As technology continues to evolve and impact our daily work lives, is it an employee’s technical skills that will be the most valued? Not necessarily. “These more enduring human qualities that all of us possess, these are the things that are going to differentiate workers in the future. It’s really that resiliency, the decision making, and the ability to exhibit emotional intelligence,” said Peter Boyle, VP, HR, Dell Technologies, said during an executive panel at From Day One’s Denver conference. “As we blend digital and human labor together,” he said, it’s these skills that will drive future organizational success.

With the universe of workplace skills expanding constantly, employers have to think ahead about what they’ll need as their businesses change and grow. What are the best ways to assess the skills of current workers, predict the skills that will be needed soon, and build the methods to bring employees up to speed? At the same time, how can employers adapt their talent pipelines so they're drawing on a wider and more relevant pool of candidates?

Putting People Analytics to Work

Data collection has been around for a while, but it’s the predictive power of software that’s truly transforming the landscape. “We’ve been studying and counting people and tracking what they do for centuries. What is changing is the technology that we can lay over people analytics that allows us to not just describe where they're at today, but what's possible tomorrow,” said Matthew Gosney, VP, organizational development at UCHealth.

People analytics can, and should, be incorporated holistically into an organization’s overall metrics, noting how one worker’s tenure, background, and employment history might correlate to the quality and quantity of their output. “That is really the future of people analytics: looking not just at the person, but the work they do, and how you can help them to be the best they can be,” said Neil Taylor, VP of product marketing at Visier.

Organizations are also using analytics to measure soft skills and decide how to leverage them. “We love how the technology can tell us a story, but we really want to see how we can bring those human-centered skills (better thinkers, problem solvers) to address certain issues and build up more organizational confidence in productivity and teamwork,” said Erin Gabrysh, head of learning and development, Bundle. “It’s more than just [attaining] the numbers, but using that to take action.”

Another area where people analytics is playing a major role is employee listening and engagement. For Jennifer Herrod, senior director of talent, global learning & development at Johnson Controls, her team works with managers to help them understand and utilize the insight gained through employee listening software. “What are their teams telling them through the survey that they’re not telling them face to face? And how can they then leverage that data to get them the right skills that they need? It’s [about] finding the detail in the data and the story behind it, which is how it can help connect to skill-building,” she said.

It also can help improve employee retention, as well as prepare for future hiring needs. “People analytics can actually help you predict who might resign, and along with that, which skills are walking out the door,” Taylor said. “You need to understand the learning development plans that you have in place to develop those skills internally, how you’re hiring, and how you’re retaining skills that might be in demand. And the only way you can do that is through connected data that is pushed out to the edges of the organization.”

Adapting to a Changing Work Environment

The skills needed to succeed in the modern workplace are evolving as rapidly as the workplace itself. Fortunately, the tracking technology is keeping pace. Traditionally, says Boyle, employees would simply check off boxes for skills on an internal database. “But that doesn't necessarily tell you the depth of their knowledge.” Nor does it stay up-to-date for long. Nuanced people analytics software can help leaders infer a greater depth of knowledge among a talent pool, cross-referencing other factors like certifications, tenure, and employment history, and match them accordingly to future roles.

And the ability to adapt to rapid change itself is a quality that is vitally important but hard to measure traditionally. “Human-centered leadership, which I think is the emerging model for leadership in the future, is focused on change management, psychological safety, and key components of leadership that are going to be critical in a very dynamic work environment,” Gosney said. During Covid, his organization’s workforce quickly had to make a transition to virtual care. “We knew who could do it, and we could move them there. The challenge was in understanding, capturing, and quantitatively measuring soft skill. I don’t know if we have a great answer for that yet, but I know that’s the next mountain to climb.”

One way human qualities like psychological safety can be measured, Gabrysh says, is through their impact on other areas. “When organizations embed psychological safety training, when organizations create this safe space, people are more comfortable saying or doing [certain] things. That’s where we start to see change occur, and the rest of the metrics start to improve as a result,” she said.

And the utilization of people analytics itself, Taylor says, should engender psychological safety within an organization, “because [workers know] the entire person is understood, the entire workforce is understood, their impact on the business is understood, as well as the business impact on the person. If it’s just a manager making a decision based on emotion [then] there’s no psychological safety in that.”

People analytics is also making strides in the area of diversity, equity, and inclusion, shedding light on areas where it may be lacking and where, Gosney says, leaders can enact change. “People analytics is changing our HR structures to support solving problems instead of supporting traditional processes,” he said. And for UCHealth, it’s paid off. “We’ve improved our BIPOC internal promotion rate by 40% in two years.”

Making People Analytics Work For You

So how can an organization that has yet to dive into people analytics get started?

“When you’re talking about people analytics, you need to start with desired business outcomes,” Gosney said, noting the need to first define the goals, objectives, and challenges the organization is facing. “Then you translate that into key employee experience components. Is it psychological safety? Is it flexibility? Is it skills development? Is it retention, or is it engagement? That then informs the questions that you ask in an engagement survey, or the data points that you’re looking for.”

The measurement of skills should then impact the action taken by the organization, particularly when it comes to developing talent and filling the gaps. “Developing that continuous learning culture is paramount,” Gabrysh said.

Adding AI to the Equation

“Data is organized and structured and predicts outcomes, whereas psychological safety is constantly moving,” said moderator Noelle Phillips, senior reporter for The Denver Post. So how can it be quantified? That’s where AI comes in. Herrod’s organization introduced an AI conversation coach–after a deep data privacy review–to boost employee engagement. The AI reviews comments gained from employee listening to identify meaningful themes and recommend leadership actions.

The ability to work with AI is also a skill that will need to be accounted for. “We’re all feeling this need, individually and as businesses, to adapt to a dynamically changing market, and AI is compounding that,” Taylor said. Workforce planning will need to happen more often, he says, than once a year. “This is an ongoing thing that needs to happen every day. And it isn’t just an HR job. It’s the manager’s job to make sure that you have the right workforce. And so, having the right data around the skills that you need, the skills that you have, [and] the skills you need to develop internally becomes really important, and you have to continuously shapeshift your workforce in today’s day and age.”

Katie Chambers is a freelance writer and award-winning communications executive with a lifelong commitment to supporting artists and advocating for inclusion. Her work has been seen in HuffPost and several printed essay collections, among others, and she has appeared on Cheddar News, iWomanTV, On New Jersey, and CBS New York.