Thank you for Subscribing to Business Management Review Weekly Brief
I agree We use cookies on this website to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies. More info
Thank you for Subscribing to Business Management Review Weekly Brief
By
Business Management Review | Thursday, July 28, 2022
People analytics is important as HR analytics can help business leaders at companies of all sizes make considerate, data-driven choices when planning their HR strategies.
Fremont, CA: People analytics is the practice of collecting and transforming HR and organizational data into actionable insights that can improve how you do business.
By changing raw data into meaningful insights, answers and solutions, people analytics allow you to better grasp your workforce and organization.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Utilizing these insights, you can back up your instincts with facts and depend on data-driven strategies to support your organization's growth while empowering and increasing your most critical asset – your people.
Some of the most robust and universally valuable people analytics are predictions regarding:
• Turnover
• Retention
• Attrition
In reliance on machine learning and artificial intelligence, human capital analytics can allow you to:
• See the threat of employees leaving in advance.
• Grasp the underlying drivers impacting why they might leave.
• Create a litigable plan for how to keep them.
Committed to inclusivity? HR analytics can also support you assess how diverse and inclusive your workforce is, possibly uncovering whether any secret biases or inequities stand as you work to enhance your workplace diversity efforts.
Who can use people analytics?
Companies in about every industry can advantage from the actionable insights you can draw from people analytics.
This is notably true once you've passed the 100-employee mark – when the size and the level of organizational complexity make the data richer.
Above standard talent management analytics, the industry you're in will command which other aspects of people analytics will be most beneficial to you.
For instance, if you're in retail, manufacturing, home healthcare or any industry that employs mostly hourly workers, then overtime and compensation analytics will be very useful.
To repeat, there is something for every company to uncover with people analytics, but your category of business will decide which parts of the data are most important to you.
Six people analytics use cases
Let's carefully analyze how you can use people analytics to make strategic decisions and improve your business.
1. Turnover and retention analysis
With the support of technology, you can employ people analytics to see why people leave your company and who may leave. Moreover, you can dive into these risks among various groups of employees – whether that's first-year employees or senior leaders.
On the other side, you can also use people analytics to understand what factors keep people at your company. For example, in some cases, you may see a correlation between management training and employee retention that you may want to address.
2. Workforce modeling
According to variables pertinent to your budget or growth goals, people analytics tools can shape your workforce look like in the future, whether 12 or 18 months down the road.
This can support you turn a basic staffing plan into a longer-term strategic workforce plan, making more appropriate hiring decisions. You can also employ this information to create better compensation and retention plans.
3. Labor cost analysis
With people analytics technology, you can find out factors that may be driving up your labor costs, like patterns of overtime or absenteeism or workforce shortages.
4. Management problem analysis
People analytics can support you in identifying management problems causing some of your greatest business and HR challenges.
For instance, your data may reveal a location or department where there is a pattern of:
• High turnover
• Low performance
• High employee dissatisfaction
• High use of overtime
• Or other challenges
Approaching these issues through the lens of the data can provide you with an unemotional viewpoint, making it more comfortable to decide how to solve them.
5. Generational analysis
What if you could predict who will likely retire within your organization in years? With HR analytics, it's possible. Simultaneously, you can research what the succession pipeline looks like underneath those positions approaching retirement.
You can also utilize people analytics to find patterns within your workforce's generational group. For example, are certain groups' trends related to retention, performance or career progression?
6. Pay equity and diversity analysis.
Another important use for people analytics is looking at compensation and seeing if any pay inequities stand between genders, sexual orientations or generational groups.
You can also look at the actual diversity of your organization. For instance, do you have a uniform management group? Do you have female leadership at every level?
These answers can support you develop fairer and better hiring, promotion and pay practices. Over the long run, these efforts will also improve business performance.
More in News