People Analytics

Companies have great potential that can be unlocked if HR data from personnel work is collected, collated, analyzed, interpreted and enriched with other company data. In this way, challenges can be identified, suitable procedures defined and future developments anticipated. People Analytics supports you in using your HR data potential to increase employee productivity, improve the employee experience, conduct strategic HR planning, improve the corporate culture or optimize the day-to-day work of the workforce, for example. Here you can find out what people analytics is all about, how you can successfully implement people analytics and what the goals of people analytics are.

People Analytics (also referred to as HR Analytics or Workforce Analytics) encompasses all activities related to the analysis of employee-related data in combination with other business data. The overarching goal of People Analytics is to reveal connections between different data sources and business areas that would otherwise remain hidden. This foundation allows for better, more informed decision-making based on solid data and thorough situation analysis.

People analytics is a form of predictive or prescriptive analytics, allowing data-based correlations to be used to forecast potential future scenarios and assess their probability of occurrence.

People Analytics forms an interface with all other areas of the company. Especially HR controlling, which produces a vast quantity of employee-related information, has numerous points of contact with it. This includes, among other things:

Based on the aforementioned data, HR controlling can describe the current state as well as developments from the past up to the present. Building on this foundation, People Analytics comes into play. Here, KPIs from People Analytics are enriched with other business data to uncover hidden connections. An example of People Analytics is the analysis of employee performance data. This might include metrics such as the number of completed projects, project duration, customer satisfaction, or error rates, all used to identify patterns and trends in employee performance. Based on these insights, targeted actions can be taken to improve performance, such as offering training or identifying and promoting best practices. However, it’s important to note that within the scope of German data protection and labor law, as well as co-determination regulations, there are strict legal requirements that must be observed, especially when compared to international standards.

Today, all areas of business are heavily influenced by digitalization and big data. People Analytics represents a holistic approach that can benefit the entire organization and every employee. Among the key advantages of People Analytics are:

• They help uncover and unlock hidden potential within the organization.
• They make better decisions by identifying connections that would remain undiscovered without People Analytics.
• Your processes become more efficient, and your company’s performance improves.
• You can identify negative developments at an early stage and take action before they escalate into full-blown crises.
• Your talent and personnel management is optimized.
• You are able to set up an appropriate organizational structure. This allows you to establish departments of the right size and ensure an appropriate management span.

People Analytics can be applied across all areas of the organization and also provide valuable cross-departmental insights. Typical use cases include People Analytics in the recruitment process, predictive workforce planning through Workforce Analytics, HR Analytics as a trend indicator for management, or the evaluation of biometric data.

In today’s world of work, the role of the People Analyst is becoming increasingly important. This position goes far beyond traditional data analysis. It combines technical expertise with a deep understanding of organizational dynamics and employee behavior.

A People Analyst is responsible for analyzing HR data and transforming it into valuable insights that support strategic decision-making. The focus goes beyond standard KPIs such as turnover rates or absenteeism. Instead, the role centers on addressing key topics that are crucial for the organization, such as: What factors influence employee retention? How can succession planning be optimized? What patterns emerge in diversity analysis?

By leveraging modern tools and methods such as predictive analytics and machine learning, the People Analyst plays a key role in making HR processes more efficient and better aligned with the overarching HR strategy.

Key competencies of a People Analyst include not only strong analytical skills, but also a holistic understanding of the company’s strategy, excellent communication abilities, and the talent to present data in a way that’s easy for non-experts to understand. These qualities make them a key player in the field of People Analytics and a driving force behind organizational success.

A well-designed HR dashboard is essential for any modern HR strategy. By combining HR KPIs, Org Analytics, and data-driven decision-making, it significantly boosts the efficiency of HR management. The future lies in linking HR dashboards with AI-powered analytics tools to enable even more accurate forecasting and optimization. Companies that integrate these technologies early on are not only better equipped to respond quickly to changes in the HR landscape, they also secure their long-term competitiveness. In an increasingly data-driven world, the ability to derive strategic decisions from HR data is becoming a key success factor for any forward-thinking HR strategy.

1. what?
Determine the specific object of investigation. What exactly do you want to find out?

2. who?
Appoint a person responsible for the project. In addition, find out who is particularly suitable for the collaboration.

3. what data?
Adapt your approach to your objectives. Ask yourself: What data do you actually want to collect?

4 Where does the data come from?
Find out from which areas the data should come.

5. determine time period
Define the time period over which the data should be collected.

6. collect data
Obtain the HR data that is of interest to you and evaluate it.

7 Which methods?
Check which methods and solutions are most suitable for analyzing the people data.

8 Which tool?
Connections must be visualized. Professional software tools such as Ingentis org.manager facilitate analysis and understanding through self-explanatory visualization of correlations and findings.

9. further questions?
Maybe the data raises additional exciting questions for future people analytics projects? If so, pursue them further.

10. implement measures
Derive findings, communicate them within the company and implement the necessary measures.