7 Unexplored Benefits of People Analytics

Improve employee attendance

Business organizations are made of people. Without people, a company is nothing but brick and mortar.

In simple terms, people are the soul and the carry wheels of a company. Needless to say, if employees are unproductive, suffer from poor work-life balance, are disengaged, or exhibit high turnover rates, a company is bound to suffer. Given that, if you aspire to take your organization high up on the ladder of success, it is crucial for you to keep your people happy.

The key to keeping your employees happy and fulfilled lies in resolving the issues that trouble them at the roots. That’s where people analytics comes in.

Let’s see what it is and which benefits it provides.

Benefits of people analytics

What Is People Analytics?

People analytics involves the usage of data to understand the root causes that are contributing to specific employee issues that disrupt the functioning and growth of your organization.

People analytics software helps you get to analyze a broad set of data which helps you reach the roots of the problems deeply and hence resolve them to the core. This makes people analytics software one of the most important tools for office managers, employers, and leaders. Now that we have discussed the basics of people analytics, let’s proceed to discuss the enchanting benefits that you can avail of by using people analytics.

7 Benefits of Using People Analytics in Your Company

1.    Improves employee retention

According to research, average employee exit costs 33% of the employee’s salary. This includes the costs involved in hiring the replacements and the losses incurred due to the lost productivity of the employee.

There are immense losses as the new employee also takes around eight to nine months to reach the productivity level of the employee who left. Given that, high employee turnover is one of those things that can cause significant financial and productivity-related damages to your company. This makes it imperative for you to improve employee retention in your company.

When it comes to improving employee retention, people analytics can offer great help. With the help of the enormous data collected, you can dig into the root causes of high employee turnover in your company. It might be anything from micromanagement, poor policies, and poor culture to poor infrastructure.

Without identifying the exact cause of high turnover, you’ll only keep treating the symptom which is poor retention. The real cause will not get addressed which will make your employee retention efforts go in vain.

Hence, by helping you understand the root causes of employee turnover, people analytics can help you address this issue to the core. Consequently, you’ll experience a significant increase in employee retention which will only benefit your company’s overall performance and reputation in the market.

2.    Enhances the quality of hiring

The quality of hiring determines a lot. Poor quality hiring obviously deteriorates your company’s overall performance and profitability.

When your employees don’t perform well and as expected obviously your company suffers. Quite the contrary, good quality hiring improves the overall performance of your company, gives you a competitive advantage, and develops a pathway for your company’s overall success. Hence, focusing on the quality of hiring is crucial.

Talent acquisition analytics can provide you with immense insights when it comes to the hiring process of your organization. You can get to know the best practices that support long-term hiring in your firm, help you access the best talent pool, and promote candidate acquisition.

Moreover, it can also help you analyze whether your organization’s hiring process is effective or if you are losing candidates due to the quality of the hiring process. It might seem that your hiring process doesn’t have much impact on talent acquisition but it does.

If talented candidates don’t find your hiring process to be impressive, they are more likely to reject your offer and look for other companies. Besides, you can also use people analytics to determine the time-to-hire for every hiring manager and see where you are lacking when it comes to hiring candidates quickly and filling vacancies.

The efficiency of hiring matters as if you aren’t able to fill a particular position on time, your company will suffer. By helping you improve the efficiency of hiring and streamlining your hiring process, people analytics can significantly improve the quality of hiring in your company and ensure that you have the right talent to sail ahead in the ocean of business.

3.    Better productivity

Every business organization dreams of building a highly productive workforce. After all, high employee productivity is the precursor to success in the treacherous world of business.

However, research shows that an average office worker is only productive for around three hours in a day. This finding is startling, isn’t it? If a majority of your workers are only productive for three hours in a day, there is enormous room for productivity improvement.

Though boosting employee productivity is a challenging task, people analytics makes this challenging task easier. It helps you measure the time taken to accomplish a particular task by a worker, compare it with optimal time, understand where productivity was lost, and thus, pave your way towards better employee productivity.

When your employees know how much they are lagging when it comes to accomplishing tasks within given timeframes, they themselves begin to make efforts to improve their productivity. So, people analytics can work wonders in improving the productivity of your workforce.

Team productivity

4.    Reducing workplace misconduct

Company culture has an impact on everything. It impacts employee performance, hiring and recruitment, employee engagement, employee morale, and everything else you can think of. Workplace misconduct can ruin the company culture and push your company into a pit of poor reputation. It can also boost turnover and employee disengagement.

Hence, it is imperative for you to ensure that your company is a misconduct-free zone. This requires keen observation of employee behavior, identifying where things go wrong, and engaging in strategic communication with the workforce to let them know what’s acceptable and what’s not. When you establish everything clearly, people management becomes easier.

A people analytics tool can make the task of observing employee behavior and generating insights simpler for you. You don’t have to do anything. The tool will generate employee behavior reports that you can use to reduce workplace misconduct. As you go on reducing workplace misconduct, you’ll find your organization soaring high and moving towards a better culture.

5.    Increasing diversity

Diversity and inclusion have become major goals for all business organizations. Why is that so?

To be true, candidates prefer to work for companies that have diverse workforces.

The past few years have ignited the love for diversity in people. The way people from diverse backgrounds suffer across the world has made people extremely sensitive toward this issue. And the painful death of George Floyd is one example of an incident that ignited the fire of diversity and inclusion in society.

Given that, companies that don’t focus on diversity and inclusion lag behind their competitors when it comes to attracting talent. This implies that if you aspire to achieve excellent hiring and recruitment, retain your employees in the long run, you should focus on increasing diversity in your company. People analytics can offer immense help when it comes to enhancing diversity.

How can people analytics help?

Through people analytics, you can spot and understand areas where conscious or unconscious biases are prevalent in your company against people from diverse backgrounds, religions, and ethnicities. By recognizing and addressing these biases you can set up the foundation for effective diversity and inclusion in your company. This is how people analytics can help you evolve into a company with diverse people and cultures.

6.    Improves learning, development and training programs

Learning and development programs, employee training sessions determine the overall performance of your workforce in the long run. If the quality of the training programs isn’t excellent, obviously your new hires won’t learn as much as they should and this will get reflected in their performance in your company.

Besides, if you offer learning and development programs to your employees for employee engagement, it is important to measure whether your efforts are reaping the desired results or not.

Yes, that’s exactly how it is.

There is no point in investing in employee learning and development if your employees aren’t truly learning or if your efforts are reaping the desired results. So, you should be able to know if your employees are gaining from the learning and development initiatives and training programs. If they aren’t it’s time for you to improve the quality of these programs if you aspire to achieve the intended results.

Now, comes the question, “How to know if your employees are gaining from your training programs?” The answer is – to use people analytics.

Learning analytics can help you analyze how much your workforce has grown after undergoing a particular type of training. Through these insights, you can determine places where you need to work to enhance the impact of training programs.

Employee training

7.    Improving salary standards

As you already know, the packages you offer have a strong impact on employee engagement, retention, and performance. If you don’t offer competitive salaries or salaries that your workers aspire to achieve, you’ll lose them. Consequently, your competitors might hire them and you might suffer a competitive disadvantage. Moreover, often employees wonder how to ask their boss for a raise but when they can’t find the opportunity to do so, they silently leave their company.

Don’t want such things to happen to you? Then, you should focus on improving salary standards in your company.

People analytics is a very helpful tool for the same. Through this tool, you can assess proposed candidate offers, counter-offer considerations, and promotions which can eventually help you improve employee engagement, retention, and morale.

People analytics uses enormous amounts of data to improve talent acquisition, retention, and overall performance of your company. It helps you understand the root causes of the issues existing in your company and thus, eliminate them to achieve overall betterment of your company.


The above-mentioned benefits of people analytics can help you understand how you can evolve into a better company with this tool. Do try people analytics and see for yourself the merits that soon begin coming your way.

We wish you all the best and immense success in all your endeavors.

Hope this blog offered you the insights that you needed and satiated your thirst for knowledge.

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