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What Is People Analytics?

People analytics involves the use of data and metrics to glean actionable insights into a wide range of HR-related information.

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What is people analytics?

People analytics involves the use of data and metrics to glean actionable insights into a wide range of HR-related information to help improve individual and organizational performance.  

Why people data matters more than ever

Today’s employment environment has been significantly impacted not only by the pandemic, but by advances in technology and changes in the types of knowledge, skills, and abilities that companies require. These changes have been compounded by a significant decrease in available talent , making employers increasingly concerned about how best to attract and retain top talent.

People analytics can help.

How do companies use people analytics?

People analytics can be used in a number of ways to answer key questions about how to find, manage, develop, engage, and retain employees. For instance, from a hiring standpoint people analytics can be used to determine which talent sources result in the best hires based on employee longevity, productivity, and performance. 

Once hired, people analytics can be used to determine areas in the organization where satisfaction is high, or low, and what these ratings may correlate with—e.g., department or division, supervisor or manager, length of service, absenteeism, etc.  

The critical role of technology in people analytics

Advances in technology now allow companies to analyze a large volume of data, and make correlations predictions based on that data while allowing real-time access to information and reports. The use of artificial intelligence (AI) has vastly improved the ability to rely on data to make well-informed decisions about a company’s most valuable resource—its people. 

In fact, according to Gartner, 70% of company executives say that people analytics is a top priority. And more than half of companies expect their people analytics technology investment to increase. 

It’s clear that access to current, reliable, and actionable data about human resources is not a luxury, it’s a must-have for making sound decisions about people and how they impact productivity and business results. 

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