What is people analytics?

People analytics helps to inform critical decision-making processes in HR departments that help to shape, improve, and ultimately benefit the organization. The collection of key data concerning employee performance and behavior enables HR departments to form metric-based strategies and company policies that meet their company's employee needs.

There are many different ways to approach people analytics. HR departments might choose to create big and complex data sets in order to ascertain some specific information that can help to inform them on one issue or several, but they might also choose to accomplish the people analytics process simply by using employee surveys.

The types of methods used in people analytics are often determined by the size of the company, its specific needs, and other employee-related factors. Some HR departments use data scientists that work for their company to help them gather, organize, and analyze data. Technology is making the methods of people analytics ever-evolving.

Here are some steps you can take to use people analytics at your organization:

• Pick an issue or problem your organization needs to solve

  This is a key first step because it dictates what data your organization will be seeking with its people analytics approach. Sometimes it doesn't have to be a problem or issue, but simply something your organization would benefit from learning more about. Once you select a target you can then narrow down the collection of specific employee data.

• Collect data and clean data

  Now you can start the data collection process. In certain cases, your HR department might be able to source data from existing company records, such as employee performance reviews. Depending on your particular problem or selection for learning, you might also employ the use of employee surveys. Just make sure that you clean all data once it has been collected.

• Perform analyses

  Once you have the raw data you can begin to extract key information from it. This can be accomplished with the assistance of tools, such as software or other programs. These types of tools are extremely useful and can help your organization handle large amounts of data and properly sort it. They also can help you determine key patterns and data points.

• Make conclusions

  After your people analytics data has been organized appropriately, you can then start to draw conclusions from your findings. This may lead to further data analysis and further conclusions.

• Use findings to inform decisions

  This is the final step in the people analytics process. You can now utilize your findings to help inform decisions on company policies, strategies, methods, or other important issues. One of the great aspects of people analytics is that your decisions can be backed up by hard data, making it easier for any stakeholder to then understand why you are suggesting an action.