Human Resource Outsourcing
People analytics: Transforming an organisation’s HR management
HR is the backbone of any organisation and helps the organisation in achieving the goals and objectives by managing the workforce and fostering a positive attitude among the workforce. People analytics is a data-driven and goal-focused approach to analysing, evaluating, and understanding the processes, functionalities, opportunities, and challenges concerning people. Through people analytics, you can improve HR processes and systems to achieve sustainable growth. Over the past year, people analytics delivered a return of $13.01 per dollar investment. And as a result, 69% of the companies with >10,000 employees have people analytics teams, and 6 in 10 companies grew their people analytics teams in 12 months.
But while some businesses are maturing people analytics, most are still trying to catch up. And in today’s descriptive job market, this is bound to lead to frustration and failure. A report revealed that only 29% believed they are good at making positive changes based on people analytics. This is where focusing on people analytics helps you in transforming the HR process to build a sustainable competitive advantage.
People analytics: Applications and benefits
The data-driven insights facilitated by people analytics venture beyond the traditional recruitment metrics and answer strategic questions surrounding the quality and value of your people. These analytics help you in:
- Linking recruitment efforts to critical business outcomes
- Identifying and addressing employee turnover problems
- Developing and executing strategic workforce plans
- Facilitating an inclusive and diverse workforce
- Enhancing employee and organisational performance
- Planning for collective success
- Maximising your talent development and learning investments
And through such evidence-based HR interventions, you can improve performance, save costs through reduced turnover and optimal workforce planning, and enhance skills based on the future needs and vision of the business.
If you want to invest in HR data analytics and benefit from the emerging trends in people analytics, you need to:
- Define and align your people analytics strategy with your business strategy.
- Get an overview of your team’s existing capabilities for better workforce planning.
- Foster a data-driven organisational culture.
- Understand that people analytics is a process and the results won’t be visible overnight.
Popular trends in people analytics
Trends in people analytics are constantly evolving with the latest data mining and interpretation strategies. But here are four popular trends in people analytics that can help you transform your organisation’s HR management:
Transforming HR capabilities and operations:At present, only a few organisations have mature people analytics capabilities that can give them a competitive advantage. So, you will have a first-mover advantage if you can intelligently innovate your HR management, capabilities, and operations through people analytics. People analytics is also quickly becoming an HR currency with the capabilities to evolve HR processes to align with evolving business needs.
Transforming HR–business interactions:In the current business environment, the interactions between HR and business stakeholders are also evolving. As businesses need to find correlations between seemingly unrelated data and find interdependence to manage work better — all the while maintaining transparency — people analytics has the potential to offer actionable insights and strategic guidelines to transform HR–business interactions.
Transforming HR–employee relationships:Improving employee experience is one of the key focus areas for modern business as a requirement for effective employee engagement and retention. Every interaction between HR and employees acts as a data point for people analytics, which has the potential to deliver valuable insights. As a result, it can help transform the relationship between employees and HR and elevate HR from just a support function to a business-critical function.
Transforming quality of insights:Expectations surrounding the quality of insights are constantly evolving with evolving data analytics capabilities. If an organisation can effectively address the analytics literacy and data security aspects, people analytics has the potential to flourish and offer diverse insights from the perspectives of HR experts. As a result, people analytics can generate high-quality, evidence-based insights that can drive organisational strategy.
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