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HR Glossary

People analytics

HR metrics
What is people analytics?

People analytics is the practice of using workforce data to understand and improve how an organisation hires, engages, develops and retains people, and to make people decisions that can be defended with evidence rather than instinct.

What people analytics actually covers

The raw material is everywhere: recruitment funnel data, engagement and culture surveys, absence and turnover patterns, performance and capability records, assessment results. People analytics is the discipline of connecting them, moving from descriptive (what happened: turnover was 18%) through diagnostic (why: exits cluster in year two under first-time managers) toward predictive (who is at risk next) and prescriptive (which intervention changes the curve).

Start with decisions, not dashboards

The failure mode of most people analytics initiatives is building reporting nobody acts on. The working method runs the other way: name the decisions the organisation keeps getting wrong (who to hire, which teams need help, where capability gaps sit), then assemble only the data those decisions need. One turnover problem properly diagnosed and fixed is worth more than any wall of dashboards, and it buys the credibility for the next question.

The two-risk lens

Most HR systems were built to manage process risk, so their data describes workflow: requisitions, approvals, transactions. The costly failures live in people insight risk: who fits, who is disengaging, whether capability is actually building. Analytics that only measures process tells you how efficiently you are running; analytics that measures fit, engagement and capability tells you whether it is working. Organisations need both, and most only have the first.

Where
Compono fits.

Compono is a talent intelligence platform: an applicant tracking system and an employee engagement platform built on the same people data.

The data you already hold answers more than you are asking it.

Talk to us
Compono
$34M
saved by VicRoads over two years

Common questions

Do we need data scientists to start?

No. The first wins are arithmetic on data you already hold: cohort retention, absence clustering, funnel drop-off, engagement by team. Sophistication can follow the questions.

What about privacy?

Aggregate for insight, protect the individual. Small-cell suppression, clear purpose and transparency with employees about what is measured and why are the baseline for analytics people will trust.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with the official source for your jurisdiction or your own adviser. Last reviewed July 2026.