People make the world of business go round. While there are tools and solutions for the actions that we execute, it is the presence and efforts of employees that get jobs done and advance tasks to completion. The whole field of HR was created to manage and help individuals thrive, this industry has grown into a 19 billion USD sector.
One of the largest changes that have occurred within human resources over the past few years is the rapid development of and movement to people analytics. While HR is a subjective field, often dealing with interpersonal relationships and emotional reactions, a level of data brings a much-needed element of objectivity.
In this article, we’ll dive into everything that you need to know about people analytics, demonstrating exactly how you can use them to help your business thrive.
Let’s jump right in.
What Is People Analytics?
People analytics is the data-driven practice of collecting information that relates to HR and using it to produce actionable insights. These insights could relate to how your business manages its workers, operates with other businesses, or runs internally.
By collecting data on how your workplace operates, you can find areas where you could smooth things out. Additionally, having a data-driven overview of all of your HR practices ensures that you have stable ground to work from. If you need to make a change, you have demonstrable data that demonstrates the motives.
As data collection, transformation, and interpretation become more advanced, you can even use embedded analytics tools to manage data at the moment. Instead of having to wait to generate reports, you can simply turn to live data sources to help you make decisions relating to the management of your staff.
What Metrics Can You Find with People Analytics?
Data is a fairly expansive field. If you can record something, there is a high chance that you can turn it into a point of analysis and produce metrics surrounding it.
With that in mind, there are a fairly endless list of statistics and metrics that you can generate when using people analytics. That said, a few are more useful in driving business understanding:
- Revenue per employee – Understanding how much money each employee creates on average is a creative way of assessing the overall structure of your business. If what you’re paying to employees is way below their revenue per employee, then you’re in a great position to offer some additional financial benefits to them.
- Time to Hire – Understanding the exact number of days that it typically takes your business to find new employees can help to clarify context around your interview and onboarding processes.
- Retention – Data about how long employees stay with your company will signal into your current workplace structure. Further studies on burnout, workload, and fair pay scaling could demystify why your retention is presented in a certain way.
- Job Satisfaction – Job satisfaction is currently declining faster than ever before. With workers quitting due to burnout and poor working conditions, knowing where your employees currently sit will help you plan positive changes for the future.
While only a small snippet of what people analytics can demonstrate to you, these statistics will help shine a light on the practices that your team should focus on improving or changing completely.
What Are the Benefits of People Analytics?
People analytics are vital in increasing the employee satisfaction in your workplace while also boosting overall profits. With advanced data tools, you can break down almost every process that occurs in your business, learning more about where funds could be leaking or where certain teams excel.
By incorporating people analytics into your HR toolkit, you’re able to:
- Achieve Fair Pay Across the Board
- Increase Equality Across Hiring
- Optimize the Workforce
Let’s break these down further.
Achieve Fair Pay Across the Board
Many organizations have 100s of employees, far too many to take an individual look into the contracts, pay packages, and compensation offered for each role. While not possible for an HR representative manually moving through this data, people analytics radically shortens the process.
With people analytics, HR teams can get cross-company salary ranges, broken down by department and role. When comparing this to demographic data, your HR team can rapidly see which groups are rapid what salaries, on average. When done at scale, this practice often reveals unfair payment habits that your company has created in the past.
The clear insight that people analytics offers will help you to build a fairer organization where all employees are equally rewarded for their hard work.
Increase Equality Across Hiring
Unconscious bias continually leads to unfair hiring processes. By using people analytics, you can reveal these biases through your data, helping to rectify them. Equally, you could use HR analytical tools to speed up your hiring process, making the first few rounds blind and done automatically by AI tools.
Helping to increase diversity and inclusion within your workplace will lead to a better overall company structure. When people feel valued and included at work, they’re more likely to respond positively to work review questions, experience less burnout, and have a boosted amount of time working for the company.
People analytics can shift the way your HR team operations, creating a range of advantages for you to take into 2023.
Optimize the Workforce
People analytics allows you to get an oversight of the relative productivity of each team. Once you’ve identified a few teams that don’t show the same production rates as others, you can dive further into the data to reveal why.
For example, if a team is routinely behind on their desired output, you could then dive into their team structure. Noticing that they recently lost one of their core members could reveal why they’re behind. After that, you’re able to use the information that people analytics revealed to you to instantly help out that team with what they need.
Repeat processes like these across your entire organization, and you’ll be advancing your cross-department productivity in no time.
Incorporating people analytics into your business is one of the most effective ways of boosting the efficiency of your HR departments. Without the need to base decisions on subjectivity, turning to people analytics provides a stable element of objectivity that will drive your teams forward.
If you want to boost the capabilities of your HR departments going forward into 2023, we strongly recommend that you begin to incorporate people analytics into your daily processes.