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What is ‘people analytics’?

By 31/05/2022January 8th, 2024Analytics
What is ‘people analytics’?

‘People analytics’ isn’t a buzz term you should just know about. It is something that your organisation requires if you’re to better understand your workforce and identify key trends, in real-time.

People analytics is all about data-driven insights into your workforce. Officially Gartner defines it as “the collection and application of talent data to improve critical talent and business outcomes. People analytics…inform talent decisions, improve workforce processes, and promote positive employee experience.”

Also known as ‘HR analytics’ or ‘workforce analytics’ across some organisations, data can be gathered from several different places such as internal HR systems, external employee surveys, or specific department statistics, for example. Organisations can then look at these insights to make smart decisions and aid future business strategies.

Whether it’s using data to make decisions about staff retention, hiring new talent, changing work processes, or reviewing your benefits packages, people analytics can help you do it all by giving you hard evidence to make a justified changes and enforce business-critical decisions.

The benefits of people analytics

There are several advantages that businesses can reap from utilising the millions of pieces of data that their organisations are sat on. Here are two as a starter…

  1. Boost staff retention and recruiting

Analytics can be used to identify issues and areas of the business that negatively impact employees to make a change before it is too late. Spotting trends at the earliest opportunity can be the difference between employee satisfaction and staff churn.

At the same time, it can be used to detect specific characteristics for certain roles and distinguish candidates who are best suited – streamlining the recruitment process. Impressively, McKinsey reports an 80% increase in recruiting efficiency and a 50% decrease in attrition rates.

  1. Improve business performance

Unique insights can highlight workplace trends that should be enhanced to boost productivity, such as better use of collaboration tools, or seek out problems that might be draining efficiency – so you can nip it in the bud before it impacts performance.

  1. Reduce skills gaps

It allows leaders to recognise current employees’ skills and where these are best applied within the business. Not only to keep staff happy, but also to be able to deliver the best experience for customers or consumers as possible.

This way, leaders can identify skills which are lacking and put a talent plan in place to plug these gaps.

  1. Improve workforce morale

By measuring employee engagement, you can look at key drivers and motivations and adapt your culture and traditions to boost motivation. This will encourage positivity and productivity in your working environment.

The future of HR fuelled by data

It’s all about data-driven decisions – using evidence-based insights to make changes to your business that add real value.

You can make sure you have the right people in the right roles, putting the correct skills to use, and ensuring that employees are enjoying work at the same time. To find out more about this, access our free webinar.

By letting technology do the data work, HR teams can turn their focus to strategy and planning, adding to overall business performance. This is where the difference can be made.

HR is evolving. Are you ready?

Natural HR can help uncover powerful employee insights, click here to find out more. Email: or call 0121 663 1500 for further details.