HR Glossary  >   People Analytics

People Analytics

What is People Analytics?

People analytics is the method that collects and analyzes HR and workforce-related analytics, also known as workforce analytics and HR analytics. It is a data-driven approach that contributes to better decision-making throughout the employee life-cycle. The study is undertaken to identify their impact on the business’s goals, hiring effectiveness, HR initiatives, etc., as well as to elevate the systems for achievable and sustainable growth.


What Are The Benefits Of People Analytics?

People analytics analyzes data to improve and understand the employees' performance in an organization.

Data-driven insights

Organizations can make better decisions about the employees and the possible new hires in terms of hiring, layoffs, promotions, etc. Nowadays, companies use human resource management systems to gather and handle data effectively. In addition, people analytics gives data-driven insights to the organization, which helps in improving their decision-making process.

Better employee communication

As the organizations can get a clear insight into the data of their employees, the organizations can look into the employees who have weaker communication areas and implement necessary steps to improve employee engagement.

Overall efficiency increases

The organizations can identify the inefficiencies in their workflow and the work environments, which improves the process of implementing the necessary steps leading to an increase in overall efficiency.

Understanding of employee behavior

Organizations can identify the reason behind the employees’ behavior which helps the managers of various teams implement a fair workplace environment.


Transparency in the workplace increases as people analytics leads to data-driven decisions, which helps managers decide about hiring, firing, or promoting an employee.


Frequently Asked Questions

What is people's data in HR?

People data is found in the HR systems, which is generally gathered from the surveys conducted within an organization. People data helps in people analytics as it allows the employees to give their inputs about the organization.

What are the different types of people analytics in HR?

There are mainly four types of people analytics;

Descriptive Analytics

Descriptive analytics helps the manager collect and analyze the data about the current or past events.

Predictive Analytics

Predictive analytics helps the manager to foresee future outcomes based on the data that occurred in the current or past events. It is generally used to improve the employee experience.

Prescriptive Analytics

Prescriptive analytics helps the manager give necessary suggestions based on the predicted future outcomes. This approach is used for the profitable seasons of the organizations.

Diagnostic Analytics

Diagnostic analytics are used to know the underlying reason behind a particular event.


What is the objective behind conducting people analytics?

People analytics is generally conducted to;

  • Improve the connection between the peoples' data and business data and help managers make decisions based on that.
  • Enable HR’s to implement activities based on the data and necessity.
  • Measure the HR’s effectiveness of their implementations.

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