Leveraging Business Metrics to Drive Executive Buy-In for People Analytics
People analytics has become a non-negotiable part of your human resources strategy. Companies are investing more than ever in HR technology, with a specific focus on analytics, to drive better decision-making and improve overall performance.
Whether you’re gearing up for year-end reporting or looking to get ahead of the new year, there’s still time to implement a people analytics platform that will support your short- and long-term business goals while simultaneously empowering human resources. However, you’ve got to overcome a major hurdle first: obtaining executive buy-in for your people analytics initiative.
So what’s the solution? The answer lies in data. More specifically, you’ve got to draw parallels between people analytics and broader business metrics that the C-suite values. Here’s how you can make a strong case.
Understanding the Hesitancy
Before coming up with a game plan, you need to figure out why company leadership may be hesitant to adopt people analytics. Some common objections include:
Limited Budget
You are sure to encounter complaints about the perceived cost of implementing people analytics. Some members of the C-suite may believe that investing in analytics requires a huge budget or a dedicated team. Both requirements make the project seem unattainable from day one, especially if you work for a small or cash-strapped organization.
There’s also a misconception that people analytics is a luxury reserved for large enterprises. The truth is tools like PeopleInsight by HireRoad make analytics data accessible to businesses of all sizes, even if you are working with a tight budget.
Misalignment With Business Strategy
HR reporting and analytics can feel like “just another human resources project.” Don’t allow this idea to permeate the C-suite, or you’ll have a tough time selling your project to leadership.
Whether it be company revenue, sales productivity, or customer retention – chances are, you know what metrics are constantly being talked about by top-level decision-makers. Emphasize metrics that your bosses care about and how those data points can benefit the bottom line. You’ve got to position people analytics as a strategic tool that aligns with company goals.
Leveraging Broader Business Metrics
You need to connect people analytics to the metrics that matter most to executives. Look at data points that are relevant to other areas of the business.
We recommend integrating HR data with broader information — such as sales productivity, customer satisfaction (CSAT), revenue, and operating costs. Think of HR data as a piece of the puzzle. These other pieces can help you build a compelling case for how people analytics directly contribute to business success.
Tying people analytics to financial outcomes is vital if you want executive support. Company leaders are concerned with economic performance. When you demonstrate how people analytics impacts cost savings and revenue growth, you are moving the conversation from theory to action.
Talent analytics metrics are a great example. Retention rates, churn, and demographic data all have an impact on the company’s short- and long-term success. By using predictive analytics, you can identify at-risk employees and implement interventions to reduce turnover. Your business will save on recruitment and training costs while also preserving team productivity.
Engagement represents another metric you can leverage to bridge the gap between HR and the C-suite. Engaged workers get more done and deliver better customer service. By linking engagement metrics to ROI metrics like turnover and productivity, you can show how improving the employee experience directly impacts revenue.
A Real-World Example:
How People Analytics Helped GoEasy Thrive
Let’s look at a HireRoad client, GoEasy. The company used our people analytics solution, PeopleInsight, to measure the costs and benefits of in-person vs. online training. GoEasy experimented with local in-person training and a 9-week online course. The company was convinced that a mix of online and in-person training would increase productivity, but it needed to support the hunch with hard data.
GoEasy’s HR team discovered that the hybrid approach yielded significant productivity gains compared to an all-online training course. They used this information to justify the higher upfront cost of hybrid training and successfully won over the C-suite. GoEasy has since implemented the hybrid training model company-wide and is enjoying the productivity benefits of its data-driven decision.
Communicating the Value of Executives
Once you’ve gathered the data, it’s time to present it in a way that resonates with your leadership team.
One of the best ways to communicate the value of people analytics to the C-suite involves linking your proposal to big-picture business goals. For instance, Deloitte reports that 86% of business leaders consider “embedding DEI into everyday ways of working while measuring outcomes” to be “important” or “very important” to the success of their organizations. However, just 25% are ready to address this issue.
By highlighting the connection between people analytics and the company’s DEI goals, you can showcase the long-term value of analytics technologies. That’s just the beginning.
Look at other use cases for people analytics technologies to illustrate the versatility of these solutions. For example, HR analytics tools can support your talent retention strategy by shedding light on why people quit and what the company needs to do differently to keep its most capable workers. Explain how this use case could lead to less churn and long-term cost savings by breaking the recruit, hire, fire cycle.
Implementing the Strategy
Once you’ve secured executive buy-in, it’s time to implement your people analytics strategy. Here’s a step-by-step approach:
Start With a Small Project
Just because you’ve got the C-suite on board does not mean you can take your time implementing your initiative. You may want to start with a pilot project as a proof of concept. A quick win can boost the executive team’s confidence and show them that they made the right move by trusting you.
Integrate People Analytics With Business Data
Don’t keep all of that great data for HR. Integrate it with other business systems to provide a more holistic view of your organization’s performance. This will allow you to draw deeper insights and demonstrate how HR initiatives contribute to business outcomes.
Lead With Revenue
Use small wins to build momentum. Every time you save the company money or reduce costs by making a process more efficient, leverage those opportunities to expand the scope of your people analytics initiative.
Prioritize Continuous Improvement
Encourage a mindset of continuous improvement by regularly reviewing and adjusting your analytics strategy. Keep the C-suite apprised of your progress and position HR as a strategic partner.
Unlock the Power of People Analytics With HireRoad
Securing executive buy-in for people analytics will help drive the success of your organization. The key is to go beyond HR data and demonstrate how people analytics ties into broader business metrics, such as cost savings and revenue growth. By framing people analytics as a strategic business tool, you can garner top-down support.
Are you ready to take the next step? Start by identifying a dynamic solution that aligns with your company’s big-picture goals and strategic mission. PeopleInsight from HireRoad is the ideal tool to support your journey and demonstrate the value of HR analytics data to your executive team. Book a free demo with PeopleInsight.