How People Analytics can drive business outcomes
15 May, 2023

Jaén Beelders, Executive Director of 21st Century Analytics

 

“In the past, HR analytics has mostly been focused on keeping track of fundamental HR metrics or giving managers data on headcount and attrition, as examples. However, people analytics teams have evolved and are leveraging data to understand every aspect of how people affect company operations and influence the company strategy.

“The business outcomes of a company are determined by a variety of factors, such as revenue growth, profit margins, and operational efficiency. People analytics can contribute to each of these factors by providing insights into the productivity and effectiveness of the workforce.

“In the next section we will unpack how people analytics can assist with driving business outcomes, whilst optimising performance of the workforce.

“One way that people analytics can drive business outcomes is by improving employee retention rates. When companies are able to retain their employees, they can reduce the costs associated with turnover, such as recruitment and training costs. Additionally, when employees remain with a company for longer periods, they become more knowledgeable and experienced, which can increase their productivity and contribute to the growth of the company.

“People analytics can also help companies identify areas where they can reduce costs. For example, by analysing employee performance data, companies can identify areas where employees are underperforming or where there is a skills gap. By addressing these issues, companies can improve the efficiency of their workforce and reduce the costs associated with low productivity.

“Moreover, people analytics can help companies optimise their compensation packages. By analysing data on employee performance and compensation, companies can identify which compensation packages are most effective at incentivising high performance. This can help companies reduce costs by ensuring that they are paying employees fairly while also incentivising them to perform at their highest level.

“Another way that people analytics can drive business outcomes is by helping companies identify and develop high-potential employees. By analysing data on employee performance, companies can identify employees who are performing at a high level and have the potential for growth within the company. By investing in the development of these employees, companies can improve their leadership pipeline, which can lead to improved business outcomes in the long term.

“Finally, people analytics can help companies create a more diverse and inclusive workforce. By analysing data on employee demographics and performance, companies can identify areas where they may be lacking in diversity and take steps to address these issues. This can help companies attract a more diverse pool of talent and improve their reputation, which can lead to improved business outcomes in the long term.

“In conclusion, people analytics can drive business outcomes for a company in a variety of ways. By improving employee retention rates, reducing costs, optimising compensation packages, identifying high-potential employees, and creating a more diverse and inclusive workforce, companies can improve their business performance and achieve their long-term goals. As such, companies that are not currently using people analytics should consider incorporating it into their strategic planning processes to improve their business outcomes.”

 

This article is based on research conducted by 21st Century, one of the largest remuneration consultancies in Africa. Please contact us at info@21century.co.za for any further information.

 

ENDS

Author

@Jaén Beelders
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