March 24, 2022

How can People Analytics be used?

How can People Analytics be used?

People analytics is the use of a data-driven approach to help organizations better measure, understand, and manage people. Organizations can apply people analytics in various ways, each tailored to the specific goals of a particular organization or company.

But, if you've read other articles about goals in people analytics, you will notice that the common use of People Analytics all tends to point in the same direction— making better decisions. There are many ways to define people analytics, but the most common one is that it helps people make better decisions through a data-driven approach.

So, the question is, what exactly are these decisions? More specifically, how can we use People Analytics in making these decisions?



One of the most common decisions regarding the recruitment process is the question, "Who do we hire?"

People analytics is instrumental in matching employees to the best-fit job positions in the recruitment process. According to LinkedIn, talent acquisition teams with mature analytics are twice more likely to improve their recruiting efforts.

The information gathered from candidates can be used in various ways, such as assigning employees to match teams or predicting how potential employees may perform in the future – both concerns which are of great importance to companies.

Furthermore, analytics can help an organization hire the best people instead of the available ones. In this way, leaders can have better decision-making in terms of the layout of their team and the configuration of employees.

In the long term, people analytics can also be used when making personalized future recruiting campaigns to determine the factors that entice people to apply and what will make them interested enough to take the next step.




One of the problems that an organization might face is an increase in turnover rates due to various variables ranging from economic downturn to low job satisfaction. Furthermore, the increase in turnover rates poses a challenge for many organizations because it can cost them millions of dollars due to the long process of talent acquisition and employee onboarding. With the direct consequences of increasing turnover rates to an organization, such as increased stress for remaining employees owing to increased workload, turnover rates pose a threat to companies.

That is why in recent years, more organizations are utilizing people analytics in deciding employee retention by identifying at-risk employees and determining their causes of risk. Through this, companies can proactively address the problem rather than reactively trying to cure it when it has already cost a company some damage. You can also identify poor performers early on in their performance so management can take corrective actions to aid the problem. One of these organizations is Visier, which according to their Value Report, clients outperformed its peers in total talent retention by 3.5 percent and reduced management turnover by 17 percent after two years.





Organizations can also use people analytics to evaluate workforce performance since it provides a more objective means of determining whether employees deserve a raise or promotion. Through the objective feature of analytics technology, prejudice and human bias are greatly reduced. When selecting who should be named 'employee of the month,' for example, the concept of data-driven people analytics can help you make a more objective and faster decision, rather than relying on simple workplace observations that may be influenced by human bias.


The process of developing employees relates to the previous points in performance analytics. With the help of performance analysis, HR leaders can develop the workforce by assessing each employee's performance and analyzing the weak points, then addressing the area which needs and how they can achieve their goals and objectives. Developing employees through their performance results can be better assessed through data-driven analytics.


Today, succession planning is defined as a planned, integrated process to identify, develop, and advance people into new or more significant roles to meet future organizational needs. Succession planning ensures that employees develop the skills and experience necessary to succeed in future job roles. With people analytics, it is possible to identify individuals suited for future jobs and can abide by the company's long-term goals while simultaneously striving for greater success.

Organizations are increasingly using people analytics, and this trend is expected to continue. Moreover, organizations can apply people analytics in various ways based on their unique needs. It can be used in sales and marketing, human resource management, recruiting and staffing, talent recognition programs, leadership development and succession planning, culture measurement, and more.

It's no surprise that people analytics is becoming more mainstream in the global market due to COVID-19 and the growing number of companies that operate remotely. Whether you are an HR professional, business leader, or involved in making decisions that impact your team members, developing an understanding of the benefits and uses of people analytics will empower you and your organization.