Organizations Struggle with People Analytics Effectiveness, HR.com Study Reveals

The latest study from HR.com’s HR Research Institute (HRRI) reveals that while organizations have made improvements in data gathering and evaluation, only 22% report being 'very' or 'extremely' effective at using people analytics. However, 50% of HR professionals now rate their organization’s data evaluation capabilities as 'good' or 'very good,' marking a significant rise from 36% in 2021. Despite this, many organizations still face challenges in optimizing the potential of their people analytics, with only about a fifth consistently integrating business data with people data, limiting their ability to gain a comprehensive understanding of the workforce in relation to broader business objectives.

The study identifies the top three key challenges in people analytics that organizations continue to face: integrating disparate sources of data, implementing programs based on analytics-derived decisions, and distributing and communicating data insights within their organization. Debbie McGrath, Chief Instigator and CEO of HR.com, emphasized the need to move beyond data collection and ensure that organizations can make data-driven decisions that lead to real business impact.

The full research report, HR.com's State of People Analytics 2024-25, is available for free download and offers detailed insights and actionable recommendations for HR professionals looking to improve HR data collection, metrics, and analytics. The recording of the research webcast presentation, How to Boost People Analytics Effectiveness in Your Organization, is also available for viewing on demand.