The Rise of People Analytics

 

What is People Analytics?

People analytics is a data collection process that focuses on human capital and employee performance within an organization, providing valuable insights for HR and PA specialists.

The association of PA with HRM is obvious, given the emphasis on optimizing recruitment, retention, assessment, promotion, remuneration, turnover and other aspects of human capital management. The information technology and cyber security professions are also stakeholders, since data analytics are essential for red-digging corporation threats. such as the misuse of organizational information, intellectual property  or fraud (Guenole, Ferrar & Feinzing, 2017).

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The human resource management (HRM) function is making steps to combine its intuition, experience and beliefs with the new trend of data analytics (Rasmussen and Ulrich, 2015;Van der Togt and Rasmussen, 2017).

According to a SHRM’s Research, 71% of HR executives using people analytics say it’s crucial in their organization’s HR strategy. Technological advancements and increased computing power enable organizations to use data to evaluate HR processes, employee productivity, diversity, and attrition, allowing HR professionals to focus on innovation and strategy.

A Forbes article describes people analytics as: A data collection concerning human capital and workers’ performance within an organization. But this practice also turns information into actionable and meaningful insights that HR and PA specialists use to enhance business performance and employee experience.”

 

How are organizations using people analytics?

According to HR professionals, organizations are using people analytics most often for:

                                                 (Source : www.aihrm.com)

Following key areas in which people analytics add value:

• Diversity and Inclusion: For actionable insights on employee sentiment and to test improvements in employee experience, psychological safety, belonging and fairness.
• Employee Experience: For data-driven employee experience/listening to get a better “feel” of the organization.
• Retention: For information about the labor market, key competitor trends, risk factors with predictive models and more.
• Workforce Planning: To predict and plan for skills and workforce costs while managing existing costs.
• Talent Acquisition: For evaluating fairness in assessment and selection and the right hiring pace for the market demands of the business.

The four-types of  people analytics

People analytics come in four flavors, and each one provides unique information. Each can be useful separately, but when combined, they provide a more complete picture. Think about what information you are entitled to and your needs when choosing which approach to use.

Descriptive analytic - A fundamental kind of people analytics, descriptive analysis (sometimes called decision analytics) examines trends in past data sets to shed light on what transpired. Descriptive analysis, however, does not forecast the future using existing data. Organizations using people analytics most frequently use descriptive analytics. This kind of analytics is used by 83% of firms.

Diagnostic Analytics - By providing an underlying explanation for the insights found in the trends, correlations, and anomalies of the data, diagnostic analytics goes beyond descriptive analytics.

Predictive Analytics  - Predictive analytics use an estimating model to forecast potential future events after classifying historical and current data to extract insights. Just 20% of businesses always or frequently use this kind of analytics.

Prescriptive analytics  - The last phase, known as prescriptive analytics, translates the results of predictive analytics into choices and activities that will lead to success. 42% of firms utilize prescriptive analytics at least moderately, compared to 17% who use it heavily

(Source : www.aihrm.com)

Global organizations successfully use people analytics to make business decisions: 

People analytics has been successfully used by global organizations like Google, NASA, Microsoft, and Uber to make business decisions.

Google's People Innovation Lab uses data to identify great managers and effective teams, forming team structure and hiring, training, and promotion decisions.

NASA uses a talent mapping database using Neo4j technology to identify skills, knowledge, abilities, and technology within a work role, translating them to employees, projects, and training.

Microsoft's "Manager Hub" is an insights generation platform that offers suggestions for managers to take specific actions based on real data.

Uber's people analytics enabled greater employee engagement and improved business outcomes by empowering managers to access necessary data and dashboards, designing their solutions user-oriented, and optimizing employee dashboards for clear insights.

 

Source : www.youtube.com 

References

Guenole, N., Ferrar, J. and Feinzig, S. (2017), The Power of People: Learn How Successful Organizations Use Workforce Analytics to Improve Business Performance, Cisco Press, Indianapolis, IN

Rasmussen, T. and Ulrich, D. (2015), “Learning from practice: how HR analytics avoids being amanagement fad”,Organizational Dynamics, Vol. 44 No. 3, pp. 236-242.

Van der Togt, J. and Rasmussen, T.H. (2017), “Toward evidence-based HR”,Journal of Organizational Effectiveness: People and Performance, Vol. 4 No. 2, pp. 127-132

Forbes: https://www.forbes.com/sites/forbeshumanresourcescouncil/2022/05/31/how-to-use-people-analytics-to-drive-business-performance/?sh=654c5975129d

SHRM: https://www.shrm.org/about/press-room/shrm-research-hr-professionals-seek-responsible-use-people-analytics-ai

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AIRHM : https://www.aihr.com/blog/people-analytics/

www.youtube.com : https://www.youtube.com/watch?v=B4EqhvSuv4o