Analytics HR

How people analytics is making HR data-driven

People analytics is maturing fast. The past few years have seen a staggering growth in the adoption of people analytics for companies around the world, ranging from 45% to 120%.

Organizations no longer see people analytics as separate from HR, but as an integral part of HR. Data-savvy HR professionals are key enablers and companies increasingly invest in training them to become more data-driven. But how does this look in day-to-day life?

This article explores the impact people analytics is having, whilst also transforming HR into a data-driven function.

How HR made customers happy using data

A large restaurant chain was trending in a downward direction and was struggling to understand why. They had some data, including an annual employee survey. However, they were unsure where to start to find out what was going wrong.

The team looked at the restaurant’s data and did not look at traditional HR outcomes. Instead, they identified three business outcomes that mattered most to the organization:

  • Customer count (the number of customers eating at the restaurant)
  • Customer satisfaction
  • Employee turnover

They decided to utilize one of the most advanced analytics techniques, Structural Equations Modeling (SEM). The team used this rather than regular correlation and regression analyses.

They identified which employee survey categories were linked to the three business outcomes. The next challenge was to convey the results so leaders would understand them and know which steps to take next.

A heat map showed where managers needed to focus their time, attention, and money to provide the largest ROI.