People Analytics: How To Turn HR Into a Strategic Department In The Company?

People Analytics: How To Turn HR Into a Strategic Department In The Company?

With People Analytics, how to turn HR into a strategic department in the company? Those responsible for people management will obtain crucial information to position themselves as a key department within the company. Although, to achieve this, it will be necessary to follow specific strategies for its correct implementation.

Below we detail the steps to follow, profiles necessary for its management, key KPIs and success stories in real environments. With the aim that RR. HH ceases to be a merely operational department, and becomes a key strategic ally that drives the development and growth of the organization .

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The Importance Of People Analytics

People Analytics is a methodology that allows optimizing decision making for people management in a company. It covers all relevant aspects of personnel working in an organization:

  • The distribution of workloads
  • Working environment
  • Recruitment and selection processes
  • Performance evaluation and management
  • Professional development within the organization

Through the use of technology, information is collected on a multitude of relevant parameters in the field of people management. Subsequently, these data are organized, analyzed and represented in a clear and conclusive way, to facilitate making the right decisions.

If implemented correctly, it is a key tool in the efficient management of workers that can make a difference compared to the competition. Hence its relevance.

Getting Into People Analytics

The concept of People Analytics is initially related to the collection of data on key aspects for optimal management of the people who are part of an organization. This is correct. However, it is just the beginning.

A complete People Analytics strategy must also contemplate the correct interpretation of this data to facilitate making the right decisions .

In fact, according to the report ‘ The State of HR Analytics ‘, the biggest difficulties in People Analytics are the integration of data, cleaning the less relevant data and displaying it clearly.

Specific:

  • 49% of respondents consider data integration to be a fairly difficult or very difficult process.
  • 42% value cleaning all the information they obtain as quite difficult or very difficult.
  • And 38% consider the clear and conclusive visualization of all the information quite difficult or very difficult.

Therefore, organizing the available information and segregating it to be clearly represented are the main barriers to its adoption. Confirming that a good People Analytics strategy goes far beyond the simple ‘capture’ of data.

It is vital, for it to be really useful, to subsequently open a correct phase of analysis and interpretation of that information.

Transforming Data Into Key Information

Transforming data into relevant information is what will give us the leap in quality when implementing this type of system. But how to achieve it?

  • It uses the appropriate technology that allows the integration of various sources of information in a single system for data management.
  • Train or hire talent for the HR department. H H. who specializes in data science and analytics .
  • It makes it easier for these types of profiles to work , within the personnel area, together with other employees with skills in storytelling, communication and agile methodologies .

The former will be in charge of extracting valuable information. And the seconds of interpreting it and turning it into an argued and solid speech that serves to make decisions with a well-founded basis.

Applying Data In Talent Management

Applying data analytics to talent management allows the HR department. H H. become a strategic partner in the organization. Its impact will go beyond employees, and will serve to create value throughout the company.

Talent management consists of creating a strategy to hire, generate and retain profiles with high potential. Through People Analytics we can obtain information on whether the recruitment, generation and retention processes are developing properly.

As we have pointed out, a successful strategy will not focus solely on collecting data. If not in crossing each source of information correctly, helping us to interpret them. For talent management through People Analytics, it will be necessary to collect information on:

  • Ratio of qualified professionals by selection process
  • Application abandonment rate
  • Offer acceptance rate
  • Staff turnover rate
  • Average staff turnover time
  • Increased or decreased performance
  • Promotion index
  • Absenteeism
  • Presenteeism
  • Accident rate
  • Training assistance
  • Use of new abilities
  • Employee satisfaction with their current functions
  • Satisfaction with your previous functions

Convert data into key information

The second step to make a real leap in quality with a People Analytics system is to establish relationships between all this data, broken down individually but interpreted as a whole.

In other words, there will be an absolute number of work absenteeism. But this may be broken down among employees with more than a certain time in the company, by age, whether or not they have been promoted, or all these parameters at the same time.

The true key and usefulness of People Analytics for differential talent management lies in interpreting all these interrelated variables, and obtaining conclusions that allow us to make decisions.

Three People Analytics You Should Be Measuring

Although we have already mentioned some, below we are going to focus on three of the measures that, yes or yes, must be present in any analysis using People Analytics tools.

Working Days

Indispensable for determining workloads, meeting schedules and objectives, and facilitating the reorganization of tasks and teams, if necessary.

Measuring working hours is also an essential legal requirement for any company based in Spain. Therefore, having software that allows the registration of working hours , and that facilitates a rapid collection and extraction of data will be key in an adequate People Analytics implementation process.

Recruitment And Selection By Skills

The technological ‘boom’ brings with it the appearance of new tools and innovations that can add a lot of value to an organization. It is important to keep track of the skills required for each job position, in order to carry out truly effective recruitment and selection processes .

With People Analytics you can, first of all, identify the profiles of candidates or employees who have certain skills. Some of the ones you should keep in mind today are:

Technical Skills:

Required for a certain position or function. For example, knowledge of JavaScript for a development company.

Soft Skills Or Skills :

  • Communication.
  • Time management.
  • Organizational capacity.
  • Empathy.
  • Strategic vision.
  • Problem resolution.
  • Change management etc.

How To Relate Data To Each Other?

Secondly, we can obtain conclusions by crossing all kinds of information:

  • Do we have enough leadership skills in the company?
  • Do we provide enough career path for all potential leaders?
  • How do older employees manage change?
  • Do we lack empathy in certain departments and is this affecting absenteeism or productivity?

A real case of the application of People Analytics in this sense is the one that has taken place in a company in the field of health that has recently carried out a merger process.

In chapter 7 of the ‘Magazine of Case Studies in HT Analytics’ of the Knowledge Engineering Institute, it is explained how with the use of this tool it is possible to develop an action plan to promote the commitment of the management team .

To achieve this, the motivations, personality and skills of 140 professionals from the organization were analyzed.

With all this information, and its subsequent interpretation, the key competencies, motivations and traits that generated commitment variances of up to 45% higher in those who possessed them were determined :

  • Competences: customer orientation, influence and communication.
  • Motivations: support, recognition, feedback and stability.
  • Traits: Self-control.

Staff Turnover

According to a report by the World Economic Forum, Spain is the European country with the highest demand for key jobs not covered . According to INE data, in the third quarter of 2022 there were more than 140,000 unfilled vacancies .

In this environment, competition for talent in companies is high , and its retention is key. Measuring, analyzing and obtaining relevant conclusions about staff turnover in a company is key to detecting the causes that may be generating a brain drain.

Through People Analytics, this IT company was able to detect the causes that led to the departure of some qualified profiles, with the consequent loss of talent and costs derived from new hiring processes.

To do this, he collected information from questionnaires made to those who were leaving. Detecting, after a descriptive analysis, that the lack of development opportunities and salary were the main reasons that motivated the change.

Conclusions

People Analytics is a powerful tool that can help HR departments become more strategic and integral to the success of the company. By leveraging data-driven insights, HR can help make more informed decisions, create better strategies, and drive performance across the entire organization. Contact us for more content like this!

Frequently Asked Questions About How To Turn HR Into a Strategic Department In The Company

HR analytics provides insights for managing employees and achieving business goals by analyzing relevant data, and it is important for HR teams to identify and use the most valuable data to achieve maximum ROI.

To implement HR and people analytics, companies must define goals, collect and analyze data, communicate findings, take action, and continuously improve the process, with skilled professionals and executive support.

Venjara notes that people analytics can improve HR interventions and strategies by providing insights into HR function performance and utilizing employee data to drive outcomes aligned with business objectives.

A strategy for people analytics can significantly impact retention, productivity, engagement, and hiring, providing insights, opportunities, and actions towards achieving these goals.

Strategic analytics utilize various data sources to inform business planning, such as financial, historical, organizational, and employee-driven data.


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Chris Charles
By Chris Charles

Hey everyone, I am Chris, A versatile and knowledgeable skills writer, able to bring a fresh perspective and valuable insights to a wide range of topics, from public speaking to time management. An experienced skills writer with a talent for breaking down complex concepts into easily digestible content that helps individuals succeed.