People analytics is the process of using data to measure, predict, and influence the most business-relevant human capital outcomes such as turnover, engagement, and selection. Although the majority of the HR respondents we surveyed report their senior leaders still use gut feel to make talent decisions (62% agree), 92% say people analytics skills are becoming more important for HR professionals. However, 62% report their HR functions are lacking the people analytics skill sets they need. To address this reality, 58% are developing people analytics capabilities as a strategic priority at their organizations. This study of over 270 organizations illustrates how people analytics capabilities are built.