What is people analytics and how does it differ from HR reporting?

People analytics is the use of data and analytics to improve the way companies make decisions about their employees. This includes collecting, analyzing and interpreting data about employee behavior, hiring, and performance, and using these findings as a basis for HR policies, processes and measures.
HR reporting, on the other hand, includes the collection and presentation of data about specific HR processes, such as payroll and attendance. Although both people analytics and HR reporting involve analyzing data, there are several key differences between the two areas.

Differences in scope, analysis, and strategic use

One major difference is the amount of data being analyzed. People analytics collects and analyses data from a range of sources within an organization, such as HR systems, payrolls, and employee surveys, to get a more complete picture of the workforce. HR reporting, on the other hand, usually focuses on specific HR processes and not on the wider dynamics of the workforce.
Another difference is the level of analysis and interpretation. People analytics involves a more in-depth analysis of data, using techniques such as data visualization and predictive analytics to identify patterns and trends and manage HR strategy and processes. HR reporting, on the other hand, is usually focused on presenting key figures and data points rather than analyzing or interpreting the data.

Finally, people analytics goes beyond mere reporting and includes a more proactive and strategic approach to HR decision making. While HR reporting can help companies track and monitor key HR metrics, People Analytics enables companies to use data and analytics to proactively identify and address key challenges and opportunities for the workforce. This may include identifying high-performing employees who are in line for a promotion, or identifying the factors that are most likely to lead to employee retention or turnover.

In an article for HRexaminer (October 2020), HR consultant and author John Sumser explained that “in the next two to five years, data will be the HR department's most important asset.” People analytics represents a new paradigm for HR decision making that is based on data and analytics and not on intuition and gut instinct.

In summary, while both people analytics and HR reporting involve collecting and analyzing data, there are some key differences between the two. People analytics is a more comprehensive and strategic approach to human resources decision making that involves collecting and analyzing data from a range of sources within an organization, and using data visualization and predictive analytics to identify patterns and trends and to inform and manage HR policy and practice. By adopting a data-driven approach to workforce analytics, companies can use data and analytics to improve the way they make decisions about their employees and drive business growth.