People Analytics is an emerging field of human resources (or people operations) that seeks to measure and improve employee health and productivity at work. Instead of operating on gut-feel and observation, people analytics seeks to quantify it.
If you're new to people analytics, this guide will serve as an in-depth introduction to this field, and why it matters for your organization.
The growing field of people analytics is based off a few key trends listed below:
One of the most important trends driving the people analytics movement is that data is easier to collect and store in a manageable way. Imagine running a performance review fifty years ago inside a five-hundred person organization. The paperwork takes time to collect, store, and interpret. Now, data storage is cheap, and while interpreting data can still be challenging, it has gotten much easier.
Also, other departments have proven that the insights derived from data analysis can drive major improvements inside an organization. For example, consider the marketing department. Marketing teams have the ability to track website visits, run A/B tests, and understand at a granular level what influences customer behavior.
This video below does a great job explaining more...
According to Gallup, nearly seventy percent of employees are not engaged at work. The cost of this problem is estimated to cost $3,400 for every $10,000 an employee makes. This amounts to over $350 billion in lost productivity annually.
In other words, this is a major problem, and any improvement in this capacity can drive major productivity gains.
With more and more millenials entering the workforce and taking management roles, they have different expectations about how they expect a business to conduct itself, and more importantly, they are vocal about it. While their desires are similar to people who have been in the workforce for over twenty years, they are unafraid to express the way they believe the business should operate.