By Tunde Oyadiran (SAP HR Certified, FNIM)

People Analytics is becoming an increasingly crucial tool for corporations to enhance their human resources management practices and drive organizational effectiveness. Google and Microsoft, among other successful corporations, are ramping up data science and accelerating their digital transformation to deploy smart tech around big data and artificial intelligence to improve their talent management systems. People analytics was already in advanced stages even before the pandemic outbreak. But in the world of work that is increasingly becoming virtual, the data volume available to understand and predict employee behavior will continue to grow significantly, enabling more opportunities for managing through technology and data.

People Analytics and Human Resources Digital

To broadly understand, people analytics is a human resources function that focuses on gathering and assessing insights on an organization’s workforce leading to data-driven decision-making. Increasing job offer acceptance rates, optimizing compensation, and reducing human resources help tickets are just a few ways in which people analytics is becoming the new currency of human resources departments.

Current State of People Analytics

The use of people analytics has grown in recent years, as corporations have recognized the importance of using data to drive human resources management practices. However, the current state of people analytics varies significantly across industries and organizations. While some businesses have implemented advanced people analytics strategies, others are just exploring the potential benefits of it.

The rise of people analytics has been driven by advancements in technologies like machine learning, artificial intelligence, and data visualization tools. These new-age techs are making it simpler for organizations to gather and analyze data related to various functions of human resources. Additionally, these tools also present the findings in a clear and actionable format.

Evolving Trends in People Analytics

People analytics have been evolving at a rapid rate over the last few years, and several emerging trends are expected to shape its future. Here are some of the key evolving trends in people analytics.

1. Use of blockchain for secure and improved human resources data management

The integration of blockchain in human resources data management indicates a significant advancement, ensuring secure and enhanced data handling. The tech introduces a decentralized ledger, protecting sensitive human resources information from unauthorized access or alterations. By using cryptographic techniques, blockchain enhances data integrity, transparency, and confidentiality.

2. Integration of artificial intelligence (AI) and machine learning (ML) algorithms

One prominent trend that is gaining rapid momentum among HR departments is the increasing integration of AI and ML algorithms. This tech enables corporations to analyze vast amounts of data, identifying trends and patterns, which might otherwise go unnoticed through traditional methods. Furthermore, businesses are leveraging predictive analytics to determine employee needs, skill gaps, and turnover risks.

3. Increased focus on employee experience to create a productive work environment

Another significant trend emerging is the growing emphasis on employee experience. People analytics now extends beyond mere performance metrics to encompass factors such as employee well-being, job satisfaction, and overall engagement. This holistic approach enables organizations to tailor their strategies for creating a positive and productive work environment.

4. Incorporating social channel data for employer branding and recruitment

An increasing number of businesses are also leveraging social media platforms for employer branding and recruitment. People analytics can be used for analyzing social media data to identify potential candidates, understand how people feel about the company, and evaluate how well social media efforts are working in terms of attracting talent.

Technologies to Watch Out in People Analytics

People Analytics has been transformed due to various technological innovations, thus enabling businesses to collect and analyze human resources data more efficiently. Here are some of the key technologies that might shape the future of people analytics over the next few years.

1. Wearable tech for employee health and wellness tracking

Businesses, across industry verticals, are expected to invest in wearable technology over the next few years, as they seek to track employee health and wellness data. Department of Homeland Security, in 2021, revealed that it plans to build a tech solution for monitoring the health and stress levels of its employees to identify when workers need assistance.
Walmart provided each of its 740,000 employees with a smartphone for personal use. The smartphones were intended for communication with co-workers, managing work schedules, and carrying out tasks such as moving inventory within the store.

2. Augmented and virtual reality tech for immersive training and onboarding experience

Augmented and virtual reality (AR/VR) technologies can help employees learn faster and in a more efficient way. For instance, the tech can be used for stimulating real-world scenarios, thus enabling employees to practice and improve their skills in a safe and controlled environment. The tech can also boost the onboarding experience.

3. Internet of Things (IoT) for workplace productivity monitoring

By connecting employee devices and systems, IoT enables real-time data collection and analysis, offering valuable insights into activities and resource utilization. This technology allows businesses to optimize workflows, track equipment performance, and ensure a safer work environment. From monitoring employee productivity to managing energy consumption, the IoT streamlines operations, promoting a more productive and responsive workplace.

Final Thoughts

Going forward, people analytics will likely become even more advanced, with advancements in technology and analytical tools. There will also be a stronger emphasis on how employees feel about their work and the ethical concerns around collecting and analyzing human resources data. As organizations keep putting resources into people analytics, they will probably do better than their competitors by making smarter choices, boosting how productive and engaged their employees are, and getting better results for their business overall.