How People Analytics has changed the way people manage within companies – WAU
Employees, in their daily activities, generate data that show how their performance has been in the company. Transforming this information into indicators can be great for two reasons: to get the most out of people and to offer good working conditions.
Data work is increasingly present in the daily lives of companies, however, this goes beyond market results.
People are also under constant observation by the HR sector, as they need to perform well. In this task, People Analytics has been important for companies.
Managing employees requires an effective and strategic analysis in relation to how they behave, produce and are engaged with the company. Performance data is more accessible and this represents significant gains.
In this post, you will understand more about the subject! Know the impact of People Analytics, know how it should be implemented correctly and understand what the results it provides.
What is People Analytics?
When reading this term for the first time, it is common for people to think that People Analytics is software; however, it is a practice that consists of constant study of employee performance through the data they generate when exercising their activities.
People Analytics takes care of all the main steps of working with data: collecting, organizing and analyzing them. All of this is done by the company’s HR sector, always evaluating some basic and strategic parameters.
In practice, evaluating these metrics helps you understand the role of each person in the business.
The strategic management of companies is a reality and, for the goals to be achieved, it is essential that employees are involved. More than exercising their functions, they need to maintain a good level of productivity, always engaged with the organizational culture and with the objectives of their sectors.
Each employee has a role for business goals. People Analytics aims to monitor employee performance to understand whether they are aligned with what the company needs.
Thus, managers can have greater control of their teams, helping in their development.
How can it be applied in a company?
Any company can begin to collect, manage and analyze data from its employees, however, it is necessary to prepare properly.
From the acquisition of software to the routine of analyzing results, everything needs to be planned.
For some companies, this reality may not be new, if they already work with data for business management.
Despite having different purposes, the processes have similarities, which helps in the implementation. Otherwise, broader adaptations must be made for People Analytics to work.
Understand better below what are the stages of preparing the business and what should be applied in each of them, aiming at the functioning of people analysis.
Acquisition of software to work with data
Collecting data related to employees is the first step in the work of People Analytics.
For this, specialized software is required. It must be based on Big Data technology, that is, it must be able to capture a large volume of information from several different sources, which will build a rich base.
This software will also process all of this information, filtering out what is really important for managers and HR. In this process, the platform used uses Business Intelligence technology. This allows us to extract strategic insights from these materials.
The analysis is also done within the software environment. The most advanced offer customizable dashboards, in which analysts can create their own indicators.
Like this, The performance evaluation is based on information that is really relevant to the business.
Employees need to be familiar with the new reality when Analytics is applied.
Hiring Experts Isn’t Always Enough, as many employees will be involved in the process. For this reason, training is essential for new practices to be properly absorbed.
First, the training should address how the supporting software should be operated. This is critical, as data can only be collected and managed with their help. Thus, each employee who is involved in these stages of work will be able to perform well.
In addition, there is a need for operational training in the process of working with data.
Employees need to be guided on how the demand flow works, following a standardized line of work. This ensures that HR and managers have data always available.
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What are the benefits of using People Analytics?
Putting this practice in the daily life of a company is important to generate a series of advantages. Many of them are strategic, that is, they help in the development of the company.
Analyzing employee data helps them to develop, which positively impacts the business itself. Next, learn about the advantages and learn what each one brings to employees and the company.
Increase employee engagement
Good results depend on effort, especially when it comes to strategic management. For this, employees must first understand the objectives that the company needs to achieve, in addition to being involved.
Performance analysis is important to keep them focused, since they know they are under evaluation all the time. Some companies also give bonuses to those who develop well, and this is another factor that strengthens engagement.
Strengthen the company’s strategic management
Strategic management depends on constant monitoring of business results. For everything to work, departments need to be aligned with the goals, as well as employees must know their role.
When data is captured and analyzed, the results start to provide a more solid basis for managers to make decisions. Thus, each step is taken with certainty, keeping the company within its growth objectives.
Provide the best conditions to the employee
People Analytics is not a methodology that only aims to get the most out of each employee and constantly evaluate their performance.
Collecting performance data is also a way of understand what they need to perform well.
Bad results should also encourage managers to understand what has caused them. Often, dissatisfaction is a factor, and the company may have its share of the blame.
The strategic work with data helps the company to provide the best conditions to the people who work there.
How important can this concept be in recruiting?
People Analytics does not base its performance only on managing people within the company, after all, HR has the role of capturing talents. In this way, data management and analysis resources are used to recruit employees.
The work is done when filling positions that companies offer. At this point, strategically, it is also necessary to bring in those who are ready, and this is observed through the qualifications of this professional.
In this step, People Analytics supports HR so that it can cross-check its information with what the candidate is able to offer.
Thus, objectively, this possible compatibility is verified or not. Next, understand more about using data in recruiting.
Definition of parameters for each position
When looking for a new employee in the market, the company knows well what it wants from its new hire. These qualifications are fundamental and must be defined strategically.
People Analytics provides the necessary support to define the requirement parameters for the candidate, making the search more accurate.
From this, the recruitment process takes place in a strategic way, considering the candidates’ capabilities. This means that only those who have those characteristics will be interesting for the selection process.
In practice, when collecting data from candidates, the company is able to cross-check information, comparing qualifications with their requirements.
Supporting software helps to collect this data and compare it with what the job asks for. This gives greater certainty that that is the talent that the company needs.
Turnover chances identification
Another issue of extreme importance to the company’s strategy is turnover rates.
Every time a collaborator leaves, a new one must be sought with restricted parameters and, after being hired, needs to be integrated. This generates extra efforts and, in a way, delays the achievement of the company’s goals.
A company that has a high turnover of employees suffers with consequences that impact its planning.
However, with the application of People Analytics it is possible to reduce this problem considerably. Employees who have a profile more likely to leave their positions can be identified.
When evaluating the candidate’s curriculum and data, the software is able to identify factors that indicate the chances of turnover. When crossing some information, analysts point out which of these talents tend to quit quickly. Thus, these profiles can be avoided.
Applying People Analytics in an organization gives HR the chance to have greater control over the performance of its employees.
This ensures that they are committed, producing well and engaged with the goals. In addition, it also makes it possible to provide the best working conditions.
Did you like this content? Enjoy and know what is turnover and why you need to decrease turnover in your company!