• Carrie Kasitz Free

Ask HR1: What Is People Analytics and Why Do I Need It?



As a business owner, it is important to know what your employees are working on and why. People analytics are all about using a data-driven approach to inform your practices, programs and processes.


How do people analytics help your business?


People analytics can help assess the effectiveness of your internal plans and processes. Understanding the social and data sciences behind people analytics can help you make more objective and informed decisions about your team.


Gain important, actionable insights


People analytics provide important data-revealing insights such as employee turnover, time to fill open positions, the top performers in your company and the benefits that matter most to employees. This information helps employers to put in place practices that will holistically improve the company's workforce.


Data-driven decision making


A key element of people analytics is that it helps employers make better decisions in less time. Having a wealth of human resource metrics and people analytics data provides employers and managers with the tools to give employees what they need and resolve potential conflicts.


Enhance talent acquisition processes


As more companies begin to use people analytics, recruitment will also continue to become a process of automation. People analytics will play an important role in talent acquisition, helping owners and managers find and acquire candidates both internally and externally to meet job requirements.


Implementing people analytics in steps


The implementation of people analytics within your human resources strategy should be done in incremental steps.


Step 1: Gather data and information


First, you should gather the necessary data and information from employees. You will analyze this data and use it to make decisions based on actual data rather than an opinion or gut feeling.


Step 2: Identify your company’s pain points


The second step is to identify your company’s pain points. What is the most pressing problem your business faces? Pinpointing your unique challenges will help you determine how the data you collect will inform your decisions and solutions moving forward.


Step 3: Determine information collection methods


Determine the methods you will use to collect employee information, such as what software or tools will be used. A range of human resource software providers offer powerful tools to businesses and HR professionals to collect valuable metrics and implement them in their practices.


Step 4: Analyze the data to identify trends and patterns


Lastly, review all of your collected data to identify the messages those numbers carry. Do you see any obvious trends or correlations? Follow up on your results to confirm the alignment of strategic outcomes as you begin to put your new procedures into action.


HR1 Can Help


For additional information on this topic and more human resource expertise from our Founder and President Carrie Free, follow HR1 Consulting, LLC on LinkedIn, keep an eye on our website and get exclusive resources and content through our email list.