People analytics - approach, best practices, and success factors
Dive into our learnings from many customer conversations and years of developing data driven processes and solutions
What is people analytics?
A definition from Harvard Business review, which needs improvement
People analytics — defined as the use of data about human behavior, relationships and traits to make business decisions — helps to replace decision making based on anecdotal experience, hierarchy and risk avoidance with higher-quality decisions based on data analysis, prediction, and experimental research„How people analytics can help you process, culture, and strategy“ by Chantrelle Nielssen and Natalie McCullough
Our version, which is rooted in pragmatic implementation
People analytics — defined as the use of data about human behavior, relationships and traits to make business decisions — helps to complement
replace decision-making based on anecdotal experience and intuition, and
reveal and check for decision-making biases (e.g. via hierarchical norms, risk avoidance), with recommendations
decisions based on data analysis, prediction, and experimental research”
What are people analytics use cases?
What is not a people analytics use case?
- HR reporting, e.g. how many people work in which department
- HR compensation mgmt, e.g. what are the cost of different comp. structures
- HR budgeting, how much money is allocated on which HR funtion, org unit
- Introducing or improving an ERP system, e.g. SAP success factors
- Powerpoints on people (analytics) strategy or gathering information from vendors
What is a people analytics use case?
- developing and discussing use case with HR or business managers
- data sourcing and transformation to feed predictive models
- models to predict employee behavior or attitude, e.g. probability of resigning
- testing recommendation from models with decision makers
- feed recommendations into existing system to improve/ automate decisions
How should I approach people analytics?
Start small and show results quickly
We believe the biggest obstacle between HR staff and Data Scientiest/IT is communication. We know from experience, that using prototypes to discuss and test use cases, is a key success factor.
Make sure you have the right skill set
What makes people analytics succeed? The answer is easy as it applies to data science project in general: “The right mix of business (and HR) know-how, statistical know-how, and coding know-how”. We offer free initial consultation to help you decide what you need!
Our approach originated from applied work in marketing analytics and automation, which much more mature field compared to people analytics
Prototype based ON R
We code in R, one of the leading data science language. We give you access via user-friendly app with great visualization
You have no data or are reluctant to use your company’s data? No problem. We provide representative demo data to get you started
We can facilitate meaningful discussions between HR, business, IT and Data Scientists, as we know the corresponding challenges
Quantification of commercial impact as well as process automation are a key success factors to bring business and HR together.
Latest news on People Analytics
Explore our recent posts on Peope Analytics topics
HR Analytics: A huge gap between perceived importance and readiness! This gap as reported by Deloitte in their 2018 study Global Human Resources Trends* and is also confirmed by us talking to HR and business leaders. Therefore, we have explored the challenges...
Do you have these challenges for getting started with people analytics? Challenge 1: you have no or little HR Analytics, but you seek to become a true business partner based on data insights and decision support for your commercial peers Challenge 2: you do not...
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