Here are three key challenges to be aware of as you implement modern people analytics in your organization.
1. Data Management. You should make sure that all the relevant data you need is correct and up to date. And you need to bring all of this data together so that you can achieve full visibility of your workforce. The key challenge is that this data is usually in different formats and sits in a variety of siloed systems: HRIS, surveys, other HR systems, business systems, and productivity platforms. “Siloed'' means these systems don’t talk to one another. Find an analytics tool which includes the data integration capabilities you’ll need.
2. Legal and Compliance. You should be keenly aware of the risk of abuse. People analytics deals with sensitive information such as demographic, health and behavioral data which could be used to discriminate against employees. Work with your legal team to define clear boundaries of data access and use cases and continually ensure compliance with these guidelines.
3. Being Solely Data Driven. While data insights usually result in better decisions, when dealing with employees, you should always balance what the data is telling you with what the broader context and what your human intuition is telling you. Here are some pitfalls that can result from being solely data driven:
- Employees may be concerned about data collection and analysis. They may feel like they’re being treated like a number and wonder whether talent analytics is being used against them.
- Patterns of biased behaviors, like hiring or promoting based on race or gender, may be picked up and continued by AI.
- Evaluating employees based on a limited set of metrics won’t accurately predict success. There are aspects of performance which can’t easily be captured quantitatively, and employees may learn to “game the system” by finding alternative ways to achieve goals.