Analytics & HR: What is People Analytics

Konstantinos Anastasiadis @ SCALEUP | Feb 18, 2021

People Analytics 101: Terminology & First Approach

One of the most common terms being heard in Online Events and considered among the upcoming trends in today’s Ecosystem. According to Deloitte’s 2020 Global Trends Report, today’s organizations during the COVID-19 pandemic have more to gain from People Analytics that they expect organizations should expect better talent outcomes and better business outcomes when they routinely and strategically perform these five activities.

Almost, 74% of organizations frequently gather data, while 49 % frequently perform prescriptive activities such as providing insights.

HR analytics is also often referred to as:

  • People analytics
  • Talent analytics
  • Workforce analytics
Visual 01: The People Analytics Activities
Source: Deloitte, People Analytics Report (2019)

#1. Questions for Today’s Managers

Here are some of the usual questions/challenges not only HR Professionals but also Managers need to have insights on and tackle throughout their mission in the organization.

  1. How high is your annual employee turnover?
  2. How much of your employee turnover consists of regretted loss?
  3. Do you know which employees will be the most likely to leave your company this year?

Most HR professionals can easily answer the first question. However, answering the second question is harder.To answer this second question, you would need to combine two different data sources: your Human Resources Information System (HRIS) and your Performance Management System.

Today’s Organizations are rich with data but lack the right approach, Gartner (2020)

HR departments have a tradition of collecting vast amounts of HR data. Unfortunately, this data often remains unused. As soon as organizations start to analyze their people problems by using this data, they are engaged in HR analytics.With all these clarified let’s put together some pillars important to be understood for every aspiring HR People Analyst.

#2. Know the Data Cycle: Gather, Clean, Leverage, Repeat

Discover your Organization’s key challenges in a way it can be foreseen and incoming obstacles can be avoided. Nonetheless, An ongoing process should be put in place to ensure continued improvement:

  1. Benchmark analysis
  2. Data-gathering
  3. Data-cleansing
  4. Analysis
  5. Evaluate goals and KPIs
  6. Create action plan based on analysis (continuously test new ideas)
  7. Execute on plan
  8. Streamline process

Visual 02: The Key to Visualization Success
Source: Gartner, Infographics (2018)

#3. Define the Ideal Data Sources

There are a series of different data points that today’s digital ecosystem from the following resources:

  • Employee surveys
  • Attendance records
  • Multi-rater reviews
  • Salary and promotion history
  • Employee work history
  • Demographic data
  • Personality/temperament data
  • Recruitment process
  • Employee databases / HRIS

Visual 03: Organization’s Activities Focus on People Analytics
Source: Deloitte, People Analytics Report (2019)

Employee Data should be updated frequently, analyzed and communicated to upper management

As you can see, many data sources can be leveraged for people analytics. Please keep in mind that every organization has structured their HR and business data differently. Some data may be available, other data may not be. Depending on the business, there may also be other crucial data that is not listed in this article. If you know of such data sources, please comment them below!

#4.How can I implement to my Organization?

To get started with People analytics into your organization what you want to take into consideration is that you will have to combine your data from different HR Systems. Say you want to measure the impact of employee engagement on financial performance.

Let’s take a step back and consider developing a training program online for your employees concerning a new platform you will be using soon with People Analytics you can simply:

  • Calculate the business impact of your learning and development budget!
  • Predict which new hires will become your highest performers in two years.
  • Predict which new hires will leave your company in the first year. Having this information will change your hiring & selection procedures and decisions.

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