How Will AI Shape the Future of People Analytics? (An Interview with Prasad Setty)
Jan 21, 2025
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Prasad Setty, a pioneer in people analytics and former leader at Google, shares his insights into the transformative power of data in HR. He discusses the importance of storytelling and the 4E Model—Effectiveness, Efficiency, Experience, and Equity—for enhancing organizational success. Setty explores the 'Arc of Value Creation' framework for driving actionable outcomes. He delves into how AI reshapes people analytics, alleviating challenges like 'time poverty'. Essential skills for modern teams are also covered, offering a roadmap for navigating the AI-driven landscape.
Prasad Setty emphasizes the importance of storytelling in people analytics to bridge the gap between raw data and actionable outcomes.
The 4E Model—Effectiveness, Efficiency, Experience, and Equity—provides a comprehensive framework to evaluate and enhance HR programs and practices.
Deep dives
Insights from Google’s People Analytics Journey
Prasad Setty emphasizes that Google's approach to people analytics was characterized by a belief that people were the key to the company's success. This was not an optimization exercise, but rather a maximization approach, with abundant resources allowing the team to pursue bold ideas aimed at attracting and retaining top talent. The synergy of creating a strong analytics team and aligning it closely with high-level HR functions facilitated significant impact. Additionally, storytelling played a crucial role in effectively communicating data insights, bridging the gap between raw data and actionable outcomes.
The 4E Model: A Framework for Success
The 4E model—effectiveness, efficiency, experience, and equity—provides a multifaceted approach to evaluating HR programs and processes. Each component plays a vital role; effectiveness measures the achievement of intended outcomes, while efficiency focuses on the resources utilized. Experience gauges the satisfaction of all stakeholders involved in a process, and equity ensures fair treatment across demographics. This holistic evaluation helps organizations identify what 'good' looks like and emphasizes that effectiveness, experience, and equity should take precedence over mere efficiency.
The Arc of Value Creation
The arc of value creation model outlines a progressive framework for people analytics by focusing on optimizing HR processes, enhancing organizational health, and realizing individual potential. Initially, analytics teams may concentrate on making HR functions better, but their attention should shift to broader organizational outcomes that contribute to overall health, including culture and team efficiency. Ultimately, empowering individuals through analytics initiatives fosters both personal and organizational growth. Setty's experience at Google exemplifies how this model can lead to significant, long-lasting impacts within organizations.
Bridging the Adoption Gap with AI
The challenge of adopting people analytics insights is directly tied to the clarity and accessibility of shared data. Setty outlines the importance of simplicity and actionability in presenting data to leaders and managers, suggesting a focus on making insights easily digestible. AI has the potential to enhance this process by personalizing information delivery, ensuring it aligns with the preferences of different users. Furthermore, AI tools can streamline data collection and provide deeper insights, ultimately helping organizations move from mere data sharing to impactful decision-making.
In this episode of the Digital HR Leaders podcast, David Green is joined by people analytics visionary Prasad Setty to explore the proven frameworks that drive impact to the transformative potential of people analytics in HR.
Drawing on his extensive experience, Prasad shares actionable frameworks and strategies to help HR leaders turn insights into outcomes, tackle adoption challenges and embrace AI’s game-changing opportunities.
Join the conversation as they explore:
The key ingredients that helped Google’s people analytics team achieve unparalleled impact, including unique organisational structures and actionable insights
The 4E Model—Effectiveness, Efficiency, Experience, and Equity—and its practical application in people analytics
The ‘Arc of Value Creation’ framework and how it bridges insight, action, and outcomes
Strategies to close the adoption gap and embed people analytics into decision-making
How AI and GenAI are reshaping people analytics and HR strategies
The skills modern people analytics teams need to thrive in today’s AI-driven world
Whether you’re looking to optimise your people analytics function or curious about the transformative power of AI in HR, this episode, sponsored by TalentNeuron, is packed with actionable insights and thought-provoking perspectives.
TalentNeuron is the future of workforce transformation. From strategic workforce planning to skill gap analysis, TalentNeuron combines external talent intelligence and internal data into one seamless platform.
Why not join global enterprises already leveraging actionable insights to boost organisational performance and readiness and visit talentneuron.com today.