Data is the basis on which to obtain quality information in a company and, therefore, is the first step in designing a valid strategy that allows take decisions and implement the necessary changes. They are, in short, the difference between going blind or playing it safe.
Its use is increasingly widespread, although it has been common in all types of companies, even if it was in a very simple or rudimentary way. What happens is that the advancement of technology has allowed collect, aggregate, and analyze ever-increasing amounts of data from different sources, resulting in ever greater and more useful knowledge.
The Personal Resources Area It has not been immune to this evolution and People Analytics solutions are a clear example of this. Let’s take a closer look at what it consists of and why it is revolutionizing people management in companies.
What is People Analytics
Also known as HR Analytics, this trend responds to the increasingly widespread knowledge that the people in an organization are key to success Of the same. Knowing them is a basic need and, although it can be done in different ways and with different actions, data helps enormously in this task. This is where People Analytics comes in, the analysis of data about the human resources of an organization.
This analysis makes it possible to identify the people who drive the results of a business, for example. For this, it is necessary that the quantification and identification (the transformation of data into relevant information) be systematic. And it is that, analytics is an exceptional ally to quantify work performance, which can be measured based on numerous metrics. The collection of data for subsequent study, through intelligent analysis, allows more objective conclusions to be drawn. Therefore, more reliable.
This is one of the most fashionable currents to know the talent of a company in maximum detail and, as in other areas in which data analysis is used, it aims to improve decision-making, in this case, in terms of the team management and human resources. As well as other types of information analysis, People Analytics is useful not only to obtain information about the present; but, thanks to the historical ones, it is possible to make projections about the future. This is where we get the most value from this methodology: making predictions about the future shows us the probability that certain hypotheses will be fulfilled in terms of people management. And consequently, it is an important help to save time and money with preventive actions.
Thus, we can use People Analytics for some of the most relevant procedures of the work of HR management:
- Talent selection (for example, comparing historical CVs similar to candidates and business results).
- Talent retention (for example, to identify symptoms of demotivation).
- Training (for example, looking for the most suitable subjects for each profile).
- People management (for example, to identify relationships between teams and assess their impact).
- Remuneration (for example, with mathematical models that predict the impact of possible salary changes).
How to get started with People Analytics
As often happens with other tools, like a CRM for example, first of all it is necessary to establish a framework on which to operate. we need one logical view of the situation of the human resources area, knowing what we require and what we want to achieve. From there, yes, it is time to transfer it to analytics through collection of relevant data and use them in statistical operations. Then, through business intelligence we can ‘play’ with the data to discover informationfind patterns, filter useful data for a certain objective or make hypotheses.
The purpose is essential. Knowing that you need to know next year’s staff turnover or the degree of employee satisfaction will make it possible to identify the data that needs to be collected, how to do it, and undertake the strategy.
Benefits of using this type of data analysis
There is a key benefit that makes any investment in business intelligence profitable, which is the ability to make the right decisions at the right moments. Faced with fads, biases, assumptions, individual experiences or traditions, data (with its corresponding appropriate treatment) is the only reliable source of information.
Speaking of People Analytics strictly, we can identify 4 main benefits, that can be common for any company:
- Better people management.
- Monitoring of strategic decisions on human resources.
- Identification of areas for improvement in the teams.
- Employee satisfaction (with an expected improvement in performance, productivity, creativity, etc.).
Data analytics is an activity that is increasingly relevant in business management. Its usefulness is beyond any doubt and it is possible to take advantage of its potential in any area of the company or sector. Human resources are no exception, and in a context in which hiring is increasingly complicated, People Analytics can make a substantial difference in improving people management in both uptake and retention of the best profiles.