How People Analytics Supports Business Success

People analytics, the collection and analysis of data to drive better business and talent outcomes by informing decisions about individuals, teams, and organizations, helps employers in multiple ways — with metrics that track everything from hiring to employee satisfaction (or dissatisfaction) to goal setting and achievement. The added value of using people analytics can play a role in an organization’s productivity and success.

“The world of work is experiencing rapid transformation,” said Kristin Saboe, Ph.D., head of Employee Voice at Google. “In times of transformation, speed and accuracy are key to bringing cost, time, and resourcing efficiency forward for organizations and individuals. There is not time nor resources for organizations to misstep right now if they want to stay competitive. This is the value of people analytics – the function exists to identify best practices and mechanisms that predict improved outcomes and anticipate need.”

• Better Hiring
  Data from high-performing employees can inform hiring criteria, helping businesses select candidates who are more likely to succeed. Analytics can also reveal potential missing skillsets among staff and help pinpoint key times for hiring new employees, as well as track acceptance rates for job offers.
• Improved Retention
  Attrition can be costly. People analytics allows companies to proactively address signs of disengagement or burnout, empowering managers to take action before top talent exits the company.
• Boosted Productivity
  With real-time insights into individual and team productivity, managers can use data to pinpoint inefficiencies and implement personalized solutions or broad process changes that improve productivity and performance.
• Data-Based Goal Setting
  Performance data makes goal setting more strategic and measurable. Instead of generic key performance indicators, teams can work toward realistic, data-driven targets — and adjust quickly when circumstances change.
• Smarter Talent Development
  People analytics highlights areas where employees excel or may need support. The information can help HR teams and managers offer enhanced training, or identify individuals ready for new responsibilities, allowing for internal growth.
• Enhanced Security and Compliance
  People analytics data also helps mitigate risk. By flagging unusual behavior or breaches in real time, organizations can respond quickly to protect data and ensure that policies and procedures are being followed.
• Higher Employee Satisfaction
  Understanding what drives job satisfaction — beyond just survey results — helps HR build programs and policies that resonate with employees. People analytics can help to uncover deeper insights into engagement, enabling leaders to improve upon the employee experience.

“Data allows for better decisions that are more likely to lead to successful business outcomes – this is a win for any organization keeping pace with a changing world,” Saboe said. “It enables improved retention for critical talent populations, the ability to predict the outcome of workforce policies and skills, and metrics of effectiveness to know if strategies and efforts are leading to the transformations needed and expected.”

For more information about people analytics and how I-O psychology can advance the field, make plans to attend the 2025 SIOP Leading Edge Consortium: Advancing People Analytics.