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Talent Analytics vs People Analytics: What You Need to Know and Why They Both Matter

Jul 29, 2021| Reading time: 10min

BY Kerrel Brown

Senior Marketing Manager

Out of all the HR metrics companies have adopted, talent analytics remains to be a stand-out performer. Otherwise known as recruitment analytics, talent analytics have grown in popularity as companies continue to prioritize their most valuable asset—their people.

While the importance of finding and hiring the right fit is undeniable, retaining those candidates for the long-haul is vital, too. To do so, companies need rich people analytics that encompass the entire employee lifecycle—from onboarding, and beyond. This rich, human data can be used in tandem with talent analytics to elevate recruitment strategies and ensure employee tenure that fosters long-term success.

ChartHop reports - people analytics

What Are Talent Analytics?

Traditionally, talent analytics refers to data and analysis around the talent acquisition process. Talent analytics are typically used by HR leaders and recruitment teams to develop key metrics, like time to fill, source of hire, and cost per hire. While they can certainly lead to powerful insights, recruitment analytics typically stop at the onboarding phase, skipping the remaining parts of the employee lifecycle.

Instead, people analytics, which are sometimes known as HR analytics, encapsulate people-related data within the entire employee lifecycle, from recruitment through separation.

These insights surpass basic demographics, job titles, and org structure—people analytics are comprehensive enough to look at the ins-and-outs of the business and provide key cultural  indicators around engagement, retention, performance, and development.

While the two types of metrics serve different functions, they complement each other. Similar to business analytics, talent analytics shouldn’t exist in a vacuum. Instead, the two should be used simultaneously to fuel organizational alignment, and ultimately, recruit and retain better candidates.

Three Ways To Use People Analytics and Talent Analytics Together

1. Fill talent gaps

For organizations to scale, leaders need a holistic understanding of the current state of their business compared to their ideal future state. These talent gaps—particularly those surrounding tactical and cognitive skills—need to be filled to ensure overall success.

On their own, recruitment analytics can provide a surface view of talent gaps across the organization. Depending on the platform, recruitment analytics can show what jobs are open, what jobs have been filled, candidacy demographics, and more.

However, people analytics via a platform like ChartHop allow leaders to dive deep into talent gaps using dynamic visualizations, robust reports, and easy-to-read graphs. This goes beyond seeing what roles are missing on certain teams—With ChartHop, leaders are empowered to conduct skills gap analyses as they’re building out potential teams in scenarios, or succession planning.

From a DEI perspective, a platform like ChartHop also provides a tool for leaders to examine diversity and inclusivity within every level of the business. ChartHop’s reports, charts, and org structures visualize demographics easily, to ensure leaders are providing equitable opportunities for all. If there is glaring homogeneity or holes, such insights can be used to fuel future recruitment efforts, so talent teams can deliberately diversify their talent acquisition strategies down the pike.

Building a comprehensive DEI strategy starts with understanding your people, ChartHop can help.

Insight into your current workforce helps inform needs for the future. Together, people analytics and talent analytics can bridge talent gaps and diversify the workforce now, and down the road.

2. Define headcount plans

In a similar vein, a people analytics platform helps leaders create headcount plans more strategically.

First, ChartHop centralizes data from across the HR tech stack, including the HRIS and ATS. When these insights are integrated and visualized, teams have an up-to-date org chart that goes beyond basic reporting structure—ChartHop incorporates ultra rich professional information, so leaders can better understand current budget, goal tracking, and headcount needs.

This foundation lays the groundwork for headcount growth and recruitment strategies down the line. With an up-to-date bird’s-eye view, decision makers can plan with context, understanding budgetary and structural implications for headcount changes as they go along.

ChartHop scenarios

Leaders can also lean on past headcount plans and historical data, which is stored directly in ChartHop’s system. Reflecting back on how the organization has evolved in real time can help inform new hiring plans. Before headcount plans are finalized, decision makers can use the scenario planning tool to see how hiring additions and structural changes will affect the organization. From closing and opening new roles, to promotions and team merges, leaders can see exactly what needs to happen from a recruitment perspective to get the company to where it needs to go.

All of this gives recruiters a clear path of what they need to do to deliver results. They, too, can return to past talent analytics and headcount plans to develop new strategies.

For example, maybe the company needs to hire five engineers and three project managers in the next six months. Past talent analytics indicate that it takes 3x longer to get engineers hired than any other role in the company. With these insights, recruiting teams might begin building that pipeline earlier, looking back at past lucrative engineering sources of hire to increase their chances of finding the perfect candidate, faster.

Headcount planning requires a symbiotic relationship between recruitment teams and business leaders. In turn, talent analytics and people analytics should be used together to inspire seamless collaboration and fill headcount needs strategically.

3. Create retention strategies

People are a company’s greatest asset. While it’s important to recruit them, it’s arguably more important to keep them.

In conjunction with talent analytics, a people analytics platform like ChartHop helps leaders maximize retention strategies across the organization. With ChartHop, leaders can dive deep into the data surrounding their past and current hires, allowing them to slice-and-dice insights based on demographics, performance, and engagement levels. That way, if there are issues with turnover, people analytics can help look into the “why.”

Such levels of specificity are particularly helpful at the team and department-levels. Knowing the intricacies of a business can be daunting, especially as they grow and scale. But with people analytics via ChartHop, leaders can keep a finger on the pulse on risky cultural trends that might be flying under the radar.

For example, perhaps turnover across a company is low. However, people analytics indicate that the few people who have left have all been from the marketing department. Talent analytics also indicate that there have been more unfilled marketing roles than any other type of role across the company in the past year.

With this data, decision makers can look deeper into what might be causing people to exit an organization: Is it a leadership or cultural issue on the marketing team that needs to be addressed? Do additional people analytics indicate that something is awry, like performance tracking or eNPS ratings, across the team? Or, is the problem recruitment focused? Are the candidates that recruiters are sourcing actually the best people for the job?

Whatever the case may be, using people analytics and talent analytics together can help leaders explore trends to get to the bottom of issues—and prevent them from occurring in the future. With rich data and insights, teams can develop better retention strategies that recruit the right people and keep them engaged over their tenure.

Recruit and Retain Talent for Long-Term Success

Recruitment is a massive part of a long-term strategy, but so is retention. People analytics elevate talent analytics, so teams have a better understanding of their organization now to recruit successfully.

Finding the perfect candidate doesn’t happen overnight, nor can it happen without knowing exactly what an organization needs. People analytics help identify and fill talent gaps, define headcount plans, and ensure retention, to take one step closer to hiring that perfect candidate for the long-haul.

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