Definition of People Analytics: Take Advantage of your HR Data

7 of October, 2022

Perhaps you have heard something about the definition of People Analytics at some point, or perhaps you have read the concept in an article. Therefore, you may ask yourself, what is it and why is it part of business strategies to generate talent? Why are data and people analytics necessary for human resources? What role do they play in the recruitment and development processes?

In the following article you will learn what it is and how you can make the most of this people analytics methodology.

Definition of People Analytics

Basically, the definition of People Analytics says that is a research method. Based on what we know as Big Data, a huge amount of data is collected about the people who make up a company. Subsequently, it is triangulated with analytical keys in order to draw reliable and objective conclusions. This information will allow us to make much more optimal decisions in the future.

Data, as a source of information, will allow us to take advantage of an enormous amount of valuable data and will help us in decision-making. After all, it is an effective and safe method for leaders to take the helm of the organization and manage more confidently.

Within the business world, data and People Analytics show a specific picture of the present situation and work to make predictions about the future. In other words, this helps us take preventive measures to save money and take advantage of time and resources.

How to take advantage of it?

Can human resources leaders take advantage of this data? Undeniably, the answer is clear and specific: yes. They can do this by turning the extracted data into valuable information for subsequent decision making with the right tools. Learn what it is and how you can implement it to make the best decisions for talent growth.

The use of data contextualizes actions, it also allows to make decisions in a justified way to minimize possible errors.

It turns out to be a key element for people management. To mention an example, it allows us to collect and analyze information regarding the value that a worker brings to the company during their selection process. So we come to the use of HR Analytics. This will need three levels within the analytics strategy.

Different levels in the analysis strategy

1. Information gathering. This is where Big Data comes into play; just to provide the raw material for analysis. A human resources software for business analytics should collect employees’ information that is related to their activity, their salary range, their contract type, and so on.
2. Analytics. This is the moment of analysis itself. The collected information is then organized and triangulated. Important comparisons and metrics are determined.
3. Insight generation. Practical interpretation of the results obtained from Analytics to draw conclusions. In this way, new decisions are made or those that were previously made are corrected.

To take advantage of the full potential and reach the best decisions, it is important for HR managers to surround themselves with professionals. Hence, these professionals must be able to perform these interpretations correctly.

Data Objectives and People Analytics

It is clear that the analysis and interpretation of HR indicators is very useful for decision making. However, what would we say are the differential values that they offer to HR and to the company itself:

• Attract qualified personnel. From the identification of the performance criteria, we can determine which profiles are more likely to obtain better results. Therefore, we can conduct a search for candidates for specific positions.
• Identify talent. It helps us identify the variables that have the greatest impact on employee performance. And with this, it is possible to work on them and boost the loyalty of the company’s talent.
• Avoid talent waste. Predict the possible flight of a collaborator, the causes that generate said flight and the actions that will help us prevent it.
• Boost talent. Development planning of the professional career of workers based on their knowledge, aspirations and skills. Also train them to perform more relevant functions; this helps us avoid future disagreements.
• Justify the execution of changes. It allows us to obtain certain data. This data focused on the performance of employees, allows us to justify the need to make changes. For example, hiring of more workers, salary increases, among others.

For all the above, data and People Analytics are a fundamental part of the human resources department of any company.