People Analytics For Better Decision-Making

For the past decade now, data analytics has become increasingly prevalent across all areas of business. HR is no different. Yet, we still see organisations who are not leveraging their people data to extract the required insights that can drive strategic direction and commercially astute decision-making that shapes how their business operatess

In this post, we will list out some of the key data points to consider when implementing a new analytics function (or even looking to improve what already exists), and what those data points can provide you as a business owner or leader in relation to your overall business strategy and objectives.

General Workforce Data

Before setting up a DA function, it’s important what metrics to consider. Most modern HRIS platforms will hold as much information as you would like to input, but not all is necessarily required and will not provide actionable insights – items such as NI details, marital status etc.

Data for Insights

Different data points will provide difference insights, however when analysed in conjunction with one another can provide greater strategic direction. Some key data points to consider when building out a People Analytics function are:

• Business Unit / Operating Units
• Locations – Country, Office/Site (Regional)
• Cost Centres
• Spans of control
• Salary Information
• Allowances
• Performance Ratings
• Job Titles / Families / Groups
• Job Grades
• Reporting Hierarchy

Now to unpack some of these and how they can be of benefit to you and as a leader or business owner; from the above you have a plethora of actionable insights at your fingertips.

Performance is dipping? Here you could pinpoint the location, which grades, within which roles, within which locations that the underperformance is occurring. This can then drive wider strategic thinking on underlying root causes (is it employee engagement, the environment, working conditions, management etc.), which can then lead to more specific and drilled down remedies to rectify such issues.

Looking to relocate? With the above, you could review costs by locations, productivity and performance, enabling commercially favourable decisions evidenced by live data, to drive better business outcomes.

Organisational costs appearing out of control? A review of people cost allocation by Cost Centres, by location, along with spans of control will provide you with a clear picture of just how stretched your organisation may be – are there outlier cost ratios in specific areas? Are the current spans in-line with the operating model? Are there too many layers within the structure? From this data, you will be able to identify the layers within your organisational structure from which you could then look to remove some costs and lean out the operation.

To remain competitive, leveraging your people data is more important than ever in staying ahead of market demands and remaining dynamic in being able to ‘pivot’ or make decisions and execute at pace.

If your organisation would be interested in a review of your analytics capability, get in touch to discuss how we can support you.