How Can HR Professionals Benefit From People Analytics
How Can HR Professionals Benefit From People Analytics

How Can HR Professionals Benefit From People Analytics

people analytics

Managing HR-related data is critical to the success of any company. What has been missing from the perspective of managing HR data is the capability to utilize and leverage this data in a way that aligns with business goals such as lowered costs and increased revenue. Thus, the absence of analytics in HR presents an untapped and huge opportunity.

The early adopters of analytics that can leverage data successfully will be able to outperform and outcompete their competitors. The rise of people analytics arrives with the promise of the evolution of HR into a revenue-increasing and strategic partner. This article discusses the role of people analytics in HR.

What Is People Analytics?

People analytics refers to the use of techniques driven by data for managing people within an organization. These analytical techniques range from metrics, tools and reporting to the predictive analytics of experimental research. Business owners can make decisions regarding people based on thorough and comprehensive data analysis rather than conventional methods utilized for decision making, personal relationships, and risk avoidance.

People analytics analyzes the efficiency of people’s programs, processes, and practices in today’s business environment. It helps in understanding the way in which the knowledge of data and social sciences may help in making informed and objective decisions regarding people. In addition, it assists in solving individual problems, uncovering new heights, and directing the actions of HR professionals.

People analytics can be referred to as a foundational block that is alert to all the roles that people perform. Traditional methods are the subject of endless debate when they are faced with exacting issues concerning people or major decisions about people that depend on instructions, anecdotes, and emotions. People analytics incorporates science and facts, which results in fairer and more effective solutions and decisions.

People Analytics Tools

The function of people analytics, which involves utilizing digital tools and data to determine, report, and measure the performance of an employee, is undergoing a vital shift. Business leaders and CHROs are not obtaining the results they want after years of investing in specialist teams and cloud HR platforms. Analytics is no longer about locating information that is interesting and flagging it for managers, but instead is becoming a business function that focuses on utilizing data to perceive the components of every business operation and integrating analytics into real-time applications and the manner in which we work.


Various predictive analytics tools have arrived and are making it possible to examine data concerning employee mobility, performance, recruitment, and various other aspects. The predictive analytics deliver a seemingly endless combination of metrics that help the executives understand in-depth what drives results. The tools driven by data can now examine employee patterns for time management driven by calendar data and email, show real-time correlations between engagement and coaching, conduct ONA, show trust networks, and predict patterns of fraud.

People analytics can now examine hourly labor and promptly determine patterns of overtime and other payroll leakage, allowing improvements of millions of dollars in revenue via enhanced practices in workforce management. Off-the-shelf retention models from various vendors are now available, making it simpler to determine the drivers of attrition. The companies that are developing people analytics tools are looking at billing hours, travel and other data related to performance to help employees enhance their wellness, energy levels, and business performance.

How to Implement People Analytics Successfully in an Organization

It is absolutely important for HR professionals to understand the pain points, business priorities, and identify the right problems (they must work with business leaders in determining these). The success of people analytics depends on data across all operations to develop a cohesive, strong cross-functional team that is skilled in consulting and data visualization, institutional knowledge, and data function.


People analytics also pertains to investment concerning time, money and, more importantly, to implementation of the practical insights drawn from analytics. An analytics investment roadmap must be developed for a wide spectrum of analytics. Determining the insights and complex data points are extremely critical for the right follow-up actions. So, training and preparing a group of important managers and leaders is essential. People analytics depends on the intersection of data across the company and outside sources. So, it is essential to have a data strategy to integrate/align the unstructured and structured data.


People analytics has the potential to enhance the efficiency of an organization’s talent acquisition function by replacing the manual processes. Hiring and recruiting data can be correlated with the outcomes of a business, such as increased revenue, to generate strategic insights and drive action. In the future, people analytics will transform the recruitment function by automating the process of candidate screening. This has downstream benefits for workforce planning, turnover, and performance management.

Ravindra PicSavaram Ravindra was born and raised in Hyderabad, popularly known as the ‘City of Pearls’. He is presently working as a Content Contributor at Mindmajix.comHis previous professional experience includes Programmer Analyst at Cognizant Technology Solutions. He holds a Master’s degree in Nanotechnology from VIT University. He can be contacted at savaramravindra4@gmail.comConnect with him also on LinkedIn and Twitter.

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