Advantages of People Analytics for Business Success

7 of October, 2022

Currently, People Analytics is a total trend. More and more companies understand that one of the keys to business success revolves around the people who make them up. Devoting part of the resources and time to getting to know the staff is a latent need. For this to happen, it is necessary to know the advantages of people analytics.

One of the methodologies that is being implemented the most thanks to its great utility, is HR Analytics or People Analytics. Basically, it is one of the advantages offered by new technologies. Next, in this post, we will comment on all the details that encompass this term.

What are the advantages of People Analytics?

The HR department must be up to date with the best strategies for personnel management. Through these strategies, they will be able to obtain important data and be able to choose the best paths to take in future activities. Hence, People Analytics is a resource for HR teams that allows them to have a broader vision of the company. It also offers an overview of the staff in real time and helps correct what is not working correctly.

Using Big Data together with Business Intelligence, we can obtain data from your human resources. This enables us to better understand people and get to know them to a greater extent. This only works when data is transformed into valuable information.

How to combine numbers and people in HR?

Obtaining data through Big Data is not complicated. The key lies in the useful transformation that we carry out with them. 

At the end of it all, we are combining statistics, numbers and mathematics to understand each other better, to get to know each other better and connect easily. However, not everything is about measurement.

The benefits of People Analytics

After knowing what it is about, you have to know what the advantages of People Analytics are, we will outline some of its most notable benefits. This way, you will be able to take advantage of them at all times and achieve better performance of your workforce:

• Allows you to make more strategic decisions for the company, thanks to concrete and important information.
• It increases fairness, objectivity and transparency.
• It develops new, diversified and much deeper analyses.

What is truly relevant is to remember that the use of data forces us to keep our minds open. Also to let go of our most basic intuitions and go beyond our knowledge and experiences. If we manage to maximize the potential of our workers, we will increase the overall work performance of the organization.

What is it for?

In short, it allows managers and executives to better manage workers, as well as helping to make better decisions.

We highlighted the following 5 areas in which People Analytics helps organizations:

Recruitment

Another advantage that P.A offers is that it helps to choose the right talent for companies based on pre-established mathematical models. By implementing historical data linked to other candidates with a similar CV and examining their job development within the position and the company, a statistical model can be determined or applicable to each new employee.

Training

Keeping the workforce trained, developing their skills and abilities, is a factor that provides high value to any company. With People Analytics we can find out which type of training is the best for each employee in order to optimize their performance. Evaluating post-training analysis and studying which ones generated the best results can help us create predictive models for future trainings.

Loyalty

On the other hand, HR Analytics collects information on the status of employees in real time. It also allows detecting signs of demotivation and employees’ intentions to leave the company. This daily monitoring allows us to have the opportunity to carry out preventive actions to retain talent. Basically, it’s about doing something before it’s too late.

Compensation

Studying the data regarding employee compensation helps us understand its relevance. This allows us to optimize the degree of satisfaction and well-being. By conducting employee surveys and analyzing their responses, we can generate mathematical models that work to predict the impact of salary changes on the workforce.

Having a human resources software like Sesame HR is going to be essential to obtain all the advantages of People Analytics in companies.