People Analytics For Dummies

People Analytics

The application of evidence to management decisions about people, which lives at the intersection of statistics, behavioral science, technology systems, and people strategy (the Four S Framework).

Business Outcomes

The ultimate goals of the organization, including financial results (profit, revenue), customer results (loyalty, satisfaction), and operational process results, which are driven by people results.

Employee Journey

A visualization of the major stages and touchpoints an employee experiences, from becoming aware of a job opportunity to their eventual exit from the company. It serves as a framework for organizing measurement and analy

Attraction

The first phase of the employee journey, representing the organization's ability to draw in and acquire the necessary quantity and quality of talent to meet its objectives.

Activation

The state in which an employee has the necessary conditions to be productive and create value. It is the second phase of the employee journey and is a prerequisite for realizing an employee's potential value.

Attrition

The final phase of the employee journey, involving the departure of employees from the company. The goal is to control attrition by retaining high-value employees and managing the exit of others.

Employee Lifetime Value (ELV)

An indicator of the estimated financial value (profit) that an average employee brings to an organization over their entire lifetime of working for the company.

Net Activated Value (NAV)

A composite metric that combines Employee Lifetime Value (ELV) with the percentage of activated employees (Net Activated Percent). It represents a more realistic measure of the value generated by a workforce.

CAMS Framework

A model that defines the four minimum conditions necessary for an employee to be activated: Capability, Alignment, Motivation, and Support.

Capability

The knowledge, skills, and abilities an employee possesses to perform their job effectively. A component of the CAMS framework.

Alignment

The degree to which an employee knows what they are expected to accomplish, how their performance is measured, and how their work contributes to broader goals. A component of the CAMS framework.

Motivation

The general desire or willingness of an employee to perform their work and contribute discretionary effort. A component of the CAMS framework.

Support

The provision of necessary tools, resources, access to information, and cooperation from others that an employee needs to be successful. A component of the CAMS framework.

People Strategy

The deliberate choices a company makes about how to manage its people to gain a sustainable competitive advantage, focusing on differentiation and key jobs.

Data-Driven Decision Making

The practice of making management decisions about people by using data analysis rather than relying on whim, instinct, tradition, or imitation.

Segmentation

The fundamental analytical practice of grouping people who share common characteristics (e.g., job function, tenure, performance) to understand differences and derive insights from data.

Statistical and Scientific Methods

The collection of analytical techniques, including surveys, correlation, regression analysis, and experimental design, used to test hypotheses and make predictions about people at work.

Hiring Quality

A measure of the success of the talent acquisition process, typically assessed by the subsequent on-the-job performance and retention of new hires.

Employee Commitment

A measure of an employee's psychological attachment to the company, which serves as a leading indicator of their likelihood to stay or leave.

Capability

The employee's perception of having the necessary knowledge, skills, and abilities to perform their job effectively and confidently.

• “I have the skills and knowledge I need to excel in my role.”
• “I am confident in my ability to meet the performance expectations of my job.”
• “My job makes good use of my talents.”

The factor score is the mean of its item responses, after reverse-coding the specified item. Higher scores indicate a stronger sense of capability. Internal consistency reliability (e.g., Cronbach's alpha) should be above 0.70.

Alignment

The employee's perceived clarity regarding their role, responsibilities, performance metrics, and how their work contributes to the organization's strategic goals.

• “I have a clear understanding of what is expected of me at work.”
• “I understand how my work directly contributes to the company's success.”
• “The way my performance is measured is fair and transparent.”

The factor score is the mean of its item responses, after reverse-coding the specified item. Higher scores indicate better alignment. Internal consistency reliability should be assessed.

Motivation

The employee's general desire, intrinsic interest, and willingness to exert effort in their work, driven by a sense of purpose and accomplishment.

• “I feel a sense of purpose in my work.”
• “I am enthusiastic about my job.”
• “I am willing to put in extra effort to help my team succeed.”

The factor score is the mean of its item responses, after reverse-coding the specified item. Higher scores indicate greater motivation. Internal consistency reliability should be assessed.

Support

The employee's perception of having the necessary tools, resources, information, and cooperation from others to be successful in their role.

• “I have the tools, technology, and equipment I need to do my job well.”
• “I can easily get the information I need to make effective decisions.”
• “My manager provides the support I need to be successful.”

The factor score is the mean of its item responses, after reverse-coding the specified item. Higher scores indicate a more supportive environment. Internal consistency reliability should be assessed.

Employee Commitment

The employee's psychological attachment to the organization, reflected in their pride, loyalty, and intent to remain with the company.

• “I am proud to tell others I work for this company.”
• “I rarely think about looking for a new job at another company.”
• “I see myself still working at this company in two years' time.”

The factor score is the mean of its item responses. Higher scores indicate stronger commitment and a lower likelihood of voluntary attrition. This factor serves as a leading indicator for the 'Attrition' phase of the employee journey.