People Analytics has become one of the most desired methodologies by HR professionals.
And it’s not for less: the proper use of data is fundamental for decision-making about employees within a company.
It enables the collection, organization, and data related to people management and allows HR to have a more strategic view of each employee in the organization.
With this, it is possible to improve decision-making, identify problems and promote engagement actions and increase productivity in different situations.
Understand in this article how adopting People Analytics in your company’s people management can be fundamental for the future of the organization and what the immediate benefits of this methodology are.
What is People Analytics?
People Analytics is not a tool or software, but a methodology for collecting, organizing, and analyzing data from employees in an organization.
Even data-driven, the focus of People Analytics is to understand and solve intrinsically human issues.
Applied to HR, the People Analytics methodology enables a strategic view of people management and the identification of problems such as:
- Low productivity;
- Low engagement;
- Employee dissatisfaction;
- Turnover;
- Patterns of friction between professionals;
- Non-identification with the organizational culture;
- Frustration with management, among others.
In a simple way, we can say that the People Analytics methodology helps HR keep employees satisfied, in addition to bringing improvements in recruitment processes and other demands of the sector.
How does People Analytics work?
It was first introduced by Google through the article “How Google is using People Analytics to completely reinvent its HR” in 2013, and since then it has undergone several transformations.
The methodology works to reduce human errors in the HR sector and assists in making more accurate decisions, based on the analysis and combination of data.
The organization adopts tools and data sources, ranging from social networks to advanced data software, and seeks to recognize certain problems and their reasons so that they can investigate them and find a reasoned solution.
Among the main elements of it are:
Performance evaluation
An essential component of the People Analytics methodology, performance evaluation is based on four components:
- Regression to the mean
- Sample size
- Sign independence
- Process x result
People Analytics helps to eliminate certain trends related to the human factor, such as valuing the result more than the performance evaluation process.
This feature allows this assessment to take place in a clearer, more structured, and honest way.
Recruitment and selection
In aiding the recruitment of employees, People Analytics works with three components:
- Hiring
- Internal mobility
- Career progression
In these cases, the adoption of People Analytics increases HR’s chance of finding the right professional for the right job.
In addition, the methodology becomes fundamental for observation and decision-making regarding employee satisfaction, as it provides data on employee attitudes and mood.
Organizational collaboration map
People Analytics also works to create an organizational map of collaboration, that is, it presents the patterns that employees follow when they need to work together on a given project or task.
One of the main factors for the success of a project, collaboration between employees, needs to be monitored and encouraged.
Therefore, it becomes essential to monitor employee productivity and motivation.
Talent Development
It is up to HR to take care of the development of people within a company. And once again, People Analytics is fundamental in this work.
The methodology directly helps in talent management by providing data such as:
- Behavior patterns;
- Employee development;
- Identification of positive and negative points;
- Engagement, among others.
How to implement People Analytics at your company?
As with any innovation, its adoption can bring some resistance within a company.
Therefore, learning from successful companies in adopting the methodology, we can follow certain processes, such as:
Act democratically
Analytical tools often cause distrust and even fear among employees.
Therefore, the tip is to involve employees who will be directly affected in the presentation and decision on which tool to adopt when implementing the methodology.
It is essential that these employees know clearly the purpose of the methodology and how each step will work.
Consequently, it is recommended to carry out training and share didactic and informative materials.
This work is critical not only for understanding and acceptance but also for HR to win over champions of innovation within the company.
Work with a communication plan
Involving the marketing team in the implementation of the People Analytics methodology is an essential step for the organization’s success.
It is essential that this team develop a communication plan so that the entire company knows what the methodology is and how each analytical tool will work.
It is important that within this plan, points about data privacy for both users and customers are clarified.
Identify the needs of each sector
For the People Analytics methodology to be successfully implemented, it is essential that it be initiated in the sectors identified as the most in need.
If the sales sector has lower-than-expected targets, it is recommended that this is the first area where data will be collected, evaluated, and measures taken to reverse the situation.
The same can happen in areas with a large number of conflicts between employees or with low engagement.
Finding ways to solve problems in the neediest sectors serves as a stimulus for employees and helps to increase confidence in the methodology.
Courses and certifications
HR professionals who want to delve deeper into the study of People Analytics have a series of courses and certifications to assist in this knowledge.
Check out some of these qualifications that are considered references:
- PWC People Analytics Training;
- Introduction to People Analytics;
- Program of integrated courses Business Analysis;
- Analytics for Talent Management (ATM) Certification.
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