Strammer Logo
People Analytics Is Important and Here Is Why

People Analytics Is Important and Here Is Why

People Analytics

Workers are the most valuable asset of companies and the core of them. Thus, employers try to invest in workers’ satisfaction, productivity and employee experience to have a happy and healthy workforce and reduce turnover rates. People analytics is a strategy that can help in this. But what is it exactly?

People analytics is a method used to collect/analyse data related to employees: their preferences, motivations, behaviour, etc. This data is then used to better manage the workforce, improve decision-making and identify/address organisations’ issues. In a 2018 report conducted by Deloitte, 84% of business and HR leaders stated that People Analytics was “very important “or “important. “

Before starting to apply people analytics it is vital to identify the important questions and issues that leaders/managers/HR want to address with this strategy. They should decide what they want to measure and what data needs to be collected.

All information is gathered/organised/correlated using data management software, which makes it easier for leaders/managers and HR departments to interpret the data and apply the right strategies. Obviously, the IT department is also involved in these processes, as they are responsible for introducing and ensuring the software works correctly and according to the company’s goals.

Also, leaders and managers can conduct internal surveys or schedule individual meetings, to know workers’ opinions about the work environment, conditions, satisfaction, etc. This is important information, that must be included in people analytics.

However, it can be challenging to collect diverse data/information and not know how to interpret/use it correctly considering the business needs. Therefore, it is mandatory to have the proper tools to collect the data and the right team, with the ability to interpret the information efficiently. Employers need to develop a data literate workforce, by offering training/workshops about it. At the same time, managers/leaders/HR need to be open and support the use of data, even if it goes against what they want to hear.

But why should you use People Analytics? First, this method has many benefits. For instance, it is a way to increase and measure employee engagement and satisfaction. Engaged and satisfied employees are more productive and less likely to quit.

In addition, People Analytics offers the chance to measure and track Employee Productivity. With it you can understand employees’ motivation levels, expectations and apply strategies if the levels are not satisfactory.

Besides, more than allowing companies to understand their workforce, people analytics also enables organisations to collect and analyse information about candidates. Having data on job applicants can help recruit the right person.

According to HR Technologist, People Analytics is also a way to transform “what HR does”, “HR-employee relationships” and “the quality of insights”.


  1. How predictive people analytics are revolutionizing human resources, Deloitte
  2. What Is People Analytics? Definition, Process, Trends, and Tools, October 2019, HR TECHNOLOGIST