The landscape of People Analytics solutions
Basics & trends
People Analytics (or HR analytics) has become an integral and essential part of HR.
Many HR teams now have dedicated people analytics resources. People analytics does not have to be difficult. Organisations often lose time and momentum, because they first want to make sure the data is 100% perfect, and standardized across the organisation. Good practice is to start with the most burning issues in the organisation, formulate some hypothesis, and try to test the hypothesis with the data that is already available. Asking the right questions, using common sense and basic statistical knowledge are important. Sophisticated tools alone do not give the answers to burning questions.
In people analytics different maturity levels can be distinguished.
- Reporting. This is more reactive traditional reporting (”What has happened?”).
- Advanced reporting. More operational reporting for benchmarking and decision making. HR dashboards typically can be seen in this phase (“What is happening now? Why did it happen?”).
- Strategic, more proactive analysis. Connecting people data to business data. Analyzing the data to develop high impact interventions.
- Predictive analytics. Developing predictive models, scenario planning and using the models for long term strategic planning.
Today most organisations will still be in maturity levels 1 and 2.
Many HR tech solutions have reporting- and analytics capabilities. In this category we focus on stand alone solutions, that can work with, and combine, data from different sources.
The solutions covered will certainly be helpful in maturity levels 1 and 2, sometimes in 3.