• Sandrã Petrovà

4 Ways How Companies That Use People Analytics Outperform Those That Don't

Updated: Jan 31

If once upon a time, people analytics was seen strictly as a way to improve HR functions, in recent years, companies have discovered they can use it to drive overall organizational success and meet their business goals.


There's no denying that people analytics is beneficial in everyday decision-making. According to the Global Leadership Forecast 2018 report, companies who excel in people analytics were 6.5 times more likely to have high bench strength and 3.1 times more likely to outperform their peers.


So if you haven’t looked into how you can use People Analytics to improve your business, here are four ways how you could use data and analytics to outperform those that don't.



1.Make higher-quality decisions


People are the heart of every type of transformation. One survey by McKinsey found that successful transformations depend on employee support at all levels, consistent communication, and better people strategies.


But despite companies give their best effort, many organizational transformations fail.

Why? One major reason might be the fact that companies fail to invest in understanding their people.


In fact, making great people decisions can be a competitive advantage in an ever-changing business environment. Organizations that invest in understanding people can ultimately understand and drive their transformation efforts.


To invest in predictive analytics you'll only need a people analytics platform that is fast, usable, and extensible to give you the analysis you need.


If your company invests in analyzing people data, it can gain valuable insight into employee performance, turnover, engagement, diversity, and many other vital metrics.


For example, analyzing people data can give you a clear view of which teams and departments in your company are struggling the most. After obtaining this information, you will know which department requires your help and utmost attention.


Or, let's say that you want to see who are the best and the lowest performers at the company. By analyzing the visual graphs and charts, you can easily come to a decision about which employees can help the company achieve its goals and who you can afford to lose.

Instead of losing millions of dollars on missed deadlines, bad-quality employees, and low employee engagement, use people data to make more informed business decisions.

It's an opportunity you shouldn't miss.





2. Companies have clean, consistent, and centralized data about their people


Cloud technologies have democratized access to data. In previous years, companies used to have dirty, inconsistent, and fragmented information about their people.


Sadly, this hasn't solved all issues. Many companies still have data that is inconsistent. Or, oftentimes, data is siloed.


The key to understanding people and making higher-quality decisions is to retrieve data from different HR systems and feed it into a single People Analytics Platform.


By using people analytics, your company can detect valuable patterns in a sea of data. Then, you can empower people to take action and solve the most alarming business issues. The more

frequent meaningful actions become, the more your company will start noticing a positive impact.


Overall, your company shouldn't rely on a narrow approach to data analysis.


Take the case of a company we'll call Zoomit. Zoomit wanted to understand why sales on its website had declined. Its 60 employees were divided among four departments: business development, operations, marketing and PR, and finance. Typical of silos, each team had different opinions about what what went wrong. When they analyzed people data, what they found was alarming. Analysis showed that all four departments exceeded the 5:1 ratio of internal to external contacts. The most extreme case was marketing and PR, with a ratio of 11:1. To fix the problem, the company asked certain employees in each team to become liaisons. They began organizing weekly meetings at which managers from all four departments got together to discuss current matters. Eventually, by analyzing data in new ways, the sales on their website went back to normal and even increased by 5%.


If you want to bring together data from all systems, people analytics platform is the ideal way to do so. What you must do is get rid of traditional decision-making based on a "gut feeling" and start relying on a "spidey sense" tool that will help you make better decisions with people analytics.


Successful transformations depend on employee support at all levels, consistent communication, and better people strategies.





3. Companies understand that analytics is a multidisciplinary task


HR managers might know the “what” but not the “who” or "why."


When only one manager is involved in analyzing mountains of data, there's much room for error. Not only it takes hours and hours of work for one person to analyze that much data, but that person can easily come to incorrect assumptions.


Today, thanks to people analytics platforms like Panalyt, people from all departments can have a real and more complete picture of their company. For example, a drop in sales can be directly connected to an underperforming manager. Or, a high turnover might be the result of an inexperienced recruiter.


Apart from an HR manager, business operations manager, finance manager, marketing and PR manager, and consultant experts are all involved in analyzing the data. Managers work together

to drive results and report to a senior executive. Senior executives can then understand hiring, management, and performance issues around the company in real-time.


This democratic access to data helps everyone make higher-quality decisions and achieve better business outcomes. Everyone is accountable and has the right facts to support their decisions.


4. Managers have access to predefined reports to help them understand what drives results

What many forward-looking companies are doing is they retrieve data from different HR systems and feed it into a single People Analytics Platform. These people analytics platforms connect data from various sources. But sometimes, it can get overwhelming to analyze all these metrics and arrive at quality decisions.

In these cases, it's good to have predefined reports that can answer the most important questions like:

  • Labor turnover.

  • Diversity and inclusion.

  • Employee performance and engagement.

  • Absence rate.

  • Time-to-hire.

  • Quality-of-hire.

  • Employee tenure.

  • Recruitment metrics.

But also:

  • Who develops the best talent.

  • Who are future leaders in the company.

  • Who might leave.

  • Who they should invest more in.

Luckily, what a people analytics platform like Panalyt does is it takes your data, connects it,

and allows your company to explore it through reports, visual graphs and charts. You'll also get automatic reporting for the most pressing questions.


Managers at your company can retrieve highly accurate HR data analytics such as hiring metrics, performance results, macro email and chat data, financial progress, and more. The data/metrics are displayed in such a way that managers can easily understand how to interpret their impact, even those managers that come from non-HR backgrounds.


Ultimately, your business will come to high-quality decisions by integrating data from different systems. You'll manage to properly analyze the information and use the data to formulate your core business strategy.


Today, thanks to people analytics platforms like Panalyt, people from all departments can have a real and more complete picture of their company. For example, a drop in sales can be directly connected to an underperforming manager. Or, a high turnover might be the result of an inexperienced recruiter.



To Wrap Up


The best thing about people analytics platforms? You can start small and scale up as you gain better insight. People analytics solutions vary in size and scope, which makes them suited to meet the needs of companies of all sizes.


Start by connecting your Payroll system and see the correlation between salary and attrition. Or, add your performance system and see the correlation between compensation and performance.

Don't hesitate to take the first step.


Then as your company grows, your people analytics solutions can grow with you.

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