Why Now is the Time for People Analytics

Now more than ever, people analytics is taking center stage in organizational strategy. As businesses face talent shortages and aim for more data-driven cultures as well as ongoing efficiency, the role of people analytics in I-O psychology and human resources is more important than ever. From improving employee engagement to enhancing overall business outcomes, people analytics is transforming how organizations operate, compete, and grow.

“Businesses thrive on information and data to shape their strategy and to inform their decisions,” said Amit Mohindra, EdD and CEO of People Analytics Success. “The business of talent is like any other business. HR runs the business of talent and needs data for its workforce strategy and to hone its programs. In these times of uncertainty and resource constraints, people analytics sustains the business of talent by maximizing the return on human capital while looking out for employees’ experience and well-being.”

Several key trends are contributing to the growing importance of people analytics:

• AI and Predictive Analytics: The integration of artificial intelligence and predictive analytics is revolutionizing HR. Organizations can now anticipate workforce needs, identify potential talent gaps, and make informed decisions with real-time data.
• Hybrid Work Models: As hybrid and remote work become the norm, traditional methods of managing and engaging employees no longer suffice. People analytics helps organizations understand the needs of hybrid employees and tailor strategies that keep them engaged and productive.
• Employee Well-being as a Priority: Employee well-being is no longer just a nice-to-have—it’s a crucial business matter, particularly mental health. People analytics can help detect signs of burnout, disengagement, dissatisfaction, or mental health challenges, allowing timely intervention and ways to offer support.
• Skills-Based Hiring: The focus is shifting from job titles to skill sets. People analytics enables businesses to map existing skill sets, identify gaps among current employees, and guide both hiring and internal upskilling strategies and/or training.
• Real-Time HR Decision-Making: HR is evolving from a reactive function to a more strategic operation. With continuous data review, HR teams can make informed decisions in the moment.

“So often organizations focus on strategy and transformation, which is understandable in today’s world of rapid change,” said Meisha-Ann Martin, PhD, senior director of People Analytics and Research at Workhuman. “People analytics is the measurement that lets organizations know how well they’re executing on their stated people strategies, and the analytics provide information on the antidotes to the organization’s people problems. In my opinion, every talent strategy is flawed without an accompanying plan for measurement and analytics.”

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.