Improving People Analytics with IMPACT Framework

April 14, 20201:28 pm2625 views
Improving People Analytics with IMPACT Framework
Improving People Analytics with IMPACT Framework

Analytics is one of the most powerful measurements HR should master in today’s analytical business competition. Analytics will not only help create timely data-driven decisions that drive better recruitment, employee management and retention strategy. It also helps HR leaders make decisions to create a better work environment and maximise productivity, giving real results and improving ROI to the company.  

Based on LinkedIn’s Global Trends Report, analytics has promised to revolutionise recruiting and HR for decades. However, until recently only the most sophisticated companies have reaped the rewards. Surveying more than 7,000 globally, LinkedIn found that businesses nowadays are reaching an inflection point where data is accessible to all, but small to medium businesses are still struggling with this analytics process. 

People analytics is a great challenge

People analytics is a priority but it can seem big and complicated for HR, especially to those who are just starting out. LinkedIn data revealed that despite the priority, many companies are not prepared yet, with more than half (55 percent) of respondents admitted that they still need help putting basic people analytics into practice. Only 39 percent of professionals cited that their organisation is good at analysing data but fewer feel confident implementing the data on the insights they gain. 

See also: The Definition & Importance of Talent Analytics

Implementing IMPACT into practice 

Fortunately, HR professionals can now learn and master people analytics by implementing the IMPACT framework. IMPACT framework is an abbreviation from Identify, Measure, Plan, Analyse, Communicate, and Track. Analytics professionals Rebecca White and Katie Sittler told LinkedIn that the framework could lead HR practitioners to answer critical questions in people analytics, thus, generating quality effective results. Below is a description of how to implement IMPACT Framework. 


The question you should address: What is the business issue your company is trying to solve? 

This step lays the foundation for a successful project, hence, it is important to enjoy and not rush the process. There are three main actions to take here, namely creating a problem statement, proposing a hypothesis for the problem and solution, and ensuring legal compliance. This job can be done together with business stakeholders, especially managers, leaders, and other executives. 


The question you should address: What is the strategic priority of the issue? 

In this step, it is important to come back to the analytics team and take the time to measure and understand the magnitude of each problem and how much of a priority it really is. Doing this can help prioritise solving the most urgent needs/problems. That said, it is important to benchmark the severity of the issue and define what success looks like. Involve the people analytics team and business professionals in this step. 


The question you should address: What is the company’s plan for insight and action? 

In this process, HR should determine what data they need to look at and how they are going to perform the analysis. For example, when evaluating recruiting channels, many recruiters will likely pull the data from the applicant tracking system. However, ATS is not the only place to source data. For a problem like attrition, HR can use Talent Insights, HR Attrition, Kaggle Dataset or other applications that allow them to access external data like benchmark and trends over time. 


The question you should address: What are the findings from your analytics? 

With a people analytics team, HR should find actionable insights and confirm statistical confidence. The insights can help HR identify possible root causes behind business problems which will inform recommendations and/or solutions. In this stage, HR must remember not to race ahead before confirming the accuracy of the findings. 


The question you should address: What do your team recommend and how? 

Involving business leaders, it is time to develop and share recommendations based on the findings measure above. This is what bridges the gap between insights being merely interesting and becoming actionable. 


The question you should address: What is the impact of actions taken? 

Lastly, HR is advised to monitor the results of any actions taken based on their findings and recommendations. Discuss with your analytics team which action is effective to fix the business problem. As an instance, if the L&D team is building a new onboarding program, based on these measurements and recommendations, what HR would be invested in monitoring the effectiveness of the program. By following the rhythm of this framework, your team can identify useful insights that drive positive change. 

Read also: 3 Risks of Data Analytics and How to Prevent It

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