Imagine being able to pick people for your organization that fit the requirements exactly or being able to predict what your organization will need in the future, and hire in such a manner that the long run benefits are innumerable. Slowly, all these possibilities are becoming reality. In the 21st century, analytics is an important aspect in every field. People analytics, is increasing gaining ppopularity. A relatively new term, works in almost the same manner as any other data analysis, but in a newer field – human resource management and recruitment. While usually data analysis is associated purely with statistics, the advent of people analytics is taking the HR industry by storm, and for good reason. So what exactly is this elusive concept of people analytics? 

Often referred to as ‘Talent analytics’ as well, it is integral in ensuring that the best of the crop is hired for your organization, thereby maximizing the potential of your organization. There are several examples of top companies adopting this process, and reaping the benefits.

Consider Google's case study

Google adopted ‘People Analytics’ much before it became popular. The core team hired a number of analysts for the HR department in order to ensure that the very best were recruited for positions that suited them. The results were truly stunning. Optimal mix of skills gave Google the required leverage to position itself as a leader in the market. In the 2016 rankings of the most valuable brands in the world by Forbes, Google ranked only behind Apple. A great deal of this success has been attributed to the unique management practices it adopts, and the success of its endeavor into people analytics. In fact, even Apple uses several similar practices as well.

Traditionally, it is a well-known fact that human resource management is just that – humans are the driving force between the management of these available resources. With the rise of people analytics, a new trend can be seen – a shift towards data oriented people management. This involves a ‘Best of both worlds’ situation, where the human touch is retained to make sure the process remains personalized and welcoming, yet reduces the risks by ensuring comprehensive analysis of every aspect of the situation at hand.

In fact, people analytics does not just help the employers ensure that the best is received from their employees; it also looks into the employee aspect of the working situation. Glassdoor company ratings in June 2016 showed a trend in employee rating that is showcased in a graph such as below:

People analytics will help ensure that the employees will be rating their company much higher than the average (around 3 out of 5), while giving insight to the organization about how they can ensure they stay ahead of this trend. The companies represented in the right side of the graph are those that are employee oriented, with excellent HR departments. The importance of good work atmosphere, like-minded team formation, and well thought out organizational structure are highlighted through people analytics in this aspect.

The rise in the popularity, and success of people analytics, lies in its very essence itself. The HR industry already involved itself greatly in the study of the individuals that make up its organization, such as tenure, salary, history etc. However, people analytics takes on a much more humane approach to the same concepts. While shifting the work of analysis to machines, it also encompasses a number of previously ignored factors, such as psychological health, non-monetary inconveniences that may occur for the employees such as travel issues, and even physical health aspects as well. This is a much more accurate understanding of the human resources available, and enables the company to go far in terms of optimizing the work environment they provide. In a good, unified environment, it can be guaranteed that employee efficiency will increase exponentially.

 

The beauty of talent analytics lies in the fact that it is not one-dimensional in any sense. Like any other data science in the developing situation, people analytics can take on multiple forms – operational (real-time), predictive (future-oriented) or whatever else the situation may require. With the correct implementation of the information thus obtained, there is large scope for any organization to develop and move in the right direction.

Therefore, in the current scenario where ‘big data’ and ‘data science’ rule the roost, the HR industry too must evolve and make use of this previously unavailable knowledge. Analyzing the different aspects of this allow for growth unlike ever before. A study by TimesJobs.com determined that 65% of Indian companies are aiming to embrace predictive people analytics, with the IT industry leading the pack. 

Innovation, efficiency and amicability have always been the pioneering factors in the HR industry, and people analytics fits into this trend perfectly, and allows the entire industry to move forward. The perfect example of man and technology working together to produce incredible results, this developing field is taking over almost every prominent company and organization, and rightly so. Employees and employers both benefit, making it a dream come true for those in HR management positions everywhere.