Culture analytics has made its foray into HR technology as a key product to help organizations get a sense of and develop workplace culture. As a result, investors and startups are also making inroads into this interesting space. In this article, we share:
- The definition of culture analytics
- Three benefits of adopting culture analytics in HR
- Three examples of HR tech startups innovating with culture analytics
HR analytics has emerged as a high-interest area in the last one year, driven by trends such as a rise in data volumes, proliferation of HR tech, and a renewed focus on connecting the different silos of employee experience. An exciting field in HR analytics is culture analytics: drawing from a rich history of sociopolitical study, culture analytics applies the principles of data-driven people assessment/management to HR use cases. Despite being an emerging space, culture analytics has already seen a lot of activity from investors and startups, indicating future directions for HR.
What Is Culture Analytics?
In the HR context, culture analytics refers to the science of using information around workplace culture to generate actionable insights. This implies the use of technologies to measure cultural information, powerful systems to process these datasets, and smart algorithms to give HR managers real actionables.
The difference between traditional people analytics and culture analytics is that culture analytics doesn’t just point out gaps in culture metrics – it doesn’t, for instance, identify unhappy employees so that you are left to figure out how to make them happy. What it does is analyze the entire culture spectrum and align it with organizational objectives so that HR teams can identify the exact happiness metric to be achieved, programs to close the gaps, and how the company can benefit as a whole.
In other words, culture analytics can help dig deeper into workforce sentiment, uncovering new ways to synchronize company culture to the business vision.
Learn more: 5 Culture Metrics You Should Be Tracking in 2019
Benefits of Leveraging Culture Analytics
For HR, data can prove key to better decision-making in every sphere. In the case of company culture as well, data can help quantify subjective responses and sentiment, allowing HR to closely monitor their workforce. Here’s how your organization can gain from culture analytics:
1. Better hiring: By assessing your culture regularly, you can measure new recruits against the ideal baseline and ensure the perfect corporate-cultural fit. In the long term, this translates to reduced turnover and a more enthused workforce.
2. Accurate skills measurement: Culture analytics can reveal insights into employee soft skills – an area that is often neglected by traditional assessments. An employee’s interaction with and contribution to organizational culture is a good indicator of their soft skills capabilities. These gaps, once identified, can be resolved via training and employee engagement initiatives.
3. Smarter talent management: A number of talent decisions, from internal hires to offboarding, hinge on an understanding of the current cultural environment in the organization. Analytics gives HR managers detailed data on an employee’s cultural alignment, aiding decision-making.
Examples of Culture Analytics Solutions
While a lot of the technology in this domain remains in the research and development phase, a few pioneers are gaining popularity. We share three examples of companies making strides in culture analytics:
- Humantelligence is an AI-focused culture analytics and recruitment solution. It uses AI to analyze company culture and synchronize individual hires to specific metrics. The company claims to reduce attrition by 30 percent, offering a quick yet advanced 12-minute assessment tool.
- Culture Amp applies analytics to solve common workplace problems such as disengagement, low motivation, and subpar productivity. They provide a number of unique surveys to help gauge employee sentiment, supported by data scientists and organizational psychologists.
- O.C. Tanner’s Culture Cloud™ is a 360-degree culture building platform, envisioned on the lines of the marketing cloud and sales cloud. It includes a suite of apps and services built on a strong technology foundation – combining AI, advanced analytics, and data privacy/security to help employees build better relationships and thrive in an organization.
Learn more: Building a Data-driven HR function
The Future of Culture Analytics
Going forward, culture analytics will prove extremely useful as organizations explore new ways to engage with workforces, align their requirements to large targets, and leverage culture as a key differentiator for success. We expect several disruptive players to introduce solutions that make adoption possible, and indeed, make culture analytics a staple for progressive organizations.