Data-driven information is playing a vital role in every sector of organizations including Human Resources. The use of technology and its advancements like Artificial Intelligence, Virtual Reality, Blockchain, Cloud-based HR systems, and Advanced Analytics have played a vital role in transforming business shape and style. But when we discuss HR, it’s People Analytics that affects the day-to-day decisions.

What Is People Analytics?

It’s analytics of people’s data that supports managers or executives to make better decisions about their employees to improve productivity and better growth of the organization. It is often used with Human Resource Management System. It is also known as HR Analytics which refers to a way to improve human resources in the organization. Analytics is defined as the science of understanding data. People Analytics has the following process:

  • Identify challenges and goals in HR
  • Implement the right solution for data collection
  • Using appropriate models to analyze data
  • Making conclusions and act accordingly

Impact of People Analytics on Strategy

Business leaders using People Analytics benefit from its impact on their company strategy in the following ways:

  • They can measure and identify the next batch of successful leaders in their organization.
  • It can help in making decisions regarding talent acquisition and human resource development.
  • Their work and processes promote leadership within the organization.
  • Identifying people who match their company culture

Why People Analytics Is Crucial?

Data-driven insights enable better decision-making in all HR tasks from recruiting to compensation and workforce planning to retention. The new competitive business environment has created an urgent need for better decision-making by analyzing data to determine the root cause of the problems and anticipate future developments based on hard evidence.

The benefits of people analytics in the everyday decision-making process are unquestionable. Normally people’s cost surpasses 50% of corporate variable cost, so it’s important to manage such a huge cost based on data analytics rather than subjectively. There are numbers of HR Metrics to dig the data, but here we will discuss few important data metrics which are crucial for an organization.

  • Revenue per employee
  • Performance turnover in key jobs
  • Loss of revenue due to vacant positions
  • The new hire failure rate
  • Cost per hire
  • Employee performance
  • Career path ratio

These are some but there are other metrics which can be measured as well depending upon the needs and goal of the organization.

Benefits Of People Analytics

People analytics has become an integral part of Human Resources. Business leaders now use analytics to find solutions related to workforce planning, new hiring, employee retention, training, and skills gap which as a result enables them to add value to organizational growth.

Decision Making

People Analytics provides more in-depth data to empower definitive decision-making and managing employees in the most efficient way across the entire employee lifecycle.


People Analytics can take out the guesswork of the hiring process and analyze the possibilities of a candidate being the right fit and even predict the interest and skills required for a position.

Improves Employee Retention

It helps the management to develop a proactive strategy to encourage employees to stay in the organization for a longer period as employee acquisition cost is far higher than retention.

Drive Accountability

Data visualization provides timely analytics of people’s performance instantly and provides insight into individual employee performance rather than depending on manual reports for the same. Transparency of information has also increased accountability on both employees and HR part.

Better Employee Experience

Data Insight of people analytics enables HR to design activities to improve employee’s experience and well-being based on their feedback about work-life balance.

Fair Pay

This capability of People Analytics allows the top management to compare compensation, incentives, performance ratings of employees in similar positions which is helpful when high performers are considering leaving the organization.

Learning And Development

It allows top management to analyze the need to optimize training and skill enhancement activities to further develop business outcomes.

Workforce Planning

It helps to analyze workforce data to analyze the current state of the workforce and inform about the future needs to meet the business objectives.

Increase Productivity

The ultimate benefit of this data is to help the organization to optimize productivity. When companies can link the actual hours spent on activities to an optimal target time and monitor against the index, they can be in a better position to increase productivity and save money.

Skills Required for People Analytics

Building a data culture requires the right human resources to run a people’s analytics program. In addition Most skills needed for people analytics are similar to those needed in the HR function. The main criteria are that the HR manager must have a clear understanding of business needs so they can better communicate the importance of new initiatives throughout the organization.

The data science component is also important and it requires experts who can understand statistical modeling and data management.

People Analytics For Employees

People analytics helps managers to make an informed decision about their employees. So more organizations are now using people analytics to improve employee’s productivity, performance, and well-being.

Aside from an organizational perspective, employees also get the following benefits from it:

  • Identification of training needs to create opportunities for employees developments.
  • Increased focus on employee well-being that makes them a more productive workforce.
  • Reduces the needless burden on employees allowing them to give more time to important projects.
  • A lowered barrier and provides equal opportunity to all staff members.
  • Improved employee engagement and support services.

How To Get Started With People Analytics

You can create a better work environment and can identify future leaders. Imagine you could predict which employees are most likely to leave the organization. It benefits strategic workforce planning.

Moodbit can help you unlock the power of your workforce through data, increasing rigor, reducing bias, and improving performance. So join hands with Moodbit to know if you have the right people for the right role and how it can resolve important organizational challenges.