People analytics definition: What is people analytics?

What is people analytics? People analytics initiatives can bring major benefits to organisations. But before embarking on the people analytics journey, it is essential to have a clear understanding of what people analytics is, and what it can help the organisation to achieve.

People analytics definition

XpertHR’s good practice manual on people analytics presents a definition of the term “people analytics”, which includes the following:

“People analytics refers to the process of collecting, analysing and using quantitative and qualitative data about an organisation’s employees, alongside business performance data, to provide insights on business issues, solve business problems and inform business decisions and strategy.  People data can include any information relating to employees or workforce management, such as recruitment costs and absence rates or the results of employee opinion surveys and individual performance reviews. The analysis and use of the data can vary from internal or external benchmarking exercises to more complex predictive analysis.”

Applying people analytics techniques to make optimum use of people data has the potential to deliver significant benefits not just for the organisation, but for the HR department, too.

The XpertHR good practice manual explains how HR can use basic people analytics techniques to help inform business decisions that might solve pressing issues for the organisation and result in significant direct or indirect savings. HR can then build towards more advanced people analytics initiatives – such as using predictive analytics to inform future resourcing activity – which can help direct top-level strategic decisions.