People analytics, historically referred to as HR Analytics and utilized strictly as an HR function, has evolved into
a systematic data-driven approach to improving your entire business.
If you are a leader or manager in a large organization, you are
probably familiar with these terms. But you may be unaware how your organization can benefit from people
analytics and what it will take.
That is what we will
discuss today.
Table of Contents
What is people
analytics?
People analytics is
the process of leveraging new or existing data within your organization to
provide invaluable insights into your workforce and help you make better
business decisions.
People analytics
delivers facts about your organization such as why people are leaving your
organization, the challenges they face, how much this is costing you, and more.
Equally importantly, it paints a picture of how to anticipate and prevent these
staffing challenges.
Difference between HR,
people, and workforce analytics
People analytics, HR
analytics, workforce analytics, and even human capital or business analytics
are all different terms that share a common purpose: to improve all areas of
business performance through the use of workforce data. Whatever you call it,
the goal is to create a productive, innovative and powerful workforce, which
positively affects the bottom line.
How organizations
benefit from people analytics
The true value of a
well-structured people analytics initiative will reflect directly on your
bottom line. We’ll talk more about this in a minute, under the ROI section.
For now, here are a
few ways your organization can benefit from people analytics.
Ten Ways Organizations
Benefit from People Analytics
1. Understand and improve retention
2. Identify patterns of racial bias or inequity
in compensation
3. Create effective, non-biased processes for
hiring and promoting
4. Strengthen workforce decision making
5. Increase accountability
6. Shift team silos
7. Improve employee productivity and commitment
8. Determine the traits of your quality employees
9. Seek better employee sourcing options
10.Develop a culture where decisions are made in
accordance with the evidence
How does it help my organization
make better decisions?
A crucial component of people analytics is the ability to make
informed decisions based on user data. An example of this is McDonald’s. They
learned that employees working in groups containing a healthy
mixture of generations tended to be happier. Happier workforces can lead to
improved service, product quality, and teamwork, all creating higher value for
the restaurant brand.
