People analytics is an emerging trend in Human Resources and many companies are trying to adopt it, considering the myriad of benefits. Success of an organization depends a lot on analyzing and managing HR related data. However, before the advent of people analytics in HR, there was a lack of techniques to align HR data with business objectives. Analytics has opened up huge opportunities for HR departments and the companies that embraced the technology at a very early stage already enjoy a competitive edge. People analytics brings a refreshingchange to the HR, helping it in the formulation of better strategies and revenue enhancement.
- Defining People Analytics
People analytics in HR is a robust technology that uses data and analytics for understanding various trends and issues related to employee performance, recruitment and management. It is an excellent key for employers to ensure that the decisions regarding employee management and recruiting are aligned with the business goals. People analytics helps an organization understand its workforce metrics and how they influences the bottom line. The technology has the potential to predict as well as drive the success of an organization.
2. Advantage over Traditional Methods
People analytics has a significant advantage over the traditional methods of managing employees. In traditional methods, major decisions regarding employee issues and management are subject to vigorous debates depending on emotions and instructions. People analytics in HR is based on facts and science and leads to more effective and fairer decisions. Employers can make decisions based on comprehensive data which prove to be much more effective as compared to traditional methods of risk avoidance and decision making.
3. Tools for People Analytics
There are a number of predictive analytics tools which help in examining data regarding employee performance, mobility, recruitment etc. With predictive analytics, managers get endless combinations of metrics for understanding the factors that drive results. The tools provide an excellent understanding of the time management patterns for employees, based on email and calendar data and this helps in drawing inferences about, training, employee engagement, fraud patterns and more. The tools can also examine hourly labor which helps in determining overtime patters and payroll leakage. This, consequently, leads to better workforce management and improved revenue. Organizations involved in developing people analytics tools are also considering the analysis of billing hours, energy levels, travel data and business performances.
4. Implementation of People Analytics
People analytics in HR is yet to be developed fully and adopted as a popular technology in HR. There are concerns because applying analytics to sales figures and market trends is an entirely different approach as compared to people. However, people analytics definitely helps managers to get a better grasp over employee behavior and performance. People analytics translates to evidence based HR and it reduces the hiring problems arising from human errors and intuitions.
Data wouldn’t answer anything if you don’t know the right questions. For creating a positive impact through people analytics, the organization must understand the use and benefits of analytics. Managing workforce through analytics could significantly improve the profits, provided the technology is used in a wise way.