From Subjectivity to Objectivity: The Transformative Impact of People Analytics

Human Resources departments, or as they are called in some companies, the "People Department," have undergone a 360-degree shift in the way they make decisions. The data revolution has also disrupted this department, which for many years was characterized by the subjectivity with which executives made decisions.

But why this paradigm shift? HR Departments have become a strategic part of a company.

Data is both everything and nothing…

People Analytics is a term that originated in the Human Resources department at Google, or as they call it, the People Operations Department. From the combination of People and Analysis emerged People Analytics.

People Analytics applies the same processes as a data scientist in data extraction, cleaning, and analysis, facilitating and improving decision-making in an HR department by making these decisions more objective as they are based on real data or information.

Let's look at some uses of People Analytics in Human Resources:

Applied to the selection processes, People Analytics allows analyzing candidate data, such as their work experience, education, or skills, to determine if they are suitable for a particular position. It also allows identifying patterns in the data that can help identify which candidates are more likely to succeed in a specific position. Additionally, the use of People Analytics can help reduce the time spent on candidate selection and improve the quality of hires.

The costs for a company in the selection process are high, so one of the goals of companies is to reduce turnover and focus on talent retention. Therefore, People Analytics can help companies identify which employees are more likely to leave the company. Thanks to predictive models, we can know which employees are satisfied with their work or position, if they intend to leave the company, and even specify which employees will leave the company within a certain period. Additionally, we can also identify factors influencing turnover.

The Gender Pay Gap has gained importance in People Analytics. Identifying whether there is a gender pay gap in a company and how to reduce it if it exists. Data analysis has also gained importance in this area, as it allows clear visualization of all salary-related data. Starting with the number of men and women hired, the salary each person earns, allowing to know the average salaries of men and women and identify if there are gender pay differences for the same position. It also allows recognition, for example, if there are more men than women in leadership positions.

Through this analysis, factors contributing to the gender pay gap can be identified, such as differences in job roles, education, experience, or discrimination. Understanding these factors helps in developing strategies to bridge the gap and ensure equal pay for equal work. Policies aimed at addressing the gender pay gap often involve promoting pay equity, eliminating biases in hiring and promotions, providing equal opportunities for career advancement, and fostering a culture of inclusion and diversity within the workplace. Data analysis is crucial in assessing the effectiveness of these strategies over time.

Another interesting application of People Analytics is in analyzing how employees interact within an organization. This is called Organizational Network Analysis (ONA). ONA which is represented by Nodes can help us identify those individuals who have more influence on others, and who act as bridges between teams. It also allows a company to study the informal relationships that are created within companies. Additionally, it allows us to identify which teams or individuals are becoming isolated.

People analytics in talent acquisition and recruitment is another interesting application. Through careful analysis of past hiring successes and failures, organizations can optimize their recruitment strategies. Data-driven insights help in identifying the most effective channels for attracting talent, assessing the ideal skill sets for specific roles, and predicting candidate success. By streamlining the hiring process and targeting the right candidates, companies can significantly reduce time-to-hire and recruitment costs while improving the overall quality of their hires. Once talent is acquired, people analytics plays a crucial role in employee engagement and retention. Analysing data on employee feedback, performance evaluations, and workplace behaviour helps identify factors that contribute to engagement and satisfaction. Insights gained from this analysis can be used to design employee-centric policies, address concerns, and create a conducive work environment that nurtures employee growth and loyalty.

Furthermore, people analytics is a powerful tool for promoting diversity and inclusion within an organization. By examining demographic data and comparing it with performance metrics, organizations can uncover any disparities and biases that may exist. This information allows for targeted initiatives to foster a more inclusive workplace, where all individuals have equal opportunities for growth and success. Ethical considerations in people analytics cannot be overlooked. Privacy and data security must be safeguarded throughout the data collection and analysis process. Organizations need to ensure that employee data is handled responsibly, respecting privacy laws and regulations.

Data analysis offers a wealth of insights across various contexts. The key lies in defining our objectives, understanding the company's goals, and addressing specific challenges. By analyzing available data, we derive conclusions that, most crucially, guide decisions to effect change and align with the company's objectives. In sum, People Analytics wields transformative power, unlocking vast potential for organizations aiming to maximize their human capital. Through data and analytics, organizations make informed, strategic decisions, optimizing their workforce and boosting overall performance. Embracing and integrating people analytics into core operations is the path to sustainable growth and success for businesses in the future.

Bibliography:

1. enzyme (Optimiza el?reclutamiento de personal?con People Analytics)
2. HRTRENDS by infoempleo (People analytics: en qué consiste y qué ventajas aporta | HRTRENDS)
3. ORH OBSERVATORIO DE RRHH. (People Analytics y la predicción de la rotación no deseada: cuando el objetivo es hacer que el algoritmo falle siempre)
4. Green, D. (January 28, 2020) The role of People Analytics in Gender Pay Analysis. (2) The role of People Analytics in Gender Pay Analysis | LinkedIn
5. TALENT INTELLIGENCE (People Analytics and the Role It Plays in HR and Recruitment)
6. Deloitte (Organizational network analysis | Deloitte US)
7. sesame (Brecha de género en empresas: consejos de gestión y medición)

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