Between Man and Machine: How People Analytics Powers Workplace Transformation

As advances in artificial intelligence, software robotics, machine learning, and innovative technology platforms enable businesses to redefine processes, organizations have significant opportunity for performance and efficiency improvements. Yet only a slight majority of companies have succeeded in meeting workplace automation goals, according to a new McKinsey Global Survey.

Successful workplace automation initiatives – or transformations – require equal focus on man and machine and, specifically, the space between them. Minding the intersection between man and machine – at the nexus of workplace automation – is people analytics, which provides insights to catalyze workplace automation initiatives and associated workforce transitions.

People analytics evolved from Workforce Analytics, which focused on repetitive work production in business process outsourcing and call centers. Originally, its primary purpose was to measure productivity. Today, the knowledge economy application of people analytics has been expanded to a wide range of roles in the organization that focus on non-repetitive work streams, such as software development and engineering, marketing, etc. Its adoption and scope has evolved from HR tool to business transformation tool, helping to predict future work/talent trends so businesses can proactively plan for what’s ahead – in addition to learning from and optimizing around past performance.

Advanced people analytics measures and analyzes the digital output generated by individual and work group activity. Software automates the collection of the digital signals that an employee emits when using technology and systems, and combines them with analytics that equip senior executives with reporting and analysis to make better decisions around what, for many businesses, is their greatest annual investment – their workforce.

While in the past, performance has been gauged through tools such as time and motion studies, people analytics seeks to understand work from the employee’s perspective: What do employees have to deal with on a day-to-day basis to do their work, and do they have the right tools, the right amount of collaboration, and a conducive and supportive work environment free from distractions to do it? People analytics takes into account work patterns on a day-by-day, or even minute-by-minute, basis. And the results can reveal many areas of productivity (i.e. revenue) leakage.

Speed bumps. A report from RingCentral shows 69% of workers waste up to an hour of productivity each day (or 32 days per year) just navigating their workplace communications apps – that’s more than an entire month each year! Other studies report U.S. workers feel time spent in meetings is tremendously unproductive. People analytics can quantify these productivity obstacles. Insights can then be used to eliminate elements of work that are time-consuming and don’t add significant value, making teams more productive for leaner, more profitable operations.

Project time and budget overruns. Another important benefit of people analytics is providing a clear understanding of the true cost of a given project. According to McKinsey & Company, large IT projects run an average of 45% over budget, and as much as 7% over time. People analytics allow organizations to properly track current projects, and more accurately predict the cost of future projects. This reduces the risk of going over budget or losing money on a project. It also supports proper staffing from the start, allowing organizations to pull additional resources in and/or refine project scope as needed to keep projects on track.

Poor employee engagement. Workforce engagement is a major issue for businesses today. Engaged employees are more productive, and reducing employee churn is paramount to keeping productivity levels high. People analytics enables organizations to compare work patterns across business units, projects, or roles to spot trends that can then be addressed. People analytics can also guide progressive HR policies to attract and retain top talent.

Lack of training. As artificial intelligence and machine learning become ingrained in the way we work, a paradigm shift must also take place with retraining and upskilling employees to both understand how to work alongside these new technologies and take on new roles. Training deficiencies can downshift employee productivity. People analytics can reveal where training and coaching are needed to improve team and individual work outcomes.

As businesses move forward in recalibrating their organizations for the Future of Work, people analytics provides the data-driven foundation that enables leaders to optimize performance by leveraging insights on work and workers at the intersection of man and machine.

Brad Killinger is the CEO of Sapience Analytics, a vendor of “people analytics” solutions to help companies better organize and use employee time to be more efficient.