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People Analytics

People analytics, according to definition, is the use of people-related data to optimize


business outcomes at the individual, team or organizational levels. It is a data-driven
approach to managing people at work. Those working in people analytics strive to bring data
and sophisticated analysis to bear on people-related issues, such as recruiting, performance
evaluation, leadership, hiring and promotion etc. A strategic focus on people management is
necessary because innovations come from people, and one simply cant maximize
innovations unless one is capable of recruiting and retaining innovators. Through people
analytics, one can not only understand which employees are successful but also what makes
them successful.
People analytics provides more exact, objective inputs in organizational decision making and
management in the areas of General Strategic and Tactical Management, Change
Management and Human Capital Management. By understanding the structure and culture of
their businesses, leaders can make better, more informed decisions around day-to-day
business management (e.g., planning communication and improving collaboration). With
insights into the strengths and weaknesses of the social and individual aspects of their
organizations, managers can point out where changes need to be made and how these changes
need to be executed (e.g. identification of change agents). Managers gain awareness of which
employees are the best in their fields and whose need help to become the best, and they learn
which factors determine this success. This opens up myriad opportunities to support talentmanagement programs, coaching, onboarding, and a multitude of other functions executed by
HR professionals tasked with managing human capital in an organization.
The latest buzz comes from the eld of advanced analytics, where the application of new
techniques and new thinking to talent management is becoming more mainstream. People
analytics professionals tackle business issues related to talent acquisition, talent management,
learning and development, and workforce planning. The matrices of people analytics can be
attributed to recruitment, employee performance, employee retention and achieving overall
effectiveness for an organization. People analytics facilitates the recruitment process in many
ways. For e.g. it is used as a checks and balances system to remove any bias from the
recruitment process. Further, with access to clear data related to a persons attributes, many
other insights are achieved including the applicant's personality and whether or not it matches
your organizational culture. Capability gaps in the employees of the same departments can be
determined and the training needed to bridge in these gaps. Moreover, the data is used to
motivate and engage the workforce and improve the company's entire bottom line. By
gathering and sorting data and information, a company easily studies their workforce
behavior, find out the attributes of loyal employees and those planning to leave, and figure
out the reasons that make people leave or stay. Further, it becomes easy for the company in
making more thoughtful decisions, devising policies, and improving employee retention
using the evidence-based data and information.
Moreover, an analytical approach is no substitute for engaging directly with employees in an
effort to understand their mind-sets, challenges, and needs. People analytics, if done well,
generates data-driven, organization-specic insights for executives and human-capital
professionals to make more strategic decisions about their people. People analytics has
become inevitable in an organization. Therefore, analyzing workforce information and

developing a culture for data driven decision making has become very important for making
informed and efficient decisions.

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