The Power of People Analytics: From Metrics to Strategic Insights

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David Green, a leader in the field of people analytics, co-author of "Excellence in People Analytics,” and host of the Digital HR Leaders podcast, is a featured speaker at the Indeed FutureWorks Bengaluru event. We caught up with him for a sneak peek of his session, where he will share how leading organisations use people analytics to tackle key business hurdles and create value. Here are a few highlights from the interview with more to come at the event.

Today, people analytics is the go-to tool, a new HR currency to transform organisational functions with data-driven decisions and actionable insights.

Reporting vs. Analytics: Knowing the Difference

Reporting and analytics are both valuable tools that cater to different needs. Reporting, put simply, tells you what went down. Think of it as historical data, revealing stats like how many fresh hires quit within a year. This is undeniably important information, and the best reports even break this down by units, managers, gender – you name it.

But analytics? It's the crystal ball. It spills the 'what' and takes it further to 'why' and 'what next.' Relook at that high-turnover scenario. Analytics can help us understand why employees quit during their first year and provide insights into preventive measures. It starts with a problem, sifts through data, and provides plausible solutions.

People Analytics: Starting with a Business Challenge

As David Green says, “People Analytics is not about HR, It is about business”

The essence of potent people analytics

Begin with the actual business problem, not data. Start by collaborating with HR partners and business leaders to grasp their needs. Then, leverage data to device testable hypotheses. By uncovering the 'why' behind outcomes, organisations can propose solutions and, sometimes, recreate winning strategies.

People Analytics and Recruiting: A Perfect Match

People analytics delivers value across the organisation; however, recruiting is the prime candidate. A study by BCG shows that companies with superior recruiting practices potentially yield up to 3.5¹ times higher revenues than those with poor practices.

Recruiting is inherently data-rich, with numerous repeatable processes and high volumes. This abundant data offers ample opportunities for analytics, which can be leveraged for continuous improvement.

Leverage People Analytics to Address Recruiting Challenges

The recruiting process comprises various components, each presenting its unique challenges. People analytics helps address some common HR challenges like:

Unconscious Bias
Pattern Analysis
Recruitment Efficiency
Candidate Experience
Location Strategy
Employer Branding
Sourcing Strategy
Forecasting Future Talent Needs

Predictive Insights from People Analytics

The effectiveness of People Analytics in HR continues after recruiting too. It helps spot candidates likely to thrive. By analysing data on retention, performance, and attributes of top employees, hiring can be refined to target candidates likely to stay and excel.

People Analytics in Action: Business Impact Stories

Ultimately, the goal of people analytics is to supercharge business outcomes. Think boosted sales, revenues, and overall performance. Here are two of David Green’s favourite stories on the business impact created by People Analytics:

IBM’s proactive retention programme saved $300 million in four years.
Google saved $400 million by reducing onboarding time for new hires from nine to six months.

The Transformative Power of People Analytics in HR

In conclusion, people analytics isn't just a buzzword; it's a transformative force within the HR world. It empowers organisations to: