People analytics may be a new concept to many HR teams but they’re very important since they provide many benefits to an organization. People analytics, also known as recruitment analytics, is a strategy that can drastically help HR managers make better decisions about employees and the workforce.
People analytics techniques apply statistics, technology, and expertise to large sets of talent data, allowing HR managers to make better management and business decisions for the organization. Now that we have a better understanding of how important people analytics are to the success of an organization, let’s look at some recruitment analytics techniques you can use to create a successful people analytics program for your organization.
People analytics add major value to business outcomes
With a proper people analytics program in place, your company will be able to reduce turnover, increase engagement, and ensure that every employee is adding major value to the organization.
People Analytics Techniques
For your people analytics techniques to be successful, it’s important to encourage a culture of data-based decision-making at your organization. A data-based culture not only collects data, analyzes information, and conducts tests, but also encourages innovation, tolerates mistakes, and puts a great emphasis on continual learning.
Creating a data-based decision-making culture at your organization encourages employees to seek insights provided by the data to make decisions, rather than using opinions or gut feels. When data-based decisions take priority, your organization will be able to justify all business decisions made and can see clear results from all actions.
While collecting data is very important to your people analytics program, before you can collect the right data, it’s important to identify pain points at your organization and understand what is hurting your company’s overall business goals. Knowing what problems your company is facing will help you decide which data needs to be collected to help you solve these issues.
Once you have a thorough understanding of what business issues collecting data can solve, it’s important to use accurate data measurement tools and software to ensure that all data you’re collecting is being captured in a standardized way. Otherwise, patterns in your data will not be clear and your people analytics program will not be successful.
Did you know that top performing talent contributes disproportionately to the value of a company? When top-performing employees aren’t compensated for their added value though, they tend to seek other employment opportunities causing your company to lose this added value. When your organization adopts a people analytics program though, your HR department can easily identify top performing employees and automatically profile them, allowing HR managers to recruit more top-performing employees in the future, as well as compensate these high performs properly.
People analytics can not only help HR managers keep top performing employees satisfied and feeling validated for their efforts but also allows them to gain an accurate understanding of departments and employees that are under-performing. This will not only allow HR managers to conduct HR analytics training for these employees but move team members around in an effort to increase individual performance. Recruitment analytics even allows HR managers to measure employee engagement and the effectiveness of employee engagement programs.
There are many HR analytics examples of the benefits people analytics brings to an organization. From reduced turnover, increased effectiveness of HR software, and reduced time to hire top performing employees to increased revenue per employee, increased engagement ratings, and reduced absenteeism; people analytics adds major value to organizations of all types. People analytics, also known as recruitment analytics, may be a new concept for most HR departments but the value of adding a people analytics program to your organization is substantial.