What is people analytics?
People analytics is a data-driven method that aims to improve business decisions regarding employees and customers. Rather than solely relying on instinct or anecdotal experience, people analytics provides HR leaders with comprehensive data to make evidence-based, strategic decisions. People analytics integrates HRIS software to assemble and examine extensive information, predict trends, and provide valuable insights relating to the different stages of the employee lifecycle. Also known as talent analytics, companies utilize people analytics to match the right talent in appropriate roles.
Why should HR leaders care about people analytics?
People analytics assesses data to enhance the following processes:
- Recruiting and hiring
- Workforce planning
- Compensation practices
Talent analytics is a function that all departments, not just HR, are beginning to adopt. This holistic transformation heralds an increase in AI; HR leaders must be ready to embrace these changes to deliver up-to-date, accurate results. Partnering with AI enables HR leaders to make informed decisions that elevate the employee experience and promote the company objectives. In the competitive, sink-or-swim market, HR leaders must demonstrate agility as they continuously adapt to the relentless innovations challenging the workplace.
What can HR leaders do to implement a successful people analytics system?
Incorporating talent analytics into multiple departments demands that HR leaders step up to guide others through this new initiative. HR leaders can support the integration of people analytics by implementing these practices:
- Lead by example. Demonstrating proficiency in or at least an understanding of people analytics allows HR leaders to use it effectively and set an example for others as they learn the ropes.
- Observe. HR leaders should take note of the prevailing data analysis methods that the company uses, such as data collecting techniques, data categories, and which HR leaders are accountable for the data. HR leaders can identify the level of data collection and survey HR professionals to find out which tier they think their company corresponds.
- Introduce all employees with people analytics. Providing people analytics “basic training” for all HR personnel will improve their knowledge of the system. Acquainting HR professionals with people analytics empowers them while infusing this statistical method into the employee mindset and company culture.
- Train the analytics team. Educating people analytics specialists on how to read and scrutinize data, watch out for inaccurate data, and make wise decisions based on the information is critical. These HR professionals determine the effectiveness of the talent analytics system.
- Be aware of potential pitfalls. Companies can use HRIS software to simplify, filter, and present the data in a digestible manner for managers. Another challenge to be mindful of is the essential protection of employee privacy through data encryption and adherence to an honest, fair, and transparent policy.
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How can people analytics improve company culture?
People analytics provides HR leaders, managers, and executives with data to support the alignment of employee performance with company objectives. Effectively assessing and implementing this data contributes to effective hiring and training tactics, employee engagement, and in turn, a robust company culture.