People analytics, or metrics, is the analysis of people-data used to solve business problems. HR analytics uses data such as payroll and absence management, together with business information, e.g. operational performance data.
These key performance indicators are being used in many organisations to help gain insight into an organisation’s workforce to, for example, improve recruitment and employee retention, get better-engaged employees and/or enable data driven decisions resulting in a more successful organisation.
In a nutshell, metrics drive improvement and help organisations focus on what is important. Metrics should support and reflect strategy within the business and can help the company prioritise on what is important and formulate what success looks like.