People analytics strategy is sometimes called talent analytics or HR analytics. Organizations making their strategic decision in the scope of functioning and development base their conclusions on data gathered and processed. Such data are the basis for the development of short-term and long-term aims as well as business strategies. An analogous situation concerns human resources. The information and data gathered to enable the realization of the efficient staff policy.

People analytics strategy – table of contents:

  1. People analytics strategy – the differences
  2. The best way to implement HR strategy
  3. Benefits of people analytics strategy
  4. Summary

People analytics strategy

The effective use of data during the full cycle of employment determines the acquisition and management of talents, which is key for a company’s development. The knowledge supported by the analysis as regards the strategies of employment and human potential in the company means the increase of effectiveness of recruitment, restriction of rotation, and the increase of productivity and commitment of employees.

People analytics is the strategy used in HR departments based on gathering, processing, and analysis of data related to human resources. The information obtained determines conscious decision-making, that contributes to the development of the company. It can be identified that the strategy is the specific synthesis of information about the development and activity of the employees acquired from different sources and understanding, of how these data influence the results of the whole organization.

Modern information tools allow the creation of huge data sets, fast data processing, and data analysis. The data refer to the history of employment, interim evaluations, salaries, and levels of productivity.

The business practice indicates several of the most important goals, for which it is worth implementing a people analytics strategy in the organization and those are:

  • acquisition, development, and talents retention
  • development of an effective motivational system, that allows an increase in employee engagement
  • the creation of the personnel politics and organizational culture based on the positive experiences
  • an increase of effectiveness by the identification of problems related to workload, communication, and integration
  • minimalization of costs thanks to better employment planning
  • The best way to implement HR strategy

    The basis and the starting point for the realization of the HR strategy analysis are the complete, detailed, and current data. To process them properly there is a need to set the standard for the gathered data. The data acquired from different sources have to be connected with the specific individual.

    The next step is the identification of problems that have to be solved, determining chances and risks, and setting the aim of the activity. The exemplary areas of utilization of the analysis are:

    • strategic employment planning
    • measurement of productivity of new employees
    • effective retention management
    • the setting of the system of employee remuneration
    • assessment of the level of engagement
    • examination of the relationship between professional development and productivity

    The success of people analytics is related to the business goals of the organization. The most important is the indication of the contribution of HR analysis to the improvement of work efficiency. Data analysis enables the identification of HR areas that require improvement and indicates factors that determine the higher quality of work.

    Building the people analytics strategy can be limited by the concentration on the wrong types of problems. As was already mentioned the analysis has to be closely connected to the business goals of the organization. The next problem is the right analysis of the results of the analysis and their connection with the efficiency and effectiveness of work. The technological development of the organization is also important in this area.

    To represent data properly and for the analysis, necessary are modern information tools such as personnel systems, employee evaluation, training platforms as well as software such as Excel, SAS, SPSS, or other programs for statistical analysis, visualization software, programs for presentations and the advanced questionnaire programs such as Glint.

    The essence of the people analytics strategy is the data, but there is no sense to collect them if there is no way to use them properly. Based on gathered information and conclusions drawn some corrective measures have to be introduced. For this goal, the strategy of transparent communication, which is an integral part of HR analysis, has to be set. All parties in the organization have to be informed about the goal and the method of data gathering and processing, especially if the data are sensitive.

    people analytics strategy

    Benefits of people analytics strategy

    The usage of HR analytics can contribute to increasing the business value of the organization and strengthening its position in the market. The analysis gives knowledge, that allows you to discover the needs of the employees and their motivation. This in turn allows the acquisition of valuable talents and keeping them in the company. The other advantages of HR analytics are:

    • the creation of the system that is composed of complete, actual, and accurate data that enable you to make strategic decisions
    • single database of information from different sources, that allows the creation of reports and analyses, that can be used to calculate the efficiency factors
    • identification of key employees, that have the highest potential and those least efficient
    • opportunity to evaluate the engagement of employees and their productivity, then individual adjustment of the personal development program


    Is people analytics a necessary strategy for each contemporary organization? The response seems to be easy. It is difficult to imagine the functioning of the organization without the careful analysis of numbers and data. The complete and checked information is one of the most precious resources of the company. Based on the data the key decision is being made and the strategies are being developed. HR analysis allows understanding, knowing, and adjustment of the employee to the requirements of the business. The knowledge acquired allows effective management and limitation of the cost related to the employment and development of appropriate predictions.

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    People analytics strategy for your company. 1 great way to make better business decisions nicole mankin avatar 1background

    Author: Nicole Mankin

    HR manager with an excellent ability to build a positive atmosphere and create a valuable environment for employees. She loves to see the potential of talented people and mobilize them to develop.