1. Home>
  2. About SD Worx>
  3. Press>

61% of UK companies believe HR and people analytics are vital for business performance

Going through an interview No Face
  • Over 60% of UK companies highlighted HR and people analytics adoption as key to business performance
  • Four out of ten UK companies still don't use HR and people analytics, but demand is on the rise with 21% of companies citing the tools as business priorities

New research from SD Worx, Europe's leading HR and payroll service provider, finds that 61% of UK companies are using HR and people analytics to gain insights into areas such as staff shortages, absenteeism or employee turnover. Across Europe as a whole, HR and people analytics are experiencing a sharp incline in popularity. Austria (66%), Sweden (66%) and Germany (65%) currently lead the way in their analysis of data to tackle business priorities and make data-led people decisions.

But despite the widespread appetite to transform HR decision-making, many have yet to begin seizing the benefits, with 4 out of 10 UK companies reporting no analytics capabilities. However, an increasing proportion of businesses point to growing appetite to make HR and people analytics a higher priority with 21% saying they would like to deliver analytics solutions in the next 12 months, a sharp 15% increase on last year.

Based on a survey of over 4,000 companies in the UK and across Europe, the findings highlight a growing understanding of the value of HR analytics in business decision-making, as increasing numbers of companies put HR and people analytics higher on their business agenda. However, as more companies make the transition towards these systems, the research also highlights how many businesses are falling at the first hurdle when it comes to transitioning to tech-based platforms, due to a lack of advice and guidance on how to develop and deliver analytics to optimum impact.

    Over 50% of European companies use HR and people analytics to fuel decision making

    Over half (52%) of European companies say they use HR and people analytics when making both strategic and operational decisions. For Spanish companies, this percentage rises to a huge 82%, followed by Italian (70%) and British (59%) companies.

    The survey also confirms that it's mainly HR managers and management who use HR and people analytics. But it's not just them who benefit from HR and people analytics, as more than half (52%) of companies already using it said that such reports are useful for employees and managers, too. This applies both to decisions at team level, such as talent availability and to individual issues, such as a staff member's efficient use of time. Here, too, the size of the company appears to be a decisive factor, as employees and managers of larger companies primarily use HR and people analytics (63%). This drops to 59% for medium-sized companies, and 48% for companies with less than 250 employees.

    Colette Philp, UK HR Country Lead at SD Worx, comments: “Globally, we’re seeing enormous momentum behind HR and analytics tools, bringing tangible improvements to the ways companies support their workforce and understand what’s happening within their organisations. It’s well established that analytics bring hard facts and robust advice to business strategy, yet many are still missing out on their value. In the UK, the fact that 4 in 10 aren’t using people and HR analytics indicates that they’re missing out on actionable insights, especially amid a time of huge transition as businesses grapple to improve productivity and support employees in a hybrid world.

    However, despite a need for more proactive uptake, the research brings much room for optimism as it confirms an openness to realising the full potential of HR and people analytics across organisations. With companies wishing to reap the benefits – from improved decision-making, to efficiencies across HR processes – there is a rising imperative to roll out new capabilities that respond to business goals and deliver impact amid the challenges. However, companies are all too aware that success doesn’t just happen overnight and the ladder to long term impact is a steep one. Getting a foot on that ladder by assessing goals and key priorities should be the first step towards harnessing the value of these now indispensable tools.”

      About the survey

      As part of the War for Talent, iVox conducted a study commissioned by SD Worx into how European employers deal with attracting employees. The research focuses on attractive employership in the war for talent, what employees are looking for in an employer, and what employers focus on to be/become an attractive employer. The research deals with seven puzzle pieces employers can work with: well-being and people-oriented HR, flexible work organisation, motivating wage policy, inspiring and activating culture, digital workplace, talent management in sustainable careers and recruitment.

      The survey was conducted in February and March 2022 in Belgium, Germany, Finland, France, Ireland, Italy, Netherlands, Norway, Austria, Poland, Spain, United Kingdom, Sweden and Switzerland. A total of 4371 companies were surveyed. The sample is representative of the specific local labour markets and has the same composition according to the organisational size of the companies in the countries concerned.