What are People Analytics?
People analytics, also known as talent analytics or HR analytics, refers to the method of analytics that can help managers and executives make decisions about their employees or workforce.
People analytics applies statistics, technology and expertise to large sets of talent data, which results in making better management and business decisions for an organisation.
People analytics is a new domain for most HR departments – companies are looking to better drive the return on their investments in people.
What are the benefits of People Analytics?
People analytics helps organisations to make smarter, more strategic and more informed talent decisions. With people analytic, organisations can find better applicants, make smarter hiring decisions, and increase employee performance and retention.
The promise of using analytics in HR is linking people data with different types of business data to create outcomes aligned with company goals such as increased revenues and lowered costs.
The rise in the use of analytics has been caused by three main factors:
1
The explosion in data and data analytics due to improvements in technology and software. This adoption has been seen recently in the transformation of sales and marketing departments.
2
HR departments are increasingly being asked to justify their decisions based on measurable outcomes. This has led to the push for business decisions to be made based on analytics and data rather than using gut instinct and subjective judgment.
3
Most HR departments are sitting on mountains of data about their employees including demographic data, performance data, job history, compensation, and training. Until recently, this data has yet to be effectively and strategically leveraged by organisations.
Data Analysis
Three main types of talent-related data that can be analysed are:
1
People data such as demographics, skills, and engagement.
2
Program data such as attendance, adoption, participation in training and development and leadership programs, and outcomes of key projects and assignments.
3
Performance data such as performance ratings and data captured from the use of instruments such as 360 assessments and succession programs.
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