Analytics is the discovery, interpretation & communication of meaningful patterns in data.
HR analytics is a methodology for creating insights on how investments in human capital assets contribute to the success of four principal outcomes.
HR analytics focuses primarily on the HR function and is not – as is largely believed.
The terms HR Analytics, People Analytics, Workforce Analytics are often used interchangeably.
#HR #HRAnalytics #TypesofHR #Analytics #Sourcing #Workforce #PeopleAnalytics #SocialNetworkAnalytics #TimetoHire
2. Content
• Lesson 01 – What is Analytics ?
• Lesson 02 – What is HR Analytics ?
• Lesson 03 – Role of Analytics in Human Resources
• Lesson 04 – Focus of HR Analytics
• Lesson 05 – Types of Analytics
• Lesson 06 – Analytical Extensions
• Lesson 07 – What metrics does HR Analytics Measure ?
• Lesson 08 – Advantages of using HR Analytics
• Lesson 09 – Disadvantages
• Lesson 10 – Applications of HR Analytics
3. What is Analytics ?
“Analytics is the discovery, interpretation &
communication of meaningful patterns in data.”
• It also entails applying data patterns towards
effective decision making.
• In other words, analytics can be understood as the
connection between data & effective decision
making within an organization.
4. What is HR Analytics ?
“HR analytics is a methodology for creating
insights on how investments in human capital
assets contribute to the success of four principal
outcomes.”
a. generating revenue,
b. minimizing expenses,
c. mitigating risks, and
d. executing strategic plans.
5. Role of Analytics in Human Resources
1. In current highly competitive environment, talented people are definitely the
most valuable assets.
2. During last years, large investments were put into tools and information systems
to manage performance, hiring, compliance and employees development in
order to enhance its capabilities and increase effectively.
3. This combination of right analytical approach and experience is the crucial
premise for successful HR IS and data utilization.
6. Focus of HR Analytics
• HR analytics focuses primarily on
the HR function and is not – as is
largely believed.
• The terms HR Analytics, People
Analytics, Workforce Analytics
are often used interchangeably.
8. --- HR Analytics ---
It specifically deals with the metrics of
the HR function, such as time to hire,
training expense per employee, and time
until promotion. All these metrics are
managed exclusively by HR for HR.
9. --- Workforce Analytics ---
It is an all-encompassing term referring
specifically to employees of an organization.
It includes on-site employees, remote
employees, gig workers, freelancers,
consultants, and any other individuals
working in various capacities in an
organization.
10. --- People Analytics ---
People analytics, though comfortably used
as a synonym for HR analytics, is technically
applicable to “people” in general. It can
encompass any group of individuals even
outside the organization.
11. Analytical Extensions
SOCIAL NETWORK ANALYSIS
In the general meaning, social network
analysis term is not only associated to
social media like Facebook or Twitter. It
also describes a way how to explore
various type of social interaction.
12. Analytical Extensions
Interactions can be identified by:
List of calls
Mail communication
Instant messages
Mutual meetings
Work on same project and shared folders access
Common history & background
13. What metrics does HR Analytics Measure ?
Several HR metrics contribute to business value, but the key question when
measuring these metrics is this:
What does the business need?
“A strategic collaboration between the C-suite and HR leaders will help
determine the HR analytics strategy.”
14. What metrics does HR Analytics Measure ?
Revenue per employee:
Obtained by dividing a company’s
revenue by the total number of
employees in the company. This
indicates the average revenue
each employee generates.
15. What metrics does HR Analytics Measure ?
Offer acceptance rate:
The number of accepted formal job
offers (not verbal) divided by the
total number of job offers given in
a certain period. A higher rate
(above 85%) indicates a good
ratio.
16. What metrics does HR Analytics Measure ?
Training Expenses per Employee:
Obtained by dividing the total
training expense by the total
number of employees who
received training? The value of
this expense can be determined
from measuring the training
efficiency.
17. What metrics does HR Analytics Measure ?
Time to hire:
The number of days between
approaching a candidate and the
candidate’s acceptance of the job offer.
Just like time to fill, data-driven analysis
of time to hire can benefit recruiters &
help they improve the candidate
experience to reduce this time.
18. What metrics does HR Analytics Measure ?
Absenteeism:
Absenteeism is a productivity metric,
which is measured by dividing the number
of days missed by the total number of
scheduled workdays. Absenteeism can
offer insights into overall employee health
and can also serve as an indicator of
employee happiness.
19. Advantages of using HR Analytics
IMPROVED HIRING DECISION
HR analytics helps HR to make the better choice based on historical data.
It also allows the recruiter to learn more about candidates through online resume
database, applications, social media profiles, records etc.
GOOD TRAINING
Gaps in the process of training can lead to many big problems and can increase the
cost to the company.
HR analytics provide the full swing to the training program. It helps the organization
identify if employees are making the full use of the opportunities.
20. Advantages of using HR Analytics
BETTER INSIGHTS
HR analytics helps the company look at the employee's professional life by tracking
and analyzing the performance related data.
This data not only provides more insights about the employees but also shape the
strategies to boost the employee morale, retention, and engagement.
STABLE RETENTION
It tells the company the reason why the employees leave and why they stay.
HR analytics could be helpful in finding the skill gaps and areas where employees are
struggling & can find out the reason of employee attrition.