The Use of People Analytics in HR

More than 9 in 10 (94%) business leaders say that people analytics elevates the HR profession (People Analytics, SHRM Research, 2021). Meanwhile, 71% of HR executives who use people analytics report that it is essential to their organization’s HR strategy. With technological advances and increased computing power, organizations of all sizes can leverage increasing volumes of data within their organizational functions. It is now possible to use data, rather than anecdotes or intuition, to evaluate the efficiency of HR processes; employee productivity, diversity or attrition; and other key business metrics. The improved efficiency that people analytics tools offer can also allow HR professionals to focus more of their attention on innovation and strategy.

If HR professionals and leaders use people analytics appropriately, they can make more effective decisions, improve the employee experience and impact the bottom line. To better understand the power of people analytics in organizations and the challenges organizations face in their journey, SHRM Research surveyed 2,149 HR professionals and 182 HR executives who work for organizations that currently use people analytics. SHRM Research found that people analytics has great utility and promise to transform HR, but that many organizations have yet to realize its full potential.