People Analytics

The use of data analysis and AI-driven insights to optimize workforce planning, performance management, and employee engagement.

HR teams leverage people analytics to track trends, predict turnover, and enhance decision-making. Data-driven HR practices improve efficiency and workforce productivity.

What are the 7 pillars of People Analytics?

The 7 pillars (or key focus areas) of people analytics typically include:

1. Workforce Planning – Predicting future hiring needs and talent gaps.
   
2. Talent Acquisition – Using data to improve recruitment efficiency and quality.
   
3. Employee Engagement – Measuring satisfaction, morale, and connection to the workplace.
   
4. Performance Management – Analyzing performance trends and productivity.
   
5. Learning & Development – Identifying skill gaps and training effectiveness.
   
6. Retention & Turnover – Understanding why people leave and how to reduce attrition.

Diversity, Equity & Inclusion (DEI) – Tracking representation, fairness, and inclusion across teams.

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What is an example of people analytics?

A company notices high turnover among new hires within 6 months.
Using people analytics, they find that poor onboarding experience and lack of role clarity are key issues.
They improve onboarding, and 6-month retention increases by 25%.

This is a real-world example of using data to solve a people problem.

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Why are people analytics important?

People analytics helps companies:

• Make better hiring and retention decisions
  
• Improve employee experience and engagement
  
• Link people metrics to business outcomes
  
• Identify high-potential employees and skills gaps
  
• Promote fairness and reduce bias

It shifts HR from gut-feel to evidence-based decision-making.