5 Points Connecting HR Analytics to Business Benefits

People analytics is a rapidly growing field that is helping businesses around the world to better understand and manage their employees. Businesses today are seeking ways to improve efficiency and gain a competitive edge all while retaining top talent. People analytics is an increasingly popular tool that helps organizations achieve these goals by providing insights into the behavior and performance of their employees. This is exactly why business leaders should care about HR analytics.

Business Benefits of People Analytics


Here are five key benefits that businesses can experience by using people analytics:


People Analytics can be used to get a better understanding of what is happening within your company. By organizing and analyzing data about your workforce, you can gain a clearer picture of what is happening across your organization. This allows you to identify issues and opportunities for improvement, and take action to address them.


It is not possible for a CEO to have one-on-one conversations with every employee in the company. However, people analytics allows you to gather and analyze feedback from your employees through surveys, interviews, and other methods to bring workforce stories to life for leadership teams. This allows you to understand the concerns and needs of your workforce and make informed decisions based on this data.

Identify Trends

People analytics can help you spot larger trends and patterns that may not be immediately apparent to the human eye. For example, by analyzing attrition data, you may discover that employees who live a certain distance from the office are more likely to leave the company. This insight can help you make changes to improve retention and reduce turnover.

Cost of Workforce

Compensation is the largest single expense for many companies and a key factor in attracting, retaining, and recognizing top talent. People analytics can help you understand how different elements of compensation, such as base salary, bonuses, and equity, impact employee performance and retention. By analyzing this data, you can create a compensation strategy that is effective and fair for your workforce. When you think about it this way, it's really business analytics. In human resources, most of the critical information business leaders need to make decisions is found within their databases.

Decision Support

Insights produced through people analytics allow you to make decisions based on data rather than gut instincts and assumptions. By analyzing data about your workforce, you can identify opportunities for improvement and make informed decisions that are more likely to lead to success.

Overall, people analytics is a powerful tool that can help businesses gain insights into their workforce and make data-driven decisions that drive efficiency, profitability, and retention. By connecting HR analytics to business benefits for your leaders, organizations can understand how to improve their operations, attract and retain top talent, and stay ahead of the competition. 

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Written By

Richard is an experienced practitioner in the field of people analytics. He is passionate about teaching others about people analytics, lowering the barrier to entry for HR professionals, designing and building organizations, and setting up HR data foundations. In his current role as Vice President of People Analytics Strategy at One Model, Richard focuses on building connections between ideas, developing communities, and creating content that supports HR and People Analytics leaders. He is also actively involved in the People Analytics community, attending and promoting meetups and sharing his insights on LinkedIn.

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