Josh Bersin, a globally renowned expert on HR strategies, technology, and corporate leadership, identifies People Analytics as one of the finest technological developments in the workplace.
In his extensive research, he demonstrates how companies can use data strategically to increase employee satisfaction, productivity, and long-term business success.
With the evolution of People Analytics evolves into Systemic Business Analytics, Bersin describes a transformation in the integration and utilization of data: by strategically combining HR data with business data, companies can draw insightful conclusions on how strategic HR work can make business success more predictable—aligning with the vision and conviction of atwork, which has been in development for years and is now gaining broader recognition in the HR world.
The Origins of People Analytics
People Analytics has its roots in industrial psychology and 19th-century scientific methods. Fredrick Winslow Taylor laid the foundation of scientific work organization with his time and motion studies, while Carl Jung’s contributions to personality psychology shaped many modern HR concepts.
The primary aim of these approaches was to make work measurable and optimizable, leveraging data on workforce dynamics, activities, engagement, and leadership.
Over the decades, this led to the creation of countless books, tools, and methods for measuring employee engagement, productivity, and organizational design, among others. These advancements eventually led to the establishment of an independent discipline: People Analytics, the strategic use of data to improve business outcomes.
From People Analytics to Systemic Business Analytics
People Analytics focuses, among other things, on the use of data related to employees, such as satisfaction, engagement, and leadership competencies. Companies have made significant investments in technologies such as engagement surveys, sentiment analysis, and leadership development platforms.
However, Josh Bersin emphasizes that analyzing HR data alone no longer provides sufficient insights. The future lies in shifting towards Systemic Business Analytics, where HR data is seamlessly integrated into broader business strategies.
This approach aligns with the strategy that atwork formulated back in 2020. With the “Measure, Act & Impact” Framework and the underlying models, especially the Prediction Engine, atwork has developed a solution that enables HR to strategically integrate existing data into business management. The connection between People Analytics and Business Intelligence is the missing link for successful strategic collaboration between HR and the C-suite.
This concept aligns with the strategy introduced by atwork in 2020. Through the launch of the Act, Measure & Impact Framework, atwork developed a solution that strategically incorporates HR data into corporate governance. As a result, by bridging People Analytics and Business Intelligence, this approach provides the crucial missing link for achieving successful strategic collaboration between HR and the C-suite.
The Need for Integration
The Fosway 9-Grid™ analysis for Talent & People Success (November 2021) confirms this gap:
“While integration within the Talent & People Success ecosystem can be challenging, one critical piece is missing: the alignment of business intelligence with people intelligence. For HR, this gap is significant. Now that HR is in the spotlight, failing to demonstrate value for business outcomes will inevitably raise questions about investments in HR functions and employees. If this issue remains unaddressed, it will ultimately affect everyone. This missing link is crucial for HR to secure its place at the leadership table.”
The statement underlines the importance of not viewing HR data in isolation, but rather linking it measurably with relevant business data. Such integration is essential for HR to demonstrate its value as a strategic partner. Without it, a powerful tool for driving business success remains underutilized, ultimately impacting the entire organization.
For example, integrating engagement surveys with sales data or customer satisfaction metrics provides a richer understanding of how employee engagement directly influences business performance. Consequently, this kind of data-driven insight ensures HR contributes meaningfully to the organization’s overall success.
Thousands of surveys are conducted annually, however, rarely any actionable insights can be gleaned from them. As a result, the most important question “Do these surveys offer tangible and measurable benefits for business?” remains unanswered.
A Guide for Businesses
Organizations today face growing pressure to make data-driven decisions and demonstrate the ROI of HR initiatives. To achieve this, HR KPIs must align with business metrics, bring targeted improvements and support long-term success.
In response to these challenges, atwork offers effective solutions designed to overcome this gap. Josh Bersin’s research introduces a Four-Stage Maturity Model that helps companies transition toward Systemic Business Analytics:
- Collect Data: Establish an integrated database that seamlessly combines HR and business data.
- Analyze Data: Develop analytical tools to provide meaningful insights and actionable outcomes.
- Implement Actions: Use insights to design and execute targeted strategies.
- Continuous Improvement: Regularly optimize strategies based on fresh data.
By following this model, organizations can measure progress and implement data-driven strategies effectively for sustained success.
From Analysis to Impact: Boost Your ROI with atwork
atwork bridges the gap between HR data and business success, focusing on the following three core areas:
- Measure: Use precise, data-driven surveys and validated models to analyze key factors influencing business performance.
- Act: Utilize data and context to create customized action plans that deliver targeted and measurable results.
- Impact: Quantify the effects of actions on key KPIs, analyze ROI, and enable continuous improvements.
HR departments can benefit from an interactive dashboard to analyze engagement, turnover, and absenteeism. It effectively identifies risks and opportunities while providing actionable recommendations for improvement.
The Impact Table: A Strategic Overview
The Impact Table in the atwork Dashboard provides HR managers and executives with a clear overview of relevant influencing factors (so-called “Health Indicators” and “Action Areas”) of HR metrics (such as “Engagement” or “Intention to Stay”) and their impact on business KPIs (such as overtime, turnover, absenteeism). It prioritizes action areas, quantifies measures, and analyzes in real-time which influencing factors affect key business metrics.
The following graphic illustrates these connections in detail:
Challenges and Opportunities
The ultimate goal is not merely to “improve HR” but to empower HR professionals to use People Analytics effectively and strategically to ensure business success. HR often holds valuable insights that individual managers may overlook. Unfortunately, these insights frequently go untapped due to insufficient interdisciplinary collaboration and the absence of robust data-based decision-making practices.
Key challenges in this area include complex data collection processes, the integration of diverse systems, and the need for focused leadership development. According to Josh Bersin, artificial intelligence (AI) offers a powerful solution to these challenges. By efficiently processing large volumes of data, identifying meaningful patterns, and enabling predictive analytics, AI can transform HR’s ability to contribute strategically and measurably to organizational success.
atwork: Leading the Way Since 2021
atwork has embraced this approach since 2021, advocating that companies must move beyond isolated HR strategies and adopt an integrated, business-oriented approach. By combining employee feedback, HR, and business data, atwork uses proprietary and AI-powered technology to enable informed business decisions – bridging the critical gap between HR and the business world.
Systemic Business Analytics: Harnessing HR as a Success Factor
HR departments are at the center of this transformation, playing a vital role in gathering, analyzing, and integrating relevant data into corporate strategy. As Josh Bersin emphasizes, HR teams must go beyond their traditional responsibilities and establish themselves as strategic partners, actively contributing to business growth and development.
Systemic Business Analytics, as described by Bersin, is revolutionizing how companies utilize data to make informed decisions. This approach drives productivity, improves employee retention, and offers a competitive edge in the marketplace.
The message is clear: Leverage the power of data analysis to proactively shape your company’s future. Our article, “Making Fair and Fast Decisions with Automated HR Reports,” provides a deep dive into how automated HR reports unlock new possibilities and the advantages of data-driven decision-making.
Additionally, the article, “Maximizing HR Impact: Strategies to Improve Collaboration Between HR and the C-Suite,” explains why aligning HR with executive leadership is essential for crafting a successful corporate strategy.
atwork: Your Key to Successful Systemic Business Analytics
Systemic Business Analytics transforms how companies leverage data to make strategic decisions and secure long-term success.
atwork brings this approach to life by connecting HR and business data. Consequently, the platform delivers actionable insights and supports the efficient implementation of data-driven strategies.
How atwork Supports Your Business
- Gather Relevant Data: Automated, scientifically validated surveys provide valuable insights into employee satisfaction, engagement, and challenges.
- Link Data: Combine HR and business data to identify correlations, such as the relationship between engagement and turnover risk, absenteeism, or overtime.
- Predict Trends: Use predictive analytics to understand where and how to act proactively on key areas to address future challenges.
- Prioritize Actions: Intuitive dashboards highlight where to focus efforts for maximum impact.
Employee Data as a Driver of Business Success
atwork empowers organizations to improve performance by swiftly identifying weaknesses and uncovering opportunities. Moreover, the scientific and data-driven insights enable targeted actions and better decision-making for HR management.
To sum it up, feedback-driven initiatives are ideal for boosting employee satisfaction and loyalty, fostering a positive workplace culture and achieving business goals.
Let atwork help you unlock the full potential of Systemic Business Analytics and take your organization to the next level.
→ Book your free demo today and actively shape the future of your organization!
