Harvard Business Review Analytic Services surveyed 498 business leaders around the globe to understand link between workforce analytics and business performance; “Effectiveness of the workforce” cited as the most important means to improving organizational performance
Gainesville, FL – August 23, 2013 — Organizations that invest in workforce analytics to drive talent decisions and development see significantly better business results than those who do not, according to a recently released Harvard Business ReviewAnalytic Services research report sponsored by SumTotal Systems, LLC, the largest independent provider of integrated HR solutions. The report, based on a survey of 498 business leaders, found that organizations that reported they are most effectively managing their workforce were also more likely to say their companies are outperforming their competition on several key metrics, including quality, customer satisfaction, profitability and market share.
Executives who participated in the survey agreed unanimously that increasing workforce effectiveness was the most important means to improving organizational performance.
“The war for talent is real,” said one survey respondent, the director of executive and bench development for a 6,000-employee investment company. “To keep our competitive edge, we have to have the right talent in place. We have to be constantly investing in and developing talent.”
The report also revealed that while nearly two-thirds of organizations use workforce analytics to gain insight into people and performance, just 12% use advanced comparative analytics to drive strategy and decision-making. Nearly 30% of organizations do little or no analysis of their workforce and the 61% of organizations that engage in workforce analytics take a tactical, ad hoc approach.
“The research shows that advanced users of analytics are far more likely to say their organization is effective at leveraging their workforce. They have the most engaged employees and thrive in the toughest conditions,” said Alex Clemente, managing director of HBR Analytic Services.
Key Research Findings:
- Organizational Performance: Organizations that reported they are most effectively managing their workforce were also more likely to say their companies are outperforming their competition on several key metrics, including quality, customer satisfaction, profitability and market share.
- Leadership Development: Organizations that say they get the most out of their workforce also reported a strong focus on leadership development for high-potential employees and use analytics to identify and develop that high-potential talent. Those considered advanced users were substantially more likely than others to say that development programs for high-potential employees contribute to improving company performance.
- Technology Barriers: Survey respondents highlighted two significant challenges hindering their ability to maximize their workforce: outdated or insufficient technology and little or no integration of HR systems with other corporate systems.
- Integration Challenges: Nearly half of the respondents reported that they’re unable to integrate workforce data with other systems (CRM, ERP, financials) to make business-critical decisions in real time. According to one vice president surveyed for the report, “Our CEO is driving us to have full integration of our workforce and business systems, with real-time analytics of the data.”
- Learn how you can help your organization increase workforce effectiveness and drive better talent decision making by reading the full report.
- Register at to hear workforce analytics expert Dr. John Sullivan discuss the research results during a webinar on September 10.
About SumTotal Systems
SumTotal Systems, LLC, the largest independent provider of integrated HR solutions, is increasing the performance of some of the world’s most successful organizations, including AstraZeneca (NYSE: AZN[ADR]; London: AZN), Amway (KUL: AMWAY), and Seagate (NYSE: STX). The only HR solution provider to deliver Talent Expansion, a whole new approach to discovering, developing and unleashing hidden potential within our customers’ workforce, SumTotal delivers employee enablement solutions that help organizations become great places to work. SumTotal’s people-focused applications, available on premise and in the Cloud, enable contextual, just-in-time development designed to advance employees’ skills and knowledge. Today, more than 3,500 organizations, including several of Fortune’s “Best Places to Work,” rely on SumTotal’s on premise and cloud-based Talent Expansion applications to enable their employees.