People analytics might be guaranteed to add value to larger corporations but how can you guarantee the same for your SME?
When it comes to the topic of people analytics, many businesses wonder if it is relevant to their small or medium-sized enterprise, also known as an SME. The truth is, people analytics isn’t just important for large corporations but SMEs as well. So, how can you verify that people analytics will add value to your SME? Let’s take a look at how you can verify that implementing people analytics is beneficial to your organization.
Can people analytics help your SME?
People analytics has been a hot topic in HR for many years now but what exactly does this new concept entail? Well, people analytics is seen as intelligent HR consumer experiences. Customer experiences are extremely important to the livelihood of companies and with people analytics, companies can now verify that their targeting and retention strategies are effective by analyzing data about their customers and truly understanding the best ways to communicate and engage with them. Not only that but people analytics is now being used to retain employees and keep them happy.
When it comes to people analytics and SMEs, many understand the value people analytics adds to larger companies but don’t realize how much benefit it can add to their own. One major key benefit people analytics offers larger companies is the concept of economies of scale. This refers to a lower cost-per-unit when output is produced at a large scale or in other words, the company achieves efficiency through volume. This means that larger companies pay less and receive a higher ROI on their people analytics managers because they have many employees and one analyst can analyze many employees.
Another major benefit of people analytics for larger companies is a concept known as economies of scope. This refers to receiving the lowest average cost by producing many types of products. This means if a company implements people analytics and has their analysts analyze multiple types of data, like marketing data, financial data, and people data, they can then achieve higher efficiency. While people analytics offers major benefits to larger corporations, these benefits can sometimes be difficult to achieve at an SME.
People Analytics and SME
While people analytics offer extraordinary benefits to larger companies, how can an SME make the most out of this revolutionary new HR idea? Well, before you decide to implement people analytics at your SME, you should be able to answer yes to the following questions:
Are there business problems that can be solved using data?
Is there sufficient data to analyze? Many SMEs don’t have a lot of employees but getting sufficient data should not be an issue. You can get data from many sources including from hundreds of employees or even just collecting hundreds of data points from a single employee.
Do you have a desire to grow fast and scale up? While it’s not necessary to want to grow fast and scale up, the more data the better and the more value you will receive from your addition.
People analytics may add more value to larger companies but it can still add tremendous value to your SME. For people analytics to add value to any organization, it’s essential to be able to properly understand data and know how to analyze it. People analytics can add value to any organization because it helps employees and C-level executives better understand their customer and how to effectively engage with them. Without understanding data and knowing how to analyze it though, people analytics is not able to benefit any business.