Just as analytics is becoming a key to marketing and logistics departments, it is also taking center focus in human resources departments across the country.
For years, HR has been collecting data on employees and doing virtually nothing with the information. Those days are over. Now, companies are leveraging that data to solve a myriad of efficiency issues within their companies. Below, we will look at three ways people analytics is playing a key role in many businesses.
People Analytics have Incredible Valuable
Many business leaders are very concerned with retention, engagement, and leadership. However, traditional HR methods are poor predictors of these business issues. Therefore, companies are desperate to determine concrete factors that attract new employees, predict successful employees, and cultivate a culture of leadership.
With the use of people analytics, these elusive factors become quantifiable. Thus, the area of people analytics is a growing field, edging out a space in HR departments across the country.
People Analytics give Powerful Insights
The adoption of people analytics is still in the early stages for most businesses. With this implementation infancy comes a bit of confusion. Many traditional HR leaders are confused about the scope, purpose, and power of people analytics.
Many still believe that people analytics focuses solely on computing retention rates, identifying how many and what types of employees you have, and calculating overtime ratios. Others think you should use the data to calculate an ROI for certain types of training or other program initiatives. While measuring all of these are possible with data collected by HR, people analytics have the potential to be much more powerful.
The days of glancing over payroll, time, and attendance are done. The people analytics of the future goes much deeper than these surfaces. New data can dive into tools such as engagement surveys, email history, and sociometric measurements to identify and resolve company issues.
Harvested correctly, people analytics can be the tool to solve specific business problems. It can be used to determine everything from sales productivity to employee efficiency, from retention to forecasting. People analytics allows a company to take the information from the HR data warehouse and turn it into a powerful tool that can improve efficiency and business operations.
Implementation Brings People Together
Data collection is not merely enough on its own. Interpreting the data will not solve your business issues. To put people analytics to use, you must implement new policies based on what the data is telling you.
Implementation is by far the hardest part of people analytics. Your analysts must have the communication skills to bring key members of other areas in the company on board.
Implementation is truly a multi-disciplinary team process. You will need data scientists to build models. You will need IT people. You’ll need project managers. You will need input from department leaders, OD experts, and field employees. Then, your team will still need to successfully pitch your solutions to company executives.
On rare occasions, implementation can hit a wall. Despite what the facts of the analytics are telling your company, change is not always easily accepted in the workplace. Sometimes people are hesitant to accept new policies and procedures, especially if the current practices are not inefficient. Even if your new practices can lead to more efficiency, you may be met with the 'if it ain’t broke, don’t fix it' mentality.
If this is the case your company is facing, you may want to consider hiring a change management consultant to help bring the solutions of your people analytics to life. Either way, the data does you no good if its results are never actually put into play by your company.