People analytics is all about understanding people.
In some respects, it sounds quite simple. Yet, digging a little deeper we can see that it is complicated. And the best way to understand people is to ﬁrst understand what we mean by people analytics
What is People Analytics?
You’re browsing the web and decide to check out some statistics on the people who go there. This is what analytics are all about. Collecting, analyzing and using data in order to gain insights that help you learn more about your target audience. In other ways around people analytics is about evaluating and improving relationships between your employees and your organization as a whole. It thus addresses one of the key facets of running a company which is your peopleIt is one of the best-kept top secrets in the business ﬁeld. Still, it has reached mainstream recognition and is slowly attaining popularity among the competitors. It is a bit of an umbrella term that covers everything from employee performance to motivation to succession planning.
Proper analysis of these aspects can help business leaders make better decisions that lead to growth. People analytics is a method of quantifying people’s behavioural patterns and various communication practices. It allows one to understand and predict human behaviour to grow their company’s revenue. Hundreds of companies such as Apple, Facebook, LinkedIn, Uber, Google and many more use people analytics to gain insights into their recruitment, communications, employee engagement strategies. Its use is on the rise and organizations are looking for ways to increase its adoption. As per a survey, nearly 50% of HR leaders agree it has made a difference in business outcomes
What are the advantages of People analytics?
People analytics is in the limelight these days. This up-to-the-minute type of data analytics has risen in popularity as it focuses on using big data and applying various techniques to analyze different aspects of human interaction and engagement also. It helps companies improve their daily activities by learning numerous lessons from these interactions. Some of the advantages of people analytics are as follows:-
- People analytics is a relatively new ﬁeld that combines the ﬁelds of statistics and business. The goal of people analytics is to determine which managerial decisions will lead to optimal performance results and to develop a business strategy based on quantitative data. People analytics is an important ﬁeld due to its potential for helping businesses make optimal business decisions as well as helping companies derive insight from their data-driven resources.
- The main concept behind people analytics is to leverage the internet, technology and data-crunching algorithms to make better decisions that directly impact an organization’s bottom line.
- People analytics is meant to offer new insights into the human elements of the business. It is similar to data analytics, but instead of crunching numbers and predicting future trends, people analytics uses big data to predict future trends and analyze human behaviour.
- People analytics provides information on employee skills, strengths, and experience. It can tell you which employees have the potential to grow and work with high-impact projects. It also helps in identifying employees who can serve as mentors for the company’s junior members. In a nutshell, people analytics is all about getting productive employees to produce better results for your business.
- In organizations where performance is divided up into teams and departments, people analytics can be used to analyze employee skill sets, business requirements, and geographical zones in order to ensure division labourer is done on a fair basis. Those organizations that do not ensure this equitable division of labourers may have employees within those groups that feel they are being underutilized or underappreciated. People analytics can identify these instances.
- It is a very basic and powerful tool for data mining. This can be applied to improve sales, marketing and product development by creating insights based on the analysis. Knowing your users, their behaviours and actions can aid a business by providing actionable insights and meaningful information about the customers’ needs and wants.
- People analytics represents a fresh way for companies to analyze their workforce. Rather than relying on traditional HR methods that measure productivity, people analytics allows organizations to track everyday business events and correlate them with the actions of employees. The data generated by this process serves as invaluable insight into the operations of any company. Used effectively, people analytics can become an essential tool in gauging employee behavior and maximizing worker productivity.
- People analytics clearly has its place in the HR industry. The most important aspect of any business is, after all, the human element. With people analytics, HR managers can make better decisions about their workforce, which helps companies improve their efforts at retaining and attracting top talent.
People Analytics is rapidly emerging as a new ﬁeld in the Human Resources domain. There are research reports to suggest that companies who start adopting People Analytics will be able to get a competitive edge over others. It makes sense that with the advent of data science,HR needs to come into play and align with analytics. Therefore, it is reasonable to assume that people analytics will gain tremendous traction in the coming years.