What is People Analytics?
People analytics is the use of data and statistical analysis to understand and manage human resources within an organization. This includes using data to make decisions about recruitment, performance management, training and development, compensation, and other HR-related issues. The goal of people analytics is to improve the effectiveness of the workforce and the overall performance of the organization. It involves collecting and analyzing data on employee behavior, attitudes, and outcomes, with the aim of identifying patterns and trends that can inform strategic decision-making. It combines elements of data science, business intelligence, and human resources management to provide insights that can drive business performance and improve the employee experience.
Why is it important?
There are several reasons why it is important:
Improving business performance: People analytics can help organizations understand how their workforce is impacting business outcomes and identify areas for improvement. By analyzing data on employee performance, engagement, and turnover, organizations can make more informed decisions about how to allocate resources and improve overall business performance.
Making data-driven decisions: People analytics provides organizations with the data they need to make informed decisions about workforce management. This can lead to more effective recruitment, training, and development programs, as well as better performance management and succession planning.
Identifying and addressing workforce challenges: People analytics can help organizations identify challenges such as high turnover, low employee engagement, or poor performance, and take action to address them.
Improving the employee experience: People analytics can provide insights into the employee experience, including areas of satisfaction and dissatisfaction. Organizations can use this information to create a better work environment and improve the overall employee experience.
Enhancing diversity, equity and inclusion efforts: People analytics can help organizations identify and address any disparities in workforce, compensation, promotion and other areas and take actions to promote equity and inclusion in the workplace.
Overall, people analytics is a powerful tool that can help organizations make more informed decisions and improve the effectiveness of their workforce, ultimately leading to better business performance and a positive employee experience.
How does this link to ISO30414?
ISO 30414 is an international reporting standard. Using HR data to build reports is the basis of analytics. ISO 30414 contains 58 metrics which are a mix of quantitative and qualitative types – its not all about numbers! The standard also considers whether the metric should be reported internally or externally.
But, the standard does look at linking HR data with Finance data so what is the profit or turnover per employee as well as calculating a return on investment field.
Why not take a look at my Audit and Analytics page for more information?