Using people analytics for decision making.

Introduction

People analytics is a technique for investigation that assists administrators with settling on sophisticated choices about their labor force. In today’s world, data is available at our fingertips so rather than relying on instinct now we can analyzed  the data and get the proper assistance to make the right decision for the organization.

The potential of people analytics in daily decision making process is obvious. Who dominate at people analytics are bound to beat their competitors. To begin utilizing this data to settle on better choices, we need to change the manner in which we handle data. Today, HR or IT experts frequently act as guards for information. To have accomplishment with people analytics, there should be more straightforwardness in data.

If people analytics is used beneficially, HR departments will be able to improve

1.      Employee development needs,

2.      Staff morale, and

3.      Prove their ROI (Return on Investments) to the business.

Improved productivity leads to improved value tenfold to an organization, which assists to reinforce a business’ feasibility and shape the organization’s future.

For an example a company is having an attendance issue about their employees. Managers can see that more employees come in late on Mondays and Fridays. Or calling out their shifts.

When this happens in an organization, we can assume all sort of conclusions about why employees do this. It may be poor management or it may be bad workforce planning.

The possible assumptions are limitless. If there’s more data, then it is easier to get into the root of the matter. People analytics can assist company by contributing with better awareness into learning and development, talent management and organizational and design decisions.

 

Figure 1: How big data benefits HR department

Page (2021) explains the key to using the data from people analytics effectively, is to map out the business requirements, then create a feasible plan that your organisation can work from. You can start this process by separating the different areas within your organisation; workforce capabilities, business ROI, and employee processes. For example, when we talk about workforce capabilities this should include, workforce performance, human capital efficiency, talent management, and cultural alignment. Business ROI should include revenue growth, future value and if applicable, shareholders’ return, while employee processes should cover things like career development, performance appraisals, and succession planning. Importantly, people analytics decisions can only be made about people processes, rather than workforce capabilities and business ROI. Once that data has been obtained, it’s then up the businesses to extract and use that data sensibly, and in the right way. For example, workforce performance can be mapped against talent management to determine whether top talents have the highest levels of efficiency and employee appraisals can be aligned to the promotion activity and succession planning of the business.

It seems overwhelmed to use data in a strategic way in an organization’s decision making process. But when the data is stated in this process it becomes easier for the management.

Conclusion

People will understand the usefulness of data when an organization has started to use them in a proper way in decision making process. So it will ensure them that data they collect is valuable in future. It leads to leverage of organization’s data sources. When an organization collect more data it will ultimately lead to make better decisions broad and complete.

 

 

References

Bigsby, C., 2021. The Power of People Analytics in Everyday Decision-Making | Visier Inc.. [online] Visier Inc. Available at: <https://www.visier.com/clarity/the-power-of-people-analytics-in-everyday-decision-making.> [Accessed 27 March 2021].

Page, M., 2021. Using people analytics to steer business decisions | Michael Page UK. [online] Michael Page. Available at: <https://www.michaelpage.co.uk/our-expertise/human-resources/using-people-analytics-steer-business-decisions> [Accessed 27 March 2021].