You might have heard the term people analytics, but what does it mean? It is a well-known and hot topic of the industry, but no one seems to have a clear understanding of it. In short, a data governed approach towards human resources is known as people analytics. People analytics greatly assist businesses to make better decisions to successfully reach their goals.
1. Introduction to the term
First, you might know that data-oriented decisions have better results. If you can wrap your head around it, then you are halfway there!
People analytics is also referred to as “HR analytics. It is all about studying the processes, functions, challenges, and opportunities of people at work using data and goal-focused methodologies. Such a data-based approach is used to elevate the HR practices to achieve business goals.
According to the study done by Bersin in Global Human Capital Trends, 71% of companies see people analytics as a high priority in their organizations. You cannot deny the importance of people analytics in day-to-day decision-making. According to the study done by DDI, companies that focus on people analytics are likely to outperform their competition by 3.1 times.
Moreover, you can get multiple benefits for your business by considering people analytics such as:
- Employee retention
- Achieve fair pay
- Effective Hiring
- Increased Learning and development
- Increasing diversity
- Optimized workforce planning
- Improve spans and layers
- Increased productivity
2. Main steps for implementation
After learning about the definition and having a clear concept of the term “people analytics”, you might be wondering how to implement it to achieve your business goals. To successfully implement people analytics in your company, you have to go through the 4 key steps below.
Take C-Level Executives in Confidence
To effectively implement people analytics in your company, first, you need to take c-level executives under confidence. You may ask, how you can convince company leaders about the effectiveness of people analytics. It is simple, just show them the difference in a company’s performance with and without people analytics. Apply the insights of people analytics to overcome business problems and develop its worth.
Team Formation
Mostly, professionals of HR are unaware of the strategies and ways to analyze data and generate real results from it. Start with providing them with proper guidance and training. As soon as your HR team becomes familiar with people analytics, assemble a dedicated team for it. As the field of people analytics is multidisciplinary, it is advised to include people from varying departments.
Using the Right Tools
The team members of your HR may possess basic analytical skills, but to fully benefit from people analytics you can also consider third-party solutions. Moreover, there are also specialized software and tools available on the market. Some of them are mentioned below:
- Excel
- Python
- R
- Tableau
- Power BI
- Visier
To read more about them you can click here. Your company can greatly benefit from such tools and solutions by gathering, analyzing, automating, and reporting data.
Education Towards Legal Constraints
Keep yourself up-to-date with the ethical and legal standards of data collection. It is advised to always keep all privacy, security, and confidentiality standards in check. The process of data collection and the privacy policy should be transparent. Also, it should be inclined towards protecting the privacy and integrity of the employee. It should be kept in mind that, “Just because something can be measured doesn’t mean it should be!”
3. Driving the Business Through the Power of People Analytics
Not too long ago, people analytics was only practiced by a few leading companies, such as Google! Nowadays, a lot of companies are implementing people analytics to drive their businesses. Data collection and data analysis in processes such as recruitment and retention have gained much importance.
To drive your business through people analytics, you have to train your HR to get past common practices of HR such as focusing on mere reporting of employee data. Mostly HR considers people analytics to generate reports on turnover, diversity, and gender per equity. But people analytics can be used to get much more benefits in addition to only HR benchmarking. To discover the key aspects via which you can reach your business goals consider the below-mentioned points;
Develop a Business Case for Initiatives
By considering people analytics, professionals of HR can generate a business case governed by data for HR initiatives. Such an initiative can have enough potential to positively impact business processes.
Display HR Interventions Effectiveness
With the help of people analytics, HR professionals can easily test the effectiveness of applied policies and prove the results of varying interventions.
Make Data-Based Decisions
Instead of following your gut, people analytics assist to make data-driven decisions that can have a fruitful impact on business performance in the long run.
The Shift Towards Strategic Partner
As professionals of HR are armed with data, they can become the company’s strategic partner to generate effective results.
HR Analytics can efficiently tackle definite business problems by benefiting from the insights gained by the collection and examination of people data.
After the introduction and impact of people analytics, the old days where HR only had the role focused on managing employees are gone. Nowadays, HR is likely to play a significant role in businesses’ road to success.

Kainat Khan is an experienced SEO content writer who has been providing writing services since 2016 for several organizations. She focuses on writing for the talent acquisition and technology industries. She is currently pursuing a Master's Degree in Information Technology. Her strength lies in a deep understanding of artificial intelligence, machine learning, and how to take advantage of HR technology.
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