How People Analytics Can Supercharge Your Role as an HRBP

People analytics is becoming essential for HR Business Partners. Learn why it matters and the six steps to getting started with workforce data in your organisation.

TL;DR: People analytics helps HR Business Partners use data to make better strategic decisions for their companies. It allows HRBPs to interpret workforce data, identify issues, plan for the future, and convince leaders to act. By using people analytics, HRBPs can improve talent management, employee experience, and overall business success.

A Gartner survey found that only 22% of HRBPs feel confident using data to influence business decisions. Those who do are rated 1.8 times more effective by their business partners than those who rely primarily on relationship management. (Gartner)

As the business environment constantly changes and workforce data continues to rapidly increase, people analytics is becoming essential for HR Business Partners (HRBPs).

Collecting data on its own is not enough. You need to be able to interpret it in order to find out what is causing problems, plan for future developments, and then convince stakeholders to act. You need to be able to deliver the strategic advice that business leaders need and support them to get more from their talent.

What is people analytics?

People analytics is all about leveraging data to optimise the employee experience, boost productivity, and improve the structure of the organisation. While people analytics has been around for years, it was previously limited to large enterprises with equally large budgets. Now it is available to smaller organisations, and it is a skill increasingly in demand.

Sometimes called HR analytics or workforce analytics, people analytics involves collecting HR data and organisational data and converting it into valuable insights that can be used to make improvements to how business is carried out. Data is extracted from your HR tools and transformed into powerful visualisations that can then be used to highlight important information and recommend solutions between managers and employees.

Why does people analytics matter for HRBPs?

It is not just about improving HR functions. People analytics provides valuable insights that help companies achieve their goals and improve their success. It plays an integral role in decision-making by providing deep insights into how to make improvements to the workforce.

Leaders can use the findings from analytics to improve hires, employee retention, learning, and compensation, among other things. Using people analytics ensures you are making decisions based on facts - so big decisions are not left to chance.

| Metric | Value | Source | | More likely to outperform peers when using data-driven talent decisions | 3x | McKinsey & Company | | Higher total return to shareholders for companies with higher female leadership representation | 34% | McKinsey Women in the Workplace | | Prevalence of leaders-as-coach training in workplace by 2022 | 89% | ICF Global Coaching Study |

What are the 6 steps to getting started with people analytics?

People analytics brings so many benefits that it is becoming an essential skill for HRBPs. By being skilled in people analytics, you can bring so much more to the organisations you work for. Here are the six essentials to keep in mind.

1. Get support within your organisation: Is your organisation really ready for people analytics? While it can have a huge impact on success, it has to be done properly - and that means the organisation will have to make changes. Part of people analytics focuses on statistics and data, but most of it is actually about change management. Find your data champions - the managers who have already invested in analytics and are regularly making efforts to increase efficiency.
2. Find out what data you have access to: You need to find out what data you can use - which means the data that is readily available in your HRIS system. You do not want to be in an endless quest for data because it will take up too much of your time. Focus on what you already have and use that. If you do not have the data you need, you may need to invest in new software.
3. Choose the right analytics solution: Using the right solution is essential if you want to get access to the correct data and present the findings effectively to stakeholders. Some solutions are designed for large enterprises and are not cost-effective for mid-sized companies. Look for a solution that scales with your needs.
4. Build your data literacy: You do not need to be a data scientist, but you do need to understand the basics of data analysis, visualisation, and interpretation. Invest in building these skills within your HR team - even basic data literacy can dramatically improve the quality of your insights.
5. Start with a business question: Do not start with data. Start with a business question. What does leadership need to know? What decision needs to be made? Work backwards from the question to identify what data you need to answer it.
6. Communicate findings as stories: Data without narrative is just numbers. Learn to translate your findings into stories that connect to business outcomes. Show the impact, not just the metric. Make it easy for leaders to act on what you are telling them.

Choosing the right analytics solution

The right people analytics solution should do three things: collect the right data efficiently, make it easy to interpret, and present it in a way that drives action. It should reduce the burden on HR - not increase it.

For mid-sized companies, the priority is a solution that is easy to implement, does not require a dedicated data team to maintain, and connects directly to the talent decisions you need to make. The goal is not to build a data warehouse - it is to answer the questions that matter.

DataHub + DataWiz - Your Complete People Analytics Stack DataHub centralises your workforce data and DataWiz converts it into actionable insights. Together they give HRBPs the analytics capability to answer business leaders' questions with confidence - without needing a data science team. Explore People Analytics Solutions

Frequently Asked Questions

What is people analytics and why is it important for HRBPs?

People analytics involves collecting and interpreting HR and organisational data to gain insights into the workforce. For HR Business Partners, it is crucial because it enables data-driven decision-making, helping to optimise employee experience, boost productivity, and improve organisational structure. This leads to better strategic advice for business leaders.

How can people analytics improve employee retention?

By analysing workforce data, HRBPs can identify patterns and factors contributing to employee turnover. This might include compensation issues, lack of growth opportunities, or management styles. With these insights, HRBPs can develop targeted strategies to address root causes and improve retention rates.

What kind of data is used in people analytics?

People analytics uses a variety of HR and organisational data. This includes information from HR tools like applicant tracking systems, performance management platforms, and payroll systems. It can also incorporate data on employee engagement, training completion, compensation, and demographics to create a comprehensive view of the workforce.

What are the first steps for an HRBP to implement people analytics?

To get started with people analytics, HRBPs should first secure organisational support and identify internal champions. It is essential to understand that implementing people analytics involves change management. Focusing on clear objectives and demonstrating early successes can help build momentum and secure resources for broader adoption.