People Analytics in 2024: Where is HR Heading? 

It’s 2023 and the HR landscape has undergone a major transformation. People analytics, once seen as an emerging trend, is now at the center of organizational success.  

In fact, as of the end of 2022, the global HR analytics market was valued at $2.96 billion, with some even putting the people analytics technology (PAT) market at a whopping $5.6 billion. Looking ahead, this number is expected to grow at a compound annual rate of 14.8% from 2023 to 2030. 

The Current State of People Analytics.

To learn more about the state of people analytics (and where our growing field is headed), we partnered with HR.com. Together, we surveyed 268 HR professionals around the world from various industries. This survey looked at the following areas:  

🔍 The ability of both the organization and HR team to effectively use analytics.

🔍 The most commonly used HR analytics tools and technologies in the workplace. 

🔍 Today’s most common uses of analytics.

🔍 The degree to which organizations can integrate people data with other business data.

🔍 How organizations that excel in people analytics compare with those that do not.

Among other things, we learned that while People Analytics has seemingly grown up right before our very eyes, we still have a long and winding road ahead. 

Key takeaways:  

• Only 22% of HR professionals believe their organizations are effectively utilizing People Analytics.
• A staggering 48% of HR professionals believe their organization excels at generating and gathering people data.
• While just 40% feel confident in their ability to analyze this data and gain actionable insights.
• What’s more, only 32% feel they can make constructive changes based on these insights.

Integrating HR Metrics to Increase Productivity and Efficiency 

We also found that, of the total respondents surveyed, a mere 23% are currently integrating business data with HR data. This sheds light on one of the major challenges we see, which is integrating systems.  

System and data integration is a process that poses a huge challenge for many. Merging data from disparate sources while maintaining quality is a delicate task, one that requires time, consideration, and accuracy. At the end of the day, this process leaves you with little brain space to spare for strategic thinking. Hence the disconnect ⛓️‍💥 when it comes to aligning people data (and insights) to  organizational objectives.  

As we head into 2024 planning season, these gaps around data integration, collection, and utilization should be a wake up call for HR. 💯 

Boosting Business Outcomes with a People Analytics Platform 

Perhaps one of the most telling insights from the report found organizations that excel in the use of People Analytics are 5x more likely to integrate HR data with non-HR business data. This further validates that this level of deep integration paves the way for comprehensive insights—and better business outcomes.

This link between people data and business insights might just be the missing piece of the puzzle 🧩 for HR leaders. 

“Organizations that excel in the use of People Analytics are 5x more likely to integrate HR data with non-HR business data.”

HR.com and Crunchr’s State of People Analytics Report

 

While businesses everywhere continue to realize the crucial role data plays in driving success, the evolution of people analytics is set to be a game changer. However, as you peel back the layers, it’s easy to see that this crucial business function is still in its infancy.  

While many HR practitioners feel confident in their abilities to generate and gather people data, the process to get there is a bit dated.  Proof point: many of our survey respondents indicated they are still using survey tools, spreadsheets, BI software, and analytics built into other HR systems to manage People Analytics data. This manual building process is time consuming, expensive, and leaves the door wide open for errors. These issues are especially complex for larger organizations.

With technological advancements, in particular Generative AI, Crunchr’s people analytics platform can identify relevant trends and insights faster, enabling HR to make informed business decisions.  

Crunchr also features ready to use, out-of-the-box metrics that are available from day one, with implementation in just one to three weeks. Imagine getting insights on employee performance, retention, DE&I, and more with just the click of a button?

As with any new initiative, it’s important to consider industry best practices and make an informed decision. One that aligns with your individual goals—as well as those of your organization. So whether People Analytics is a key driver of your current HR strategy or not, get all the latest insights to stay updated. Download the State of People Analytics today. ⬇️ 

Get the full report on People Analytics Trends in 2024.