People Analytics: A strategic way to manage People

Alike customer, employees are the central resource and crucial stakeholder in an organization. Using people analytics, an organization can critically evaluate past experience of an employee from the day he has entered in office, till the due course of his employment to find out some useful insights. These insights will provide assistance in decision making, implementing HR policies and strategic HR practices.

HR Analytics is the process of evaluating data related to employees with the aim to improve employees performance and thus increase in return on investment on human capital. Over past 100 years, the function of HR manager has changed from operation or routine functions to strategic functions. HR analytics provide assistance in managing employees in a way that facilitate a competitive advantage to the company. The term People analytics and HR Analytics can be used interchangeably.

The contribution of HR Analytics in Strategic HR Function:

Measurement of ROI: HR analytics helps in measuring employees contribution in org against the cost incurred by the company on them. On the basis of this, an organization can take the decision on investment in training, preparing the budget for future potential employees.

Performance Management: Using analytics, continuous review of employees performance, the effectiveness of training on employees efficiency and effective implantation of performance management techniques is possible. This will improve the day to day HR operations and ultimately employees productivity in an organization. This, in turn, will help in the compensation system.

Analyze Employees Experience: HR analytics helps in analyzing employees experience at each stage such as recruitment, selection, training, performance management, compensations. So, a broader picture of HR practices in an org can be evaluated to improve the overall experience and processes.

Identify Drivers and retainers: with the critical evaluation of data, HR manager can identify major factors that drive employees performance and factors that prevent their greater contributions. This will help in deciding the motivation techniques to be used to ensure greater contribution by employees.

Control Employees Behavior: HR Analytics provides an idea about a pattern of behaviour and actions taken by employees. This helps in the prediction of future actions of employees. Thus, an organization can control employees actions and influence them to contribute more towards the achievement of the Business goal.

HR Analytics (Talent Analytics) collects data related to employees, use statistical tools to analyze the data and prepares a model to predict future behaviour and implement HR policies and strategies to perform HR operations as a strategic function.

Source: HOB

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