How Can We Simplify the Complex Field of “People Analytics”?

By cross-referencing demographic, salary, and performance data—as well as data on training participation—it is possible to understand and/or predict important trends within organizations. This is increasingly becoming a priority for the Human Resources department.

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Technically, when we talk about People Analytics, we are referring to:

HR Intelligence, let’s talk about dashboards and reports that show summaries and trends of Key Performance Indicators

HR Data Analytics, we mean data that can tell us why certain events occurred

HR Advanced Analytics, involves the creation of predictive or optimization models.

How can I—someone who’s naturally so far removed from these topics—get passionate about them and explain them as simply as possible, so that I can truly appreciate their value?

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Given the importance of this, I decided to discuss it with Luca Argenton, and you can listen to our conversation in the recording of the live broadcast.

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In this article, I’d like to summarize what I’ve personally learned from working with him. I’ll start with the key insights Luca shared with me regarding “Analytical HR”:

- This is not simply a reporting and data visualization activity, but a process of finding solutions to the more or less complex issues faced by organizations. It begins with asking powerful questions, identifying which data can help find the answers to these questions, determining whether this information is available within the company, envisioning data not as silos but as interconnected—even when it comes from different sources—and then visualizing it and, by interpreting the data, understanding how to transform this snapshot into dynamic data. In short, therefore, a “snapshot that transforms.”

- Data isn't always just about answers; when it's well-structured and consistent, it gives rise to new questions, and that's its strength—it makes us consider questions we hadn't thought of before. In other words, data provides a framework and substance; it can't provide all the answers, but it offers essential insights for making new decisions.

- This is nothing new for the Human Resources function, which has historically used data—ranging from traditional personnel management data, such as payroll, to engagement and workplace climate analysis. What has changed today, however, is the ability to go beyond data related solely to perceptions—which are often subject to inevitable biases—and to also capture the day-to-day experiences of employees. Thus, data evolves from being merely a snapshot to a constantly updated record that can open up new avenues to explore.

- The boundaries that can be explored are very diverse, as is the information that can be gleaned from them

- We don’t need a year’s worth of work or exorbitant costs to make data speak—analyses can be implemented quickly and efficiently. What makes the difference is that dashboards designed to support the business are approached with careful consideration of their design (so that they are clear, simple, and self-explanatory).

- They can be an excellent practical tool for working with and on people, providing evidence of impact while also allowing us to quantify, objectify, and give shape and substance to initiatives that are often difficult to measure. At the same time, they can help in working with top management by providing useful data that better captures their interest and, consequently, fosters their engagement in projects (data storytelling).

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