In these digital times we live in, technology is adding great value to the decision-making process, least of all in HR management.
Collecting and analysing information is today a critical tool for HR teams, especially when making important workplace decisions. Taking a data driven approach not only provides valuable insights, but allows management to take informed decisions using valuable HR metrics and analytics.
For anyone in the industry wondering why is people analytics important for HR, then read on. This detailed feature provides a helpful overview into the importance of people analytics.
What is People Analytics? And is it the same as HR Analytics
But first, what’s the difference in people and HR analytics? Well, people analytics uses technology to collect and analyse data about people to solve business problems. Although similar, HR analytics, collects information with a sole focus on metrics around the HR function (eg, training expenses, engagement figures). The biggest difference is that people analytics takes a more holistic view, capturing a snapshot in time, not just of individuals, but the company as a whole.
Some of the key benefits in using people analytics include:
- A data driven approach helps to make evidence-based decisions that are unbiased and rooted in data-rich statistics.
- It can be a useful tool for estimating and demonstrating a return on investment.
- Creating value is a knowledge element that can be obtained through people analytics.
- Gaining a deeper insight into your workforce, especially in terms of employee engagement.
- Can show the impact of HR policies within an organisation.
People Analytics Strategy
Effective team management has never been more important in attracting and retaining top talent. People are both a company’s most valuable and most expensive asset – which is why people analytics trends show that having a strategy in place can help to make informed business decisions. In fact, 60% of companies grew their people analytics teams last year, according to the latest figures.
When putting a strategy together there’s a few things to first think about, starting with your business objectives. What do you want to achieve, and what information do you want to capture? Also take the time to research some of the best people analytics software on the market, to ensure you’re adopting the right tools for your organisation.
Using the right People Analytics Tools
Wondering how to be great at people analytics? You just need to invest in the right tools, ensuring they feature a HR analytics dashboard. This all starts with the right software. There’s various analytics tools designed to capture data, from predictive analysis tools to bespoke software.
Today business spend upwards of $14bn in HR software according to Deloitte, yet many still struggle with using the systems. As such, it’s not just about using the right tools, but also ensuring that colleagues have the right training in place to use them too.
The right tools will tap into a wealth of insight, from employee turnover to risk profiles for individual departments. It will also provide other valuable data that can help you make positive changes within your business, in order to progress and move forward productively.
Increasingly, HR teams are incorporating people analytics solutions into their day-to-day, as they recognise a data-driven approach is valuable in retaining market position and the best talent in the industry. Relying on rich data is vastly becoming a go-to tool in HR circles, in helping to meet business goals effectively.