Need Help With Justifying Your Investment In People Analytics? 

People Analytics is enabling several companies like yours to improve employee and business outcomes, such as increased productivity, innovation, engagement and wellness

People analytics empowers you to build a data-informed people strategy, and drive business performance through optimizing recruitment for quality of hire, reducing high performer turnoveraccelerating new hire integration and time-to-productivity, improving the strength of your customer relationships, increasing manager effectiveness and team cohesiveness, improving L&D outcomes and internal mobility, and identifying potential areas of bias and points of intervention to improve diversity & inclusion, including internal social networks, and reduce the gender pay gap. 

The lack of a data-informed people strategy can lead to disengagement and turnover issues, which you might even be completely unaware of without access to actionable people insights across your employee lifecycle!


According to Gallup, 17.4% of the workforce is disengaged on average and the cost of a disengaged employee equals 34% of their annual salary

According to SHRM, for each employee lost, the cost to the company could be anywhere between 50%-250% of their annual salary depending on the seniority of the role

Both disengagement and unwanted turnover have negative consequences for your business. Here is an overview of the hidden costs of employee turnover on your business sourced from SHRM.

Training Costs

  • Formal Training ( trainee and insturction time, materials, equipment) 

  • On-the-job training ( supervisor and employee time)

  • Mentoring ( mentor's time)

  • Socialization ( other employees' time, travel)

  • Productivity loss until replacement has mastered job

Replacement Costs

  • New hire's compensation

  • Hiring inducements ( signing bonus, reimbursement of location expenses, perks)

  • Hiring manager and unit/ department employee time

  • Orientation program time and materials

  • HR staff induction costs ( payroll, benefits enrollment)

Financial Costs

  • HR staff time (exit interview, payroll administration, benefits)

  • Manager's time ( retention attempts, exit interview)

  • Accrued paid time off ( vacation, sick pay)

  • Temporary coverage ( contingent employee, overtime for remaining employees)

Business Impact

  • Delays in production and customer service

  • Decrease in product or service quality 

  • Lost Clients

  • Clients not acquired that would have been acquired if employee had stayed

  • Stiffer competition as employees move to a rival company or forms own business 

  • Contagion ( other employees decide to leave; for example. to join defector at his/her new organization)

  • Disruptions to team-based work

  • Loss of workforce diversity

Embracing People Analytics enables HR teams like yours to build a lighthouse and breakwater in advance in preparation for the waves of people issues that inevitably come as your organization expands and transforms.  

For example, even if an increase in turnover rate becomes apparent and a project team is formed to investigate the cause and implement countermeasures, it will take 6 to 9 months just to investigate the cause if​ the analytics base is not prepared in advance. In the meantime, the wave of turnover will not stop. 

Your time to act can "dam" the problem, but in many cases the true extent of the problem expands unseen, just like a sinkhole growing beneath an unsuspecting house. 

Panalyt People Analytics ROI Calculator

Progressive HR leaders (like you!) need a little help to build a business case justifying investing in People Analytics to your Board. We’ve created a simple, easy-to-use People Analytics ROI calculator based on publicly available benchmarks just for you!


References Used For Panalyt People Analytics ROI Calculator

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