People analytics for Productivity

Driving business performance through leveraging people analytics

Productivity, whilst at the same time gaining more from less, are critical focuses for business leaders in 2023. Whilst Human Resources professionals and business owners are tasked with  identifying new strategies that will improve their organisation and employee experiences. It’s a crucial tool to also leverage the insights available through data analysis to determine whether the strategies are working and how best to develop more optimised ways of working and outcomes. 

Advanced analytics is transforming the HR landscape

This is where people’s analytics come into their own. But for those who have yet accessed the power of this information and are wondering what people’s analytics are. In short, this is the data collected relating to the human capital and workers’ performance within the organisation.

It helps to think about the growth trajectory of a people analytics team as a stairway with five steps | Source: McKinsey

Leading Management +Consulting firm Mckinsey & Co, evangelise the use of advanced people analytics and the ways in which they can significantly improve the way organisations attract, develop and retain talent. People Analytics help managers to take the guesswork and inconsistencies out of decision making in these areas. Which in turn better supports leaders to unlock the power of the data. With it, reducing implicit bias and improving organisational productivity.

The power behind people analytics

Business leaders can sometimes be mistaken in believing that people analytics are only beneficial in matters connected to human resources management. Whilst the impact on HR led decisions making is unmistakable, research conducted by Deloitte indicated that the impact for business owners of small to medium sized businesses can be far greater. With over 70% of surveyed companies indicating that they use people analytics to improve performance overall for their organisations. 

People analytics solutions: market primer | Source: Deloitte
People analytics solutions: market primer | Source: Deloitte

Research by the Chartered Institute of Personnel and Development (CIPD) further supported the advantages of using people analytics for productivity. With UK focused research conducted on the use of people analytics in organisations indicating that 65% of individuals surveyed within these organisations, believed that having a strong culture of leveraging people analytics improved performance of the organisation overall. 

Yet despite the benefits to be realised for the organisation by effectively accessing people data through data collection and interpretation. Research into people analytics conducted by the HR institute, found that many business leaders reported having found difficulty in collecting the data necessary to inform enhanced decision making. 

The impact that challenges in collecting data can have when evaluating and interpreting data can also impact the potential buy-in of team members and managers to initiatives that can help to propel the organisation forward.  

Yet having access to meaningful data that will demonstrate the benefits of any proposed initiative or change will be key to the ways in which to achieve this are outlined here.

Embed a data driven organisational culture

By harnessing a culture that recognises the value of data-driven decisions, in tandem with establishing a process that facilitates the practice of data collection and evaluation of this data at the various points where new projects commence. Supports the culture shift to embrace the powerful nature of data analysis. 

Therefore, in order to see the benefits that can be achieved by people analytics, it’s important to create, imbed and nurture a data driven culture. 

When an organisation develops an organisational culture where testing and analysing outcomes is the standard, then the work atmosphere is one where innovation, experimentation can thrive. 

In turn, your team colleagues and employees will champion the nature of data analysis and exploitation to  make effective decisions that benefit the organisation.

Clarify your organisational goals

Harnessing data on the people within your organisation is only part of the equation. Having clarity on where you want the data to contribute to outcomes is the leading part of the formula. 

This process of clarification benefits from firstly assessing the things that aren’t working. Where do the issues exist within your business, the blocks and the limitations that are preventing your organisation from reaching the goals and targets already set? By determining where these blocks exist, allows you as a business leader to identify what you need the enhanced people analytics to shine a light on.  

The clarity of direction will also allow you to set targets that directly correlate with solving those issues. Moreover, by doing so, you can connect these targets to be measured within your HR Management software. 

Sage HR software has a number of features that enable integration, in addition to supporting analysis of your people data.

Data Collection

Collecting the data on your people is the next step. Through effective data capture of the information connected to your aims and objectives, you will have access to the answers that indicate current levels of performance and productivity. 

The performance management module of Sage HR is just one feature of the software that enables data collection and easy to use analysis. The actionable performance insights feature helps business owners and HR to make better informed, smarter business decisions leveraging the data outputs. 

Interpreting the Data

With the data collected, the critical step to move the needle forward on enhanced productivity involves assessing and interpreting meaning from the data. 

The data analysis stage is where you dive in to understand the background story of your business. Questions to be asked at this stage include, what levels of engagement are there with the team? How is this connecting to performance? What are the performance metrics? Is there any correlation between these outcomes and training?

Posing these alongside the specific deeper questions relating to the challenges of your business will support your efforts in improving processes, performance and productivity.

Clear Advantages

The connection between people analytics and improved productivity offers a number of clear advantages for your business and performance, with just some of the advantages including: 

💪🏻 Recruitment Improvements 

Recruitment plans for your business can become more tailored, thanks to the data being used to identify current skills gaps in conjunction with growth plans for the organisation. 

At the selection stage of recruitment, people analytics are useful in accelerating the process by providing clear data on which candidate is the most compatible applicant. 

💪🏻 Improve employee retention 

Having data on your people is vital when identifying the whys behind employees leaving or staying for longer periods with the business.  People analytics also indicate the cost to hire, length of time to hire and any gaps in the recruitment to retention process that can be plugged through meaningful retention activities. 

💪🏻 Increase employee engagement levels 

Employee engagement is the driver of retention. There are enormous dependencies on how much your employees are enjoying their role and working for the organisation and how long they stay with the organisation. Having measurable and meaningful insights into how your people are feeling about the business can help you to leverage the analytic outcomes and make adjustments to improve and capitalise on the data accordingly.

Closing Thoughts

Sage HR has a strong established network of existing small to medium business customers who benefit from the simple to use, highly effective modules that take the pain and time consuming nature out of HR Management administration. Yet for those business owners who are not yet onboard with the advantages of Sage HR, we are offering new customers a coffee break. Along with a free demo of the software and an opportunity to ask questions in our interactive Q&A session. Having a live opportunity to see the features and benefits of the software, you will leave the session inspired to take action, along with receiving a £5 coffee voucher for attending. 

Sign up here to join us for a coffee on us and see Sage HR in action. 



Say hello to easy personnel management! 🙂 Sage HR changes how organisations attract, retain, manage and engage their workforce. Designed for SMEs, it improves productivity and connects businesses to their people.

Written By

Jade Taryn Graham

Jade is the founder & CEO of Inspired a people & talent consultancy working with the most innovative early stage companies worldwide. Founder & CCO of Inspired Talent Media Ltd and contributing writer for Sage HR where Jade writes about people, leadership, work/life balance and change.