CHAPTER 6 - Data Analytics and People Intelligence

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HR analytics has changed from simple reporting to predictive analytics, making it possible for organizations to use data in making decisions around the world. According to (Bersin ,2019), organizations with mature analytics capabilities are 3.1 times more likely to have better financial performance than organizations that have not matured in analytics. HR analytics can be used in several ways, like predictive turnover models, workforce planning, performance prediction, and diversity analytics (Marler and Boudreau, 2017).

People analytics can raise ethical questions concerning workplace surveillance capitalism. The algorithms used to predict turnover, for example, could create self-fulfilling prophecies about the marginalization of "flight risk" employees (Ajunwa, 2020). The "quantified employee" diminishes a complex behavior and just quantifies it, but the behavioral context is lost (Moore and Robinson, 2016). Compliance with GDPR and different privacy laws adds to this complexity. Additionally, (Kellogg, Valentine and Christin (2020) show that algorithmic management produces a loss of autonomy, trust, and satisfaction. Organizations should conceptualize ethical frameworks and establish employee rights concerning their data.


Enhancing Predictive Talent Management
Data analytics empowers organizations to make a cultural shift from reactive to proactive human resource strategies by applying predictive models that forecast important workforce trends. For example, predictive attrition analysis can help organizations pinpoint those employees at risk of leaving, based on various variables like performance trajectories, engagement survey scores, and load imbalances. This foresight provides HR teams with the opportunity for early intervention through tailored development plans, adjusted workloads, or mentorship. According to MBIT School, with predictive analytics in people intelligence, businesses and other organizations can reduce voluntary turnover and unlock substantial cost savings while building more stable talent pipelines.


Aligning Workforce Insights with Business Outcomes
People intelligence bridges HR data with broader business metrics, linking talent decisions to bottom-line outcomes. Integration of data coming from financial systems, operational units, and HR platforms gives an organization a more holistic view of how workforce behaviors impact productivity, profit, and strategic goals. This richer, contextual analysis enables HR to recommend actions that improve employee experience but also directly support organizational performance. The enriched analytics capability described below empowers HR analysts to provide meaningful business-aligned insights, according to HR Dive.


Behavioral Science & Evidence-Based HR-extended explanation

Behavioral Science is the study of how people think, feel, and behave. When applied to HR, it helps organizations understand why employees act in certain ways-for example, why they feel stressed, disengaged, or motivated.

Evidence-based HR takes this one step further whereby it uses data and behavioral insights, along with scientific evidence, to inform their decisions rather than their gut or assumption. Together, the two approaches transform HR from a traditional administrative function into a strategic, science-driven discipline. The HR decisions become more accurate, fair, and effective because they are based on real evidence rather than guesses.



References


Comments

  1. Kushani SenanayakeNovember 22, 2025 at 7:47 PM

    This section effectively shows how HR analytics has evolved from basic reporting to predictive, evidence-based decision-making, linking workforce insights to strategic business outcomes. I like how it balances the benefits like proactive talent management and cost savings with ethical considerations, highlighting that data-driven HR must also respect employee autonomy, privacy, and context.

    ReplyDelete
    Replies
    1. Nimesh MadhusankaNovember 24, 2025 at 7:09 AM

      Thank you! I’m glad you found this section valuable. Absolutely HR analytics is most effective when it combines strategic insights with ethical responsibility, ensuring decisions benefit both the organization and its employees.

      Delete
  2. Lakshika HerathNovember 23, 2025 at 1:10 AM

    Very insightful! I particularly appreciated your focus on Aligning Workforce Insights with Business Outcomes—this is where HR truly becomes a strategic partner. Integrating data from financial and operational systems provides the holistic view needed to link employee behaviors directly to productivity and profit.

    Your explanation of Behavioral Science & Evidence-Based HR is a great way to frame this shift. It emphasizes that HR is moving from an administrative function to a strategic, science-driven discipline, ensuring decisions are accurate and evidence-based. The Bersin (2019) stat on better financial performance confirms the value of this maturity. Well done!

    ReplyDelete
    Replies
    1. Nimesh MadhusankaNovember 24, 2025 at 7:10 AM

      I’m glad you found the focus on linking workforce insights to business outcomes meaningful. Absolutely — integrating data and applying behavioral science is key for HR to evolve into a strategic, evidence-driven function that drives both employee and organizational success.

      Delete
  3. Gayangi ThennakoonNovember 23, 2025 at 2:32 AM

    Great chapter on how HR is using data analytics to become more strategic. I really like how you explain predictive attrition models – spotting people who might leave before it happens is such a smart move. Your point about ethical risks, like “quantifying” employees and how that can impact autonomy, is very important. The section on linking people data with broader business metrics shows how HR decisions can actually drive results, not just HR metrics. Also, the idea of using behavioural science and evidence-based HR feels like the future of thoughtful, fair people management. ✌

    ReplyDelete
    Replies
    1. Nimesh MadhusankaNovember 24, 2025 at 7:09 AM

      Thank you for taking the time to share your perspective.

      Delete
  4. thamaliNovember 24, 2025 at 3:04 PM

    Great article on data analytics in HRM! Using people intelligence for decision-making is transforming how organizations manage talent. Your explanation of HR analytics benefits is clear and practical. Excellent read

    ReplyDelete
  5. Kelum RajasingheNovember 25, 2025 at 10:13 AM

    Love how this chapter frames HR decisions around data — it’s smart, strategic, and shows the power of people analytics.

    ReplyDelete
  6. Nilakshi NilushikaNovember 26, 2025 at 9:57 AM

    Really insightful post! I love how you highlighted the shift from reactive HR to predictive people intelligence. The discussion on ethics and behavioral science shows a thoughtful approach to balancing data with human considerations.

    ReplyDelete
  7. Nalaka RodrigoNovember 28, 2025 at 3:34 AM

    Well-written post. The extended explanation on behavioral science and evidence-based HR in your article is truly insightful. I found it particularly interesting how you concluded with a recommendation that combining these two approaches can be a stronger strategy. Well-articulated!

    ReplyDelete

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