According to human capital management (HCM) research expert Steve Goldberg, businesses that want to maximize return on investment (ROI) when deploying analytics tools must account for two conditions:
- The availability of a significant amount of accurate and relevant data
Insights are only as good as the data they’re based on and the amount of it available will have a proportionate impact on the reliability of algorithm-driven, predictive analytics. For example, a flight risk prediction model should be powered by a very large and diverse sample size of employee data or it will ultimately underperform in certain situations.
- Insights must be actionable for every appropriate individual
A tried and true method for achieving actionability of information is to frame results and recommendations as a story, or in the language that people read and speak. People analytics without storytelling will likely not deliver against expected adoption and ROI targets since the time and process needed to understand the meaning and implications of the analytics will typically take place outside the normal flow of work.
For more of the Q&A with Steve Goldberg, VP and Research Director at Ventana Research, download our insight, People Analytics for Competitive Advantage, or take a self-assessment to examine the current state of your HCM data.