People analytics software: a guide to smarter decisions

The problem with traditional HR reporting

For years, HR teams have been buried under spreadsheets and disconnected systems. You might know your turnover rate or your total headcount, but do you know why people are leaving? Or which specific behaviours are driving your top performers to succeed? Most traditional reporting looks backward, telling you what happened last month rather than helping you predict what might happen next week.

This lack of clarity creates a significant gap between HR initiatives and business outcomes. Without a unified view of your people data, it’s nearly impossible to prove the ROI of your culture programmes or identify hidden risks within your team structure. This is where modern people analytics software steps in, bridging the gap between human behaviour and business performance.

At Compono, we believe that data should empower leaders, not overwhelm them. By centralising information from across the employee lifecycle – from recruitment to development – we help you see the full picture of your organisation’s health. It’s about moving beyond basic metrics to find the 'people intelligence' that truly matters.

1. Moving from descriptive to predictive insights

Most businesses start their data journey with descriptive analytics. This is the 'what happened' phase. While it’s useful to know your average time-to-hire, it doesn't solve the underlying problem of quality. Predictive analytics, however, allows you to anticipate future trends based on historical patterns and psychological data.

Imagine being able to identify which departments are at the highest risk of burnout before it impacts your bottom line. People analytics software can analyse engagement scores, work patterns, and even work personality data to flag potential issues. This proactive approach allows you to intervene early, saving both your culture and your budget.

When you understand the natural tendencies of your staff – such as whether you have a high concentration of The Auditor types who value precision or The Pioneer types who crave innovation – you can tailor your management style to suit. This level of insight is a core part of the Compono People Intelligence Platform, which turns complex psychological data into simple, actionable leadership strategies.

2. Enhancing team performance through cognitive diversity

A high-performing team isn't just a collection of talented individuals; it’s a balanced ecosystem. Many leaders make the mistake of hiring 'culture fits' who are essentially clones of themselves. People analytics software helps you visualise the cognitive diversity of your teams, ensuring you have the right mix of perspectives to solve complex problems.

For instance, a team full of The Campaigner types will have incredible energy and vision, but they might struggle with the follow-through. By introducing The Coordinator, you provide the structure needed to turn those big ideas into reality. Analytics tools allow you to map these personalities across your entire organisation.

By using data to identify these gaps, you can make smarter hiring and internal mobility decisions. Instead of just filling a vacancy, you are strategically adding a specific 'work personality' that the team is currently missing. This methodical approach to team design ensures that every new hire adds unique value rather than just more of the same.

3. Quantifying culture and engagement

Culture is often described as 'the way we do things around here', but that’s hard to measure on a balance sheet. Modern people analytics software allows you to quantify the intangible. By tracking engagement metrics against performance data, you can see exactly how your culture impacts your commercial success.

We often see that teams with high levels of The Helper types report higher satisfaction levels, but they may need support in driving aggressive growth. Balancing these needs requires a delicate touch and real-time data. You can't wait for an annual engagement survey to find out your team is unhappy – you need a continuous pulse on the organisation.

Tools like Compono Engage allow leaders to move beyond simple surveys. By mapping engagement data against our evidence-based performance models, we show you exactly which levers to pull to improve morale and productivity simultaneously. It’s about making culture a measurable part of your business strategy.

4. Reducing bias in recruitment and promotions

Unconscious bias is one of the biggest hurdles to building a truly diverse and effective workforce. We all have natural leanings – for example, an The Evaluator might naturally favour candidates who present data-heavy resumes. People analytics software helps remove this subjectivity by focusing on objective benchmarks and verified skills.

When you use data to define what 'good' looks like for a specific role, you create a fairer playing field. Analytics can show you which traits actually correlate with success in your specific environment, rather than relying on outdated job descriptions or 'gut feelings' during an interview.

This data-driven approach extends to internal promotions too. By looking at a person’s The Advisor tendencies or their ability to mentor others, you can identify future leaders who might otherwise be overlooked. It ensures that the right people move into the right roles for the right reasons.

Key takeaways for leaders

• Stop guessing: Use data to move from reactive 'fixes' to proactive, predictive people strategies.
• Balance your teams: Use work personality data to ensure your teams have the cognitive diversity required for high performance.
• Measure what matters: Connect culture and engagement metrics directly to business outcomes to prove HR's strategic value.
• Remove bias: Rely on objective analytics to make fairer, more effective hiring and promotion decisions.
• Keep it simple: Choose software that translates complex data into clear actions for your managers.

Where to from here?

Building a data-driven culture doesn't happen overnight, but the right tools make the journey much smoother. If you’re ready to see how people analytics can transform your organisation, we’re here to help.

• Explore: Compono Platform
• Talk to an expert: Book in a 15-minute chat to get a walkthrough of Compono.

Frequently asked questions

What is people analytics software?

People analytics software is a tool that collects and analyses workforce data to help leaders make better decisions about hiring, retention, and performance. It combines HR data with psychological insights to provide a complete picture of organisational health.

How does people analytics improve retention?

By identifying patterns and 'red flags' – such as declining engagement or personality clashes – people analytics allows leaders to intervene before an employee decides to leave. It helps you understand the 'why' behind turnover.

Can small businesses use people analytics?

Absolutely. While large corporations were the early adopters, modern platforms are designed for mid-market businesses. Any team of 60 or more people will see significant benefits from centralising their people data and insights.

Does people analytics software replace HR managers?

No, it empowers them. The software handles the data crunching and pattern recognition, freeing up HR professionals to focus on the human side of the business – building relationships, mentoring, and strategic planning.

Is people data secure in these platforms?

Security is a top priority for people analytics software. Reputable platforms use enterprise-grade encryption and comply with global data protection regulations to ensure your sensitive workforce information remains private and protected.