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ASPECTS OF HR ANALYTICS
 Recruitment analytics
 On-boarding analytics
 Staffing analytics
 Training & learning analytics
 Compliance analytics
 Attrition & retention analytics
 Compensation & benefit analytics
 Promotion & succession planning analytics
 Performance & skill gap analytics
RECRUITMENT ANALYTICS
Recruitment analytics is to improve hiring process.
NEED
 Reduced hiring costs.
 Live analytics
 Improves employee engagement.
 Increase the retention rate.
METRICS USED
 Time to hire
 Time to fill
 Source of hire
 Sourcing channel cost
 Quality of hire
 Cost per hire
 Candidate job satisfaction
 Selection ratio
 Offer acceptance rate
 Open positions vs positions filled ratio
TIME TO HIRE/TIME TO ACCEPT
CANDIDATE IS APPROACHED
CANDIDATE ACCEPTS THE JOB
TIME TO HIRE
EXAMPLE:
If a candidate is approached on 1st jan and the
candidate accepts the job on 5th jan then the time to
hire=4 days
TIME TO FILL
PUBLISHING A JOB OPENING
HIRING THE CANDIDATE
TIME TO FILL
EXAMPLE:
If a job is published on 1st jan and the candidate is
hired on 5th jan then the time to fill =4 days
SOURCE OF HIRE
 Defines the sources used to hire the employees.
 Helps to identify the effectiveness of each recruiting
channels.
 Different recruiting channels are:
Social media
Company’s career page
Sourcing agencies
QUALITY OF HIRE
 High first year performance ratings are indicators of
good hire.
 Low first year performance ratings are indicators of
bad hire.
 It is the input for the success ratio.
SUCCESS RATIO
Number of hired candidates
Success ratio = considered satisfactory
Total number of
candidates hired
SELECTION RATIO
Selection ratio =
Number of hired candidates
Total number of candidates
Also called submittals to hire ratio.
COST PER HIRE
Cost per hire =
Total number of hires
Total recruitment cost
OFFER ACCEPTANCE RATIO
Offer
acceptance =
ratio Number of candidates who
received the offer
Number of candidates who
accepted the job offer
SOURCING CHANNEL COST
Sourcing
channel cost=
Number of successful
applicants per platform
Ad spent per platform
ON-BOARDING ANALYTICS
Can be defined as the technique through which the new
employee acquire knowledge, skills etc to become
effective organizational member.
4 C’S
 Compliance : Teaching employees.
 Clarification : Ensure that the employee understand
his new job.
 Culture : Providing both formal & informal norms.
 Connection : Inter-personal relationships.
METRICS USED
 Yield ratio
 Orientation costs
 New hire survey
 New hire separation
 New hire engagement
 Speed to performance
YIELD RATIO
Yield ratio =
Number of hired candidates
Total number of candidates came
ORIENTATION COST
Average
orientation =
costs per
employee
(Time x pay x number) +
department
Number
Time = Amount of time spent in orientation.
Pay = Average hourly rate per employee.
Number = total number of employees in orientation.
Department = Average HR department cost.
OTHER METRICS
 New hire survey: To generate the feedback data
collected through questionnaire.
 New hire separation: Through resignation or
termination.
 New hire engagement: Engaged employees will help
the organization to grow.
 Speed to performance: Managers should take care with
how they get new employees up to speed.
STAFFING ANALYTICS
Recruitment, selection, development & training of
individuals for specific job functions.
IMPORTANCE
 Big data allows staffing firms to make informed
business decisions and achieve success.
 Historical analytics provide valuable data allowing
staffing firms to learn from past practices
 Real-time analytics demonstrate the effectiveness of
current efforts and identify areas that need
improvement.
 Predictive analytics are helpful in setting long-term
goals and making business decisions regarding
resource allocation.
 Use Google Analytics to improve the interaction
between visitors and your website.
PERFORMANCE ANALYTICS
It is a practice of using data & technology to study how the
employees is performing.
METRICS USED
 Work quality metrics: Quality of the employee
performance.
 Work quantity metrics: Measure the quantity.
 Work efficiency metrics: Consider the resources
needed to produce a certain output.
 Organizational performance metrics
WORK QUALITY METRICS
 360 degree feedback: Employee’s peers, subordinates,
customers and manager are asked to provide feedback
on specific topics.
 180 degree feedback: Only the employee’s direct
colleagues and manager provide feedback.
 Number of errors
 Product defects
 Forced ranking: Way of ranking based on the best to
worst by asking the managers.
WORK QUANTITY METRICS
 Number of sales
 Number of units produced
 Handling time
ORGANIZATION LEVEL METRICS
 Human capital ROI
 Absenteeism rate
 Overtime per employee
 Profit per employee
SKILL GAP ANALYTICS
Skill gap is a difference between skills needed & skills
possessed.
STEPS
Identify skills needed
Collect data
Assess results
Create a training plan
to address identified
skill gaps
COMPENSATION & BENEFIT
ANALYTICS
Data that provides detailed information about compensation
costs at the organization.
METHODS USED
 Market Data Comparison – using your internal payroll
data to compare market averages from external salary
surveys.
 Labor Cost Analysis – merging payroll data such as
base salaries, bonuses, overtime pay, and benefits to
determine overhead costs.
 People count Analysis – providing an accurate picture
of staffing levels and compensation costs to assist with
salary and workforce planning.
 Retention Analysis – looks at employee’s risk of leaving
by reviewing compensation levels and performance
data.
METHODS USED
 High Performer Analysis – profiles high performers by
analyzing performance levels and correlates with
rewards, training, previous work experience and
education to assist with recruitment and retention
efforts.
 Sales Compensation Analysis – calculates
commissions, bonuses, quotas and hours worked to
determine sales per hour.
 Geographic Pay Analysis – review payroll costs by
location to assist with geographic investment and
expansion strategy decisions.
*payroll defines the money paid to employees
TRAINING ANALYTICS
METHOD OF EVALUATION
 Kirkpatrick model
 CIRO model
 Cost-benefit analysis
 ROI in training.
KIRKPATRIK MODEL
 Model used to analyze & evaluate the result of training
& educational programs.
 It contains 4 levels:
Reaction: Measures the reaction of the participants.
Learning: Analyze whether the participant understood
the training.
Behavior: Analyze whether the participants are utilizing
what they learned.
Results: Determines whether the material had a positive
impact on the organization.
CIRO MODEL
 Developed by Warr, Bird & Rackham.
 4 components of evaluation are:
Context evaluation: Identifying & evaluating training
needs
Input evaluation: Analyzing the effectiveness of the
training courses & also analyze the organizational
resources.
Reaction evaluation: Analyze the reaction of the
delegates to the training.
Outcome evaluation: It defines what actually
happened as a result of training.
COST-BENEFIT ANALYSIS
 Helps to analyze the benefits of training.
 It compares the cost of the program & the expected
benefits to the company.
 There are 4 stages for cost-benefit analysis.
Stage 1 : Determining the training cost.
Stage 2 : Identify the benefits like employee retention,
fewer errors etc.
Stage 3 : Benefit will be converted in terms of cost.
Stage 4 : Cost & savings per participant is calculated &
their relation to business performance is assessed.
ROI IN TRAINING
 Monetary benefits obtained by an organization for a
specific time period in return for an investment.
 It is the extent to which benefits of training exceeds
cost.
 Return on Investment= Benefit Calculated X 100
Estimated Cost
MEASURES USED
 Engagement: Looks at how the training being used by
the learners, course completion rates, test scores etc.
 Improved performance: Compare the performance
before & after training.
 Reduced seat time: If the oldest training program was
efficient, then the time for existing training program
will reduce.
 Increased retention: Analyze the retention rate.
LEARNING ANALYTICS
Studies the impact of training on trainees.
IMPORTANCE
 Used as a tool for quality assurance & quality
improvement.
 Used as a tool for increasing retention rates.
 Helps to check the performance of employees while
the training module is taking place.
 Helps to manage the organization more efficiently.
 Increase employee motivation.
PROMOTION ANALYTICS
It is used to determine whether a given employee will be
successful if he is promoted to a higher level position.
BASIS FOR PROMOTION
 On merit basis: Based on employee’s skill, knowledge,
ability, efficiency etc.
 On seniority basis: Based on the duration of service or
experience at the same post.
 On merit-cum-seniority basis: Consider both
employee’s skills & experience.
METRICS USED
 Revenue per employee = Total revenue
Full time equivalent(FTE)
[FTE equivalent to one employee working full time.]
 Profit per FTE = Total profit
FTE
 Overtime per employee = Total hours of overtime
FTE
 Human capital ROI: Value of human capital i.e.,
knowledge, habits etc.
 Absenteeism rate.
SUCCESSION PLANNING ANALYTICS
Predicting who is capable of succeeding an important position
in the organization.
STEPS
Pre-planning
Assessment
One-on-one & group meeting
CEO discussion
Ongoing review
STEPS
 Pre-planning: Done by HR manager to train employees
who have high potential but not able to utilize it.
 Assessment: Managers identify the future leaders of
the organization.
 One-on-One & group meeting: Personal & group
meeting with managers.
 CEO discussion: Regular discussions with business
leaders & CEO.
 Ongoing review: Continue this process.
COMPLIANCE ANALYTICS
Monitoring whether the company is obeying the rules &
regulations outside the organization.
METHODS
 Rules based monitoring: To identify the known frauds
& compliance risks.
 Anomaly detection: Recognize new fraud &
compliance risks.
 Network analysis: To identify potentially illegal
activities inside the organization.
 Text analysis: To sense written documents for analysis.
 Visual analysis: To summarize the results for the
stakeholders.
ATTRITION ANALYTICS
Employees leaving an organization is called attrition.
METRICS USED
Number of employees who left the
 Attrition rate = company during the year
Number of employees employed by
the company during the year
 Existing employee attrition
 Total employee attrition
REASONS FOR EMPLOYEE
ATTRITION
 Bad relationship with the employers.
 Bad relationships with coworkers.
 Less salary.
 Unfair working times.
 The job did not meet expectations.
 Feeling undervalued.
 Lack of proper coaching & feedback.
 Lack of growth opportunities.
 Bad company culture.
HOW TO MINIMISE EMPLOYEE
ATTRITION
 Hire the right people.
 Offer competitive pay & benefits.
 Motivate & praise the employees.
 Allow flexible timings.
 Give opportunities to learn new skills & knowledge.
RETENTION ANALYTICS
Retention refers to how many employees stick around
over a given period of time.
STEPS FOR EMPLOYEE RETENTION
Step 1: Churn prediction: Create models to identify the
employees at risk of leaving.
Step 2: Attrition root cause: Identify the reason for
attrition
Step 3: Resignation segments: Compare how the
resignation rate varies with respect to location, age
groups, function etc.
METRICS USED
Number of employees
 Accession method = recruited during a year X 100
Avg no: of employees
Total separation during
 Separation method = the year X 100
Avg no: of employees
METRICS USED
 Combined method = [(Accession +Separation)/2 ] X 100
Avg no: of employees
 Replacement method = (Accession - Separation) X 100
Avg no: of employees
IMPORTANCE OF EMPLOYEE
RETENTION
 Reduces time & money investment.
 Positive impact on customer service.
 Increases goodwill of the company.
 Facilitates knowledge transfer.
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Hr analytics

  • 1.
  • 2. ASPECTS OF HR ANALYTICS  Recruitment analytics  On-boarding analytics  Staffing analytics  Training & learning analytics  Compliance analytics  Attrition & retention analytics  Compensation & benefit analytics  Promotion & succession planning analytics  Performance & skill gap analytics
  • 3. RECRUITMENT ANALYTICS Recruitment analytics is to improve hiring process.
  • 4. NEED  Reduced hiring costs.  Live analytics  Improves employee engagement.  Increase the retention rate.
  • 5. METRICS USED  Time to hire  Time to fill  Source of hire  Sourcing channel cost  Quality of hire  Cost per hire  Candidate job satisfaction  Selection ratio  Offer acceptance rate  Open positions vs positions filled ratio
  • 6. TIME TO HIRE/TIME TO ACCEPT CANDIDATE IS APPROACHED CANDIDATE ACCEPTS THE JOB TIME TO HIRE EXAMPLE: If a candidate is approached on 1st jan and the candidate accepts the job on 5th jan then the time to hire=4 days
  • 7. TIME TO FILL PUBLISHING A JOB OPENING HIRING THE CANDIDATE TIME TO FILL EXAMPLE: If a job is published on 1st jan and the candidate is hired on 5th jan then the time to fill =4 days
  • 8. SOURCE OF HIRE  Defines the sources used to hire the employees.  Helps to identify the effectiveness of each recruiting channels.  Different recruiting channels are: Social media Company’s career page Sourcing agencies
  • 9. QUALITY OF HIRE  High first year performance ratings are indicators of good hire.  Low first year performance ratings are indicators of bad hire.  It is the input for the success ratio.
  • 10. SUCCESS RATIO Number of hired candidates Success ratio = considered satisfactory Total number of candidates hired
  • 11. SELECTION RATIO Selection ratio = Number of hired candidates Total number of candidates Also called submittals to hire ratio.
  • 12. COST PER HIRE Cost per hire = Total number of hires Total recruitment cost
  • 13. OFFER ACCEPTANCE RATIO Offer acceptance = ratio Number of candidates who received the offer Number of candidates who accepted the job offer
  • 14. SOURCING CHANNEL COST Sourcing channel cost= Number of successful applicants per platform Ad spent per platform
  • 15. ON-BOARDING ANALYTICS Can be defined as the technique through which the new employee acquire knowledge, skills etc to become effective organizational member.
  • 16. 4 C’S  Compliance : Teaching employees.  Clarification : Ensure that the employee understand his new job.  Culture : Providing both formal & informal norms.  Connection : Inter-personal relationships.
  • 17. METRICS USED  Yield ratio  Orientation costs  New hire survey  New hire separation  New hire engagement  Speed to performance
  • 18. YIELD RATIO Yield ratio = Number of hired candidates Total number of candidates came
  • 19. ORIENTATION COST Average orientation = costs per employee (Time x pay x number) + department Number Time = Amount of time spent in orientation. Pay = Average hourly rate per employee. Number = total number of employees in orientation. Department = Average HR department cost.
  • 20. OTHER METRICS  New hire survey: To generate the feedback data collected through questionnaire.  New hire separation: Through resignation or termination.  New hire engagement: Engaged employees will help the organization to grow.  Speed to performance: Managers should take care with how they get new employees up to speed.
  • 21. STAFFING ANALYTICS Recruitment, selection, development & training of individuals for specific job functions.
  • 22. IMPORTANCE  Big data allows staffing firms to make informed business decisions and achieve success.  Historical analytics provide valuable data allowing staffing firms to learn from past practices  Real-time analytics demonstrate the effectiveness of current efforts and identify areas that need improvement.  Predictive analytics are helpful in setting long-term goals and making business decisions regarding resource allocation.  Use Google Analytics to improve the interaction between visitors and your website.
  • 23. PERFORMANCE ANALYTICS It is a practice of using data & technology to study how the employees is performing.
  • 24. METRICS USED  Work quality metrics: Quality of the employee performance.  Work quantity metrics: Measure the quantity.  Work efficiency metrics: Consider the resources needed to produce a certain output.  Organizational performance metrics
  • 25. WORK QUALITY METRICS  360 degree feedback: Employee’s peers, subordinates, customers and manager are asked to provide feedback on specific topics.  180 degree feedback: Only the employee’s direct colleagues and manager provide feedback.  Number of errors  Product defects  Forced ranking: Way of ranking based on the best to worst by asking the managers.
  • 26. WORK QUANTITY METRICS  Number of sales  Number of units produced  Handling time
  • 27. ORGANIZATION LEVEL METRICS  Human capital ROI  Absenteeism rate  Overtime per employee  Profit per employee
  • 28. SKILL GAP ANALYTICS Skill gap is a difference between skills needed & skills possessed.
  • 29. STEPS Identify skills needed Collect data Assess results Create a training plan to address identified skill gaps
  • 30. COMPENSATION & BENEFIT ANALYTICS Data that provides detailed information about compensation costs at the organization.
  • 31. METHODS USED  Market Data Comparison – using your internal payroll data to compare market averages from external salary surveys.  Labor Cost Analysis – merging payroll data such as base salaries, bonuses, overtime pay, and benefits to determine overhead costs.  People count Analysis – providing an accurate picture of staffing levels and compensation costs to assist with salary and workforce planning.  Retention Analysis – looks at employee’s risk of leaving by reviewing compensation levels and performance data.
  • 32. METHODS USED  High Performer Analysis – profiles high performers by analyzing performance levels and correlates with rewards, training, previous work experience and education to assist with recruitment and retention efforts.  Sales Compensation Analysis – calculates commissions, bonuses, quotas and hours worked to determine sales per hour.  Geographic Pay Analysis – review payroll costs by location to assist with geographic investment and expansion strategy decisions. *payroll defines the money paid to employees
  • 34. METHOD OF EVALUATION  Kirkpatrick model  CIRO model  Cost-benefit analysis  ROI in training.
  • 35. KIRKPATRIK MODEL  Model used to analyze & evaluate the result of training & educational programs.  It contains 4 levels: Reaction: Measures the reaction of the participants. Learning: Analyze whether the participant understood the training. Behavior: Analyze whether the participants are utilizing what they learned. Results: Determines whether the material had a positive impact on the organization.
  • 36. CIRO MODEL  Developed by Warr, Bird & Rackham.  4 components of evaluation are: Context evaluation: Identifying & evaluating training needs Input evaluation: Analyzing the effectiveness of the training courses & also analyze the organizational resources. Reaction evaluation: Analyze the reaction of the delegates to the training. Outcome evaluation: It defines what actually happened as a result of training.
  • 37. COST-BENEFIT ANALYSIS  Helps to analyze the benefits of training.  It compares the cost of the program & the expected benefits to the company.  There are 4 stages for cost-benefit analysis. Stage 1 : Determining the training cost. Stage 2 : Identify the benefits like employee retention, fewer errors etc. Stage 3 : Benefit will be converted in terms of cost. Stage 4 : Cost & savings per participant is calculated & their relation to business performance is assessed.
  • 38. ROI IN TRAINING  Monetary benefits obtained by an organization for a specific time period in return for an investment.  It is the extent to which benefits of training exceeds cost.  Return on Investment= Benefit Calculated X 100 Estimated Cost
  • 39. MEASURES USED  Engagement: Looks at how the training being used by the learners, course completion rates, test scores etc.  Improved performance: Compare the performance before & after training.  Reduced seat time: If the oldest training program was efficient, then the time for existing training program will reduce.  Increased retention: Analyze the retention rate.
  • 40. LEARNING ANALYTICS Studies the impact of training on trainees.
  • 41. IMPORTANCE  Used as a tool for quality assurance & quality improvement.  Used as a tool for increasing retention rates.  Helps to check the performance of employees while the training module is taking place.  Helps to manage the organization more efficiently.  Increase employee motivation.
  • 42. PROMOTION ANALYTICS It is used to determine whether a given employee will be successful if he is promoted to a higher level position.
  • 43. BASIS FOR PROMOTION  On merit basis: Based on employee’s skill, knowledge, ability, efficiency etc.  On seniority basis: Based on the duration of service or experience at the same post.  On merit-cum-seniority basis: Consider both employee’s skills & experience.
  • 44. METRICS USED  Revenue per employee = Total revenue Full time equivalent(FTE) [FTE equivalent to one employee working full time.]  Profit per FTE = Total profit FTE  Overtime per employee = Total hours of overtime FTE  Human capital ROI: Value of human capital i.e., knowledge, habits etc.  Absenteeism rate.
  • 45. SUCCESSION PLANNING ANALYTICS Predicting who is capable of succeeding an important position in the organization.
  • 46. STEPS Pre-planning Assessment One-on-one & group meeting CEO discussion Ongoing review
  • 47. STEPS  Pre-planning: Done by HR manager to train employees who have high potential but not able to utilize it.  Assessment: Managers identify the future leaders of the organization.  One-on-One & group meeting: Personal & group meeting with managers.  CEO discussion: Regular discussions with business leaders & CEO.  Ongoing review: Continue this process.
  • 48. COMPLIANCE ANALYTICS Monitoring whether the company is obeying the rules & regulations outside the organization.
  • 49. METHODS  Rules based monitoring: To identify the known frauds & compliance risks.  Anomaly detection: Recognize new fraud & compliance risks.  Network analysis: To identify potentially illegal activities inside the organization.  Text analysis: To sense written documents for analysis.  Visual analysis: To summarize the results for the stakeholders.
  • 50. ATTRITION ANALYTICS Employees leaving an organization is called attrition.
  • 51. METRICS USED Number of employees who left the  Attrition rate = company during the year Number of employees employed by the company during the year  Existing employee attrition  Total employee attrition
  • 52. REASONS FOR EMPLOYEE ATTRITION  Bad relationship with the employers.  Bad relationships with coworkers.  Less salary.  Unfair working times.  The job did not meet expectations.  Feeling undervalued.  Lack of proper coaching & feedback.  Lack of growth opportunities.  Bad company culture.
  • 53. HOW TO MINIMISE EMPLOYEE ATTRITION  Hire the right people.  Offer competitive pay & benefits.  Motivate & praise the employees.  Allow flexible timings.  Give opportunities to learn new skills & knowledge.
  • 54. RETENTION ANALYTICS Retention refers to how many employees stick around over a given period of time.
  • 55. STEPS FOR EMPLOYEE RETENTION Step 1: Churn prediction: Create models to identify the employees at risk of leaving. Step 2: Attrition root cause: Identify the reason for attrition Step 3: Resignation segments: Compare how the resignation rate varies with respect to location, age groups, function etc.
  • 56. METRICS USED Number of employees  Accession method = recruited during a year X 100 Avg no: of employees Total separation during  Separation method = the year X 100 Avg no: of employees
  • 57. METRICS USED  Combined method = [(Accession +Separation)/2 ] X 100 Avg no: of employees  Replacement method = (Accession - Separation) X 100 Avg no: of employees
  • 58. IMPORTANCE OF EMPLOYEE RETENTION  Reduces time & money investment.  Positive impact on customer service.  Increases goodwill of the company.  Facilitates knowledge transfer.