People Analytics Evolves to Deliver Long-Term Value for Organizations

People Analytics Evolves to Deliver Long-Term Value for Organizations
In most service businesses, people, knowledge, and technology remain the prime source of competitive
advantage. The three are also capital intensive and relative to the industry. Even industries such as oil
and gas that have a high level of automation rely on this trio to give them the competitive edge.
The interplay and dynamics of people, knowledge, and technology is often not an easy task to ascertain
both qualitatively and quantitatively. Of course, corporate financial analysts may show the costs
incurred and savings threshold, but they will not be able to attribute value to people activities and
knowledge impact. For instance, financial analysts may be adept in forecasting changes in market
conditions or pricing, but when it comes to people and knowledge, they are invariably undecided and
make open-ended inferences.
This is where people analytics steps in and shows how to connect the people value of a company to the
strategic business goals. According to an Aon Hewitt research, organizations can optimize their revenue
growth by cultivating talent. People analytics (PA) help place value on leaders who cultivate talent. By
using multiple sources of data and specific metrics, PA helps in evaluating the overall effectiveness of
the leadership system.
For HR leaders, PA represents a major opportunity to shape the people value addition and leverage
various knowledge sources. PA’s predictive analytics tools make it possible to analyse data and
understand at a deeper level what drives the results in recruitment, performance, and employee
mobility among others. The coming together of Artificial Intelligence and analytics has pushed the
borders of analysis far beyond employee engagement and retention. Today, PA is more business driven
and less HR focussed. However, the onus rests on the HR to leverage people data for a broad range of
business problems, not limiting to people functions alone. PA has opened new avenues for data to drive
business results; it accesses external data and social network data to establish connection among
attrition, retention, and other performance metrics.
From simply building data models to developing dashboards in real time, analytics tools have come a
long way: it is now possible to analyse ten different measures of team engagement and performance on
the move, helping management understand hiring, retention, and performance issues.
As businesses and organizations adopt analytics to inform business strategy, success will require a
prolonged time commitment and continued investment. To make the best use of PA, it is important to
increase the exposure to analytics throughout the organization. Regardless of whether organizations do
the analysis themselves or have specialists supporting them, it is important to give training to both HR
and other business functions, especially as PA is evolving as a multidisciplinary tool that leverages
different functional information critical to success.
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