• 3 min. read

5 Ways People Analytics Benefit HR

Companies are increasingly adopting people analytics to - more effectively and more rapidly - identify, recruit, develop and retain the best talent.

Written by Daniela Costa

Companies are increasingly adopting people analytics to - more effectively and more rapidly - identify, recruit, develop and retain the best talent. In the midst of the war on talent, HR departments are powering up and starting to apply statistics and modelling to employee-related data to identify and predict patterns that help to make better decisions and improve business performance.

According to a research by Deloitte Consulting LLP’s Bersin, “people analytics, the use of employee data to help optimise business and management decisions, is strongly related to improved talent outcomes and an organisation’s profitability”.

The research also states that companies that use people analytics in a “sophisticated and insightful way” report “82 percent higher three-year average profit” than the companies that have less developed analytics. Despite this, a big part of companies is still resistant to, or in the early stages of, the use of people analytics.

Here are some of ways in which people analytics benefit the HR activity:

1. Recruiting

Hiring the right person for a job is the main goal of the recruitment process. With the insights that recruiters can obtain from people analytics; by developing predictive assessments for performance based on your company’s top performers for example; their chances of being successful definitely increase. Contrary to the traditional subjective personality assessments, recruiters can use actual knowledge to identify and hire the candidates that are the best fit.

2. Performance measurement

Regarding performance management, people analytics also play a major role on a company’s ability to monitor key performance indicators in real time and to produce both team and individual evaluations.

Among other things, big data analysis in the workplace helps to detect mistakes and allows to quickly provide employees with feedback about the situations where their performance doesn’t meet the standard requirements, so they can correct it.

This has major impact on a business for as even the smallest increase in each employee’s performance can greatly grow a company’s profit.

3. Training

Training is another important part of employee management. Even if you hire the best talent, people still need initial training to learn your company’s procedures and learn how to use the software solutions required to perform their duties.

After that, because many businesses are constantly changing, you have to provide your employees with continuous learning actions, such as online courses or training sessions, among other. Regarding training, the main challenge for companies is to be able to determine the cost-efficiency of their learning programs, as sometimes the cost of training can be very high. But with people analytics, companies can analyse the cost-efficiency of employee learning for every training action they put in place and, also, make changes in order to make them more productive.

4. Compensation

Employee satisfaction depends largely on financial compensation and with advanced analytics, it’s possible to build the best compensation system. Actually, the bigger your company is the more useful people analytics is to help you create a pay structure that is both competitive and fair, allowing you to reward performance and development while controlling cost.

Also, advanced analytics help you to realise when is the time to increase financial compensation or when you need to reduce costs.

5. Retention

Talent acquisition costs more than employee retention, therefore, it’s only natural that many business leaders work hard to develop strategies to retain employees.

Thus, predictive retention modelling is one of the biggest benefits of people analytics, for it allows you to identify unsatisfied employees and take action to increase their satisfaction and motivation before they consider leaving.

It’s easy to conclude that people analytics is a true game changer and a strategic partner, as it relies on proven and data-driven predictive models to help HR departments in its main tasks: identify and hire the best candidates; measure the impact of training and learning programs; evaluate employee performance; analyse and adjust the compensation system and improve employee retention.


Skeeled offers you the perfect opportunity to bring innovation and digitalisation to your hiring. Check our website or our LinkedIn and Facebook pages for further information.

Thanks for reading and see you next time!

Your team here at skeeled

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