the US for the Wharton People AnalyticsConference on March 14 and 15. If you’re going to Gloat Live or Wharton PAC, then please do come and say hello. I was also in Switzerland a few days ago for People Analytics WorldZürich (thanks to Barry Swales Ralf Buechsenschuss), and just a fortnight ago, Rob Etheridgeand his team kindly hosted the European Peer Meeting of the Insight222People Analytics Program at HSBC’s headquarters in London – you can read some of takeaways from London here. It’s certainly a busy period of travel - and lots of vapour trail!
Attendees at the Insight222 Q1 European Peer Meeting for members of the People Analytics Program, hosted by HSBC in London
Some of you have written to me to advise that you weren't able to join the recent Insight222 webinar on Turning Insight into Impact with People Analytics. You can find out more by scolling down to the Video of the Month below or access the recording by clicking on the image below.
Looking for a new role in people analytics or HR tech?
Before we get to this month’s collection of resources, I’d like to highlight once again the wonderful resource created by Richard Rosenowand the One Model team of open roles in people analytics and HR technology, which now numbers close to 500 roles.
Share the love!
Enjoy reading the collection of resources for February 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 January’s compendium (including those in the Comments below).
If you enjoy a weekly dose of curated learning (and the Digital HR Leaders podcast), the Insight222 newsletter: Digital HR Leaders newsletter is published every Tuesday – subscribe here.
2024 HR TRENDS AND PREDICTIONS
DELOITTE – 2024 Global Human Capital Trends: Thriving beyond boundaries – Human performance in a boundaryless world
The opening words of Deloitte’s 2024 Global Human Capital Trends perfectly capture the opportunity and challenge for HR today: “We’re operating in a world where work is no longer defined by jobs, the workplace is no longer a specific place, many workers are no longer traditional employees, and human resources is no longer a siloed function.” The seven trends covered in the report, each with its own chapter, are: (1) Embracing human sustainability, (2) Moving beyond productivity to measure human performance, (3) Balancing privacy with transparency to build trust, (4) Overcoming the imagination deficit, (5) Creating digital playgrounds to explore, experiment and play, (6) Cultivating workplace microcultures, and (7) Making the shift to a boundaryless HR. The report, which has 122 pages, is packed full of thought-provoking insights, visualisations and data – including FIG 1 and FIG 2 below. Kudos to the authors: Susan Cantrell Corrie Commisso Julie Duda Kraig Eaton Jason Flynn John Forsythe Michael Griffiths John Guziak Lauren Kirby David Mallon Mari Marcotte Shannon Poynton Nicole Scoble-Williams GAICD Yves Van Durme and Matteo Zanza.
We’re operating in a world where work is no longer defined by jobs, the workplace is no longer a specific place, many workers are no longer traditional employees, and human resources is no longer a siloed function.
FIG 1: In the era of human performance, business and human outcomes are mutually reinforcing (Source: Deloitte 2024 Global Human Capital Trends)
FIG 2: Source: Deloitte 2024 Global Human Capital Trends
ERNEST NG - What are the most Important things HR will need to focus on in 2024? | ALLISON BAUM GATES - Six predictions for the future of health, wealth, and work in 2024 | LYNDA GRATTON - Predictions for the Workplace of 2025, Revisited
Continuing with the prediction vibe, here are two more thoughtful reflections on what lies ahead and one reflection, 15 years on, from Lynda Gratton on her previous predictions about the future of work. (1) Ernest Ng, PhD, now at HiredScore– who Workdayhas just announced their intent to acquire, highlights a number of predictions for the year ahead combining a focus on efficiency, incorporating AI into the way we work and supporting employees to navigate change. (2) Allison Baum Gates, General Partner at SemperVirens Venture Capital combines the future of health, wealth and work into her predictions including: “AI’s primary impact in 2024 will be accelerating a shift to skills-based organizations.” (3) Lynda Gratton reflects on her Predictions for the Workforce of 2025, which she originally made in 2010 covering what she got right, where she misjudged, and what she learned about experimenting.
It will be wise to expect the unexpected. And when it comes, be prepared to observe closely, pivot quickly, and experiment widely.
HYBRID, GENERATIVE AI AND THE FUTURE OF WORK
ALEX CAMP, PHIL KIRSCHNER, LAURA PINEAULT, AND PATRICK SIMON - Hybrid can be healthy for your organization—when done right
Research from McKinsey suggesting that a fully remote organisation can demonstrate a level of organisational health that rivals, if not exceeds, the performance of most traditional companies. In the article, Alexandra Camp Phil Kirschner Laura Pineault and Dr. Patrick Simon highlight six priorities for companies aspiring to sustain a flexible or highly distributed workplace in parallel with top organisational health: (1) Remove ambiguity about working practices. (2) Reset performance expectations. (3) Be transparent. (4) Be purposeful about where people work. (5) Foster trust and a sense of support. (6) Test and learn.
Fully remote organizations can demonstrate a level of health that rivals, if not exceeds, the performance of most traditional companies.
FIG 3: Six priorities to sustain a flexible or highly distributed workplace (Source: McKinsey)
KELLY JONES - Unlocking the Power of Hybrid Work: 5 Guiding Principles from Cisco's 3-Year Study Article | White Paper | Executive Summary
Kelly Jones, Cisco's Chief People Officer, unveils the findings of a three year Future of Work study by Cisco’s People Intelligence Team, which was designed to explore the employee experience prior to the global pandemic, through the pandemic, to office re-opening and beyond. Kelly's article summarises five guiding principles for hybrid work including reimagining the office to create meaningful moments and encouraging leaders to be intentional with their attention. The executive summary also outlines five key findings and recommendations (see FIG 4): (1) People may be choosing to work from home, but in person touchpoints are still essential. (2) Effective collaboration is a balancing act. (3) Flexibility and choice positively influence engagement. (4) Leaders might be struggling the most. (5) Leader attention is the #1 predictor of engagement. Thanks to Roxanne Bisby Davis for highlighting.
Make the office a magnet, not a mandate
FIG 4: Source - Choice is Critical in the Future of Work (Cisco, 2024)
MICHAEL ARENA AND PHIL ARKCOLL - Enabling High-Velocity Teams
As Michael Arena and Philip Arkcoll outline, the significance of teams has never been greater, yet their effectiveness depends on being able to operate with both speed and focus. The article presents the findings of their research as to why focused teams outperform, and then provides five practices designed for teams to imbue more intentional collaboration: (1) Leverage collaboration phases. (2) Focused team structure. (3) Minimise frequent team shifts. (4) Actively manage dependencies and distractions. (5) Formation of integration teams.
With the rapid advancements in technology today, optimal team performance and speed matter disproportionately in ensuring market success.
FIG 5: Internally and externally focused agile teams (Source: Michael Arena and Philip Arkcoll)
GAD LEVANON | SHRM & THE BURNING GLASS INSTITUTE - Generative Artificial Intelligence and the Workforce
The Burning Glass Institute continues to publish fascinatingly insightful reports about the world of work. In their latest report, in collaboration with SHRM, Gad Levanon investigates how GenAI will impact industries, companies, and jobs, and reshape the economy. It reinforces that GenAI will have the greatest impact on high-skilled, professional work, provides indications of how GenAI will impact the economy (see FIG 6) and provides four actions for CHROs to: (1) Evaluate your organisation’s composition, (2) Evaluate the roles within your organisation, (3) Consider your current talent pipeline, and (4) Develop a game plan.
In the coming years, GenAI will both drive massive boosts in productivity and necessitate layoffs. Begin planning ways to leverage GenAI’s productivity benefits and prepare for the disruptions to your workforce through a combination of upskilling investments to give workers the skills to remain relevant and reskilling programs to reposition workers in areas of more stable demand.
FIG 6: Sequence of economic disruptions caused by GenAI (Source: SHRM and The Burning Glass Institute)
FIG 7: Implications of GenAI for HR functions (Source: SHRM and The Burning Glass Institute)
ANA KREACIC, AMY LASATER-WILLE, LUCIA URIBE, RAVIN JESUTHASAN, JOHN ROMEO, AND SIMON LUONG - How Generative AI Is Changing The Future Of Work | TED LIU, CARINA DENG, AND KELLY MONAHAN - How Generative AI Adds Value to the Future of Work
Two studies analysing the impact of GenAI on the world of work. The first by Ana Kreacic Amy Lasater-Wille Lucia Uribe Ravin Jesuthasan, CFA, FRSA John Romeo and Simon Luong for the Oliver Wyman Forum finds that GenAI could add up to $20 trillion to global GDP by 2030 and save 300 billion work hours a year. It also finds that while 96% of employees believe AI can help them in their current job, 60% are afraid it will eventually automate them out of work. There are numerous other insights and visualisations in the 100 page report including a projection of the likely productivity gains at work from GenAI in the next decade (see FIG 8). The second study, by Ted Liu Carina Deng and Kelly Monahan, Ph.D.for the UpworkResearch Institute, provides a comprehensive analysis of the initial impact of GenAI on the Upwork marketplace for independent talent. It finds that the impacts may already being felt with reductions in demand for work such as writing and translation and a surge in demand for skills associated with GenAI such as data science and analytics.
Generative AI could add up to $20 trillion to global GDP by 2030 and save 300 billion work hours a year.
FIG 8: Phases of generative AI’s impact on productivity at work (Source: Oliver Wyman Forum)
GEORGE WESTERMAN, SAM RANSBOTHAM, AND CHIARA FARRONATO - Find the AI Approach That Fits the Problem You’re Trying to Solve | TOMAS CHAMORRO-PREMUZIC - 7 Strategies to Get Your Employees On Board with GenAI | ANDY BALDWIN - 3 Ways to Embed DEI Into Your Company’s AI Strategy | MARTHA CURIONI – Why is Explainable AI Important for HR? | BRETT DYKES - Why AI Isn’t Going To Solve All Your Data Culture Problems
There may be a far degree of hype around GenAI, but it does seem to be accelerating the engagement of HR leaders and professionals with AI, and is also leading to an increasing number of thoughtful studies and articles on AI, including these five resources: (1) George Westerman Sam Ransbotham and Chiara Farronatooutline four categories of advanced analytics – GenAI, traditional deep learning, econometrics, and rule-based automation, and offer five questions to ask about AI’s constraints including: What is the cost of being wrong? (2) As Dr Tomas Chamorro-Premuzic observes: “the human factor — people and culture — will drive the adoption of AI, or lack thereof.” Tomas then presents seven strategies to get employees on board including i) focusing on the problem that GenAI can solve, and ii) being proactive about ethical concerns. (3) In his article for Harvard Business Review, Andy Baldwin outlines three ways to incorporate DEI into AI strategy through: i) embedding DEI into the design of your AI systems; ii) incorporating DEI into any AI-related upskilling programs; and iii) using AI as an opportunity to boost DEI. (4) Martha Curioni defines explainable AI and explains why it is critical to HR so it can provide transparency, build trust, mitigate bias and enable data driven decision making. (5) Finally, Brent Dykes cautions that while a recent study found that GenAI had catalysed a dramatic rise in the number of companies that reported they had ‘created a data-driven organization’ (from 23.9 percent in 2023 to 48.1 percent in 2024), AI is not a silver bullet for data culture. He illustrates this (see FIG 9) by referencing a study a European bank did to assess its own data culture, before highlighting two proven ways to build a data culture: executive sponsorship and role-modelling, and talent.
As with any aspect of digital transformation, the effective deployment of generative AI will depend less on technological capability than on human adaptability
FIG 9: Source: Brent Dykes, Analytics Hero
PEOPLE ANALYTICS
MARIËLLE SONNENBERG, FEDERICO BECHINI, SIETSE SCHRÖDER, AND CAITLIN VAN MIL - Our Real-Life Journey with GenAI in Skills and Talent Management (with code!!) | ADAM MCKINNON – Introducing Lex – Australian Employment Law Support AI | ALEC LEVENSON - A killer app with huge upsides and dangerous downsides: Applying AI to People Analytics
Two examples of GenAI in People Analytics in practice – and an article by Alec Levenson on AI in people analytics. (1) the Wolters Kluwer talent analytics team of Mariëlle Sonnenberg, PhD Federico Bechini Sietse Schröder and Caitlin van Mil share a case study of using GenAI to provide the foundation of their work to transition to a skills-based organisation. The article shares learnings from their journey (and the code!) including tips around data security, prompts, and system testing. (2) Adam McKinnon, PhD. presents Lex – an AI chatbot that has been trained on Australian workplace legislation. As Adam explains, Lex has been trained not to make up answers, and it should refuse to answer any question that cannot be answered using the legal documents it has been trained on. (3) Alec Levenson addresses the potential upsides and risks of applying AI to PA before providing a roadmap for ethical and effective application.
A human- and science-based perspective on any People Analytics model’s predictions is always needed, whether AI is applied or not.
PIETRO MAZZOLENI - Unlocking People Data: Lessons from Transforming IBM's Data Platform to Elevate People Analytics - The Why and the What | JON LESTER - Creating the future of human resources
Pietro Mazzoleni presents the first edition of what promises to be an interesting and insightful new LinkedIn newsletter, People Data Platform, which will explore the evolution of IBM's internal people data platform and its role in fostering data democratisation and people analytics. The first instalment covers the what and the why, and also provides an overview of Workforce 360 (W360 – see FIG 10), IBM’s internal people data platform. Pietro explains that the initial focus for W360 was (1) to digitalise People Scorecard, IBM´s main talent dashboard that measures the health of the workforce, and (2) to scale IBM’s advanced AI solutions like Job Recommendation, Attrition Risk Analysis, and Compensation Advisor. I recommend reading Pietro’s article alongside the second article, featuring Jon Lester on how in an initial pilot in IBM Consulting, a digital AI assistant (HiRo) saved 12,000 hours in one quarter, and halved the quarterly promotion process from 10 to 5 weeks.
FIG 10: Benefits of Workforce 360 (Source: IBM, Pietro Mazzoleni)
WILLIS JENSEN - Why Is It So Hard to Get Finance and HR Aligned? | JACKSON ROATCH - The Behavioral Economics of Return to Office | LYDIA WU - The Problem with “I Don’t Disagree” in People Analytics | JARED VALDRON - An FAQ on Generative AI in People Analytics | ANSHUL SHEOPURI - People Operations As A Critical Differentiator For Employee Experience | JUSTIN PURL - The People Analytics Method: Why TikTok's Head of Global People Analytics prioritizes context not control
As has also been the case in recent months, February saw a number of articles from current and recent people analytics leaders. These act as a spur and inspiration to the field. Six are highlighted here. (1) Willis Jensenboils down the traditional disconnect between HR and Finance teams on headcount: “There are some fundamental differences in counting the number of people (headcount) versus counting the amount of worker productivity (FTE) and both are necessary for different goals.” (2) Jackson Roatchanalyses the return to office topic through the lens of behavioural economics. (3) Lydia Wubreaks down why hearing “I don’t disagree” is a problem for people analytics, and in doing so highlights the importance of building trust with key stakeholders. (4) Jared Valdronprovides a set of answers to 18 frequently asked questions about GenAI in people analytics including i)) Is generative AI a good co-pilot for programming? ii) How will generative AI change the People Analytics job market? (5) Anshul Sheopurihighlights five areas where providing a frictionless experience is key to a successful EX program including i) Design with the user in mind and build for scale, and ii) Trusted data enables a solid foundation and responsible AI delivers personalised experiences. (6) Justin Purl Head of Global People Analytics of TikTok, introduces The People Analytics Method (see FIG 11) as a scientific approach for accumulating context that delivers impactful insights and supports HR decision-making
While it can be challenging to measure the financial impact of HR projects, that shouldn’t stop HR from trying to build those business cases.
FIG 11: The People Analytics Method (Source: Justin Purl)
Two key parts of The People Analytics Method are understanding context and engaging employees.
THE EVOLUTION OF HR, LEARNING, AND DATA DRIVEN CULTURE
J. PUCKETT, VINCIANE BEAUCHENE, PATRICK ERKER, AND ZHDAN SHAKIROV – Is Your Upskilling Program Paying Off
Measuring the Return on Learning Investment is arguably the Holy Grail of upskilling programs, but according to this article by BCG it is in fact possible. In their article, J. Puckett Vinciane Beauchene C. Patrick G. E. and Ƶhdan Shakirovpresent a three-step approach: (1) Identify the desired business impact upfront. (2) Define the metrics for holding the program accountable to that impact and measuring progress. (3) Determine whether the targeted impact has been achieved.
Before embarking on any upskilling program, organizations first need to establish the business impact they will measure after the program is over.
FIG 12: Metrics for assessing the impact of learning programs (Source: BCG)
DAVE ULRICH AND HARRISON JAMES - How to Ensure that Human Capability Investments Deliver Stakeholder Value
As Dave Ulrich and Harrison James explain in their article, organisations typically rely on benchmarking and best practices to evaluate the return from human capital investments. They argue that these methods are often limited and do not provide the specific guidance to impact the business results of individual companies. Their article sets out an alternative: an Organization Guidance System (OGS), which begins by identifying the stakeholder outcomes relevant in your company as a precursor to then determining through providing an opportunity score (see FIG 13) for which human capability initiatives best deliver those outcomes.
FIG 13: Source: Dave Ulrich, The RBL Group
WORKFORCE PLANNING, ORG DESIGN, AND SKILLS-BASED ORGANISATIONS
MARC EFFRON - Is the Juice Worth the Squeeze? Questions About Becoming a Skills-based Organization
As Marc Effron of The Talent Strategy Group highlights in his remarkable must-read article, there have been many claims made by consulting firms and technology providers about the case for shifting to being a skills-based organisation. In the article, Marc examines these claims, asking and answering 17 questions about skills-based organisations. The questions include: (1) If a skills-based approach is needed, why is it needed? (2) What changes will my organisation have to make to become a skill-based organisation? (3) Is there any proof that a skills-based approach delivers results? (4) Will AI and technology solutions better enable companies to track, manage and match skills? (5) How predictively accurate are skills in determining performance? Whatever side of the skills-based organisation debate you are on, I highly recommend reading Marc’s article.
At best, shifting to a skills-based environment can help some people in some situations at a large cost. It is likely best suited to industries where there is financial largess including pharmaceutical, banking, and larger consumer products firms. At worst, it reflects HR’s continued pursuit of novelty with the giddy support of technology and consulting firms that are all-too willing to promote and enable this questionable solution.
SCOTT REIDA - Draft priority role competency needs over time using ChatGPT4 and Tableau
A practical and technical guide from Scott Reida a workforce strategist at AWS, as he demonstrates how to use ChatGPT to drive talent intelligence by identifying current and future developments for key roles within an organisation. Scott visualises the outputs from ChatGPT in Tableau over a time horizon of ten years using the example of competencies for a data scientist.
FIG 14: Source – Scott Reida (access here)
EMPLOYEE LISTENING, EMPLOYEE EXPERIENCE, AND EMPLOYEE WELLBEING
ALICE DAMONTE, DANIEL MORALES, AND SARAH TOBEY - Employee listening programs and how to keep employees talking | IT SURVEY GROUP - What’s on the Horizon? Three Trends That Will Shape Employee Listening in 2024
Alice Damonte Daniel Morales and Sarah Tobeyfrom McKinsey’s internal people analytics and measurement team share learnings from Pulse, their continuous listening program. This capability has already enabled the team to shape more than 300 different initiatives since it was established three years ago. Their article focuses on two key elements of a successful employee listening program: (1) Making it easy and meaningful for employees to participate, which is enabled by providing transparency through firm-wide readouts, community dialogues, and individualised insights with support. (2) Making it straightforward for leaders to listen and act, which the team enable through ‘care packages’ to help leaders focus their attention on what matters most. For readers that enjoy this, I also recommend the second article, which features EX/HR leaders such as Kristin Saboe, Ph.D. Caitie Jacobson Stephanie Andel, PhD Patrick Gallen, MSOD Madison Beard and Ronald Ivan Dela Cruz forecasting three key trends for employee listening in 2024.
To ensure an employee listening channel is sufficiently well stocked with timely insights, it must be easy and meaningful for employees to participate, and straightforward for leaders to listen and act.
FIG 15: Source: McKinsey
FIG 16: Three key trends shaping employee listening in 2024 (Source: IT Survey Group)
LEADERSHIP AND CULTURE
AMY C. LEWIS, ANDREA DERLER, CUTHBERT CHOW, MANDA WINLAW, AND DANI HAIG – Designing Impactful Teams: Data-backed insights about effective team size
What does team size have to do with designing high-performing teams? That was the exam question, the Visier Inc.team of Andrea Derler, Ph.D. Cuthbert Chow Manda Winlaw and Dani Haigsought to answer in a collaborative study with Amy C. Lewis, PhD Professor of Management at the College of Business at Texas A&M University-San Antonio. Key findings include: (1) Most people work in teams of six to ten. (2) Team size varies by the nature of the work. (3) Smaller teams have more high performers. (4) Smaller teams have lower resignation rates (see FIG 17). The report has some helpful insights for those studying team effectiveness and involved in organisational design work.
FIG 17: Smaller teams have lower resignation rates (Source: Visier)
SPENCER HARRISON AND KRISTIE ROGERS - Building Culture From the Middle Out
The premise of a study by Spencer Harrisonand Kristie Rogersis for a business to harness the power of culture, it needs managers and team leaders to go beyond believing that they are responsible for culture to actively building it. Their research finds that managers that successfully achieve this are able to link the ‘big-C’ culture of their organisation (e.g. the official set of values) with the ‘small-c’ culture that plays out in the narrower and vibrant daily patterns of interaction (see FIG 18). The article highlights four successful strategies: (1) Endorse big-C culture through celebration and preservation of select features. (2) Endorse big-C culture by learning from other managers. (3) Enrich small-c culture through cultural innovations. (4) Enrich small-c culture by empowering employees to innovate.
FIG 18: Endorse and Enrich Your Way to Corporate Culture (Source: Harrison and Rogers)
JOSH BERSIN - How to Actually Execute a 4-Day Workweek | DOUGLAS BROOM - Four-day work week trial in Spain leads to healthier workers, less pollution | BENJAMIN LAKER – How Far-Reaching Could the Four-Day Workweek Become? AVA MARTINEZ – A 3-Day Workweek Could Complicate The Future of Work
Four articles on the four-day week, a concept that seems to be gathering momentum with pilots suggesting that business outcomes can be maintained while employee wellbeing and retention is enhanced. (1) Josh Bersinpresents findings from his study that finds companies need to undertake substantial work redesign to reduce hours while maintaining business outcomes to make the four-day week work. (2) Writing for the World Economic Forum, Douglas Broom shares results from a four-day work week pilot in Valencia, which found that giving workers an extra day off a week actually increases productivity, boosts physical and mental health and reduces CO2 emissions. (3) Benjamin Laker, who has been studying the four-day week for a number of years, outlines the findings from a UK study on the four-day week, which finds that 92% of the 61 companies that participated in the pilot are continuing with the four-day week. Laker also highlights that research conducted before and after the trial revealed that 39% of employees experienced lower stress levels and 71% noticed less burnout while working shorter weeks (see FIG 19). (4) From being one of the CEO outliers on return to the office, JP Morgan Chase CEO Jamie Dimon suggests that AI may precipitate a future of work where the working week is three days – as reported by Ava Martinez for The HR Digest.
FIG 19: Source: The UK’s four-day week pilot (Autonomy)
DIVERSITY, EQUITY, INCLUSION, AND BELONGING
SERENA HUANG - DEI Funding Cuts? You Need Data Analytics and AI More Than Ever | BOGDAN YAMKOVENKO AND STEPHEN TAVARES - To Understand Whether Your Company Is Inclusive, Map How Your Employees Interact
With many companies and institutions – particularly in the US – cutting back on their DEI programs, a recent edition of Serena H. Huang, Ph.D. From Data to Action newsletter is well timed. Serena explains how people data and analytics can help reverse this trend and highlights a number of helpful resources. One of the resources Serena highlights is a seminal article by Bogdan Yamkovenko, PhD and Stephen Tavares first published in Harvard Business Review in 2017. It provides a case study of a professional services firm that used organisational network analysis to identify that that women were largely shut out of its decision making, idea sharing, and emotional support networks (see FIG 20). For more from Serena, please tune into her recent conversation with me on the Digital HR Leaders podcast: How to Enhance Your Career in People Analytics.
FIG 20: 3 ways to look at employee networks at one professional services firm (Source: Heidrick & Struggles)
HR TECH VOICES
Much of the innovation in the field continues to be driven by the vendor community, and I’ve picked out a few resources from February that I recommend readers delve into:
LOÏC MICHEL | 365TALENTS – Your Absolute How to Guide to Skills Management – A handy guide to skills management from Loïc Michel and the 365Talentsteam featuring guidance and case studies.
ALICIA ROACH - Let's Talk About Lay-Offs – Alicia Roach of eQ8 frames the recent spate of layoffs from companies posting impressive profits in the context of culture and workforce planning (see FIG 21). As Alicia writes: “We can do better. We must do better.”
FIG 21: Scenario modelling and external shocks (Source: Alicia Roach, eQ8)
RICHARD ROSENOW - Embracing Remote Work for Senior People Analytics Roles: A Strategic Imperative – Richard Rosenow of One Model makes a persuasive case for why every organisation looking to lead in People Analytics should consider making their senior roles, if not all of their People Analytics roles, remote eligible. For more on people analytics jobs, check out this analysis of executive and director people analytics roles by Patrick Coolen.
BLEDI TASKA - SkyHive Data Reveals Greater Gender Disparity in the Generative AI Sector Compared to the Tech Industry at Large – Bledi Taska, Ph.D. presents SkyHive data and key findings on the impact of Generative Al on the U.S. job market and economy. His analysis highlights the urgent need for reskilling and upskilling initiatives to mitigate inequality in the workforce. Thanks to Todd Raphael for highlighting.
HAKKI OZDENOREN - Move Over HR, AI Is the New Recruiter! – Hakki Ozdenorenpresents data and analysis from Revelio Labs, which finds that HR job postings mentioning AI are surging ahead of other listings. This underscores the need for HR professionals to reskill in areas like AI and data literacy. Thanks to Ben Zweig for highlighting.
FIG 22: AI related job postings in HR roles are on the rise (Source: Revelio Labs)
MARC RAMOS - Learning & Development is the New Research & Development - How the Learning Function Can be the AI Accelerator Part 1 | Part 2 – Cornerstone OnDemand CLO Marc Steven Ramos presents his two-part series on the L&D function investigating, testing and extending the use of AI within organisations – includes FIG 23 on blending R&D and L&D approaches.
FIG 23: Complementing R&D and L&D approaches (Source: Marc Ramos)
PODCASTS OF THE MONTH
In another month of high-quality podcasts, I’ve selected five gems for your aural pleasure: (you can also check out the latest episodes of the Digital HR Leaders Podcast – see ‘From My Desk’ below):
HEMERSON PAES, COLE NAPPER, AND SCOTT HINES - Active & Passive ONA Use Cases at Roche – Hemerson Paes joins hosts Cole Napperand Scott Hines, PhDon the Directionally Correct podcast to share his work rolling out active and passive ONA applications at scale at Roche.
BOB SUTTON AND ADAM GRANT - How to become a “friction-fixer” – Leading management thinker and organisational psychologist at Stanford, Bob Sutton, joins Adam Grant on ReThinking to discuss his new book, The Friction Project, on how to diagnose and then fix workplace problems. Unmissable.
JASON CORSELLO AND LAURIE RUETTIMANN - HR Technology 2024 – Jason Corsello from Acadian Ventures joins Laurie Ruettimannon Punk Rock HR to discuss the state of the HR tech market, the potential and concerns of AI, and the importance of future skills.
ANDREW SAIDY AND CHRIS RAINEY - Why a Talent Marketplace is Win-Win for Employees and Organisations - Andrew Saidy joins Christopher Rainey of HR Leaders to discuss his work at Ubisoft, where skills are becoming the currency for hiring, mobility and promotions rather than solely relying on degrees or tenure.
STEPHANIE DENINO, KIRAN MENON, AND DEBKANYA DHAR VYAVAHARKAR - Moving EX from boardroom to office floor - Stephanie Denino of TI PEOPLE speaks to hosts of the EXtra Extra podcast Kiran Menon and Debkanya Dhar Vyavaharkar about the findings of the State of EX report, and applying agile principles towards shipping EX ideas out of the boardroom and onto the office floor.
VIDEO OF THE MONTH
NAOMI VERGHESE, ALAN SUSI AND DAVID GREEN | INSIGHT222 - How Leading Companies shift People Analytics from Insight to Impact
Please forgive the mild case of self-indulgence, but the ‘Video of the Month’ is actually a webinar we recently hosted at Insight222based on our People Analytics Trends research, which was informed by a survey of 271 participating companies. In the webinar, Naomi Vergheseand I walked through the findings from the Insight222 People Analytics Trends research, unveiling the distinctive characteristics of ABCD Teams that propel organisations to new heights. Naomi and I were joined by Alan Susi, VP and Global Head of Organisational Analytics and People Insights at S&P Global. Alan shared insights on how the firm successfully elevated their approach to people analytics, turning data into tangible business outcomes. You can access the webinar here – or by clicking the image below.
BOOK OF THE MONTH
JOHN WINSOR AND JIN H. PAIK – Open Talent: Leveraging the Global Workforce to Solve Your Biggest Challenges
In Open Talent, John Winsor and Jin Paik advocate that companies need to shift to a more ‘distributed’ structure that revolves around talent (people) and projects in a networked organisation. In this model, talent is assembled from both inside the organisation (via an internal talent marketplace) and outside (via external talent clouds). The authors reveal how they implemented open talent strategies, and how other companies can adopt these techniques. A thoughtful and insightful read.
RESEARCH REPORT OF THE MONTH
SHELLEY XIN LI, FRANK NAGLE, AND ANER ZHOU - Mapping Organizational-Level Networks Using Individual-Level Connections: Evidence from Online Professional Networks
An interesting paper by Shelley Xin Li, Frank Nagle, and Aner Zhou for the Harvard Business School Strategy Unit, which constructs and describes a comprehensive network for 7,715 publicly traded U.S. firms from 2004 to 2018, using data on over 9 million people with 2 billion connections from the professional social network LinkedIn. The key finding is that while employees do not necessarily make connections for the company’s benefit, the centrality of that company in the employee network positively predicts company value. Thanks to Nicolas BEHBAHANI for highlighting.
FIG 24: Firm-level Network Centrality and Economic Performance for U.S. Public Firms in 2018 (Source: Li, Nagle, and Zhou, 2023)
FROM MY DESK
February saw the final two episodes of Series 36 of the Digital HR Leaders podcast, sponsored by ScreenCloud as well as the first episode of Series 37 sponsored by Culture Amp. Thank you respectively to Luke Farrugia of ScreenCloud and Ellisa Packer and Jodie Evans of Culture Amp.
ERIC SIEGEL - How to Overcome AI Adoption Challenges in HR – Eric Siegel, the author of The AI Playbook: Mastering the Rare Art of Machine Learning Deployment, explains how to successfully deploy machine learning in organisations while remaining focused on outcomes, ethics, and improving decision making.
BERNARD MARR - Achieving AI & Human Synergy in Data-Driven HR – Bernard Marr, who always has his finger on the pulse when it comes to new technologies, shares insights from his book, Data-Driven HR: How to Use AI, Analytics and Data to Drive Performance, and how AI is already impacting HR, and how it will increasingly do so in the future.
REBECCA THIELEN - Microsoft's Key to Strategic Workforce Planning Success – Rebecca Thielen shares insights from the workforce planning journey at Microsoft, including the role of analytics, close partnership with finance, and the clear focus on the problem statement.
ANGELA LE MATHON, IAN COOK, AND DAVID GREEN - The Strategic Agenda for People Analytics in 2024 – I also hosted a webinar with Angela LE MATHON and Ian Cook, which was organised by Visier Inc. and People Analytics World, to discuss the agenda for people analytics in 2024. Topics discussed included the role of middle management in strategic decision-making, the impact of AI on people analytics, and the practical challenges and strategies for implementing AI and analytics within HR frameworks.
THANK YOU
Finally, this month I’d like to thank:
Matt Manners and the team at Inspiring Workplaces for once again including me on their Top 101 Global Employee Engagement & Experience Influencers 2024, sponsored by Huler.
Jennifer McClurefor including me in her list of recommendations for HR professionals looking to build a Personal Development Library.
Amit Mohindrafor including Excellence in People Analytics as one of the course materials for his people analytics course at Stanford University
Malgorzata (GOSIA) LANGLOIS for posting about the Microsoft case study contributed by Dawn Klinghoffer in Excellence in People Analytics.
Stephen Hickey for including me in his list of go-to resources on people analytics.
Dr. Divya Sainath for posting about our conversation at the recent Indeed Future Talent event in Bangalore.
Thomas Kohler for including the January edition of Data Driven HR Monthly in his list of HR Resources.
Teamflect for including the Digital Hr Leaders podcast at number six in its list of the top 20 HR podcasts.
Ekta Vyas Ph.D for posting about my article, A History of People Analytics in Five Ages.
Andrew Lafontaine for creating a post with highlights from the episode of the Digital HR Leaders podcast on How to Overcome AI Adoption Challenges in HR with Eric Siegel.
Wendy Van Ierschot for including me in her post about her book, Scale Ups and Downs.
DOWNLOAD THE LATEST INSIGHT222 PEOPLE ANALYTICS TRENDS RESEARCH
We’ve recently released our fourth annual People Analytics Trends report at Insight222: Investing to Deliver Value: A new Model for People Analytics, which is now available to download via the link – or by clicking on the image below.
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:
March 4-6 - Gloat Live! (New York)
March 14-15 - Wharton People Analytics Conference (Philadelphia)
April 24-25 - 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.
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