People Analytics 101: An Introduction to People Data

We now live in a data economy. Data is the new currency and we have to work hard to acquire it - but more importantly, we need to make it work for us.

People analytics is the process by which we extract value from data. Value is created when we are able to answer questions that the business has about its people - but the greatest value is created by giving the business questions which they have not thought to ask.

The two big challenges with people analytics

There are two big challenges with people analytics that hold most HR teams back from getting started.

1. 1

   Analytical skills: There is a perception that to work with analytics you need a post-graduate degree in statistics. While there is some heavy lifting that needs to be done, we can start with some basic critical thinking by asking the 'what', 'how', 'why', 'where', and 'who' questions. The technical skills can be supported by tools and specialists - the most important skill is knowing what questions to ask.

2. 2

   Data availability: Good quality data is notoriously difficult to find, maintain, and manage. The good news is that most organisations already have access to data that can tell useful stories - they just have not connected the dots yet. Start with what you have and build from there.

The evolution of HR data management

Data is the foundation of analytics. The way data has been acquired, stored, and managed by HR has evolved significantly over time - from paper records to HRIS systems to cloud-based platforms.

The most important shift is towards an employee-centric, HR engagement model - where employees derive direct benefit from the data they provide. HR needs to provide technology that creates a user experience that makes employees want to give their data willingly. When employees see value in the process, data quality improves dramatically.

Why analytics is increasingly important for HR

HR has fought for a seat at the table for a long time. This is now a reality at almost all companies where the value of people strategy is recognised. But in a data economy, being data-rich is a critical quality that ensures that the people at the table are heard and trusted.

HR may have to manage soft issues, but there is hard data that can provide guidance on how to do that. The organisations that win the talent war will be those that use data to make better decisions about their people - faster, and with more confidence.