How ‘People Analytics’ is Transforming HR Departments

Say the words “predictive analytics” to tried-and-true human resources professionals and odds are you will see a flicker of fear move across their faces. That’s to be expected in an industry where intuition and feelings have a great deal to do with how candidates are recruited, hired, and managed.



People analytics for human resources can transform how HR works for your company.

However, predictive analytics is being used with great success in HR departments across the country. Its implementation streamlines recruiting processes, reduces cost-prohibitive employee turnover and facilitates in-house promotions so employees are placed in the positions they’re best suited for. In addition to improving a company’s bottom line, these changes are also better for the company culture. Perhaps it’s time to ditch the “predictive” moniker and learn how “people” analytics can be of service to HR.

As Michael Housman points out, “…FICO scores transformed the credit industry and moved the decision of whether someone was creditworthy…” Learning how to implement people analytics for human resources will have a similar effect on your company, removing the element of error inherent in human bias and allowing precise mathematical algorithms to illuminate, which employees or potential hires will work out best for any given position.

The process of building predictive models does not require expensive consultants. Rather, affordable software programs and effective tutorials will allow your staff to learn people analytics at their own pace. You can use a simple four step process to begin the predictive modeling process.

  • Posing questions. Ask questions relevant to your company’s pain points regarding hiring, promoting, office layouts, and more.
  • Data analysis. Cull existing data, via HR dashboards or business intelligence platforms and get it all into a centralized location for a retrospective analysis.
  • Predictive analytics. Use more advanced analytic techniques learned via user-friendly teaching platforms to analyze the centralize data and begin posting “what if” analysis.
  • Experimental design. Experiments and A/B testing in the “model” world will help you develop policies and procedures so you can begin implementing them in the real world.

Watch a short video and learn more about our HR solution.

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Decentralize analytics. Harness the power of many.