People analytics are kind of a big deal. 70% of companies are now prioritizing data as a means of transforming the way they manage the employee experience and its resources. 62% of those businesses are using that people data extensively, improving business outcomes by making more data-driven decisions.
The new world of work will utilize people data to manage and assess the employee experience effectively, and HR leaders will be working with analytics exclusively to assess culture, growth, hiring, and retention. It’s time to employ people analytics to make better business decisions, but why exactly do metrics matter right this minute?
Here are 4 advantages of People Analytics
#1: Improve recruitment practices
People data allows HR leaders to improve their recruitment and hiring strategies by reducing mismatches in terms of skill and culture, as well as practices that deter candidates from signing a contract or accepting an interview. Creating hiring and recruitment strategies using data-based decision-making can increase the rate at which you scale while using the best branding practices possible simultaneously.
#2: Enhance employee onboarding
Without the possibility of growth and development, employees won’t stick around past onboarding, especially if the process itself is underwhelming. People analytics makes it easier to see which skills are needed and must be taught to new hires, giving a whole new edge to onboarding and training. Data also helps HR leaders ensure successful learning and culture integration after onboarding by assessing contentment through feedback and productivity levels.
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#3: Drive employee engagement
Admittedly the most challenging aspect to gauge using data, employee engagement is a goal sought after by most employers looking to keep their people interested long term. Using people analytics, new ideas and engagement activities can be tested to see which works best. Analyzing various departments’ needs to be met with fresh initiatives is a great option to exercise, too. A combination of feedback surveys and numerical data is the strongest approach to driving employee engagement long term.
#4: Increase retention rates
To increase retention, employers need to boost their people’s loyalty. Analytics that can be pulled and assessed when addressing retention are churn rate, attrition, survey data, performance data, and internal onboarding statistics. Sifting through these metrics and anticipating quits (and at exactly which point in time they’re most likely to occur) can present a new problem-solving approach to high turnover and employee unhappiness. Examine these data points consistently to prevent culture, growth, or monetary issues before they arise.
People analytics matter in HR. They determine gaps in hiring funnels and measure the efficacy of culture efforts across the company. HR leaders can take advantage of data to improve not just the way they work, but the outcome of their business decisions, especially when it has to do with putting their people first.