The latest study from HR.com's HR Research Institute reveals that most organizations fail to use people analytics effectively, with only 22% reporting being very or extremely effective at maximizing their HR analytics capabilities despite improvements in data gathering. While half of HR professionals now rate their organization's data evaluation and understanding capabilities as good or very good—a significant increase from 36% in 2021—many still face challenges in optimizing people analytics potential.
A key reason for this perceived ineffectiveness is the failure to integrate business data with HR data, as only about a fifth of organizations consistently combine these datasets, limiting comprehensive workforce understanding in relation to broader business objectives. The study identifies the top three challenges: integrating disparate data sources (47% of respondents noted difficulties), implementing programs based on analytics-derived decisions (41% struggle with turning insights into action), and distribution and communication of data (33% highlighted effective sharing challenges).
Debbie McGrath, Chief Instigator and CEO of HR.com, stated that while progress is evident in data gathering and analysis, organizations must move beyond collection to ensure data-driven decisions that create real business impact. The full research report, HR.com's State of People Analytics 2024-25, offers detailed insights and recommendations for improving HR data collection, metrics, and analytics to support informed decisions in workforce management and planning.
