Definition
The practice of collecting, analysing, and interpreting workforce data to improve HR decision-making, optimise talent strategies, and demonstrate the business impact of people initiatives.
UK Context
UK people analytics practice must comply with the UK GDPR and Data Protection Act 2018. Organisations must have a lawful basis for processing employee data, conduct Data Protection Impact Assessments for high-risk processing, and ensure transparency about how data is used. The Information Commissioner's Office provides guidance on employment practices and data protection that directly applies to people analytics.
Best Practices
- Start with business questions rather than data and focus analytics on problems that matter to the organisation
- Ensure data quality and consistency across HR systems before attempting advanced analytics
- Conduct a Data Protection Impact Assessment before implementing any new analytics initiative
- Present findings in clear, visual formats that non-technical stakeholders can understand and act upon
- Build analytics capability within the HR team through training and development
Frequently Asked Questions
What data is needed for people analytics?
Core data includes employee demographics, tenure, turnover, absence, performance ratings, pay, recruitment metrics, and engagement survey results. More advanced analytics may incorporate learning data, internal mobility, organisational network analysis, and external labour market data. An HRIS system provides the foundation for data collection.
Do you need a data scientist for people analytics?
Not necessarily. Modern HRIS platforms provide dashboards and reporting tools that enable HR professionals to conduct descriptive and diagnostic analytics without specialist skills. For more advanced predictive and prescriptive analytics, data science expertise is beneficial, but many organisations start with basic analytics and build capability over time.
How does GDPR affect people analytics in the UK?
UK GDPR requires a lawful basis for processing personal data, transparency about how data is used, data minimisation, and the right of employees to access their data. Automated decision-making that significantly affects individuals requires additional safeguards. Organisations should conduct a DPIA before launching analytics programmes.