Study Finds European Organisations Using People Analytics Outperform Competitors by 50%
Organisations saw a return on equity more than 50% of industry averages, and over 40% higher operating margins.
Visier, the globally recognized leader in people analytics and planning, today released a European Economic Impact Report highlighting companies which consistently deliver higher levels of financial performance utilize people analytics and planning to support their organization development policies and improved management performance. Overall, companies who have adopted people analytics are achieving a higher than average return on equity, higher operating margins, and higher overall profit margins. According to research conducted by Visier, the average return on equity in Europe -- across all industry sectors -- was 12.9% in 2018. In comparison, during the same period, Visier’s publicly-traded European customers (who have adopted people analytics through their investment in Visier solutions), achieved an average return on equity of 19.4%, a 51% increase over the European average. Additionally, the study found operating margins for these customers was 18.3%, 48% higher than the European average.
“Data-driven HR organisations that drive the adoption of people analytics bring incredible value to their companies,” said John Schwarz, Founder and CEO, Visier. “HR organisations of the future are no longer cost centers, but are revenue drivers. This research makes it clear: CEOs who want to gain competitive and financial advantages must prioritize their investments in people analytics.”
Key European Economic Impact Report Findings
In addition to outperforming the market in return on equity and operating margins:
Visier customers achieved significant HR and business benefits, including: reducing manager resignation rates by 17% and critical talent resignation rates by 44%.
After two years of using Visier, customers saw an overall employee population turnover rate decrease by 3.5%; for a 10,000 person organization that’s a total estimated cost savings of over $400,000 and an estimated $7M in productivity savings.
Diversity and Inclusion initiatives with Visier customers saw significant returns. After using Visier for two years, female manager resignation rates declined by 3.7% and the ratio between female and male managers increased 4%.
Research for the European Economic Impact Report was led by Lexy Martin, Visier’s Principal for Research and Customer Value, and former lead author of the Sierra-Cedar Human Resources Systems Survey, the longest running and most acclaimed HR tech survey. “Through the course of this research, we saw tangible benefits and value from the implementation of people analytics, especially as organisations matured in their use of it,” said Lexy Martin. “Organisations who have applied advanced people analytics have been able to connect their people strategy to key business impacts, such as revenue, profits, and customer satisfaction.” More information can be found in the full report here. About Visier Visier’s purpose is to help people see the truth and create a better future—now. Visier was founded to focus on what matters to business people: answering the right questions, even the ones a person might not know to ask. Questions that shape business strategy, provide the impetus for taking action, and drive better business results. Visier delivers fast, clear people insight by using all the available people data—regardless of source. With best-practice expertise built-in, decision-makers can confidently take action. Thanks to our amazing customers, Visier is the market leader in Workforce Analytics with 5,000 customers in 75 countries around the world. For more information, visit http://www.visier.com. # # # Contact: Julie Galla firstname.lastname@example.org
Visier is the recognized global leader in people analytics and on-demand answers for people-powered business. Founded in 2010 by the pioneers of business intelligence, Visier focuses on what matters to business leaders: answering the right questions, even the ones a person might not know to ask. The right questions that shape business strategy, provide the impetus for taking action, and drive better business outcomes through workforce optimization.
Headquartered in Vancouver, B.C., with offices and team members worldwide, Visier has 15,000 customers in 75 countries around the world, including enterprises like Adobe, BASF, Bridgestone, Electronic Arts, McKesson, Merck KGaA, Uber, and more.
For more information, visit www.visier.com.