People Analytics Trends for 2024: Part 1

By PrismHR

The rise of big data and analytics for Professional Employer Organizations (PEOs) can be intimidating. PEOs and their small and medium-sized business (SMB) clients often feel they are drowning in a sea of data and terminology. 

Still, the insights SMBs can get from people data should not be swept away with the tide.  

Data is everywhere, but not all HR managers are drawing as much insight from it as they could or should to help them swim with or even against the current should the need arise.  

The problem of too much data and not enough ability to use it for real insights is not surprising. Many HR managers at SMBs simply think they can’t afford the time to take the plunge into data analysis. 

What they don’t realize is that being able to do so would actually free up their time, and with current innovations, you can tell them it’s much easier than they think. People analytics is not a new field as the concept traces its roots back over 100 years, but HR managers are feeling pressure to maximize the value of the data available to them now that technology has advanced to the point where real insights are possible to get quickly and easily. SMBs that don’t capitalize on advancements in reporting and analytics risk being left behind. PEOs understand that innovative HR solutions are key to helping their clients navigate the complex world of HR and compliance and make better business decisions. 

The good news is that powerful new tools are making it easier for SMBs to use data to its full potential, which should be welcome news for them and, of course, the PEOs that market the technology. 

Data Analytics Drives Actionable Insights 

Simple metrics like salary, vacation time and tenure have been around for a while. However, these metrics don’t provide a comprehensive understanding of employee performance and its impact on achieving an SMB’s objectives. 

Power of People Analytics 

Key selling points for data-driven insights include: 

  • Improved hiring through better identification of top sources of talent, evaluation of candidate suitability and reduced time-to-fill for vacant positions.
  • Better employee engagement, satisfaction, morale and retention.
  • Personalized employee development by pinpointing skills gaps and training needs.
  • Performance Management planning that identifies underperforming and high-performing employees and helps create performance improvement plans when necessary.
  • Improved workforce planning that predicts future needs, helps with succession planning and addresses talent shortages.
  • Support for Diversity, Equity and Inclusion (DEI) initiatives through monitoring diversity program feedback and other metrics.
  • Optimized HR budget and resource allocation based on data-driven projects and needs.

To drive real change in today’s business environment, SMBs must be able to derive meaningful insights from data using a wide range of sources. Companies know their business best. Through advanced technology, PEOs can give their SMB clients the ability to slice and aggregate information as they see fit. And it’s all done easily and intuitively. 

But filtering and curating the data isn’t enough. Effective management depends on a company’s ability to make better decisions that help employees thrive while driving productivity, profitability and organizational success. What HR managers and leaders need, above all, are relevant and actionable insights, and that’s where you come in. 

In Part 2, we will explore reporting and analytic tools as well as the benefits of Data Visualization.