Top HR Analytics Predictions For 2023: Part II

7 predictions from people leaders

HR leaders, what do you predict will be a top people analytics trend in 2023 and why?
 

To help you best anticipate the trends in people analytics in 2023, we asked HR and people managers and business leaders this question for their best insights. There are several predictions about the role people analytics would play in managing the workforce in 2023 that would help HR and related teams shape their approach and response to employee issues.

In Part I, we discussed 8 predictions these leaders made about people analytics trends in 2023. Here are 7 more.

1.    People Managers Will Use People Analytics to Guide Workforce Decisions
2.    Massive Increase in People Analytics When Recruiting
3.    Managers Will Rely on Shared Scorecards to Improve Retention
4.    Using People Analytics to Identify and Address Unconscious Bias
5.    Increased Focus On HR Data Privacy and Security
6.    Measuring Productivity
7.    Understanding the Skills of the Workforce

1. People Managers Will Use People Analytics to Guide Workforce Decisions

Advanced organizations more frequently serve people managers directly with people analytics (50% versus 28% among organizations just getting started with people analytics). 56% of these have achieved the business outcome level of value compared to 25% in emerging organizations. Those enabling people managers use nine analytics topics, often ones focused on optimizing costs, such as span of control analysis, and some that provide specific support to people managers, such as compensation analytics, total cost of workforce, and even ensuring pay equity as they also strive to improve diversity, equity and inclusion. These and other analyses enable people managers to make optimized decisions about their workforce. Lexy Martin, Principal, Research, Visier

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2. Massive Increase in People Analytics When Recruiting

I expect a massive increase in data analytics to improve recruiting outcomes. Companies are desperate for talent. According to the Bureau of Labor Statistics, we currently have 11.2 million unfilled jobs in the US. This is not only a historically high number, but also a 50% increase from the pre-pandemic record of 7.2 million unfilled jobs, recorded in 2019. The best way to improve hiring outcomes is to track the efficiency of your new methods so that you can see where you are getting the most bang of your buck and then double down on what works. One private equity portfolio company I worked with was spending massive amounts on job boards. Every hiring manager had a story of their favorite job board producing a good hire. Once they applied the right people analytics, they saw that the vast majority of their qualified applicants were being produced by three job boards. By reallocating their budget to the most efficient job boards they increased qualified applicants by 347%. Atta Tarki, Founder & Author of "Evidence-Based Recruiting" (McGraw-Hill), ECA Partners

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3. Managers Will Rely on Shared Scorecards to Improve Retention

Employee retention is a big deal right now. At the end of May 2022, there were 11.3 million open positions in the United States, significantly more than the 9.3 million positions which were unfilled in April 2021. Moreover, no industry is spared from "quiet quitting" characterized by disenchanted, marginally productive workers. Employee activation is a team sport requiring alignment on goals, insights, and retention actions between HR and functional business units.  After all, it's managers who have the greatest impact on employee work-life. In 2023, democratized data insights with shared scorecards powered by AI will inform both HR and business leaders alike with talent insights on how employees are fairing relative to burnout, career stagnation, disconnection, compensation, and recognition.  Actionable talent risk root causes with retention playbooks will improve retention, tracked in real-time with shared scorecards. Ken Klein, Co-Founder, Praisidio

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4. Using People Analytics to Identify and Address Unconscious Bias

As more and more organizations adopt data-driven approaches to their HR strategies, people analytics will become an essential tool for understanding and predicting employee behavior. The use of people analytics to identify and address unconscious bias in the workplace is the thing for 2023. As employers strive to create more diverse and inclusive workplaces, people analytics will play a key role in helping to identify unconscious bias in hiring, promotion, and performance management decisions. Louise Ogilvy, Recruitment Director, Propeller-Tech

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5. Increased Focus on HR Data Privacy and Security

Increased focus on HR data privacy and security As more companies adopt people analytics, the issue of data privacy and security will become even more important. HR leaders will need to ensure that their data is properly protected and that only authorized personnel have access to it. More use of AI and machine learning AI and machine learning will become increasingly important tools for people analytics. These technologies will help organizations to better understand and predict employee behavior, identify potential issues, and make better decisions about staffing and development. Greater use of mobile devices and apps More and more employees are using mobile devices and apps for work purposes, and this trend is only going to continue. HR leaders will need to make sure that their people analytics solutions are mobile-friendly and accessible from any device. Martin Seeley, CEO, Mattress Next Day

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6. Measuring Productivity

 

I believe measuring productivity will be one of the top trends. As we are now moving from The Great Resignation headline to beyond the Quiet Quit headline, we still need to understand how productive people are - and if hybrid supports it or hinders it. So many people have their opinions and research has been done, but it isn’t a black-and-white answer, nor is it a one-size-fits-all. Productivity for John is different from that for Shahzia. We have to recognize it and have the right data to help us navigate workplace planning. Michelle Berg, Chief Visionary Officer, Elevated HR Solutions Inc.

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7. Understanding the Skills of the Workforce

 

Understanding the skills of your workforce will be the top trend in 2023. The skills for jobs are changing and this is going to be the year that organizations realize they can no longer do anything about this. So adapting to a skills-first strategy where you can easily identify training needs is key to remaining competitive. Most companies only understand what they hired someone to do, not what this individual can actually do. At the same time, most companies don't monitor how the skills are changing for roles in their organizations. This results in inefficient deployment of the workforce and time and money being wasted on training and upskilling. What we are going to see in 2023 is a shift to understanding the skills and aspirations of each team member and strategically linking this with the present and future needs of the company Leah Carr, CEO, tilr

 

Author Bio

Brett Farmiloe is the Founder / CEO and currently the CHRO of Terkel.io. Brett is an SHRM Influnecer and has also been a keynote speaker at several state SHRM conferences around the topic of employee engagement. Connect Brett Framiloe