People Analytics: Critical to driving Business Success
At its core, Human Resources (HR) continues to remain a pure people-oriented function. While HR professionals continue to focus principally on the “human” elements responsible for running an organization, they are increasingly leveraging technology and data to drive many Core-HR aspects that successfully ensure exceptional employee experiences.
People analytics can be defined as the profoundly data-driven and goal-focused method of studying all people processes, functions, challenges, and opportunities at work to transform them and achieve sustainable business success. The process captures, measures, and organizes that information to establish essential employee-centric insights for an organization.
With access to large amounts of data, organizations are now taking vital HR decisions that are data-driven and have become a standard element of most mature HR organizations. This is done to validate and support decisions related to the quality of insights, employee experience, talent management, and many more.
The Impact of Analytics
The core areas of an HR professional’s responsibilities most positively impacted by People analytics are:
Enhancing HR-employee-business relationships
People Analytics helps a lot in driving strategic planning as well as execution processes at the organizational level. It helps develop informed decisions and inclusive approaches based on vital data insights, employee happiness, increased business revenues, and corporate growth. HR can employ data to understand the effectiveness of how various HR processes are functioning. For instance, analysis of training needs, employee performance & talent management, etc., can help identify pain points to engage resources in areas that ensure the highest overall consequences.
Recruitment and Hiring Processes
HR can use vital data to understand whether an identified candidate would fit a specific role and the company’s workplace culture. Bringing in perfect hires will allow HR departments to spend their valuable time concentrating on employee performance, retention, and growth, rather than looking for replacements. Additionally, data gleaned and analyzed from exit interviews, employee satisfaction surveys, and quarterly assessments also offer valuable insights to the HR team.
HR professionals can appraise the holistic employee experience by quantifying metrics such as employee productivity, happiness quotient, and engagement. HR can leverage this data to establish areas of improvement. Other opportunities that can be optimized are compensation & benefits, leave policies, upskilling, and on-the-job training and development.
So, is investing in a People Analytics Solution a wise decision?
People analytics certainly offers some unquestionable advantages. It empowers HR to simplify and streamline functions, substantially reduce costs, shrink attrition, and strengthen the bottom line.
Task automation frees up the HR team to uncover and focus on human aspects rather than spending time and effort, making sense of mountains of data from diverse sources. As a whole, HR analytics is getting established as a significant HR technology trend for the coming years. It is a “ fit for purpose” method to boost employee experiences that drive business outcomes.