5 Ways People Analytics Impacts Human Resources

Data analysis is steadily and firmly becoming one of the most important factors governing and guiding the decision-making processes in business houses worldwide, is no revelation anymore. Yet, how the astounding potential of data analysis is tapped to gain most favorable results in various business sectors, still remains to be largely elusive for common enterprises and executives.

People analytics is one of that novel and cutting edge applications of data analysis in the corporate world, albeit its domain of focus and scope remains confined to the human resource or HR department alone. Known as HR analytics too at times, People Analytics comprises of a data-driven approach to analytics that enables HR managers and executives manage the enterprise workforce in a streamlined and optimized manner. Instead of relying on the ages-old methods of leveraging personal relationships and information for managing people at work, people analytics instead banks upon the power of deep analysis of data and allows HR executives to arrive at useful business decisions. Let’s have a look upon how people analytics is proving helpful in different human resource related procedures.

1. Recruitment Process

Recruitment of new workforce is one of the most vital processes the HR department of a business enterprise has to carry out. The number of eligible candidates in a vast nation like India is growing on an everyday basis, which makes the tasks like a background check and past record verification of all the candidates very tiresome and time-consuming if still completed following legacy methods of personal verification or correspondence through letters, phone calls or emails. Thanks to the huge swarm of personal and professional data scattered in aggregation and the robust data analysis solutions available in the market today, the entire process boils down to just a few minutes. It saves time and efforts and provides a much reliable conclusion that has been cross verified through from among various data sets.

2. Employee Onboarding and Engagement

Just before a new employee joins his or her new workplace, the most initial HR process involves generating their records in the database, filling relevant information in various fields, preparing paperwork and creating different corporate digital accounts allowing the new employee discharge his or her duties effectively. Till recently, this task was completed in a manual fashion by the HR executives, filling each field separately for each new employee that was time-consuming, error-prone and tedious in nature. Latest people analytics solutions make things easier and simpler, as they simply pull the employee data that has been duly verified by the HR executives, and fill the same in relevant fields in an almost automated manner.

3. Employee Performance

Like any other variant of data analytics, people analytics also follows the standard practice of defining a few metrics and then analyzing the data provided on the basis of those metrics to offer insights and inferences. While on the job, the performance of every employee is assessed in accordance with various industry standard metrics defined and implemented by the HR department. The assessment data is consistently updated in the data repository located on the server and the people analytics solution of the enterprise provides regular notifications, reports, and alerts to the HR department for continuous tracking and observation.

4. Learning & Enhancing Skill Set

Every employee inside an organization possesses a peculiarly different set of skills and credentials, and it’s highly imperative for a successful organization to ensure that each of its employees is able to further hone his/her skills and strengthen his/her knowledge base in a regular manner. People analytics has proven to offer a helpful workaround here, as a deep analysis of overall performance and skills of the workforce provides with an exact estimation as to which are the areas wherein a certain employee needs to improve, and what might be the correct approach towards initiating the upgrade required.

5. Compliance

It is necessary for any organization to comply with employment laws, rules and regulations mandated at their business location. While most of these laws, rules, and regulations are almost alike, a few of them vary from place to place, both globally and locally. An efficient people analytics solution comes to the rescue of an organization and helps it in adhering strictly to the prescribed HR guidelines while executing their functions right from recruitment, employee engagement, training, performance tracking and skill development as well.


Shantanu Chaturvedi is director of technology at Stepout Solutions. Visualr, a data visualization tool by Stepout Solutions helps in exploring business insights by converting data into information. You can connect with him on LinkedIn to know more about his work.


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