People Analytics and its impact on organizations

In today’s working environment there is an ongoing appetite for HR and Recruitment managers to better understand their internal recruitment processes and their employee’s behavior.


Technology and automation processes help to simplify the process and provide a guideline for most problems. They also provide data and KPI’s that should be used for future decision making.


While actively searching for candidates identifying recruitment cycles helps to determine when to spend money or slow down the hiring process. Analyzing market rates helps to remain competitive in recruiting and retaining top talent.


Forecasting for future development

When asking an HR professional “what is the average turnover rate of his organization?” or “which of your employees are most effective in their work?” –  will not get you a clear answer.

The issue here lies with the approach to understand efficiency at work especially by department and area of expertise.

There is a lack of data driven processes in HR that hinder it from achieving its full potential. This is where analytics plays a crucial role in helping to be more effective while taking decision as there are certain questions that can only be answered using data .

You need to start forecasting for corporate development.


Top 3 benefits of People Analytics


1.Better hiring practices

There are certain important interrogation points HR managers ask themselves regarding their hiring process but fail to find real answers that will help them to advance in the process.

Shifting to an analytical streamlined data-oriented strategy will help to quantify the success or failure of certain decisions that have been made in the past provide and hints for better go to action plan.

Example: focusing only on hard skills and neglecting the soft skills while interviewing, implementing assessments, judging profiles only based on their CV’s etc etc…..


2. Higher retention rate

The cost and time involved in replacing employees can be very high which makes sense to preserve the workforce we have in place. Not to mention the training and time they need to adapt.

By collecting and analyzing data regarding turnover numbers, how long employees retain in your firm, how many roles have they changed internally  – you receive many indicators that are directly related to your actions, culture, and work ethics.

Improve the Employer Brand, Engagement and work satisfaction of your employees by understanding the insights of the numbers behind the people.


3. Improved workforce planning

Companies have always been analyzing numbers and results in related to revenues and performances but never really took the time to analyze their HR and Recruitment processes.

Knowing that People are a company’s biggest asset, learning from the past can help for future decision making while adjusting and changing several processes. Making sure the right people are working in the right department/function within the organization. It also help to decide when and who should have extended training or management promotion.


Implementing an analytical framework

HR and Recruiters must align HR related data and initiatives to the organization’s strategic goals.

Resources such as shared workspaces, company events, collaborative tools, and employee challenges can be implemented to achieve this goal.

To determine how successful initiatives are, HR analytics can be utilized to examine correlations between initiatives, strategic goals and the final result.

Once data is gathered, managers can put overlook the information turning it into an advantage implementing it into tools to gain actionable insights. These tools provide insights in the form of dashboards, visualizations, and reports. An ongoing process should be put in place to ensure continued improvement.

5 main steps to implement People Analytics

Step 1. Start by assigning new roles in your HR department defining what and how you want to achieve it. For this you would need capable employees who can analyze data and put it into models.

Step 2. Prepare the finances and budgets ahead of time so you can plan ahead your “go to action plan”.

Step 3. Identify your data sources as you will need a concrete library of accurate data that you can rely on.

You can rely on the HR technology you are using such as ATS, Assessments, Onboarding, HRIS, Referrals….

Step 4. Building your analytical model which you all agree would be used regularly and for all HR activities gathering constant information from different sources.

Step 5. Train your employees and managers alike to be familiar with the new processes. Everybody needs to be engaged and on board to understand the basic structure. Focus on your core organizational beliefs and desired employee competencies.



People Analytics was introduced a few years ago the global HR community and gaining more traction as Hiring and Retaining talent has become a bigger challenge.

Statistics, Data and Analytics have become important to consider as they generate actionable insight when deciding what HR decisions or strategies to adopt, the main 2 factors are time and cost reduction.