As data analytics becomes more central to business decision-making, organizations are looking for ways to use data to guide strategy, operations, and workforce planning. In the second edition of its State of Data and Analytics report, cloud software company Salesforce reported that 63% of more than 7,600 business leaders surveyed described their businesses as data-driven.
Human resources (HR) is one area where data analytics can be especially useful. By applying data analytics techniques to employee data, a process known as people analytics, HR professionals can identify new ways to support employees, build an effective workforce, and help businesses succeed.
If you’re a professional working in HR, people analytics expertise could be valuable for day-to-day responsibilities and long-term career growth. Whether you complete a people analytics course or learn about the concept through other avenues, it’s important to develop an understanding of it and what it can do.
What Is People Analytics?
People analytics is the process of collecting and analyzing workforce-related data to derive insights. These insights can uncover crucial information that can prompt businesses and HR professionals to improve HR processes and programs or develop new ways to help employees become more productive.
Many businesses already have a wealth of data they can use for people analytics, including data from:
- Recruiting efforts
- Compensation and benefits plans
- Employee surveys
- Training programs
- Vacation and sick leave records
- Succession planning data
- Performance reviews
Businesses can also analyze employee data in relation to other key sources of information, such as sales performance, financial data, and customer relationship data.
Using people analytics in an HR function has the potential to:
- Offer insights into employee contributions over time
- Uncover the reasons behind past employee-related events
- Make forecasts regarding employee-related matters
- Recommend actions to address employee-related challenges or achieve specific HR goals
- Recommend ways to make HR processes more effective and efficient
How to Use People Analytics in HR
Reviewing examples of people analytics tools in action can help demonstrate how organizations use people analytics in HR.
Data Visualization
HR professionals can use people analytics tools, such as interactive digital dashboards, to visualize complex workforce data. Visualization tools can summarize real-time data in a digestible format and highlight key metrics on employee turnover, overall talent supply, job postings, and employee compensation.
Predictive Analytics
People analytics can help HR professionals forecast workforce issues and address them before they escalate. For example, HR teams can use people analytics techniques to anticipate seasonal staffing issues, increases in employee turnover, or increases in employee complaints. After identifying potential issues, they can implement targeted approaches to address them before they become serious problems.
Workforce Analysis
One of the most important responsibilities of working as an HR director is maintaining and improving workforce effectiveness; people analytics tools focused on workforce analysis can be extremely helpful in that effort. These tools can provide insight into areas such as employee engagement, recognition, and productivity. HR professionals can use that insight to conduct workforce planning, promote a collaborative culture, and reduce employee attrition.
Recruitment and Talent Acquisition
HR professionals can use people analytics tools to improve employee recruitment and strengthen the hiring process. For example, these tools can screen job candidates using objective criteria, predict candidate success in specific jobs, or create efficiencies that enable recruiting staff to devote more time to interviewing.
Employee Training and Development
Another important use of people analytics in HR is improving the training and professional development opportunities that businesses offer their employees. For example, HR professionals can use people analytics techniques to identify skills gaps, examine training completion rates, and assess employee performance after training. This can provide crucial information for HR professionals to improve employee training and development.
Benefits of Applying People Analytics to HR
Using people analytics in HR can help organizations make more informed workforce decisions and improve overall business operations. People analytics can provide the following insights:
- Support data-driven decision-making based on workforce data rather than hunches or intuition
- Improve efficiency by streamlining workflows, addressing staffing issues, and providing timely and targeted training
- Establish an effective workplace culture that respects work-life balance, encourages collaboration, strengthens employee engagement, and promotes communication
- Retain high-performing employees by gauging their job satisfaction, helping them expand their skills, and rewarding them for their contributions
- Align HR strategies with overall business goals, ensuring that workforce initiatives help achieve these goals
Build People Analytics Skills
Using people analytics in the HR function can help businesses operate more effectively and efficiently, ultimately meeting their strategic objectives. Extracting insights from employee-related data can be key to ensuring that a business has a workforce capable of achieving its goals.
Bryant University’s six-week, self-paced People Analytics course provides foundational knowledge in collecting, analyzing, and interpreting workforce data. HR professionals who complete the online course can earn 30 professional development credits for Society for Human Resource Management (SHRM) recertification. Those who complete the People Analytics course and five additional designated Bryant HR courses are eligible to earn a Human Resources Management Certificate.
Explore Bryant’s People Analytics course and take the first step in expanding your HR expertise.