People analytics and its impact on HR decision making

People Analytics first caught the attention of professionals early 2013 in a highly publicized article, How Google Is Using People Analytics to Completely Reinvent HR. It can be defined as,  The practice of making data-backed people management decisions within an organization. Most frequently referred to in hiring, retention and transition management.

As more HR leaders recognize the power of people analytics, it will become a bigger part of how business is done. According to the Global Human Capital Trends 2016 report from Deloitte University Press, 32 percent of the more than 7,000 companies surveyed said they were ready to start using people analytics. That’s an increase from just 24 percent of companies in 2015.

Potential Impacts from people analytics

  1. Employer Branding
    When job-seekers coming out of the hiring process are unhappy, the result can be damage to the organization’s reputation as an employer and damage to its overall brand. In fact, according to a May 2015 CareerBuilder study of more than 5,000 American employees, 69 percent of respondents said they were less likely to buy from an organization after a bad interview experience.
  2. Risk Mitigation and Reduced Spending
    Companies need to save money wherever possible. Being able to avoid paying more for unemployment insurance, or wasting a paycheck on an employee who isn’t being productive, is a big benefit.We use Veriato to improve productivity and training,” she said. “We look at the time spent working, as well as the end results.”After the software revealed, for instance, that one particular employee had been spending most of the workday playing solitaire, O’Keefe said the company was able to stop an unemployment claim. “As a small business, that’s a key savings,” she pointed out. “When a former employee goes on unemployment, expenses go up. The software gives me something tangible to prove my position, so it isn’t just ‘their word against mine.'”

View The full Entrepreneur article here



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