15 Analytics
Let’s start with the skill that is in the very name of people analytics, analytics.
For some people, the analytics part is the intimidating part. This is especially true for those who don’t have a deep background or education in analytics topics. There’s this misconception that you have to be “good at math” or that learning analytics later in your career is too difficult. Let me tell you right now, neither of those things are true.
I’m actually quite terrible at basic math (please don’t ask me to add numbers together quickly or multiply anything by 8) and I almost failed statistics the first time I attempted to take a class. Yet, I managed to have a very fulfilling career in people analytics and even teach those topics now! For me, none of the numbers or calculations made sense or stuck in my memory until I needed them at work and saw what I could do with them. Once I stopped trying to memorize calculations and focused on learning which types of analytics were good for answering which kinds of questions, things started to ‘click’ in ways they never had before. Think of analytics like a kitchen full of appliances – blenders, mixers, ovens, etc. Knowing the internal mechanics of these appliances isn’t essential, but understanding their functions and how to operate them safely is crucial. You don’t need to know how the oven was built or even how exactly it works. But, if you want to bake a cake, you should at least know that the oven is a better choice than the toaster. And you’ll need to learn things like how to set the right temperature or amount of time for baking. Similarly, analytical approaches allow you to “cook up” insights from data. If you want to have your people analytics cake and eat it too, you don’t need a deep math and statistics background. But you do need knowledge of which “appliances” are available and appropriate for your purposes and an understanding of when and how to use them. Over time, and without even really meaning to, I eventually did learn all those crazy underlying calculations. But that happened only after and only because I understood the outcomes – starting with the goal in mind allowed me to understand the steps in the calculations that were designed to get me there.
So, if you find yourself excited about People Analytics but unsure if you have enough “math” skills in your toolbelt to do it, I’m here to tell you that you can. As long as you are willing to learn and build the skills involved in becoming a data doer.
People Analytics Stories & Advice
Ever tried to learn from an educator who seems like they were born knowing the p-value from the Poisson distribution? You know, those people who might as well be speaking a different language? Yeah, me too.
Most math and stats classes are taught by people who either just “got it” on their first try or people who have known it for so long, that they just aren’t the best at explaining it to us mere mortals. When you come across a learning resource and it just doesn’t make any sense, it’s not you who isn’t “getting it.” It’s more likely that they aren’t doing the best job of explaining it. Move on to a different resource. There are an almost limitless amount of resources to learn analytics these days and each will be designed in a slightly different way. One of them will be better suited to you and the way you learn. Plus, hearing from different people in different ways helps you grasp it more deeply. Don’t worry, the “aha!” moment is out there, where it all starts to click together.
– Heather Whiteman
Analytics
Analytics involves identifying summarizations, patterns, or trends within data. Once relationships or connections have been identified, they can be used to make informed decisions, improve processes, or predict future outcomes. With so many uses, it can be helpful to think of analytics in the categories of descriptive, diagnostic, predictive, and prescriptive analytics – terms that describe the purpose or use of analytics.
- Descriptive analytics describes what happened.
- Diagnostic analytics aims to diagnose why it happened.
- Predictive analytics attempt to predict what might happen.
- And, prescriptive analytics attempt to prescribe the best action to take.
Descriptive analytics tells the story of what happened (e.g., how many employees left the company? how engaged are employees?). Diagnostic analytics delves deeper to understand the “why” behind those trends (e.g., why did employees leave? what aspects are related to employee satisfaction?). Predictive analytics peers into the future to anticipate potential outcomes (e.g., how many employees might leave this year? how might we increase employee satisfaction if we improve a given aspect?). Prescriptive analytics recommends the best course of action based on insights (e.g., attrition may be reduced by up to 10% if you offer a retention bonus of X amount. A targeted engagement program may increase engagement scores by X%).
IMPORTANT:
Analytics ≠ Analysis of Numbers
According to the Oxford Dictionary, to “analyze” is to examine methodically and in detail the constitution or structure of something (especially information), typically for purposes of explanation and interpretation.
Notice that no where in this definition is there a mention of numerical values. Analysis can be performed on any kind of information. For many people when they here analysis, the analysis of quantitative data first comes to mind. Quantitative data is all about numbers and measurements. It allows you to count or quantify things, like the number of employees in a company, their salaries, or their performance scores. But, qualitative data is just as critical and some might argue more so in people analytics where the feelings, experiences, and context in which work happens is so critical. Qualitative data uses words and observations to capture things like employee sentiment, job satisfaction, or reasons for leaving a company. Both quantitative and qualitative data play a crucial role in understanding a situation as they provide different but valuable perspectives.
Descriptive, diagnostic, predictive, and prescriptive analytics questions can be asked and answered with both quantitative and qualitative data. However, the skills and techniques you will use to answer them are quite different for these two very different types of data. Let’s start with the quantitative people analytical skills.
Analytics involves identifying summarizations, patterns, or trends within data.
Descriptive analytics describes what happened.
Diagnostic analytics aims to diagnose why it happened.
Predictive analytics attempt to predict what might happen.
Prescriptive analytics attempt to prescribe the best action to take.