In our latest article You are responsible for People Analytics: But how do you get started? We have addressed the challenges of people analytics. There, we described the most important steps that can help ensure the success of the initiative, such as getting access to the right data, planning the dissemination & communication of the data within the organization, and understanding the context of the organization and the data. But what makes for a successful people analytics strategy and how do you sustainably implement people analytics in the organization?

TL; DR

People analytics can provide companies with significant added value when implemented correctly. But how do you ensure that the People Analytics Initiative is successfully implemented in the organization in the long term? It is important to find the right balance between “How can I show success in the short term and thus the added value of people analytics” and “How can I ensure the long-term and sustainable implementation of people analytics in the organization? ”. As a teaser in advance: Try to avoid overly complex data analyses on a poor data basis and focus on analyzing comprehensible data from your systems and individual use cases.

But how do you show the added value of people analytics for the company? In the following sections, you will find out which important points you should consider when planning your strategy and implementation.

The right people analytics strategy increases business success

People analytics is an important part of a successful corporate strategy. By analyzing data about employee behavior and performance, a comprehensive people analytics strategy can help increase company value. In addition, such a strategy can help improve employee retention by ensuring that employee needs and wants are captured and incorporated into decisions. Improved employee retention can in turn lead to higher performance and a more positive workplace culture. In short, a comprehensive people analytics strategy can help improve a company on many levels.

Why a clear definition of the problem is so important

A successful implementation of people analytics starts with identifying clear problems that need to be solved. This could be, for example, increasing the efficiency of recruiting channels or improving employee engagement. It's important that these issues are clearly defined before you start creating a people analytics strategy. A well-defined problem statement provides clear direction for analysis and helps focus on the data and analytics that are best suited to solve the problem. Before implementing the strategy, consider which HR metrics you would like to improve. An overview of the most important HR metrics in the areas of people, recruiting, retention, performance, engagement, DEI and strategic planning can be found here:

Discover HR metrics

Align the people analytics strategy with business goals

A clear people analytics strategy is crucial for a company's success. By aligning the people analytics initiative directly with business goals, you can ensure that the data and analyses collected actually contribute to improving business results. For example, linking employee engagement and company performance can be an important factor in creating clear added value for the company.

Find the right balance between short-term success and the long-term implementation of people analytics

In order to successfully implement people analytics, it is important to find the right mix between short-term success and long-term feasibility. While rapid improvement in one area is good news, if it can't be sustained over the long term, it isn't sustainable. It is therefore crucial to develop a people analytics strategy that not only meets the needs of the company and employee expectations, but also aims at sustainable implementation.

Avoid complex analyses with insufficient data and analysis without real added value for the company

It is important that people analytics initiatives are well planned and implemented to create real value for the company. Avoid using insufficient data or focusing too much on the data bases without practical use, as this can lead to inaccurate or unusable results. Instead, a healthy mix of data analysis and practical applications should be maintained to ensure that people analytics benefits business goals and delivers added value. In our article Improving HR data quality for important HR analytics Find out how you can get your HR data quality up to the best possible level within a very short period of time.

Quantifying insights from people analytics

Quantification plays a crucial role in evaluating the added value of people analytics. It is important to identify clear key figures and metrics that make the effect of people analytics on the company measurable. This can be direct by demonstrating a concrete benefit for the company, or indirectly by showing improved performance or management through data. In addition, the positive responses from stakeholders can also show that people analytics deliver added value to the company.

As little complexity as necessary

People analytics is an important part of modern HR work that uses data and analytics to achieve better decisions and results in HR. However, it's important to note that too much complexity isn't always an advantage. A people analytics strategy should therefore carefully consider whether greater complexity is really necessary to create added value and be important for those involved. Excessive complexity can even have negative effects by impairing overview and comprehensibility and thus making decision-making difficult. If you would like to learn more about specific applications of people analytics, check out our People Analytics Use Cases in the areas of People, Recruiting, Retention and DEI:

Discover use cases

Active management, data literacy, and a data-driven decision-making culture

People analytics provides a unique opportunity to use data and analytics to make better HR decisions. However, to realize the full benefits of people analytics, successful implementation depends on three key factors: active management, data literacy, and a culture that values evidence-based decision making. Active management is necessary to steer the project and ensure that it is in line with company goals and values. Data literacy is required to collect, analyze, and interpret the data to make informed decisions. And a culture that values evidence-based decision making is important to ensure that the results of people analytics are properly considered and implemented. In short, successfully implementing people analytics requires strong management, a deep understanding of data, and a culture focused on facts and evidence.

We hope the article helps you understand the key steps for a successful people analytics strategy and implementation and set the right priorities. If you want to learn more about this topic, we recommend reading the following articles:

• You are responsible for People Analytics: But how do you get started?
• What is people analytics? A guide to getting started
• 5 steps to help you build an ideal team with people analytics

Want to start with people analytics in your organization?

PeopleIX connects all of your HRIS, ATS, and other HR data sources to take your people analytics strategy to the next level in no time. Request a personalized demo of your individual challenges and we'll discuss your company's specific requirements. Or discover our use cases in the areas of people, recruiting, retention and DEI.