What is the difference between HR Analytics and People Analytics?

While these terms are often used interchangeably, they represent slightly different approaches within the broader landscape of workforce analytics.

HR Analytics traditionally focuses on operational data and metrics related to HR functions. This includes analysing recruitment processes, turnover rates, employee performance, and compliance. The primary aim is to optimise HR operations and support decision-making regarding workforce management. For example, HR Analytics can help identify patterns in employee turnover, enabling the development of retention strategies.

People Analytics takes a more holistic view, encompassing a broader range of data beyond traditional HR metrics. It integrates information from various sources such as employee engagement surveys, social network analyses, and even external market data. Typically, people analytics would also include people performance data from other internal sources such as ‘time to handle issues’, from a ticketing system or even team sales or performance figures etc. The goal is to understand the entire employee experience and its impact on organisational performance. People Analytics is often leveraged to enhance employee satisfaction, drive productivity, and foster a positive workplace culture.

While HR Analytics provides critical insights into HR processes, People Analytics offers a comprehensive understanding of employee behaviour and its influence on organisational outcomes. As businesses strive to become more data-informed, distinguishing between these two approaches can help in developing targeted strategies that drive both efficiency and employee satisfaction. Widening data sources isn’t without its pitfalls and practitioners need to exercise caution regarding data protection (perhaps obviously), but also with employee acceptance of how their data is being collated and used. The cultural landscape is a major factor in how far analytics can develop to include wider measures and also to what degree it can be accepted as ‘a positive’ tool for the organisation.

Both HR Analytics and People Analytics play important roles in shaping the modern workplace and what is right for one organisation is not necessarily right for another.

What are your thoughts on the differences between HR Analytics and People Analytics? What are your experiences of widening the source of your data? How was it received? and Did it prove problematic?

Please share your experiences and insights, I’d be interested to know how it worked for you.