People analytics is important for human resources (HR) because it transforms raw workforce data into actionable insights that help organizations make better decisions about hiring, retention and employee development. The essential role of people analytics in an organization is to collect and analyze data for insights into employees’ motivations, performance patterns and engagement levels. Employee attribute data is not the only aspect that counts; relational analytics also conveys insights about the interplay among people.
Graduates of the online Master of Business Administration (MBA) with a specialization in Human Resource Management program at St. Thomas University (STU) gain the data literacy and analytical skills needed to apply these insights across the full employee lifecycle. When companies evaluate employees, teams and their interrelationships, leadership can improve the employee experience while supporting desired business outcomes.
What Insight Does People Analytics Provide?
People analytics provides a macro view of the impact that employees deliver and the conditions under which they can maximize their contributions. It identifies relationships, trends and patterns that enable leaders to make informed business decisions, spot problems and act effectively to improve business operations.
The value of people analytics extends beyond HR silos as well. People analytics capabilities integrated into software applications and leadership methods enable the collection and application of more valuable data. AI-powered tools and Internet of Things (IoT)-enabled devices are accelerating the speed at which organizations can gather, analyze and leverage people analytics data.
Consider the Statistics
As organizations demonstrate the impact of people analytics, more companies recognize its necessity, yet significant room for growth remains. According to research from the Society for Human Resource Management (SHRM), 71% of HR executives whose organizations use people analytics say it is essential to their HR strategy, yet only 29% of HR professionals rate their organization’s overall data quality highly.
The pace of adoption is also accelerating rapidly. SHRM’s 2025 Talent Trends report shows that AI adoption in HR tasks climbed to 43%, up from just 26% in 2024, demonstrating that HR data analytics capabilities are reshaping how HR professionals operate.
How Do Organizations Use People Analytics?
Organizations use people analytics to address key areas of workforce performance, from understanding individual influence to improving outcomes across traditional HR objectives. Each application draws on data to help HR professionals make more informed, evidence-based decisions:
- Understanding individual influence: In most organizations, senior leaders carry less day-to-day influence over employees than colleagues in informal roles do. People analytics helps organizations identify these hidden influencers so leadership can engage them strategically when it matters most.
- Measuring team chemistry: Teams built around complementary skills alone often fall short of their potential. Analytics commonly reveals that factors like interaction frequency among team members and access to outside expertise matter just as much as individual skill sets when it comes to collaboration, creativity and efficiency.
- Understanding key performance indicators (KPIs): Analysts can dive deeper into the metrics of employee performance, such as revenue per employee, quality of hire improvement, performance turnover in key jobs and new hire failure rates. Understanding these complex indicators requires extensive data analysis.
- Improving success in attaining traditional HR objectives: HR departments pursue a variety of goals, including employee retention, quality of hires, professional development, workforce planning and productivity enhancements. When companies link data from each of these areas and others, they can focus on key metrics and calibrate performance to meet specific objectives. Results-focused leaders at every level can apply the insights gained to change the company’s capabilities, culture and training.
Building a Foundation for Data-Driven HR Leadership
Humans and data are the most valuable resources available to organizations, and people analytics makes it possible to understand how those resources interact. Predictive people analytics, in particular, allows HR leaders to move from reacting to workforce problems to anticipating them before they affect business performance.
Graduates of a specialized MBA in HR have an advantage in applying the insight people analytics provides at an organizational level. STU’s MBA curriculum gives students a foundational understanding of business analytics through dedicated coursework, while advanced human resources management courses provide the specialized expertise to lead and thrive in the human resource domain.
Learn more about St. Thomas University’s online MBA with a specialization in Human Resource Management program.
