The compiling and consumption of analytical data can be referred to by the term, people analytics. Also known as ‘workforce analytics’, this powerful data-modeling technique can serve as an instrument for business owners to build more successful enterprises. To find success with workforce analytics, we must first understand the term in totality.
People analytics can be defined as the goal-focused, data-driven method of studying people, functions, tasks, and opportunities in order to improve upon business-related decision making while forecasting business trends.
Other common terms used when referencing people analytics include: HR Analytics and Workforce Analytics.
In today’s discussion, we want to highlight the importance of analytics while detailing how entrepreneurs can incorporate this system into their business model. Whether you are a solo entrepreneur or the head of Human Resources for a major corporation, the following resources should help to build your analytics backlog. Through the utilization of people analytics, companies can enjoy a variety of benefits including stronger decision making, better employee retention, accountability, and improved workplace efficiency.
How can people analytics change your business?
Key Ways to Build Your Business Through People Analytics
Most discussions about People Analytics will revolve around the highest levels of data combing. This includes working with data science, prescriptive engines, and predictive algorithms. While these systems are great for those experienced in them, the average business owner will not have the proper background to utilize these systems on their own. Instead of giving up on compiling data for your business, instead, consider the following techniques.
1. Dig Into Data That ACTUALLY Matters
The first thing that you should ask yourself when delving into the analytical world is, “What data matters to my business?” Once this question has been answered, you will have a compass pointing you in the right direction. As an example, it is widely understood that employee retention is more important than employee acquisition. Hiring and training a new employee will cost significantly more than keeping your trained staff available. What does this have to do with people analytics?
Companies like Google have used People Analytics to gauge which employees were most likely to be a ‘flight risk’ for seeking outside employment. By identifying which employees were most at risk of leaving, The Google HR Team can take proactive measures to protect their best assets.
Key Takeaway: Data is only valuable when it contributes to your research. Excess data that does not push your business forward can become noise, further clouding your decision-making.
2. Visualize Your Data With Graphic Tools
When it comes time to make the decisions that matter most for your business, strong visuals can go a long way toward instilling confidence. You or your HR team should take the analytics that you dive into and present it visually. By incorporating visuals during your analytic breakdowns, critical decisions can be made quickly and without delay.
According to a report published by Aberdeen, organizations that incorporated real-time visual graphics were able to compile critical data and make decisions within their ‘window’ 22% more often than their non-visual counterparts.
Key Takeaway: People Analytics is about efficiency. Incorporate visual graphics to help make critical decisions within your allotted time frame. Graphical outlines and visual deliverables almost always help both stakeholders and employees understand the importance of the data that has been compiled.
3. Build an Analytics Pyramid
When establishing best practices for compiling People Analytics, it is best to work from the perspective of a pyramid. Your pyramid will include three specific phases: Research Efforts, Workforce Trend Prediction, Action Phase.
At the foundation of the pyramid, you have your Research Efforts, which is to say the data you have compiled detailing your company, workforce, and the surrounding industry. This is the foundation of everything that you will do with your analytic information.
After you’ve finished your Research Efforts, you are ready to move to the next level of the pyramid, Prediction. Visualizing your data through graphic mediums will allow your team to predict potential workforce trends by clearly outlining them and following their processes to their natural solutions.
The top of your People Analytics Pyramid should finish with your Action Phase. What can you do with this data to drive your business toward the best outcomes possible? Use this data to create leaner and more effective systems while bucking industry trends to keep your company ahead of the pack!