How to Get Started with People Analytics: A Beginner’s Guide

People Analytics (PA), also known as HR Analytics or Workforce Analytics, is the practice of using data to gain insights into human resources processes and make data-driven decisions. In today’s fast-paced business environment, organizations are increasingly recognizing the value of leveraging people data to enhance decision-making, improve employee engagement, and optimize talent management.

If you're a beginner looking to get started with People Analytics, this guide will walk you through the basics, tools, and strategies to help you embark on your analytics journey.

1. Understand the Value of People Analytics

Before diving into the technical aspects of People Analytics, it’s essential to understand why it’s valuable to your organization. People Analytics can:

• Enhance Decision-Making: Instead of relying on intuition, PA helps HR professionals make more informed decisions based on data.
• Improve Recruitment and Retention: By analyzing hiring and retention data, you can identify trends that will help you attract and retain top talent.
• Drive Employee Engagement: Understanding employee satisfaction through surveys, feedback, and performance data helps improve engagement and productivity.
• Support Diversity and Inclusion: Data-driven insights can uncover diversity gaps and help create more inclusive hiring and organizational practices.

2. Identify Key HR Metrics to Track

The first step in any People Analytics journey is to determine which metrics are most important to your organization’s goals. Common HR metrics to track include:

• Employee Turnover: Understand why employees leave and how to retain talent.
• Time-to-Hire: Track the efficiency of your recruitment process.
• Employee Engagement: Measure the satisfaction, motivation, and commitment of employees.
• Performance Metrics: Evaluate how employees are performing relative to goals and objectives.
• Training and Development: Analyze how training initiatives impact employee skills and career growth.

Start by focusing on a few key metrics that align with your organization’s strategic objectives, and gradually expand as you gain more experience with data analysis.

3. Collect and Organize People Data

People Analytics is based on the data you collect from various HR systems and employee records. Some key sources of data include:

• HRIS (Human Resource Information System): Centralized data on employee demographics, compensation, job roles, and benefits.
• Applicant Tracking Systems (ATS): Data from the recruitment process, including resumes, interview outcomes, and candidate feedback.
• Performance Management Systems: Feedback, reviews, and goals related to employee performance.
• Surveys and Feedback: Employee engagement surveys, pulse surveys, and exit interviews provide valuable insights into workplace culture.
• Learning Management Systems (LMS): Data about employee development, training, certifications, and progress.

Ensure your data is organized in a structured and consistent way, as this will be critical when conducting analysis. Use cloud-based tools like Google Sheets or Microsoft Excel for easy access and collaboration, especially when you're starting out.

4. Choose the Right People Analytics Tools

While you can start with simple tools like Google Sheets or Excel, as your People Analytics journey grows, you may want to explore more specialized tools that offer advanced data analysis capabilities. Some of the best tools for People Analytics include:

• Google Sheets/Excel: These are excellent starting points for basic data collection, analysis, and visualization. They are easy to use and can help you generate quick reports and dashboards.
• Tableau/Power BI: These tools allow you to create advanced visualizations and dashboards that can help communicate insights to stakeholders in a clear and impactful way.
• HR Analytics Platforms: Tools like SAP SuccessFactors, Workday, and BambooHR come with built-in analytics features to manage and analyze HR data across the employee lifecycle.
• Survey Tools: Tools like CultureAmp or SurveyMonkey can help you gather employee feedback and analyze employee engagement and satisfaction levels.

Select the tools that best match your current needs and available resources. It’s essential to start simple and scale as needed, ensuring that the tools you choose are compatible with your existing HR systems.

5. Learn the Basics of Data Analysis

Once you’ve organized your people data, the next step is learning how to analyze it. As a beginner, start with these foundational concepts:

• Descriptive Analytics: This involves analyzing historical data to understand what has happened in your organization. For example, looking at past turnover rates, employee satisfaction scores, or hiring trends.
• Predictive Analytics: Using data to predict future trends. For example, predicting which employees are at risk of leaving based on engagement scores and performance reviews.
• Prescriptive Analytics: Using data to suggest actions that will improve outcomes. For example, recommending training programs for employees at risk of burnout based on performance and workload data.

At first, focus on learning how to use basic formulas, create pivot tables, and generate charts. As you progress, explore more advanced statistical methods and tools to make deeper insights.

6. Create Dashboards and Visualizations

A crucial part of People Analytics is turning data into actionable insights. Dashboards and visualizations allow you to present data clearly and concisely to stakeholders. Even if you start small, it’s helpful to learn how to create simple visualizations that highlight key metrics.

• Create Basic Dashboards: Use tools like Google Sheets, Excel, or Power BI to create dashboards that summarize your most important metrics (e.g., turnover rates, recruitment time, employee performance).
• Focus on Key Metrics: Limit your visualizations to the most impactful KPIs that align with your organizational goals, so the data is easy to digest.
• Automate Reports: Once you’re comfortable with your dashboards, consider automating reports so that stakeholders can receive regular updates without requiring manual intervention.

7. Use Data to Drive Decisions and Solve HR Challenges

The ultimate goal of People Analytics is to drive actionable insights that solve HR challenges and improve organizational performance. Begin to apply your insights to decision-making processes such as:

• Improving Recruitment: Use data to streamline your hiring process, identify successful hiring channels, and reduce time-to-hire.
• Enhancing Employee Engagement: Track employee satisfaction and engagement over time to identify trends and create targeted initiatives.
• Optimizing Retention: By analyzing turnover data, identify high-risk employees and implement strategies to retain them, such as career development opportunities or improving company culture.

As you grow your People Analytics capabilities, you can address more complex challenges such as workforce planning, diversity and inclusion, and succession planning.

8. Build a Data-Driven Culture Across HR

For People Analytics to be truly impactful, it needs to be embraced by the entire HR team. Encourage HR colleagues to adopt a data-driven mindset, where decisions are based on evidence, not just intuition. Provide regular training and support to ensure the team is comfortable with using data in their daily work.

• Champion Data Usage: Advocate for the use of data in HR decision-making by sharing success stories of how data-driven decisions have positively impacted the organization.
• Collaborate with Other Departments: People Analytics shouldn’t just live in HR; collaborate with other departments like finance, operations, and marketing to align people data with broader organizational goals.
• Continuously Improve: People Analytics is a constantly evolving field. Stay up to date with the latest trends, tools, and techniques, and continuously improve the way your team uses data.

Conclusion

Getting started with People Analytics can feel overwhelming, but it doesn’t have to be. By focusing on key HR metrics, collecting and organizing relevant data, choosing the right tools, and building your skills in data analysis, you can begin using People Analytics to make more informed decisions. The learning curve is manageable, and each step you take in learning more about data and analytics will lead to valuable insights that improve your HR processes.

Remember, People Analytics is a journey, not a destination. Start small, scale as you go, and focus on driving actionable insights that make a real difference in your organization. By embracing data-driven decision-making, you’ll be equipped to solve complex HR challenges and contribute to the success of your company.