People Analytics: ask your main questions here

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The book and also an American film Moneyball (The Man Who Changed the Game, in the UK) portrays the story of a baseball team that, living in an unfavorable financial situation, uses strategies of statistical analysis of the players to identify talents, anticipate the performance and create a competitive team.

Companies are already realizing that analyzing data about their employees can, as the Moneyball theory did with baseball, take the organization to another level of performance. In this text, we will explain what People Analytics is, what are its advantages and how it is possible to implement it in your business. Keep reading and clear all your doubts!

What is People Analytics?

People Analytics can be defined as the process of collecting, organizing and analyzing information in order to understand the behavior of employees within a company. This analysis is able to show what motivates them the most, what makes them more productive, among other factors, so that the results can be used to increase employee engagement with the organization.

What is your origin?

Google pioneered People Analytics. In the beginning, it was used with the intention of making the recruiting team more efficient, without having to make more hires for the area. The objective was to develop automated analysis technology to predict the most viable candidates in the selection process.

After using this tool in the recruitment and selection process, the company created a technology to measure employee engagement with the company. Checking the factors that increased the chance of a person to remain in the organization, People Analytics was used as a protection strategy by Google.

The company also developed an algorithm for retaining professionals. With it, it is possible to anticipate which employees are more likely to leave the organization and prevent this from happening.

How does it work?

Analytics works from algorithms, which are step-by-step instructions that are executed electronically. These algorithms are used in databases and reveal the variables that are impacting what is being analyzed.

That is, People Analytics uses various digital sources to collect data from workers. The information collected is cross-referenced and organized by a software, resulting in analyzes that make it possible to know the causes of problems and plan interventions to change the company's scenario.

Algorithms can be developed by a multidisciplinary team comprising experts such as psychologists, neuroscientists and statisticians.

What are the usage possibilities?

People Analytics can be used for a variety of purposes, but most companies take advantage of analytics primarily to support decision-making that were previously based on bias, to develop productivity and to identify and retain talent.

We will see, below, what are the advantages of using this tool in the HR area.

What are the benefits for talent retention?

In addition to hiring good employees, HR must be able to retain these talents. To retain a good professional in the company, several factors, such as the organizational climate, leadership, benefits offered and career plan must be considered.

People Analytics allows managers to understand what to do to keep employees in the organization, whether identifying that there is a lack of growth opportunities, noting that there is a lack of incentive for innovation, among others. Discerning the causes, it is possible to develop strategies that change the company's reality.

A real case is that of Google, which found that workers under managers with good leadership skills performed better and stayed longer in the company, compared to those led by poorly evaluated managers.

To find out what these good managers did, data collected through surveys, feedback, and interviews were analyzed. The behaviors identified as the most appropriate were shared with all the company's leaders, so that they could adopt the best practices.

Does People Analytics Improve Productivity?

First of all, you need to understand what is limiting production. The low productivity of workers can be the result of failures in several aspects in the internal environment of the organization. With People Analytics mapping it is possible to identify errors.

With this feature, HR can find out, for example, which areas and what types of training are needed to develop performance. They may also realize that what is missing is a benefits policy to motivate employees.

How to implement People Analytics?

Even today, many people are still resistant to novelty. Therefore, when adopting an analytical tool, involve all employees in the process and ensure that they know what it is for and how to use it. Also encourage the marketing team to develop a communication plan about the application of the novelty.

In addition, “word of mouth” among employees who have already used the tool and liked it makes all the difference. So start introducing Analytics in the areas that need to develop the most. So, when the industry discovers the power of the process and delivers more results, people will start to advertise to other colleagues.

As we have seen throughout the text, People Analytics is a technology innovation that brings countless benefits to the area of ​​people management, since they are the most important resource of organizations.

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