The Advantages of Using People Analytics

November 28, 2022

Human resource leaders have faced significant challenges in their attempts to use analytics to make better people decisions for years. To determine metrics on employee engagement, cost per hire, turnover rates in critical jobs, and gender pay equity, they’ve frequently been forced to cobble together data from multiple spreadsheets or attempt to extract information from cumbersome systems.

While such technological barriers still exist in many businesses, they are becoming less common with the introduction of more sophisticated, cloud-based analytics tools that enable HR to use people’s data in more timely and effective ways to support organizational decision making.

There are numerous opportunities to use people analytics throughout the employee lifecycle. Here are a few examples of how analytics adds value and has a quantitative impact on businesses.

Retention of Employees

One of the most effective applications of people analytics is turnover prevention. The impact is most visible when organizations concentrate on a specific role or group of employees. Employee turnover can be significantly reduced with targeted retention informed by people analytics.

Achieve Equitable Pay

Organizations can achieve fair pay by analyzing and optimizing compensation practices. People analytics can be used by businesses to evaluate proposed candidate offers, counter-offer considerations, and promotions. This capability enables the team to compare employees’ compensation profiles, incentive scores, performance ratings, and attributes to others on the same team or in similar positions in real time. It also gives you a competitive advantage when top candidates are considering multiple job opportunities or when high performers are considering leaving.


Talent acquisition analytics can assist organizations in identifying characteristics that result in long-term, high-performing employees. It can assist organizations in determining where their best candidates come from and whether they are losing people in the acquisition funnel. This allows organizations to optimize their spending on recruiting activities and their candidate pipeline. It can also pinpoint the right characteristics for future candidates in order to maximize recruiting investment.

Development and Learning

People analytics can be used by businesses to optimize training modes and sources. Learning analytics that link the effect of training and development on corporate objectives enables companies to ask the right questions and receive the right answers.

Increasing Diversification

For businesses, diversity can be extremely beneficial. Analytics can help companies understand how to effectively address problem areas by answering questions about the state of diversity throughout an organization and across its employee lifecycle, identifying areas where intentional or unintentional bias may be occurring, and identifying areas where intentional or unintentional bias may be occurring. People analytics provides organizations with greater visibility into their diversity initiatives.

Improve Workforce Planning

People analytics enable organizations to analyze workforce data to better understand the current state of the workforce and to inform discussions about the talent required to meet business objectives.

Boost Productivity

People analytics can also assist organizations in increasing productivity. Companies can increase productivity and save money by linking actual hours spent on activities to an optimal target time and monitoring against this index.

Human resource data is inherently unorganized and difficult to integrate. But it would be a mistake to let that deter you from pursuing analytics. Accurate data is required for good business decisions. Every employee-driven function includes intelligent analytics and reporting, making it easier to collect data on engagement, productivity, learning, and growth.