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People Analytics: A Data Driven HR Approach to Business Success

Blog: Capgemini CTO Blog

War is 90% Information – Napoleon Bonaparte

We all know and have heard that organizations today face a War for Talent and winning this war requires new ways of finding and retaining talent. The winners in this war will be those who use data as a competitive advantage to locate and attract the right talent. Thus, it is no surprise that globally people analytics has been gaining ground in the last few years. Grand View Research in its June 2017 report estimated that people analytics application solutions and consulting services market is growing @ 16% CAGR per year and it will be USD 2 billion by 2025 globally.

Organizations across the globe are undergoing digital transformation impacting all business functions. HR can’t escape its own transformation. Studies indicate that 98% of data is being stored digitally today. As a result, all business functions have an opportunity to improve growth, performance, and productivity using data and analytics. For example, use of financial analytics or marketing analytics helps an organization to make better decisions related to money or customers. Similarly, use of People Analytics improves quality of people decision making. For example, Credit Suisse found that reducing attrition by 1% results in savings ranging from USD 75 Million to 100 Million per annum (Recruiting Daily, April 2015). A technology company used people analytics to identify employees with high-risk attributes and made compensation decisions to retain them with proven RoI.

The ‘promise’ of people analytics is based on two pillars:

People analytics is an evolving journey with new applications coming up such as deriving insights from analyzing ‘Social” sentiments of employees, improving employee experience, personalized learning and many more.

Co Authored By : Anil Jalali, EVP & CHRO, Capgemini India, and Dr. Kuldeep Singh, Sr Director – HR, Capgemini India.

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