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New Global Research Highlights Role of People Analytics in Driving Strong Business Outcomes

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New Global Research Highlights Role of People Analytics in Driving Strong Business Outcomes

New global research from the CIPD in association with Workday illustrates an important relationship between the use of people data and strong business outcomes. It shows that organisations with a strong people analytics culture are much more likely to report strong business performance. However, the survey also highlights that the widescale adoption of people analytics in business is still low and that more needs to be done to improve skills and confidence, particularly in the UK which is lagging behind South-East Asia, the USA and the Middle East and North Africa in both capability and confidence.

The research People Analytics: driving business performance with people data, surveyed 3,852 business professionals globally – including HR and finance professionals – to understand attitudes towards people analytics and how it is being used in organisations. It found:

People analytics is far from being business as usual:

  • Just over half (54%) of global respondents stated that they had access to people data and analytics
  • Two-fifths (39%) have no access to people data for decision making purposes.
  • Just half (52%) of HR professionals stated that their organisation uses people data to tackle business problems
  • Just 42% of finance professionals have access to their workforce’s people data despite the relationship between access to workforce data and strong business outcomes

However, when people analytics is used, it is adding value to organisations

75% of HR professionals globally who are using people data, are using it to tackle workforce performance and productivity issues

65% of those who said that they work in an organisation with a strong people analytics culture said that their business performance was strong when compared to other competitors, but only 32% of those in organisations with a weak analytics culture report strong business performance

Using people data was shown to predict the effectiveness of tackling key organisational challenges, such as workforce performance and productivity, showing that using people data leads to good outcomes

There are clear regional differences. The UK is lagging far behind other markets in data analytics capability and confidence:

Just 21% of UK HR professionals are confident conducting advanced analytics compared to 46% of HR professionals in South-East Asia

Two-thirds (67%) of HR respondents in South-East Asia and 60% in the Middle East and North Africa (MENA) agree they have a standardised approach to using people data in projects compared to 50% of US respondents and just 42% of UK respondents

South-East Asia is also leading the way in using AI and/or machine based learning to compile data reports. Almost half (45%) of HR professionals in South-East Asia are applying it in this way, compared to 36% of respondents in MENA, 20% of respondents in the USA and just 13% of UK respondents

Global confidence in HR capability is low:

  • Just 40% of global respondents said that their HR team was able to tackle business issues using analytics data
  • Only 53% of HR professionals globally think their HR team has demonstrable numerical and statistical skills and just 36% of finance professionals agree
  • Only 35% of non-HR professionals think their HR team are experts at using people data.

Edward Houghton, Human Capital and Governance adviser for the CIPD, the professional body for HR and people development said: “It’s hugely encouraging to see that the use of people analytics in organisations is leading to positive outcomes. The more access HR and non-HR professionals have to people data, the higher they rate their organisation’s performance. However, there are still clear challenges in terms of access to data and the confidence and capabilities in the HR function needed to get the best results from it, particularly in the UK. We need to see greater investment in the skills needed to understand people data and we need to encourage the use of people analytics across different functions in organisations, and in finance in particular. HR must lead the development of cultures that share a “common language” when it comes to people data and a shared understanding and appreciation of the positive impact people data can have on business outcomes.”

The CIPD/Workday research also highlights the importance of access to data. It found that access to people data improves outcomes but only 71% of HR professionals have access to people data, and just 42% of finance professionals do. For those with access to people, just 22% use it daily in their decision-making and almost a quarter (23%) use it in decision-making just once a month or less.

Visibility of people data – through a dashboard for example – was shown to be an important driver of business outcomes. Almost three-quarters (71%) of respondents who said they were from a ‘strong performance business’ said they have access to a dashboard of people data compared to 50% of those in businesses of average performance.

Gonzalo Benedit, president, EMEA & APJ, Workday, said: “It is interesting to see that businesses exhibiting strong people analytics’ cultures achieve stronger business performance than those who don’t. Yet, data is only really useful when it used and understood across the business. At Workday, we’re seeing organisations shift towards the general trend of keeping their people data securely within their HR system. People analytics should be available in real-time, and on-demand so that that they can be quickly used to make effective decisions. While the business case for people analytics may be clear, the data must be accessible and used, as only then will businesses have the confidence to use it most effectively.”

The CIPD and Workday make the following recommendations for HR practice:

  • Build people analytics skills and confidence in to the profession: Low skills and low confidence have a clear impact on business outcomes. There needs to be greater investment in people analytics skills but HR professionals also need to build it into their daily decision-making in order to grow in confidence and capability.
  • Build strong cross-functional relationships to improve the impact of people analytics: There are clear differences in the perspectives of HR and finance professionals, and other professionals using people data. Non-HR functions need encouragement to increase the use of people data in their decision-making and HR has a role to play in generating trusted, relevant people data to serve wider business needs
  • Make better use of people data to understand business risks: People data can provide a unique way to understand value creation and risk within organisations.

The CIPD/Workday report People Analytics: driving business performance with people data is available to download from www.cipd.co.uk/knowledge/strategy/analytics/people-data-driving-performance

Media may request an advanced copy via the CIPD press team.

The CIPD and Workday conducted an online cross-sectional survey of HR and non-HR professionals between February 2018 and April 2018. The sample included a mix of seniorities and professional backgrounds. Respondents were based in the UK, Middle East, South-East Asia, and the United States of America. In total 3852 individuals responded to the survey of which 586 were UK HR professionals (further breakdown in the full report)

Edward Houghton, Human Capital and Governance adviser for the CIPD is available for interviews

Spokespeople from Workday are available for interview

The CIPD is the professional body for HR and people development. The not for profit organisation champions better work and working lives and has been setting the benchmark for excellence in people and organisation development for more than 100 years. It has a community of more than 145,000 members across the world, provides thought leadership through independent research on the world of work, and offers professional training and accreditation for those working in HR and learning and development. www.cipd.co.uk

Workday is a leading provider of enterprise cloud applications for finance and human resources. Founded in 2005, Workday delivers financial management, human capital management, and analytics applications designed for the world’s largest companies, educational institutions, and government agencies. Organizations ranging from medium-sized businesses to Fortune 50 enterprises have selected Workday. www.workday.com

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UK seeks G7 consensus on digital competition after Facebook blackout

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UK seeks G7 consensus on digital competition after Facebook blackout 1

LONDON (Reuters) – Britain is seeking to build a consensus among G7 nations on how to stop large technology companies exploiting their dominance, warning that there can be no repeat of Facebook’s one-week media blackout in Australia.

Facebook’s row with the Australian government over payment for local news, although now resolved, has increased international focus on the power wielded by tech corporations.

“We will hold these companies to account and bridge the gap between what they say they do and what happens in practice,” Britain’s digital minister Oliver Dowden said on Friday.

“We will prevent these firms from exploiting their dominance to the detriment of people and the businesses that rely on them.”

Dowden said recent events had strengthened his view that digital markets did not currently function properly.

He spoke after a meeting with Facebook’s Vice-President for Global Affairs, Nick Clegg, a former British deputy prime minister.

“I put these concerns to Facebook and set out our interest in levelling the playing field to enable proper commercial relationships to be formed. We must avoid such nuclear options being taken again,” Dowden said in a statement.

Facebook said in a statement that the call had been constructive, and that it had already struck commercial deals with most major publishers in Britain.

“Nick strongly agreed with the Secretary of State’s (Dowden’s) assertion that the government’s general preference is for companies to enter freely into proper commercial relationships with each other,” a Facebook spokesman said.

Britain will host a meeting of G7 leaders in June.

It is seeking to build consensus there for coordinated action toward “promoting competitive, innovative digital markets while protecting the free speech and journalism that underpin our democracy and precious liberties,” Dowden said.

The G7 comprises the United States, Japan, Britain, Germany, France, Italy and Canada, but Australia has also been invited.

Britain is working on a new competition regime aimed at giving consumers more control over their data, and introducing legislation that could regulate social media platforms to prevent the spread of illegal or extremist content and bullying.

(Reporting by William James; Editing by Gareth Jones and John Stonestreet)

 

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Britain to offer fast-track visas to bolster fintechs after Brexit

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Britain to offer fast-track visas to bolster fintechs after Brexit 2

By Huw Jones

LONDON (Reuters) – Britain said on Friday it would offer a fast-track visa scheme for jobs at high-growth companies after a government-backed review warned that financial technology firms will struggle with Brexit and tougher competition for global talent.

Finance minister Rishi Sunak said that now Britain has left the European Union, it wants to make sure its immigration system helps businesses attract the best hires.

“This new fast-track scale-up stream will make it easier for fintech firms to recruit innovators and job creators, who will help them grow,” Sunak said in a statement.

Over 40% of fintech staff in Britain come from overseas, and the new visa scheme, open to migrants with job offers at high-growth firms that are scaling up, will start in March 2022.

Brexit cut fintechs’ access to the EU single market and made it far harder to employ staff from the bloc, leaving Britain less attractive for the industry.

The review published on Friday and headed by Ron Kalifa, former CEO of payments fintech Worldpay, set out a “strategy and delivery model” that also includes a new 1 billion pound ($1.39 billion) start-up fund.

“It’s about underpinning financial services and our place in the world, and bringing innovation into mainstream banking,” Kalifa told Reuters.

Britain has a 10% share of the global fintech market, generating 11 billion pounds ($15.6 billion) in revenue.

The review said Brexit, heavy investment in fintech by Australia, Canada and Singapore, and the need to be nimbler as COVID-19 accelerates digitalisation of finance, all mean the sector’s future in Britain is not assured.

It also recommends more flexible listing rules for fintechs to catch up with New York.

“We recognise the need to make the UK attractive a more attractive location for IPOs,” said Britain’s financial services minister John Glen, adding that a separate review on listings rules would be published shortly.

“Those findings, along with Ron’s report today, should provide an excellent evidence base for further reform.”

SCALING UP

Britain pioneered “sandboxes” to allow fintechs to test products on real consumers under supervision, and the review says regulators should move to the next stage and set up “scale-boxes” to help fintechs navigate red tape to grow.

“It’s a question of knowing who to call when there’s a problem,” said Kay Swinburne, vice chair of financial services at consultants KPMG and a contributor to the review.

A UK fintech wanting to serve EU clients would have to open a hub in the bloc, an expensive undertaking for a start-up.

“Leaving the EU and access to the single market going away is a big deal, so the UK has to do something significant to make fintechs stay here,” Swinburne said.

The review seeks to join the dots on fintech policy across government departments and regulators, and marshal private sector efforts under a new Centre for Finance, Innovation and Technology (CFIT).

“There is no framework but bits of individual policies, and nowhere does it come together,” said Rachel Kent, a lawyer at Hogan Lovells and contributor to the review.

($1 = 0.7064 pounds)

(Reporting by Huw Jones; editing by Jane Merriman and John Stonestreet)

 

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G20 to show united front on support for global economic recovery, cash for IMF

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G20 to show united front on support for global economic recovery, cash for IMF 3

By Michael Nienaber and Andrea Shalal

BERLIN/WASHINGTON/ROME (Reuters) – The world’s financial leaders are expected on Friday to agree to continue supportive measures for the global economy and look to boost the International Monetary Fund’s resources so it can help poorer countries fight off the effects of the pandemic.

Finance ministers and central bank governors of the world’s top 20 economies, called the G20, held a video-conference on Friday. The global response to the economic havoc wreaked by the coronavirus was at top of the agenda.

In the first comments by a participating policymaker, the European Union’s economics commissioner Paolo Gentiloni said the meeting had been “good”, with consensus on the need for a common effort on global COVID vaccinations.

“Avoid premature withdrawal of supportive fiscal policy” and “progress towards agreement on digital and minimal taxation” he said in a Tweet, signalling other areas of apparent accord.

A news conference by Italy, which holds the annual G20 presidency, is scheduled for 17.15 (1615 GMT)

The meeting comes as the United States is readying $1.9 trillion in fiscal stimulus and the European Union has already put together more than 3 trillion euros ($3.63 trillion) to keep its economies going despite COVID-19 lockdowns.

But despite the large sums, problems with the global rollout of vaccines and the emergence of new variants of the coronavirus mean the future of the recovery remains uncertain.

German Finance Minister Olaf Scholz warned earlier on Friday that recovery was taking longer than expected and it was too early to roll back support.

“Contrary to what had been hoped for, we cannot speak of a full recovery yet. For us in the G20 talks, the central task remains to lead our countries through the severe crisis,” Scholz told reporters ahead of the virtual meeting.

“We must not scale back the support programmes too early and too quickly. That’s what I’m also going to campaign for among my G20 colleagues today,” he said.

BIDEN DEBUT

Hopes for constructive discussions at the meeting are high among G20 countries because it is the first since Joe Biden, who vowed to rebuild cooperation in international bodies, became U.S. president.

While the IMF sees the U.S. economy returning to pre-crisis levels at the end of this year, it may take Europe until the middle of 2022 to reach that point.

The recovery is fragile elsewhere too – factory activity in China grew at the slowest pace in five months in January, hit by a wave of domestic coronavirus infections, and in Japan fourth quarter growth slowed from the previous quarter with new lockdowns clouding the outlook.

“The initially hoped-for V-shaped recovery is now increasingly looking rather more like a long U-shaped recovery. That is why the stabilization measures in almost all G20 states have to be maintained in order to continue supporting the economy,” a G20 official said.

But while the richest economies can afford to stimulate an economic recovery by borrowing more on the market, poorer ones would benefit from being able to tap credit lines from the IMF — the global lender of last resort.

To give itself more firepower, the Fund proposed last year to increase its war chest by $500 billion in the IMF’s own currency called the Special Drawing Rights (SDR), but the idea was blocked by then U.S. President Donald Trump.

Scholz said the change of administration in Washington on Jan. 20 improved the prospects for more IMF resources. He pointed to a letter sent by U.S. Treasury Secretary Janet Yellen to G20 colleagues on Thursday, which he described as a positive sign also for efforts to reform global tax rules.

Civil society groups, religious leaders and some Democratic lawmakers in the U.S. Congress have called for a much larger allocation of IMF resources, of $3 trillion, but sources familiar with the matter said they viewed such a large move as unlikely for now.

The G20 may also agree to extend a suspension of debt servicing for poorest countries by another six months.

($1 = 0.8254 euros)

(Reporting by Michael Nienaber in Berlin, Jan Strupczewski in Brussels and Gavin Jones in Rome; Andrea Shalal and David Lawder in Washington; Editing by Daniel Wallis, Susan Fenton and Crispian Balmer)

 

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