What it is, why you need it, and best practices. This guide provides definitions and practical advice to help you understand the role of analytics in HR and establish world class people analytics.
People analytics refers to the tools and processes used to analyze candidate and employee data to gain insights into the hiring, productivity, engagement, and retention of talent. Also known as HR analytics or talent analytics, people analytics helps HR leaders make better, data-driven decisions on talent, improve personnel processes, and evaluate the effectiveness of their HR initiatives. This results in improved business results and a more positive employee experience.
Your employees are most likely your organization’s most valuable asset. They also may be your biggest expense. So, insights which lead to better performance from your workforce can result in a significant positive impact on your business. Here are the key benefits of adopting modern talent analytics in your organization:
Modern people analytics is powered by a cloud-based, end-to-end data integration and analytics platform. This platform helps you manage big data across its lifecycle as well as perform the necessary types of analytics.
A key aspect of people analytics is the application of statistics and modeling to candidate and employee data. This helps you to identify patterns and predict outcomes across the human-capital lifecycle, from hiring and managing performance to better retention.
Data Sources. Data is sourced from Human Resources Information System (HRIS), other HR surveys and systems, business systems, and productivity platforms.
Data Repository. All of these different types of data are extracted, transformed, and combined into a repository–typically a cloud data warehouse–to give you a comprehensive view of your workforce.
People Analytics Platform. Your platform makes it easy for you to use this data to perform different types of analysis. For example, you could use predictive analytics to project turnover rate in a sales division.
Outputs. These processes and tools result in insights which you can action on and/or they can trigger alerts and actions in other systems.
See how to explore information and quickly gain insights.
Using the types of analytics described above, here are examples of specific analysis you can conduct.
Example 1: Ethnic Diversity. This dashboard measures workforce diversity, breaking out ethnicity data by country and by salary. Modern, interactive dashboards allow you to dig deep into demographic data and analyze each variable.
Click the dashboard below to explore.
Example 2: Executive Dashboard
This example allows an HR executive to quickly review and analyze critical KPIs on one screen. Here you see key ratios such as training completion and employee satisfaction plus high-level KPIs like new hires and employees by role.
Click the dashboard below to explore.
See more HR Analytics Dashboards.
Here are the top-10 workforce management KPIs:
See all 35 critical KPIs for recruitment, workforce management, and compensation.
Download the ebook with 6 use cases of modern people analytics.
Through recent advances in data and analytics technology, you can now access your HR data in real time to get up-to-the-minute insights that trigger immediate action. This lets you respond immediately, intelligently, and confidently to emerging events and trends.
The approach begins with data integration to bring all your disparate sources together. The raw data is then transformed as it moves through the pipeline to deliver up-to-date information. Real-time alerting then brings actionable insights or triggers automatic, immediate actions in other applications.
Automation, artificial intelligence and machine learning eliminate painstaking human analysis, provide the ability to highlight potential issues before they happen, and raise pertinent questions (and answers) that haven’t yet been considered. The data is executed moment to moment and embedded directly into people and machine-driven processes. Not only do your teams know what is happening right now, they can understand what is likely to happen and they are alerted to take action when specific conditions are met.
Here are three key challenges to be aware of as you implement modern people analytics in your organization.
1. Data Management. You should make sure that all the relevant data you need is correct and up to date. And you need to bring all of this data together so that you can achieve full visibility of your workforce. The key challenge is that this data is usually in different formats and sits in a variety of siloed systems: HRIS, surveys, other HR systems, business systems, and productivity platforms. “Siloed'' means these systems don’t talk to one another. Find an analytics tool which includes the data integration capabilities you’ll need.
2. Legal and Compliance. You should be keenly aware of the risk of abuse. People analytics deals with sensitive information such as demographic, health and behavioral data which could be used to discriminate against employees. Work with your legal team to define clear boundaries of data access and use cases and continually ensure compliance with these guidelines.
3. Being Solely Data Driven. While data insights usually result in better decisions, when dealing with employees, you should always balance what the data is telling you with what the broader context and what your human intuition is telling you. Here are some pitfalls that can result from being solely data driven:
Below are the four key steps for implementing talent analytics in your organization.