People Analytics: what is it and why is it a trend for HR in 2023?

People Analytics is an emerging discipline in the field of Human Resources that focuses on the collection, analysis, and utilization of data to make informed decisions and improve the performance and satisfaction of workers.

This approach is based on the idea that data can provide a deeper understanding of personnel and their needs, allowing companies to make strategic decisions to improve talent performance and retention.

What is People Analytics?

People Analytics is a combination of data analysis techniques, statistics, and psychology, used to understand how workers interact with their work environment and how this affects their performance and satisfaction. This approach is based on the analysis of data obtained through surveys, time and activity records, and other sources of information related to performance and organizational culture.

This discipline focuses on data analysis about workers to answer critical questions for the company, such as: How does employee engagement affect productivity? What are the key motivators for talent retention? What is the impact of culture on employee performance?

By answering these questions, companies can make much better decisions about how to improve talent performance and satisfaction, and how to retain their most valuable workers.

Advantages of People Analytics

There are several reasons why People Analytics has become a growing trend in the field of Human Resources:

Improved decision-making: By using data to make decisions instead of assumptions or intuitions, companies can be more objective and effective in problem-solving and implementing solutions.
Optimization of performance and talent retention: By better understanding employees and their motivations, companies can implement policies and practices that promote performance and talent retention.
Cost reduction: By identifying problematic areas and taking measures to address them, companies can reduce costs related to employee turnover and the search for new talent.

Trend identification: By collecting and analyzing data over time, companies can identify trends and patterns that can be useful in making informed decisions about employee development and organizational culture.
Improvement of culture and work environment: By better understanding employees and their needs, companies can implement policies and practices that foster a positive work culture and environment, which can in turn improve employee performance and retention.

How to implement People Analytics in a company

Implementing People Analytics in a company can be a challenging process, but it can also be highly rewarding if approached appropriately. Here are some steps that can help a company implement it:

Identify goals and priorities: Before starting to collect and analyze data, it’s important to identify the company’s goals and priorities regarding People Analytics. This may include improving performance and talent retention, identifying trends, and improving the work culture and environment.
Collect and organize data: Once goals and priorities have been identified, it’s necessary to collect and organize relevant data. This may include data obtained through surveys, time and activity logs, and other sources of information related to performance and organizational culture.
Analyze data: Once data has been collected and organized, it’s necessary to analyze it to answer critical questions for the company. This may include identifying trends, identifying factors affecting employee performance and satisfaction, and identifying problematic areas that need to be addressed.
Make informed decisions: Based on the data analysis, it’s necessary to make informed decisions on how to improve employee performance and satisfaction and how to retain the most valuable talent.
Monitor and evaluate results: It’s important to monitor and evaluate the results of actions taken based on data analysis results. This will help identify areas where more effort is needed and ensure that goals are being met.
Interdepartmental collaboration: For People Analytics to be successful, it’s important to involve the Human Resources, Finance, and Technology departments. Collaboration between these departments can ensure a comprehensive view and an integrated approach to the necessary data and actions.
Promote a data culture: It’s important to promote a data culture in the company. This means that all employees should be educated about the importance of data and how it can be used to improve organizational performance and culture.

Conclusions

People Analytics is a growing trend in the field of Human Resources that allows companies to collect, analyze, and use data to improve employee performance and retention. By identifying trends, improving culture and work environment, and making informed decisions, companies can gain a competitive advantage in the talent market and improve their productivity and profitability.

Implementation requires a comprehensive approach and interdepartmental collaboration to ensure success. By promoting a data culture and monitoring and evaluating results, companies can be better positioned to obtain the maximum benefits and improvements from their data.