Your business runs on various factors and resources – human resource is one of the vital elements of any company says Fred Auzenne. It is essential to work towards the development of this sector constantly. HR plays a significant role in bringing out the optimum skills of every employee and support in the encouragement of all. People analytics is another crucial HR tool that leverages the proficiency of the workforce. Let’s understand what workforce analysis is and how it plays a pivotal role in boosting business operations.
What is people analytics?
Human resource analysis is the process of evaluating the data about people in the business. However, the term is more relevant to employees and people directly associated with the company. Human analytics is exclusively human resource (HR) terminology and deals with the regular exercise of handling business problems. Another popular term for human analytics is workforce analytics.
You can carry the analysis for every aspect of HR work – from encouraging the employee morale during business problems, drafting the retention policies, demarking the redundancy in the business, hiring during scalability, and any significant decisions that involve the human workforce.
Why people analytics?
Fred Auzenne explains the significance of HR analysis as the basis of P&L performance. The executive expert of Cultural Index speaks on the company’s primary focus to hire the right people for a suitable position to achieve the business goals.
- To measure the workforce before any significant business decision is essential. People analytics is an HR activity for internal and external stakeholders that supports assessing individual performance, diversity, well-being, and additions.
- HR can gather effective testimonials that help in enhancing the workforce and overall performance.
- To gather feedback from the people (internal and external) about current HR policies and parallelly bring relevant changes.
- To draft the estimate of fiscal and social ROIs for relevant initiatives.
- Human resource analytics is the critical element in designing the business analytics and value creation for deciding the professional map.
What are the levels of human analysis?
There are mainly three types of people analytics that deal with the skill set of every employee.
- Descriptive analytics: This is level 1 of human resource analysis, where the descriptive data uses annual leave records, absence of staff, attrition, and also recruitment rates. Another wing of descriptive analysis deals with multidimensional data like merging leadership experience with engagement scores to evaluate its effectiveness.
- Predictive analytics: As the term suggests, it deals with predictive trends. For example, scaling the past workforce with the current labor market to ascertain the future workforce requirements. This step is crucial as the data must always be relevant, reliable, and robust for the analysis.
- Prescriptive analytics: The term is very subjective and involves both descriptive and predictive analytics for its recommendations. For example, online training courses suggest specific programs based on the given interests, career goals, and previous qualifications.
As a business, it is vital to regularly bring changes to the workforce with this significant HR landscape. The exercise shall leverage the reliable and robust growth of the company.