From the article “People Analytics Software is Changing the HR Game,” by Dave Zielinski written in Dec. 4, 2019, People Analytics is presented to not only be a helpful tool, but also be a fresh market great for starting a business. First, there is a growing need in the marketplace of implementing technology in HR. Second, the impact of AI and Machine Learning is driving reasonable solutions and has been adapted by some top firms. Third, the dimensions that need to be considered in such a startup on HR tech inventions are also clearly solvable.
There is a need.
Nowadays, companies are starting to put more emphasis on the overall employee culture. They are willing to spend more money on people analytics which could drive some improvements on the core values. Data-wise, according to Deloitte’s recent study of people analytics technology market, “the most mature organizations—those furthest along in their analytics journeys—reported using an average of seven analytics tools, as compared with four tools in the lowest-maturity organizations.” Growing from new to mature, the need for analytics tools becomes more and more important to a company. Thus, people analytics tools will always face a need from the large HR marketplace.
There is a changing technology.
People analytics software tools are not built on some vague theories or technology that are too fresh for customers to digest. Instead, they are built on the mature and evolving technology of AI and Machine Learning. For example, Workday, one of the top performer in People Analytics Software, starts with a story with accompanying metrics, charts, and key drivers. It let customers understand the “why”, and uses AI algorithms to improve that metric. CornerstoneOnDemand is an other example, that uses machine learning to help match employees with skills need. The clear methods and understandable logic makes the tools easily acceptable and more compelling overall.
These should be considered.
As a market that is still emerging, a lot should be considered in a People Analytics software company. First, data security and access issues should be taken care of to ensure a safe fundamental of a data-driven solution. While traditional solution is “taking sensitive workforce data out of HR systems and putting it into spreadsheets or data-visualization tools for analysis,” People Analytics softwares improve that situation by employing platforms that allow HR users to bring their external data into the vendor’s system and make it a data hub for HR reporting and analytics, rather than taking data out and exposing it to security risks. The data is encrypted and only accessible to individuals and teams authorized to access it.