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People Analytics: The Path to Transformation

Actualizado: 6 oct 2023

People analytics is based on applying data science techniques to

human resources with the aim of getting to know the people of our

organization better and increasing their degree of satisfaction and


Large organizations are so complex, and their operations so remote

from each other that it is virtually impossible for management to

see some of the vital connections and influences. Current people

analytics techniques include developing algorithms to analyze, and

statistically balance the connections between internal and external

factors, while optimizing processes, delivering services, and measuring


A typical example of how people analytics can intervene is in

analyzing and improving turnover rate. A predictive model can

identify which employees are at risk of leaving the organization,

and even when they will leave, and the reasons why.

Unlike other assets in the company, the value of human capital

grows over time. As each employee gains experience, their talent

and experience increase. The more experience they have in the

company, the greater the loss when they leave.

On average, every employee who leaves an organization costs the

company one or two times their annual salary. Turnover analyses

reveal some unforeseen key differences between employees who

stay and those who leave:

1. Whether they have had a track record of not staying long

with any job or position

2. Their demographic, their job position, or even their commute


3. Whether they are within or near a period that typically has

high turnover (e.g. their first four months or their second or

third year in the company)

What Is People Analytics about?

There are also some signs that can help anticipate employee discouragement

and risk of leaving the company, such as absences,

coming in late, or declining performance ratings.

From this and other data, you can apply an algorithm that classifies all people according to how likely they are to leave the company.

Those who rank higher in the model and are more valuable to the

organization will be the first to receive special attention.

Ref: People Analytics - Data and Text Analytics for Human Resources - Eduardo Valencia. Data Analytics Manager - Analytics to Grow.

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