According to a Deloitte study, 75% of the companies surveyed regard people and Human Resources Analysis as very important. But what exactly is people analytics and how can it affect companies? In brief: people analytics predicts the future. Specifically, it detects human relationships and products within an organization and maps it out with the help of data.
The available data makes it possible to play through hypothetical scenarios in order to investigate current issues in the company and work against future problems. By understanding why an employee has left the company, for example, you can deduce general tendencies and trends within the team and better predict what incentives and opportunities should be created in order to retain employees. The same is true with a company's human resources development and its employees´ potential. Through a targeted data review of the strengths of your team, you can already prepare for upcoming tasks and employee training.
The data collected by people analytics can, with proper evaluation, increase the return on investment (ROI) of a company tremendously.
"Previously, HR was based on predictions and premonitions; now it is based on facts and figures. It is no longer “I think,” but “I know.” It will be exciting to see how companies will use this information for themselves (Aki Kakko)."
The aim of this performance analysis is to provide a tangible and measurable basis for important decisions faced by the company. Here, it becomes clear: HR is no longer a separate organ operating in isolation. Rather, it is strongly entangled with the company's strategy: whoever evaluates its data and uses it, derives a competitive advantage.
Your task: Know your Data!
- Don’t be afraid of numbers. No worries, you don’t have to become an analyst. Firstly, define what you want to know. In the second step, answer these questions by means of data.
- Use your data! Make sure to collect all relevant numbers. So that you can prepare your company for future challenges.