lOMoAR cPSD| 67691079
Introduction
People analytics started with an initial burgeoning curiosity about human resources (HR) data and how
those data can be used to glean more meaningful, actionable insights. Over the past couple decades,
HR departments in organizations across the globe have aimed to position themselves to be more
strategic, rather than just administrative support, and people analytics is an effective way to accomplish
that.
Despite people analytics being a relatively new field in the realm of HR, over time it has evolved from
simple data collection to more sophisticated statistical modeling and forecasting techniques. The
transformation of people analytics and the powerful contributions it has made to the field of HR have
significantly shifted HR from a cost center to a business growth engine.
This section, Human Resource Metrics, explores the power of people analytics and applies data
analytics principles to key functions of HR, including recruiting and talent acquisition, learning and
development, talent management, and total rewards (TR). In this section, you will be introduced to the
concepts in each lesson through a scenario about Endothon Company and how it can use people
analytics to help solve HR challenges.
This section covers one competency in 12 lessons:
• Lesson 1 explores the history, purpose, and business value related to HR analytics.
• Lesson 2 examines the four main types of data analysis in the context of HR.
• Lesson 3 describes how people analytics strategy works best when it aligns with the overall
corporate strategy.
• Lesson 4 reviews various data analytical models relevant to HR, as well as more advanced
stakeholder management concepts.
• Lesson 5 discusses the main HR data sources, as well as potential challenges, that may surface
within the realm of people analytics and HR processes.
• Lesson 6 describes the ways that turnover metrics can be used to position HR to operate more
strategically.
• Lesson 7 focuses on the key learning and development metrics and the role they play in
strategic HR decision-making.
• Lesson 8 examines the role of people analytics in the context of strategic resourcing and
workforce planning.
• Lesson 9 reviews key HR metrics specifically in the area of talent acquisition and recruiting.
• Lesson 10 explores how people analytics can enable the promotion of diversity, equity, and
inclusion (DEI) in the areas of hiring and retention.
, lOMoAR cPSD| 67691079
• Lesson 11 delves deeper into how HR analytics can effectively evaluate an organization's
compensation and benefits packages.
• Lesson 12 examines the relationship between people analytics as an enabler of career mobility.
Build Employability Skills and Competence
Leveraging data analytics to foster a data-driven, proactive, and strategic HR function is an important
skill set that employers strongly desire. Monitoring organizational metrics on employee turnover and
engagement provides vital insights that can help organizations create a more engaging and therefore
more productive workforce. Analyzing basic company financial performance is crucial for aligning HR
decisions in a way that strategically supports the organization's objectives and facilitates the return on
investment (ROI) calculation of HR initiatives. Being well-versed in data analytics, combined with a
strong ability to present findings in a compelling way to stakeholders, drives more informed decision-
making and better positions the organization for success.
You will acquire the following skills in this course:
• Monitor the organization's metrics on employee attitudes, turnover, retention, and other
information about employee engagement and retention.
• Analyze basic company financial and operational performance reports to influence business
decisions.
• Present findings from a data analysis to appropriate stakeholders in an efficient and consumable
way for stakeholder groups.
• Identify new sources of data or new methods of data collection to inform and evaluate human
resource (HR) initiatives.
• Implement technology solutions that support or facilitate delivery of effective human resource
(HR) services and storage of critical employee data.
In this section, you can demonstrate these skills by passing a final assessment that measures whether
you have mastered this competency:
• Analyze quantitative and qualitative data within human resource metrics.
Prepare for the Assessment
To prepare for the competency objective assessment, ask yourself these questions:
• Can I describe the methods and goals of analyzing human resource metrics?
• Can I describe sources of data, data technology solutions, and data management strategies?
• Can I apply human resource data analytics models that align to business objectives?
, lOMoAR cPSD| 67691079
• Can I analyze turnover and learning and development metrics to recommend business
decisions?
• Can I analyze resourcing and recruitment metrics to recommend hiring and outsourcing
strategies?
• Can I determine the effects of compensation, benefits, and career planning initiatives on
employee attraction and retention using data analytics strategies?
Lesson Introduction
Consider this scenario: Endothon Company is a multinational software development organization that
currently faces challenges with employee turnover, particularly among mid-level managers. You are the
only member of the HR team that has an interest and working knowledge of HR analytics, and your
boss asks you to explore whether people analytics could be a helpful resource in addressing Endothon's
high attrition rates. She asks you to prepare a brief presentation to share with the rest of the HR team
to get them informed on people analytics and how you believe it will help the organization.
Lesson 1 explores the history, purpose, and business value related to HR analytics. Learning Objective
Consider the following learning objective as you move through the lesson:
Describe the purpose and value of People Analytics.
People Analytics
Essential Question
What is the brief history of people analytics and how has it emerged in the HR landscape?
Overview
People analytics is a relatively new subset of HR offerings. Despite its brief history, people analytics has
already proven to drive significant organizational outcomes, which has captured the attention of HR
professionals across the globe. This lesson provides an overview of people analytics and positions the
business case for this HR offering.
Introduction to People Analytics
Essential Reading
Read pages 3–7 ("Introduction" to the end of "What Is People Analytics") in Excellence in
People Analytics.
, lOMoAR cPSD| 67691079
Introduction
People analytics is not about HR. People analytics is about the business. It is about delivering commercial
value, value to employees and the workforce, and value to managers and executives so they can make
people-related deci- sions based on facts. At its best, it delivers impact to the board of directors, investors
and broader society too.
Delivering people analytics requires solid foundations, intelligent use of resources and a passion for
business value. Sequential maturity models are no longer valid – any business can use people analytics
to immediately de- liver value if they focus on a number of dimensions in parallel. People analytics as a
discipline is expanding in importance in HR and across the business world, generally. There are more
people with analytical skills in HR than ever before, and the depth of expertise is growing annually
according to LinkedIn (2020). Senior leaders recognize that a datadriven approach to their people
function is now more important than ever. Human resources leaders who invest in people analytics are
finding new ways to help their companies compete in the marketplace.
The following chapter captures these messages in detail and makes a case for business leaders to invest
in people analytics.
The business value of people analytics
People analytics contributes hundreds of millions of dollars to the top and bottom lines of
organizations.
At IBM, former CEO Ginni Rometty stated that the company saved ‘nearly $300 million in retention cost
in its predictive attrition program’ (Rosenbaum, 2019). Using people analytics, it identified those
people most at risk of leaving and prescribed actions in advance to help managers make the right
decisions.
Google saved approximately $400 million by reducing new hires’ on- boarding time from nine months
to six months (McAleer, 2018). It created email nudges to help new hires succeed in their roles by
regularly highlighting the behaviors of top performers (Bock, 2019).
It’s not just technology companies that are benefitting from people analytics; organizations of all kinds
are reaping the financial reward of this work. For example, shoe retailer Clarks found that a single
percentage point in employee engagement is worth an additional 0.4 per cent of improved business
performance (Levenson and Pillans, 2017). Put in the context of Clarks’ 2019 Annual Report (C&J Clark
Limited, 2019), this calculates as almost £60 million per percentage point of employee engagement.
And the opportunity is much greater.
In a 2019 study, Accenture concluded that US $3.1 trillion of untapped future revenue growth lay in
people data – specifically, the responsible use of that data combined with the employee trust garnered
– for the 6,000 largest publicly listed global companies in its research sample (Shook, Knickrehm and
Introduction
People analytics started with an initial burgeoning curiosity about human resources (HR) data and how
those data can be used to glean more meaningful, actionable insights. Over the past couple decades,
HR departments in organizations across the globe have aimed to position themselves to be more
strategic, rather than just administrative support, and people analytics is an effective way to accomplish
that.
Despite people analytics being a relatively new field in the realm of HR, over time it has evolved from
simple data collection to more sophisticated statistical modeling and forecasting techniques. The
transformation of people analytics and the powerful contributions it has made to the field of HR have
significantly shifted HR from a cost center to a business growth engine.
This section, Human Resource Metrics, explores the power of people analytics and applies data
analytics principles to key functions of HR, including recruiting and talent acquisition, learning and
development, talent management, and total rewards (TR). In this section, you will be introduced to the
concepts in each lesson through a scenario about Endothon Company and how it can use people
analytics to help solve HR challenges.
This section covers one competency in 12 lessons:
• Lesson 1 explores the history, purpose, and business value related to HR analytics.
• Lesson 2 examines the four main types of data analysis in the context of HR.
• Lesson 3 describes how people analytics strategy works best when it aligns with the overall
corporate strategy.
• Lesson 4 reviews various data analytical models relevant to HR, as well as more advanced
stakeholder management concepts.
• Lesson 5 discusses the main HR data sources, as well as potential challenges, that may surface
within the realm of people analytics and HR processes.
• Lesson 6 describes the ways that turnover metrics can be used to position HR to operate more
strategically.
• Lesson 7 focuses on the key learning and development metrics and the role they play in
strategic HR decision-making.
• Lesson 8 examines the role of people analytics in the context of strategic resourcing and
workforce planning.
• Lesson 9 reviews key HR metrics specifically in the area of talent acquisition and recruiting.
• Lesson 10 explores how people analytics can enable the promotion of diversity, equity, and
inclusion (DEI) in the areas of hiring and retention.
, lOMoAR cPSD| 67691079
• Lesson 11 delves deeper into how HR analytics can effectively evaluate an organization's
compensation and benefits packages.
• Lesson 12 examines the relationship between people analytics as an enabler of career mobility.
Build Employability Skills and Competence
Leveraging data analytics to foster a data-driven, proactive, and strategic HR function is an important
skill set that employers strongly desire. Monitoring organizational metrics on employee turnover and
engagement provides vital insights that can help organizations create a more engaging and therefore
more productive workforce. Analyzing basic company financial performance is crucial for aligning HR
decisions in a way that strategically supports the organization's objectives and facilitates the return on
investment (ROI) calculation of HR initiatives. Being well-versed in data analytics, combined with a
strong ability to present findings in a compelling way to stakeholders, drives more informed decision-
making and better positions the organization for success.
You will acquire the following skills in this course:
• Monitor the organization's metrics on employee attitudes, turnover, retention, and other
information about employee engagement and retention.
• Analyze basic company financial and operational performance reports to influence business
decisions.
• Present findings from a data analysis to appropriate stakeholders in an efficient and consumable
way for stakeholder groups.
• Identify new sources of data or new methods of data collection to inform and evaluate human
resource (HR) initiatives.
• Implement technology solutions that support or facilitate delivery of effective human resource
(HR) services and storage of critical employee data.
In this section, you can demonstrate these skills by passing a final assessment that measures whether
you have mastered this competency:
• Analyze quantitative and qualitative data within human resource metrics.
Prepare for the Assessment
To prepare for the competency objective assessment, ask yourself these questions:
• Can I describe the methods and goals of analyzing human resource metrics?
• Can I describe sources of data, data technology solutions, and data management strategies?
• Can I apply human resource data analytics models that align to business objectives?
, lOMoAR cPSD| 67691079
• Can I analyze turnover and learning and development metrics to recommend business
decisions?
• Can I analyze resourcing and recruitment metrics to recommend hiring and outsourcing
strategies?
• Can I determine the effects of compensation, benefits, and career planning initiatives on
employee attraction and retention using data analytics strategies?
Lesson Introduction
Consider this scenario: Endothon Company is a multinational software development organization that
currently faces challenges with employee turnover, particularly among mid-level managers. You are the
only member of the HR team that has an interest and working knowledge of HR analytics, and your
boss asks you to explore whether people analytics could be a helpful resource in addressing Endothon's
high attrition rates. She asks you to prepare a brief presentation to share with the rest of the HR team
to get them informed on people analytics and how you believe it will help the organization.
Lesson 1 explores the history, purpose, and business value related to HR analytics. Learning Objective
Consider the following learning objective as you move through the lesson:
Describe the purpose and value of People Analytics.
People Analytics
Essential Question
What is the brief history of people analytics and how has it emerged in the HR landscape?
Overview
People analytics is a relatively new subset of HR offerings. Despite its brief history, people analytics has
already proven to drive significant organizational outcomes, which has captured the attention of HR
professionals across the globe. This lesson provides an overview of people analytics and positions the
business case for this HR offering.
Introduction to People Analytics
Essential Reading
Read pages 3–7 ("Introduction" to the end of "What Is People Analytics") in Excellence in
People Analytics.
, lOMoAR cPSD| 67691079
Introduction
People analytics is not about HR. People analytics is about the business. It is about delivering commercial
value, value to employees and the workforce, and value to managers and executives so they can make
people-related deci- sions based on facts. At its best, it delivers impact to the board of directors, investors
and broader society too.
Delivering people analytics requires solid foundations, intelligent use of resources and a passion for
business value. Sequential maturity models are no longer valid – any business can use people analytics
to immediately de- liver value if they focus on a number of dimensions in parallel. People analytics as a
discipline is expanding in importance in HR and across the business world, generally. There are more
people with analytical skills in HR than ever before, and the depth of expertise is growing annually
according to LinkedIn (2020). Senior leaders recognize that a datadriven approach to their people
function is now more important than ever. Human resources leaders who invest in people analytics are
finding new ways to help their companies compete in the marketplace.
The following chapter captures these messages in detail and makes a case for business leaders to invest
in people analytics.
The business value of people analytics
People analytics contributes hundreds of millions of dollars to the top and bottom lines of
organizations.
At IBM, former CEO Ginni Rometty stated that the company saved ‘nearly $300 million in retention cost
in its predictive attrition program’ (Rosenbaum, 2019). Using people analytics, it identified those
people most at risk of leaving and prescribed actions in advance to help managers make the right
decisions.
Google saved approximately $400 million by reducing new hires’ on- boarding time from nine months
to six months (McAleer, 2018). It created email nudges to help new hires succeed in their roles by
regularly highlighting the behaviors of top performers (Bock, 2019).
It’s not just technology companies that are benefitting from people analytics; organizations of all kinds
are reaping the financial reward of this work. For example, shoe retailer Clarks found that a single
percentage point in employee engagement is worth an additional 0.4 per cent of improved business
performance (Levenson and Pillans, 2017). Put in the context of Clarks’ 2019 Annual Report (C&J Clark
Limited, 2019), this calculates as almost £60 million per percentage point of employee engagement.
And the opportunity is much greater.
In a 2019 study, Accenture concluded that US $3.1 trillion of untapped future revenue growth lay in
people data – specifically, the responsible use of that data combined with the employee trust garnered
– for the 6,000 largest publicly listed global companies in its research sample (Shook, Knickrehm and
