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Speaker 1: Hi and welcome back. In this byte, we answer two of the most frequently raised questions in the field of HR. What is HR Analytics and how does it differ from People Analytics? Let's dive in. HR Analytics, People Analytics, Workforce Analytics and Talent Analytics are terms that have been used somewhat interchangeably to describe the same phenomenon, using people data to make better business decisions. Specifically, HR Analytics enables HR professionals to make data-driven decisions to attract, manage and retain employees, which improves ROI. It helps leaders make better business decisions, create better work environments and maximize employee productivity. In a nutshell, when used effectively, it has a major impact on the bottom line. The term Talent Analytics has a slightly more exclusive connotation as it focuses on talent and is often used in academia, and Workforce Analytics is more often used by software providers, helping with workforce planning. What about HR Analytics and People Analytics? People Analytics and HR Analytics both refer to the statistical analysis of people data. Of these two terms, HR Analytics is globally the most popular according to ARES and ranks first in terms of Google searches, while People Analytics is placed second. However, the term People Analytics is becoming increasingly popular and seems to be catching up. This is happening for a few reasons. First, HR Analytics is becoming overused. Everything related to HR data is now labeled HR Analytics. In the last few years, HR Analytics has become a real buzzword. Everything related to HR data is now labeled HR Analytics. However, People Analytics is starting to have the same problem these days. Second, the term HR Analytics is too narrow. What's in the name? The term HR Analytics has a big disadvantage because it implies to be exclusive to human resources. The reality is, however, that proper analytics goes well beyond HR, as it ideally also includes financial and other data. In addition, the HR department often lacks the skills to do analytics, which is why the analytics team also includes people with experience in IT, finance, and data analytics. Last but not least, it's all about people. Whether we are predicting employee churn, looking at performance, calculating an ROI, or engaging in long-term workforce planning, we are all studying and analyzing people. In other words, while the name HR Analytics implies exclusivity for HR, People Analytics includes other departments that are involved in how people are managed as well. HR Analytics is all about people, hence the preference for People Analytics. The HR department has been focusing on people matters that go beyond human resources for decades. In addition, managing people has always been a shared responsibility between the business and HR. Debating the difference between People Analytics and HR Analytics, therefore, seems to be a bit of a semantical discussion. What is important to focus on, however, is the value that analytics adds to the overall business performance by improving the decision making processes. And that's a wrap. In this byte, you've learned what HR Analytics is and what the difference between HR Analytics and People Analytics is. Stay tuned for more and if you liked this video, remember to like and share it. Stay up to date with our learning bytes by subscribing to our channel and I'll see you soon in our next learning byte.
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