Let’s face it- technology has our brains inundated with unprecedented amounts of information. As a result, we’ve developed countless platforms and pieces of technology infrastructure that keep us organized, efficient, and profitable. The advent of technology in the business world combined with its future potential makes this an exciting time for us all. Technology can rapidly access troves of data in seconds, enabling us to make decisions that are much more informed than those of yesteryear. However, we should think of these technological capabilities as tools to help us make more informed decisions, not as mechanisms to make decisions for us. Although this advice can be applied in several domains, it’s no more relevant than in the world of people analytics.
So what is “People analytics”?
People analytics, in layman’s terms, refers to the analytical method used to make decisions about human resources and human capital in an organization. People analytics informs HR strategy, hiring/downsizing efforts, and selecting the right candidates (to name a few). Fortunately, we’ve developed technological platforms that can assess and analyze certain variables to “predict” an employee’s success in his/her role. This can be done through simple correlation tables, more complex regression models, or even through advanced predictive modeling. Regardless of the method of analysis, organizations want to know they’re hiring the right person for the right role. They also want to know how to keep these people while understanding what contributes to longer tenure, or on the flip side – higher turnover.