3 Reasons the Financial Services Sector is Succeeding with People Analytics

 

Analyzing the ease with which people analytics can be adopted and implemented in the financial services industry


According to The Business Research Company, the financial services sector, which includes everything from insurance and payments to lending and money management, is predicted to reach $28.5 trillion by 2025. This expansion results from businesses reorganizing their operations and rebounding from the COVID-19 pandemic's effects.


However, this expected growth in the coming years has also triggered departments to embrace themselves for a surge in demand for the services they provide. It also means rehiring a talent pool laid off due to the pandemic, boosting employee satisfaction, and reducing employee turnover, amongst others. And this time, companies are doing it differently – by studying the human side of their company, i.e., people analytics.


The Human Capital

When put financially, the economic worth of an employee's knowledge, skills, and competencies is referred to as "human capital" in the industry. It also encompasses unstructured analytics of the networks and social capital of employees. And it is now highly regarded as an asset to be invested in rather than a resource to be consumed or a cost to be reduced by most firms. As a result, these firms are profoundly investing in people analytics to understand better the human side of their company's data that can help make faster, data-driven decisions with an employee-first approach.


Measurement

Whether adhering to the Securities and Exchange Commission's (SEC) reporting requirements for public corporations or the Federal Reserve's stress measurements for large banks, measurement matters in financial services. In fact, financial services firms place a premium on measurement to optimize investment and operations and compliant management.


As a result, human capital or talent-related metrics are a logical extension of these measurement and accountability concepts and hence receive enough attention in financial services firms. In fact, the SEC's current human capital disclosure guidelines reflect the idea that human capital is a significant driver of a company's value, necessitating disclosure in the form of human capital indicators.


Thus, companies should use the opportunity to broaden the adoption of people analytics across the business by capitalizing on the growing interest among the board and leadership in human capital metrics and overall information management and analytics.


Futureproofing

Financial planning and business analytics are vital for all organizations and arguably more so in the financial services sector. The synthesis of the two is an integrated approach toward strategic workforce planning. Where integrated refers to the necessity for companies to actively engage in workforce planning that aligns the company and the people with the concept of "you complete me."


As a result, companies are adopting advanced people analytics solutions that can answer questions like who has the most impact, who knows what, what my workforce cares about, and how they feel.


To conclude, the financial services sector has been a leader in adopting and benefiting from people analytics due to its close connection with data and numbers. And if you haven't already, the time is now to embrace information management and be a part of the $28.5 trillion financial services market by 2025. To learn more about people analytics and how it can benefit your organization, reach out to our experts here.    

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