Human Resource

How is people analytics impacting human resources?

Transforming HR management to a data-driven mindset can be a challenging task. Most importantly, HR intends to deal with people, but not with numbers. Nevertheless, being data-driven is highly essential for an evolving business.

The success of HR initiatives is measured by the data analytics and it also helps in taking well-informed decisions. A post from peoplehr blog states that many organizations today are favouring the utilization of data analytics in their HR activities for meeting their organizational goals.

It is known that on an average, a minimum 60 percent of the annual costs of today’s businesses are associated with their staff and this figure is not new. What is new here is the emergence of People Analytics, which can transform your HR department dramatically and the influence HR will have on your business.

People analytics, also addressed as HR or talent analytics is the utilization of data to enhance efficiency of the people-related processes. Analytics offer data-driven insights to the leadership, manager, and the HR. There is an unimaginable power for people analytics. And the utilization of data analysis and employee-led data has made it possible to extract answers for general queries like what factors are driving the employee retention, who are the potential successors for leadership roles, how can talent management be made more effective, and so on.

Be it employee engagement, performance management or recruitment, people analytics enables HR to play an efficient role in planning as well as meeting the organizational goals, make smarter hiring decisions, and enhance employee retention and performance. That is why most of them are required to take training. Some choose to study HR degree online for a better-looking credential and enhancement of skills. Some expose themselves to workshops and training on people analytics.

Let us discuss the 3 facets of HR in an organization where people analytics is playing a crucial role.

Employee Performance Management

It is always ideal to identify employees who require training to contribute to their company’s success by optimizing their performance. Data analytics offer insights into HR initiatives(such as recognition, reward, and training programs) that impact the bottom line of a company. For example, if your sales team is running into challenges concerning performance, utilize data to determine what helps your team to meet and exceed performance targets.

Studying Employee Behaviour

With people analytics, organizations can do a lot more than just identifying the rate of employee attrition or retention. It makes easier for them to pull off data points and acquire information on the behaviour of an employee. And by identifying the traits of employees at-risk of leaving as compared to committed employees, HR can predict if a particular employee will exit or continue. Timely actions can be taken by the leadership and HR to avoid high employee turnover by using insights based on evidence.

Recruiting Right Kind of People

Businesses today are paying attention to the utilization of data-driven tools to not only study their existing staff, but also recruit the right kind of people. People analytics tools provide a broader view on a candidate’s potential and skills. A famous study finding had highlighted the fact that 27 percent of employers reckon that one bad hire could cost them more than $50,000. HR analytics and reports aid workforce planning. They help predicting when the organization requires more hands-on board, depending on previous year’s data, and then recruit based on that data and maintain a balance between time to hire and cost per hire.

Another key aspect that must be addressed here is how to place people analytics within the company in relation to accountability and ownership, and thereby what role HR shall play in the process of reporting.

  • Sustaining as well as developing meaningful reporting that enables and informs optimum performance and management.
  • Encouraging regular discussion at both divisional and corporate level that makes sure all reports are interpreted and analyzed in a proper way.
  • Assisting line managers and divisional executives in building and implementing efficient intervention strategies where performance is recognized to be less than acceptable.

Thus, people analytics enables HR professionals to develop an efficient business case that aids a desired HR initiative or program, engages major internal customers whereby they can promptly determine the advantages to be enjoyed both and intangible, and to signify a real contribution to business results.


Companies that do not utilize the capability of analytics are already at a disadvantage. The data-driven insights allow decision makers to take measures for enhancing overall business effectiveness, increasing employee engagement, and take measures for decreasing attrition rate. Today, businesses are realizing the fact that HR activities require analytics expertise as the utilization of analytics tools and adoption of upgraded technology platforms is becoming highly crucial. So, the benefits of people analytics are clearly visible and the only challenge is to make right use of it.

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