People analytics: How to leverage HR data?

People Analytics, or the strategic use of HR data, is an innovative practice aimed at improving company performance. By using data-based methods, it allows understanding the challenges and opportunities of the workplace. From employee retention to increasing productivity, People Analytics plays a key role in talent management.

Understanding the concept of people analytics HR Analytics

HR analytics is a data analysis method. It collects, centralizes, and processes HR data, key information related to employees. Objectives: to better understand how personnel evolves within a company.

Each organization can use the most relevant data according to its own needs, but the main goal is to better understand, anticipate, and justify HR needs, including:

• Anticipating recruitment needs (better vision on upcoming departures, better knowledge of tensions on certain functions),
• Improving the quality of recruitment and its processes (reducing the duration of recruitments, for example),
• Better talent management,
• Better evaluating the training needs of employees.
• Promoting internal mobility.

Examples of data processed by HR analytics

HR analytics allows identifying the skills of each employee (both hard skills and soft skills) and information related to their career path, but it can go much further by using many HR indicators. Here are some examples of data used in HR analytics:

Career evolution and salary increase history,

Employee seniority,

Salaries,

Absenteeism rate,

Gender parity,

Turnover rate,

Average duration of recruitment,

Ratio between permanent employees and temporary employees, Etc.

It is, in a way, a "snapshot" of the company from an HR perspective, with objectified data on the quality of its human resources.

The importance of people analytics in human resources

People Analytics are essential in human capital management. They provide valuable and objective information on the skills, career path, and evolution of employees in real-time. Their use allows identifying the skills needs of the company and anticipating future needs.

HR data analysis facilitates informed and relevant decision-making, thus contributing to the improvement of company performance. Moreover, it is useful for evaluating the effectiveness of new strategies implemented to improve overall performance and staff efficiency.

Thus, People Analytics allows:

• Optimizing recruitment by identifying the required skills
• Promoting personal development and employee engagement
• Effectively managing human capital by anticipating future skills and profile needs.

The role of people analytics in optimizing HR processes

Improving recruitment through people analytics

The use of People Analytics in the field of recruitment can bring significant added value. It allows optimizing existing processes, reducing the duration of recruitments, and improving the quality of selected candidates.

By relying on precise and reliable data, recruiters can refine their understanding of candidates and anticipate the future needs of the company. Analyzing recruitment trends and characteristics associated with high-performing candidates allows adjusting sourcing and evaluation strategies.

The ultimate goal is to facilitate the identification and recruitment of the best talents, thus contributing to the overall performance of the company.

Talent management and career development

Talent management and career development are key aspects of People Analytics. This approach allows identifying key skills of employees and predicting their career development needs.

• Collected data can help understand an employee's potential and evaluate their performance against the company's objectives.
• People Analytics tools can also contribute to creating personalized development plans, highlighting areas for improvement and skills to develop.
• Moreover, People Analytics can help identify internal talents and implement effective retention strategies.

In summary, People Analytics provides a more accurate and factual vision of talent management, thus promoting the flourishing and development of each employee.

Optimizing employee retention

Optimizing employee retention is another major application of People Analytics. Data analysis can help understand why employees leave the company and identify key job satisfaction factors.

Based on this information, proactive measures can be implemented to improve the work environment and promote employee loyalty.

For example, regular surveys on employee engagement can be used to collect feedback on the employee experience. The results of these surveys can then be analyzed to identify areas for improvement and implement effective retention strategies.

Analyzing performance data can help identify high-potential employees and implement personalized career development programs to retain them. Finally, People Analytics can also help evaluate the impact of retention initiatives on the overall performance of the company.

Improving productivity and employee engagement

The use of People Analytics in the field of recruitment can bring significant added value. It allows optimizing existing processes, reducing the duration of recruitments, and improving the quality of selected candidates.

By relying on precise and reliable data, recruiters can refine their understanding of candidates and anticipate the future needs of the company. Analyzing recruitment trends and characteristics associated with high-performing candidates allows adjusting sourcing and evaluation strategies.

The ultimate goal is to facilitate the identification and recruitment of the best talents, thus contributing to the overall performance of the company.

The different stages of people analytics

Types of HR Data: HR data can include demographic information, employment information (position, seniority, department), performance data, compensation and benefits information, training and development data, etc.

Collection Methods: Data can be collected through internal surveys, interviews, performance reviews, HR databases, and even professional social media platforms.

Data Quality: For analyses to be accurate and useful, collected data must be accurate, relevant, and up-to-date. Efforts should be made to ensure the reliability and validity of the data.

Privacy and Compliance: HR data collection must always respect data protection and privacy laws. It is essential to clearly communicate to employees how their data will be used and to ensure that data is stored securely.

Data Collection Tools: Many human resources management and People Analytics tools can help collect, store, and analyze HR data. It is important to choose a tool that suits the specific needs of your organization.

Analysis and Interpretation of HR Data

The analysis and interpretation of HR data involve detecting trends, identifying potential problems, and assessing the impact of HR policies. This may require the expertise of analytics professionals such as data analysts. Data analysis can be divided into two types: hot data and cold data. The former refers to real-time or very recent information, while the latter concerns older data.

People Analytics allow to:

Deepen recruiters' understanding of candidates

Understand and apprehend the behaviors of employees

Identify issues and prioritize them

Implementing this analysis requires several steps, including inventorying available HR data and defining missing data that might be useful. It is also indispensable to respect data protection and privacy laws during the collection and analysis of HR data.

HR teams can use the data to analyze trends such as recruitment or behaviors associated with performance, workforce planning, talent management, operational improvement, and productivity. The results of these analyses can then be used to develop an action plan.

It is essential to note that interpreting data requires a deep understanding of HR processes and the specific challenges of the company. Misinterpretation can lead to erroneous conclusions and ill-advised decisions.

Implementing Actions Based on Data

Implementing actions based on data is the culmination of the People Analytics process. This step consists of using the insights obtained from data analysis to make strategic and operational decisions.

For example, employee engagement data may indicate the need for engagement strengthening initiatives. Actions can also focus on solving specific problems identified, such as improving recruitment or retention processes.

It is crucial to clearly define the objectives of each action and have a detailed plan for their implementation. Effective communication is also essential to ensure that all stakeholders understand the purpose of the actions and their respective roles in their realization.

Although implementation is often considered the last step of the People Analytics process, it is important to remember that it is a continuous process. Actions should be regularly reevaluated and adjusted based on feedback and results obtained.

Monitoring and Evaluating the Actions Undertaken

After implementing actions based on data, it is crucial to perform regular monitoring and evaluation of these initiatives. This allows measuring the effectiveness of each action and adjusting the strategy if necessary.

Monitoring Actions:Monitoring involves observing and recording the progress of implemented actions. This can be done using project management tools or People Analytics platforms, which provide real-time data on the execution of actions.

Evaluating Actions: Evaluation aims to measure the impact of actions on the set objectives. This may involve using key performance indicators (KPIs) related to the objectives of the actions. For example, if an action aimed to improve employee engagement, a relevant KPI might be the participation rate in engagement initiatives.

Monitoring and evaluation should be considered an integral part of the People Analytics process, not a final step. It's a continuous cycle of learning and improvement, ensuring that actions taken are always aligned with the strategic objectives of the company

Concrete examples of using people analytics

To illustrate how People Analytics can be used concretely in various areas of human resources, here are some examples:

Recruitment: People Analytics can optimize the recruitment process by identifying the most qualified candidate sources, predicting candidate success, and assessing the effectiveness of interviews.

Compensation: Analyzing salary data can help identify pay gaps and establish more equitable compensation structures. Moreover, it can help understand the impact of salary increases on employee satisfaction and retention.

Employee retention: By analyzing data on staff turnover, factors contributing to employee resignation can be identified, and strategies to improve retention can be implemented.

Employee performance: Thanks to People Analytics, it is possible to track employee performance, identify factors contributing to high performance, and implement initiatives to improve overall performance.