People Analytics Is Not Excel: How HR Can Drive Real Business Decisions

For decades, HR has been perceived as a people-centric function driven by intuition, experience, and empathy. While these qualities remain essential, the modern workplace demands something more—data-backed decision-making. This is where People Analytics comes in.

But let’s be clear from the start:
People Analytics is not Excel reporting.

The Excel Trap in HR

Many organizations believe they are doing people analytics because they:

• Track attrition in spreadsheets
• Maintain headcount dashboards
• Prepare monthly HR MIS reports

While these activities are important, they are descriptive, not analytical. Excel tells us what happened—but rarely explains why it happened or what should be done next.

This is the core mistake HR teams make: confusing data collection with insight generation.

What People Analytics Really Means

True people analytics is about connecting people data with business outcomes.

It answers questions such as:

• Why are high performers leaving within 18 months?
• Which hiring sources deliver the best long-term performers?
• How does manager behavior impact team productivity and engagement?
• What skills gaps will hurt the business 12 months from now?

People analytics moves HR from reporting numbers to shaping strategy.

From HR Metrics to Business Intelligence

Traditional HR metrics focus on:

• Attrition rate
• Time to hire
• Cost per hire

People analytics goes a step further by linking these metrics to:

• Revenue per employee
• Customer satisfaction
• Project delivery timelines
• Profitability and growth

When HR speaks this language, it earns credibility at the leadership table.

Closing the HR Information Gap (IGAP)

One of the biggest challenges in HR today is the Information Gap (IGAP)—the gap between what leaders need to know and what HR reports provide.

For example:

• Leaders want to know who might resign next quarter, but HR reports last quarter’s attrition.
• Leaders want bench strength visibility, but HR shares static org charts.

People analytics helps HR predict, not just report.

Technology Is an Enabler, Not the Solution

Advanced tools like HRMS platforms, BI dashboards, and AI-driven analytics are powerful—but tools alone don’t create insight.

The real value lies in:

• Asking the right business questions
• Interpreting data with context
• Translating insights into action

Without business understanding, even the best dashboards become digital noise. 

How HR Can Start Driving Real Business Decisions

Here’s how HR can move beyond Excel:

1. Align analytics with business goals
   Focus on metrics that impact growth, productivity, and profitability.
2. Shift from monthly reports to actionable insights
   Replace static MIS with trend analysis and scenario planning.
3. Collaborate with Finance and Operations
   Integrate people data with financial and operational data.
4. Build analytical capability within HR teams
   Upskill HR professionals in data interpretation and storytelling.
5. Use insights to influence leadership decisions
   Talent strategy should shape business strategy—not follow it.

The New Role of HR

In the future, HR leaders won’t be evaluated by how well they manage policies—but by how effectively they predict talent risks, enable performance, and drive organizational outcomes.

People analytics is the bridge between people strategy and business success.

And that bridge cannot be built in Excel alone.

Final Thought

HR doesn’t need more data.
It needs better questions, deeper insights, and the courage to challenge decisions with facts.

That’s when HR truly becomes a strategic partner.

Dr. Siddhartha Pandey

CEO, HRD India