“People Analytics: measuring the heart of businesses”

I have been working in data analysis for many years now. I have worked on projects where the numbers speak for themselves and statistics hold the key to strategic decision-making. Recently, however, an unexpected opportunity steered me towards a new challenge: teaching a master’s course in People Analytics.

While I’d never worked in human resources before, my curiosity to understand what lies behind the data about people inspired me to embrace the journey. People Analytics involves harnessing data about people who work in a company with a view to helping us make better, more informed decisions.

People: the heart of the organisation

Delving into analytics applied to human resources opened my eyes: people are truly the beating heart of any organisation. We often say that employees are a company’s most valuable asset, but do we do enough to understand and demonstrate this?

One key lesson I’ve learnt from my experience in data analysis is this: if we do not measure and track something, we barely understand it—and if we don’t understand it, how can we improve it? If we overlook this principle when it comes to people in our organisations, we unintentionally send a message that we don’t care enough about them.

Where to start measuring?

People Analytics invites us to explore the wealth of data surrounding the talent in an organisation—from performance metrics to the impact of the company culture on team motivation. However, getting started can be daunting. How can we turn abstract concepts into tangible data? What should we measure first?

The key lies in identifying what truly matters to the organisation. Setting clear objectives is crucial. For example, is the priority to boost productivity, reduce turnover or enhance employee satisfaction? This clarity guides the initial analysis and ensures the data is valuable. The aim is not to amass data, but to use it to make informed decisions, enhancing both employee well-being and organisational success.

The four types of analysis: a relatable metaphor

When it comes to data analysis, we can identify four main types: descriptive, diagnostic, predictive and prescriptive. To make these concepts easier to grasp, let’s use a relatable metaphor: a romantic relationship.

Descriptive analysis: What has happened?
Imagine you have been feeling tense for the last week, and you notice that you are arguing with your partner every day. Looking back, you realise that you have argued every single day of the week, always in the morning and evening.

Diagnostic analysis: Why has it happened?
When you think about it, you identify a few factors: you have a lot of work on, you haven’t been to the gym and you’ve been eating badly. When you get home, your partner complains about having to take care of all the housework, further escalating the tension.

Predictive analysis: What will happen?
If you continue like this, you’ll probably end up talking about a breakup.

Prescriptive analysis: What can I do to prevent this?
This is where solutions come into play: trying to stick to work schedules, getting back into good habits, hiring someone to help with the housework and setting aside one evening a week to go to the cinema or have dinner together. This will give you quality time with your partner, help you reconnect and prevent the situation from worsening.

These types of analysis are also applicable to human resources.

An example applied to People Analytics

Descriptive analysis: An employee left the company last month.

Diagnostic analysis: When looking at the data, we see that this employee had a salary that was 20% lower than others with the same experience. We also see that their job satisfaction was very low (2 out of 5), and the working environment surveys are carried out every three years.

Predictive analysis: With this information, we can anticipate that another two or three people might soon leave the company.

Prescriptive analysis: We propose reviewing salaries to ensure they match the market, carrying out annual working environment surveys and implementing exit interviews to gain deeper insights into the reasons behind employee turnover.

A change in mindset: putting people at the centre

Incorporating analytics in an organisation’s initiatives often entails overcoming cultural hurdles rather than technological ones. People Analytics requires a change in mindset: acknowledging that people deserve as much attention as any other key business resources. If we truly value our people, we need to prove it by getting to know them—using data as our guide.

Don’t be afraid to start

People Analytics is not a passing trend; it is a necessity. In today’s world, companies cannot afford to lose valuable talent through ignorance. Data gives us the opportunity to lead more effectively, support our people and build a culture where everyone can grow and contribute to their fullest potential.

Every piece of data collected, every metric analysed, brings us closer to a more human and thriving company culture. If people are the heart of our organisations, they deserve to be understood, appreciated and valued as such.

Diari d’Andorra 21.11.24