With the advancement of technology and information systems, in increasingly volatile contexts, organizational success is redefined by the intelligent use of data. The discipline of People Analytics is taking on greater relevance, revolutionizing Human Resources management and rethinking strategies in the business environment.
Organizations are made up of people and, therefore, collecting their data, analyzing them and taking actions based on them, obtaining tangible business results, must be part of any Human Resources strategy.
People Analytics is becoming a critical differentiator and competitive advantage for any business environment. Data about employees is synonymous with better decisions and results at the business level, which is why this process is currently being so mentioned and used.
Human analytics isn't a new technique, but it's evolving. While some companies have already successfully adopted it, others pose a difficulty in measuring issues related to the human environment and are in the process of digitization and computer literacy.
Mature organizations that embrace a data-centric culture are the exception, in part because of the high demand and scarce supply of data analysis professionals in the market.
Deloitte research demonstrates how effective People Analytics teams are directly related to higher retention rates, engagement and business opportunities.
However, as employees are more valued as individuals and recognized that their well-being is directly related to organizational success, cultivating a culture based on data becomes imperative for HR departments and leaders.
Despite the challenges, investment in People Analytics is on the rise because of its potential to drive results and unlock opportunities for growth.
While traditional indicators, such as turnover rates or training hours, are valuable, the field of People Analytics goes further; it seeks the “why” behind the number by contextualizing and transforming data about people into actionable information to obtain business results.
It is the continuous process that involves collecting, understanding and applying data to drive individual and organizational success. The main difference with HR Analytics lies in analyzing the reason for each of the figures obtained to generate insights that are transformed into strategies and action plans. It's the vehicle for generating proactive recommendations and enriching the human side of the business with important information.
It is a continuous measurement and analysis process that allows organizations to adapt quickly to changes in the context and make assertive decisions for people who go hand in hand with a VUCA environment (complex, volatile, unpredictable and ambiguous).
• Optimizing talent management: The monitoring and analysis of data related to objectives and performance provides information on team performance. Individual skills and areas for improvement can be identified to create customized development and training plans according to the needs of each collaborator. In addition, employees with leadership potential can be identified and solid success/career plans can be created for them.
• Streamline the recruitment process: you can analyze historical data, extract information from candidates and identify which characteristics are correlated with success in the company and specific roles. This improves quality and reduces hiring times.
• Improve employee engagement and retention: with surveys, evaluations and interviews, it is possible to know the motivation of the team and whether the development opportunities offered by companies are being taken advantage of. This helps detect problems, identify causes of talent loss, and discover which employees might be considering leaving the company.
From my point of view, there are two main challenges. The first is to succeed in transitioning from descriptive and diagnostic methodologies focused on the past to prescriptive methodologies that allow us to look ahead, plan and anticipate possible scenarios.
The second point is to consider that although data gives us valuable information about teams, we must not lose sight of the empathetic and human aspect behind them. Focus decisions on data, but never forget that we work with and for people. It is essential that the company does not focus excessively on technical data and that it continues to build relationships with its employees. Or, that they use that data to make decisions that help employees have a better work experience.
Other challenges to consider are the quality and reliability of the data, since they are often inaccurate or outdated and can lead to incorrect conclusions or to make wrong decisions.
In addition, the shortage of talent for these tasks can lead us to not achieve the correct analysis of the data.
Finally, the selection of relevant metrics and KPIs can be challenging since it requires a deep understanding of business strategy and for this, full support from company managers is required.
The line between useful analysis and invasion of privacy can be blurry. It is crucial to address ethical concerns and ensure data confidentiality. Data must be protected and protected to prevent access by unauthorized persons.
A good practice may be anonymity in certain data collection practices to avoid falling into biases and subjectivities. People's concerns and concerns about data processing can also be addressed through an ethics and policy manual that supports a supportive data environment.
There is no single suitable tool or technology. The important thing when deciding which one to use is to define the objectives of People Analytics in relation to the company's needs. Options include HR management systems, data analysis tools (Excel, Tableau, Power BI), survey platforms (SurveyMonkey, Qualtrics, Typeform), performance review systems, and more.
In conclusion, the path to effective and strategic HR management lies in data. As organizations embrace the People Analytics revolution, new frontiers of innovation and growth are opening up, allowing companies to not only survive, but also thrive in a constantly changing business world. Success lies in balancing technology, data and human understanding.
By addressing obstacles with determination and taking an ethical and thoughtful approach, organizations can make the most of the potential of People Analytics to improve employee performance, decision-making, and move toward a future where data is the foundation for managing people. Navigating these challenges and building an empowered, efficient, and informed organizational culture requires an ongoing commitment to improvement and adaptation.
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By Luciana Galli, People & Culture Manager of Balloon Group
