What is HR analytics and how it is done? Along with Survey on 41 individuals from different organizations with an experience of about 6 months to 27 years.
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● Opinions based on Gut feelings and external Influences
● They are Biased at times
● Many end up taking HR jobs thinking they are people oriented,
if so then why not be a social worker
● Decisions which are not strategic causing issues in workforce
● However there are exceptional HRs still facing problems, so
what should they do?
Why HRs are Considered Evil ??
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Arguably the most practical tool
and greatest potential for
organizational management is the
emergence of predictive analytics
FITZ-ENZ AND MATTOX II (2014)
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● Set of theories, methodologies, processes, architecture, and
technologies that transform raw data into meaningful and useful
information for business purposes
● Business Analytics is the skills, technologies, applications, and
practices for continuous exploration and investigation of past
business performance to gain insight and drive business planning
What is Business Intelligence
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● The core of HR Analytics is the “metrics”
● Metrics are data that convey a meaning in a given context
● Metrics is to be distinguished from numbers
○ Eg:
HR Analytics
The employee turnover is 12% p.a Data
There is 4 percent raise in attrition rate as compared to previous
year
Metric
Inappropriate leadership style resulted in higher attrition of 4% on a
comparable basis
Analytic
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● HR Analytics is not much about numbers, it’s more about logic and
reasoning
● Analytics is not similar to Analysis. Analysis is not more the
crunching of numbers, meanwhile analytics is to understand the why
behind that and to predict the decisions.
● It uses carefully constructed metrics.
● HR Analytics uses past data to predict the future.
Contd..
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Analytics present a tremendous opportunity
to help organizations understand what they
don’t yet know… By identifying trends and
patterns, HR professionals and management
teams can make better strategic decisions
about the workforce challenges that they
may soon face
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● Have high quality of HR Data, but still not able to predict workforce
to minimise risks or maximise returns
● Increase in: Cost of attrition, poor hiring, optimal compensation, bad
training and development strategies
● Data driven insights: Decisions that doesn’t have data to backup are
opinions. This helps in making decisions rather than judgments.
Need for HR Analytics
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● How to hire
● Whom to hire
● How to onboard and train
employees
● How to keep employees engaged
and informed
Data Driven Insight: HR practices in terms of
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REPORTING
Steps involved
ANALYSIS
AND
MONITORING
PREDICTIVE
MODELS
● HR DATABASE
● ATTITUDE SURVEY DATA
● CUSTOMER SATISFACTION
● SALES PERFORMANCE
● OPERATION PERFORMANCE
● SPSS
● Minitab
● Stata
● SAS
● R
● JASP
● Python
● Statistical significance
(hypothesis testing)
● Chi Square test
● Logistic regression analysis
● T tests
● ANOVA
● Regression/Correlation
● Factor analysis and reliability
analysis
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● Recruitment
● Retention
● Performance and Career Management
● Training
● Compensation and Benefit
● Workforce
● Organization Effectiveness
What all can be measured?
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● TURNOVER MODELING - Predicting future turnover in business
units by looking at various factors.
● TARGETED RETENTION - Figuring high risk in future and focus
on retention activities on critical people.
● RISK MANAGEMENT - Profiling candidates with higher risk of
leaving or those performing below standard.
● TALENT FORECASTING - To predict whom to hire, based on
their profiles.
Critical HR Analytics areas
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DEMOGRAPHICS
The survey was conducted on Different types of Employees in different organization
with a work experience of 6 months to 27 years.
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● All MNCs have their own dedicated HR Departments and takes
care of all the Recruitment operations and Employee
Engagement
● Most of the employees in MNCs believe HR as a Major function
and there exists a requirement of implementing HR Analytics or
employing HR Analysts.
● More than half of the population in this survey believe that
Strategic Human Resource Management is an essential part of
any organization
● Most employees, even Director level believe that their
organization do lack Employee engagement and performance
appraisal
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● CEOs and Directors in Startups believe there should be a
dedicated HR Department for their entire operations, however few
believe that with HR Analytics they can cut down the cost and
number of HR Managers and HR Executives
● As compared to many larger organizations, startups are well
advanced in maintaining their employee data using HRIS and
Cloud based HRIS and a few uses advanced automation systems
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● The best organization as per the survey is Defense organization
(Army)
○ They take care of all the HR functions
○ Employees doesn’t feel anything is lacking in their HR
functions
○ But still they are also facing issues in recruiting middle level
managers
● Most of the freshers feel that HR is not at all required for any
organization.
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The development of HR’s stategic role
has been an evolution… The next step in
the evolution is for HR Professionals, and
particularly senior HR professionals, to
develop what we call analytic literacy
HUSELID AND BECKER (2005: 279)
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THE KEY SUCCESS IN HR ANALYTICS
• Transparency of business
and workforce information
• Developing culture of data
driven decision making
• Empower line leaders, not
just HR and L&D
