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People Analytics | Meaning and Definition

What is people analytics?

People analytics, also called workforce analytics, HR analytics, or talent analytics, entails amassing, scrutinizing, and reporting Human Resources data. With this data, an organization can estimate the impact of HR metrics on the overall performance of a business. It is a critical tool, thus, to make important data-driven decisions to achieve sustainable success. These analytics are instrumental in gauging the effectiveness of various interventions and HR policies by eliminating any room for guesswork.


How do people analytics help HR Management?

People analytics have revolutionized the domain of HR where it enables HR to:

  •   Take better and data-driven decisions.
  •   Develop business cases for HR intervention
  •   Evaluate the efficacy of the HR interventions
  •   Shift from a functional partner to a strategic or tactical partner.


Nowadays, recording and storing employee data by the HR departments are not sufficient, as it does not add any strategic value. Carly Fiorina states that the objective must be to transform the data into information and that information into insight. That directly and positively equips HR with tools and wisdom to make decisions on a strategic level. The common sources from where HR analytics data is extracted include payroll data, performance data, population data, labor market data, social network data, demographic employee data, LinkedIn data, and more. Furthermore, any data that’s found germane to a particular project can be utilized as well.

With the application of complex statistical analyses, Human Resources is furnished with the power to even predict the workforce’s future. Thus, managers can estimate the financial influence of HR practices.

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