Utilizing People Analytics to Unlock Workforce Potential

People analytics — also known as talent analytics or workforce analytics — is the process of using data to understand and improve the performance, engagement, and retention of employees. Here, we’ll dive further into what people analytics is, why it’s important, and how it can help you unlock the full potential of your workforce.

What is People Analytics?

As we touched on above, people analytics is the use of data to understand and improve employee performance, engagement, and retention. It involves collecting and analyzing data from various sources, like employee surveys, performance reviews, and HR systems, to gain insights into an organization’s people.

The Evolution of People Analytics

People analytics isn’t just a new trend, it’s actually been around for decades, but it’s evolved quite a bit in recent years. In the past, HR departments primarily used people analytics for basic tasks like tracking employee attendance and payroll. However, with the rise of big data and advanced analytics tools, people analytics has become a powerful tool for understanding and optimizing the workforce.

Today, people analytics is used to identify trends, predict future outcomes, and make data-driven decisions about talent management. It’s become an essential tool for HR departments and business leaders alike.

Why is People Analytics Important?

Clearly, people analytics is important. But why? Let’s dig into some of the key benefits of using insights from workforce analytics in your organization.

Better Hiring Decisions

Hiring can be a struggle for companies and employees alike. One of the most significant benefits of people analytics is its ability to improve the hiring process. By analyzing data from past hires, companies can identify the characteristics and skills that lead to success in a particular role. This information can then be used to create more effective job descriptions, better screen candidates, and make more impactful hiring decisions.

Improved Employee Engagement

There’s no debate — employee engagement is crucial for a company’s success. Engaged employees are more productive, have higher job satisfaction, and are more likely to stay with a company long-term. What’s great about workforce analytics is it can help identify factors that contribute to employee engagement (think recognition, career development opportunities, and work-life balance). By understanding factors like these, companies can take steps to improve employee engagement and create a more positive work environment and culture.

Increased Retention Rates

It’s an unfortunate fact that employee turnover can be costly for companies, both in terms of time and money. One way to help offset that cost? People analytics. Using people analytics can help identify the factors that contribute to employee turnover. By addressing identified issues like low job satisfaction, lack of career growth opportunities, or poor management, companies can improve retention rates and save on the costs associated with hiring and training new employees.

Data-driven Decision-making

Running a business requires a lot of decision-making, and companies have come to rely on data to inform those decisions. Workforce analytics can provide business leaders and their teams with the valuable data they’re looking for. By analyzing data on employee performance, engagement, and retention, companies can identify areas for improvement and make data-driven decisions when planning and before taking action.

How Can People Analytics Unlock Workforce Potential?

As we’ve seen, there are some great benefits to using people analytics in the workplace. But what sorts of things can people analytics tell us? While every platform can differ, the features and functionality of people analytics software can help employers unlock the full potential of their workforce in several ways.

Identifying Top Performers

For starters, people analytics can help identify the top performers in your organization. By analyzing employee performance data, companies can identify the characteristics and behaviors that can lead to success. This goes both ways, too — people analytics can also show trends when it comes to low performance. This information can then be used to develop training programs and coaching strategies to help other employees reach their full potential.

Creating Personalized Development Plans

People analytics isn’t just for performance — it can also be used to create personalized development plans for employees. By analyzing data on employee skills, experience, and career goals, employers can identify areas for improvement and create tailored development plans to help employees build important skills.

Improving Employee Engagement

As we mentioned earlier, employee engagement is a popular topic, and for good reason. If your employees are engaged, they’re more likely to stick around and give a company their very best. Sounds great, right? Workforce analytics can help improve employee engagement by identifying the factors that contribute to it. By understanding what motivates and engages employees, companies can create the type of work environment and culture that their teams desire.

Predicting Future Outcomes

When you have enough useful data, it can be easier to predict what might happen quarter after quarter. Enter people analytics. With the right findings, employers have the information needed to predict future outcomes like employee turnover or performance. By analyzing data on past trends and behaviors, it can become easier to identify potential issues and take proactive measures to prevent them from happening.

How Can You Implement People Analytics in Your Organization?

Implementing people analytics in your organization might sound complicated, but it doesn’t have to be. Try following these steps to get started.

Identify Your Goals

Before you start collecting and analyzing data, it’s essential that you identify your goals. What is it that you want to achieve with people insights? Do you want to improve employee engagement, reduce turnover, or identify top performers? By clearly defining your goals, you can focus your efforts and ensure that you’re collecting the right data.

Collect and Analyze Data

Once you know what types of insights you’re after, the next step is to collect and analyze data. The data you collect can come from employee surveys, performance reviews, and HR systems. As you move through the process, it’s crucial to ensure that the data you collect is accurate (and relevant to your goals, of course).

Use the Right Tools

Once you’ve gathered the data, it’s time to analyze it. To effectively analyze and make sense of what you’ve collected, you’ll need the right tools. There are many people analytics tools available (Tableau, Qualtrics, and our own People Analytics are just a few), so it’s important to review the capabilities of each so you choose the one that meets your specific needs.

Communicate and Take Action

Once you have analyzed your data, it’s necessary to communicate your findings and take action. Sharing your insights with HR and business leaders allows everyone to work together to develop strategies to improve the engagement, performance, and retention of your employees.

People analytics can be a powerful tool for understanding and optimizing your workforce. By collecting and analyzing data, employers can identify top performers, improve employee engagement, and make data-driven decisions to increase success. By implementing people analytics in your organization, you can unlock the insights needed to gain a competitive advantage in today’s business world.

Get People Analytics with Justworks 

Are you eager to gather data on your own workforce? Justworks has your back. Joining Justworks PEO means you’ll have intuitive HR tools and an easy-to-use platform at your fingertips. And when you’re part of Justworks PEO, you’ll get access to our new People Analytics tool (in beta), too! Increase your insights and strengthen your strategies with People Analytics and run your business with more confidence. Ready to work smarter, not harder? Get started with Justworks today!