What is people analytics?
“Gut feeling” or “previous experience” are no longer viable methods for making decisions about employees and work. Leveraging analytics to help with decision-making can be an effective way to remain competitive and financially viable post-COVID-19. HR can be part of this process too — helping the organization select and reward valued contributors, and redefining what “value” means for the company.
People analytics is the application of data analysis to HR-related information so that HR professionals and organizational leaders can make more informed, evidence-based decisions about the workforce. By identifying patterns, trends, and correlations in workforce data, organizations move from intuition to insight across hiring, development, engagement, and retention. Here are some examples of what people analytics looks like in practice, and how HR can leverage data to help make business decisions.
Recruitment analytics
Recruitment analytics involves tracking, measuring, collating, and analyzing candidate and employee data to make better hiring decisions. It helps identify the most effective sourcing channels, predict candidate success based on historical data, reduce time-to-fill, and assess the quality of hires so that the recruitment pipeline stays full and cost-effective.
Performance analytics
Performance analytics connects employee performance data to business outcomes. By analyzing goals, ratings, and productivity measures alongside organizational metrics, HR can see which capabilities drive results, where development is needed, and how individual and team performance ties back to revenue and customer outcomes.
Retention and attrition analytics
Employee turnover is costly and disruptive. By analyzing data such as tenure, performance, engagement levels, and compensation, organizations can predict which employees are at risk of leaving and intervene proactively — with targeted retention efforts such as personalized career development plans or compensation adjustments for at-risk talent.
Employee engagement analytics
High engagement leads to higher productivity and lower turnover. Engagement analytics pinpoints the factors that influence engagement levels within the organization — drawn from surveys, pulse checks, and feedback — so HR can implement targeted initiatives in the areas that need them most, such as workload balance or recognition programs.
Workforce planning analytics
Workforce planning analytics helps the organization understand the shape, cost, and capability of its workforce over time. By modeling supply and demand for skills, HR can plan hiring, reskilling, and internal mobility in line with the business strategy — ensuring the right people with the right skills are in the right roles for the future.