People Analytics – Revolutionizing Traditional HR

June 1, 2021

The constantly changing business environment creates an urgent need for better people’s decisions everywhere. This is no less accurate in the business world, where employees as human resources are one of the most crucial assets of an organization that drives success. To add to this, the volume of workforce data is constantly growing at an unprecedented rate. However, having the data alone will not suffice in obtaining organizational success. 

This is why business leaders are making decisions about their employees based on deep people analytics over traditional HR practices. This article will give a clear outline of what people analytics is and how they are revolutionizing traditional HR practices to better a business. 

What is People Analytics? 

People analytics is a data-driven approach to manage people at work or the workforce of an organization. In a traditional HR setting, decisions concerning employees, from performance appraisal to hiring and retention of employees, were heavily based on experience, risk avoidance, gut feeling, and personal relationships within an organization. 

The focus for data-driven approaches to anticipate future development was very less. More importantly, as the traditional HR process involves, tedious paperwork and related procedures using a data-driven approach were seen as complex. Especially the process of sorting and analyzing data that is maintained in piles of papers and documents is an overwhelming task. 

However, the growth of “Digital HR” and related HR platforms has simplified this task beyond traditional HR norms. 

How is it revolutionizing traditional HR practices? 

With people analytics and appropriate HR software, businesses can now collect and transform HR data and any other organizational data into actionable insights and information that can improve decision-making and the way a business is done. 

The popularity of people analytics and its substantial impact on workforce planning and decision-making has become crucial. On average, 70% of organizations invest in people analytics solutions to integrate data into their workforce and organizational decision-making.

People analytics helps you to get a deeper and comprehensive insight into the following HR metrics, 

  • Revenue per employee
  • Quality of hiring process  
  • Performance turnover rate in key job roles 
  • The effectiveness of HR practices 
  • The failure rate of recruits 

Businesses that utilize these analytics within their decision-making processes have been able to gain a competitive edge on the following HR aspects. 

  • Employee retention. 
  • Achieve fair pay 
  • Improved performance appraisal and employee satisfaction
  • Quick and effective hiring process 
  • Effective learning and development programs
  • Increasing organizational diversity
  • Optimize workforce planning
  • Increase employee productivity

People analytics were previously aimed to meet the complex needs of large businesses. Nowadays, plenty of people analytics solutions developed to fit small-medium scaled organizations looking for deeper and comprehensive information to grow and improve their workforce make rewarding people decisions for their organizations. 

If you’re looking to make your next HR move towards people analytics, get in contact with us at EmiratesHR. As one of the leading HR and payroll software solution providers in Dubai, we aim at delivering HR platforms that meet all the precise HR needs of your company.