March 24, 2022

How to implement people analytics

How to implement people analytics
People analytics is the application of data, technology, and advanced statistics and then using that information to help organizations make better decisions. Moreover, it delivers companies a competitive advantage and assists HR departments in increasing productivity and performance.
 
People Analytics, according to McKinsey, has resulted in an 80% increase in recruiting efficiency, a 25% increase in business productivity, and a 50% reduction in attrition rates. With these numbers, more companies are becoming more curious about how they can implement people analytics into their current strategies.
 

The process of implementing people analytics

 
Implementing people analytics doesn't necessarily have to be a long and difficult process; the overall operation of People Analytics is something anyone can learn on their initiative. Nevertheless, implementing people analytics does require a commitment to the process and a prioritization of actions to make data-driven decisions about your workforce.
 
People analytics is certainly a process that organizations must initiate and one that will take time. However, when used effectively and incorporated into your overall business strategy, it has the potential to have a positive impact on your organization.
 

5 key steps to implementing people analytics into your organization

 

STEP 1: Introduce your team to People Analytic

 
 
Although People Analytics is becoming increasingly popular, and more organizations are implementing it to assist in the recruitment and development of employees, it is a relatively new concept to some individuals and organizations. People analytics may be difficult to grasp for certain organizations, particularly those that have relied on more traditional approaches for a long time.
 
Hence, it is essential to introduce your team to people analytics because they cannot deliver on value if they do not fully understand what it is and how it works. One good way to start is to describe analytics as "an objective set of tools that allows us to measure, manage, analyze and improve business."
 
Some ways to do this is by making it a talking point in leadership meetings or starting an initiative with the workers. Introducing People Analytics is one of the most important steps so that you can fully integrate its key aspects into your company culture later on.
 

STEP 2: Identify the problem

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To start with people analytics, you need to identify the problem within your organization, assess which areas you think need improvement, and decide what metrics you think are the most important. These problems could be a challenging business objective or low employee productivity. You may ask yourself, "What problem am I trying to solve? Which metrics matter?"
 
These problems could be a challenging business objective, low employee productivity, low customer satisfaction, complaints, disputes, high turnover rate, and so on.
 

STEP 3: Find out the cause of the problem

Now that you've identified a problem, you should research and look for possible causes. This step also includes figuring out how and why the problem occurred. You may notice that employees are dissatisfied with their jobs or are influenced by the workplace environment. This is a critical stage since you want to prevent rerunning into the same issues in the future.

STEP 4: Set your goal

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In this step, you must determine your objective and ensure that your goals are SMART: Specific, Measurable, Achievable, Relevant, and Timebound. In this way, you will have a deeper understanding of your objectives, comprehend your organization's measures, and effectively manage your expectations.

Your organization's mission and vision statement can help you think of a goal if you're having trouble coming up with one. Your company's culture and mission must be in sync with your goals since this will help you and your organization determine which specific goals you want to achieve.

 

STEP 5: Create a strategy

Based on the problem you identified, you can now strategize and develop appropriate measures that will aid you and your organization make the right decisions. This is how you are going to begin creating a framework or a general idea on how you might want to approach the identified problem. An essential part of this is making sure the strategy you devised is directly applicable to the problem at hand. Additionally, you should align the strategy with your organization's mission, vision, and goals, among other things.
 

STEP 6: Gather and analyze the data

In this step, you will have to apply the strategy you came up with and utilize the appropriate tools and software in gathering the data. You will have to identify what type of data you are dealing with and collect all the necessary information.

After gathering the data, you can now analyze that information and address the identified problem. Which tools to use will depend on the kind of data and the type of analysis required.

STEP 7: Use the analysis and implement a course of action

Lastly, utilize data analysis technology not just to track trends and understand recommendations, but most importantly, implement a course of action that will deliver tangible benefits.

It is essential to use those findings to plan for your next step in your strategy and guide further decisions in your business or organization. Improving your organizational processes is a continuous process, and leveraging the technology is just one way to ensure that you have the foundation for success.

People analytics may seem overwhelming to implement at first, but once you understand the basics and get the hang of it, you will realize how manageable it is and the significant positive impact it will have on your organization. The key is to recognize that you do not have to do everything on your own. Even if you don't have a team member with you, you can inquire or research what methods other firms have in place for their employees. It is critical to establish a network because, while people analytics is all about data, it is also about people.