why is people analytics important today?

Over the last few years, organisations have dealt with a global pandemic, ongoing labour shortages, growing skills gap, increased turnover rates and supply chain disruptions. If these challenges have taught us one thing, it’s the need to remain resilient during times of disruption. This desire for resilience has shifted both organisational objectives as well as workers’ expectations.

For example, a recent global study reveals that two-thirds of organisations are planning to increase automation within the company. As these companies make the shift to automation, their workforce needs to significantly shift. The size of the workforce may shrink, and the type of skills needed in the workforce will change. On the people side of things, the disruptions over the last few years have brought a push for higher wages and the desire for greater flexibility in scheduling.

What we’ve learnt during these times of disruption and change is that traditional HR metrics, such as time-to-fill, overtime expenses or absenteeism rates, failed to show the whole picture. In fact, these metrics were often skewed by forces that were outside the company’s control. For example, frequent quarantines and shutdowns significantly impacted absenteeism rates, but it didn’t mean that the company had an attendance problem outside of these pandemic restrictions.

This is where people analytics plays a vital role in building a resilient workforce. This strategy doesn’t just look at basic metrics that show a snapshot of a certain point in time. Instead, it looks at the why behind the numbers. For instance, people analytics strategies can help your company determine why turnover rates are increasing. With this information, your company doesn’t have to tackle its turnover problem blindly. It can use robust analytical data to develop an effective talent retention strategy.

Since people analytics is an ongoing process, analytical data obtained allows your company to quickly adjust to any shifts in workers’ demands, changes to the way of work or disruptions in the marketplace. When used correctly, people analytics can be a game changer for your company and provide it with the competitive edge it needs to remain successful today and in the future.

what value does people analytics bring to your company?

Is people analytics really the superpower your company needs? It can be. In fact, it can bring value to your company in several areas.

the recruitment process

Talent analytics, a subdivision of people analytics that primarily focuses on talent acquisition, can improve the recruitment process by playing a crucial role in every stage of hiring, including:

candidate sourcing: People analytics can provide insights into what motivates your target candidate as well as their online behaviours. This information can help you determine the best methods to source and communicate with prospective candidates, such as social media, job boards, emails or text messaging.
application process: HR metrics can help you determine if potential candidates are getting stuck in the application process, but people analytics can help you discover why this is happening. For example, is the application process too long or is the process not clear enough?
interview process: Using standard interviewing techniques alone can lead to bias hiring decisions. However, when you combine structured interview techniques with people analytics, such as personality, interest and expectations, you can obtain a clearer view of each candidate. These insights give your HR team the power to hire for job and boss fit.
selecting the right candidate: A data-driven talent acquisition strategy can help you identify which candidates are the best fit for the role and your company.
compensation package: Selecting the right candidate is only half the battle. You also must entice the candidate to accept your offer. If your company’s offer acceptance rates are lower than desired, people analytics can help you tailor compensation packages to meet the expectations of target candidates.
new hire retention: One of the best ways to track the success of your recruitment strategies is through new hire retention rates. While basic HR metrics can help you track these rates, people analytics allows you to determine why new hires are leaving, such as inadequate training or toxic managers.

Data analytics in recruitment lets you better understand the why behind the metrics, so your company can identify parts of the hiring process that are working and aspects that need adjusting.

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