HR Reinvented: People Analytics and Performance

SurveySaurus HR ReinventedLeading companies dominate the market by producing continuous innovation. And executives are beginning to learn that continuous innovation cannot occur until a firm makes a strategic shift toward a focus on great people management.

A strategic focus on people management is necessary because innovations come from people, and you simply can’t maximize innovations unless you are capable of recruiting and retaining innovators. And even then, you must provide them with great managers and an environment that supports innovation.

Unfortunately, making that transition to an innovative firm is problematic because almost every current HR function operates under 20th century principles of past practices, efficiency, risk avoidance, legal compliance, and hunch-based people management decisions. If you want serial innovation, you will need to reinvent traditional HR and the processes that drive innovation.

Shifting to data-based people management

The basic premise of the “people analytics” approach is that accurate people management decisions are the most important and impactful decisions that a firm can make. You simply can’t produce superior business results unless your managers are making accurate people management decisions.

Many do argue that product R&D, marketing, or resource allocation decisions are instead the most impactful decisions. However, each one of those business decisions is made by an employee. If you hire and retain mostly mediocre people and you provide them with little data, you can only assume that they will make mediocre decisions in each of these important business areas, as well as in people management decisions.

No one in finance, supply chain, marketing, etc. would ever propose a solution in their area without a plethora of charts, graphs, and data to support it, but HR is known to all too frequently rely instead on trust and relationships. People costs often approach 60 percent of corporate variable costs, so it makes sense to manage such a large cost item analytically.

Another major problem in HR is its traditional reliance on relationships. Relationships are the antithesis of analytical decision-making. The decision-making “currency” for most business decisions has long been data, but up until now, HR has relied on a different currency: that of building relationships.

In direct contrast, companies like Google prioritize a data-driven HR department. Google’s business success should convince executives at any firm that wants to grow dramatically that they must at least consider adopting the data and analytically based model used by Google. Its approach has resulted in Google producing amazing workforce productivity results that few can match (on average, each employee generates nearly $1 million in revenue and $200,000 in profit each year).

How does the Google approach reinvent HR?

HR at Google is dramatically different from the hundreds of other HR functions that I have researched and worked with. To start with, at Google it’s not called human resources; instead, the function is called “people operations.” The VP and HR leader Laszlo Bock has justifiably learned to demand data-based decisions everywhere.

People management decisions at Google are guided by the powerful “people analytics team.” Two key quotes from the team highlight their goals:

HR at Google is dramatically different from the hundreds of other HR functions that I have researched and worked with. To start with, at Google it’s not called human resources; instead, the function is called “people operations.” The VP and HR leader Laszlo Bock has justifiably learned to demand data-based decisions everywhere.

People management decisions at Google are guided by the powerful “people analytics team.” Two key quotes from the team highlight their goals:

  • The goal is to … “bring the same level of rigor to people-decisions that we do to engineering decisions.”
  • “All people decisions at Google are based on data and analytics.”

Google is replacing the 20th century subjective decision-making approach in HR. Although it calls its approach “people analytics,” it can alternatively be called “data-based decision-making,” “algorithm based decision-making,” or “fact or evidence-based decision-making.” 👉🏽 via TLNT

Luckily, you don’t have to be a billion dollar company to revinvent HR. With SurveySaurus, any company large or small can continuously measure, track and act on precise people data.

Try the SurveySaurus platform for free.