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HR Analytics-Introduction

This document discusses how HR analytics can help human resource management. It explains that HR analytics uses data to help HR professionals make better decisions, create a business case for interventions, test effectiveness, and become a more strategic partner. Some examples of people analytics include measuring the impact of engagement and learning programs on financial performance and predicting employee retention and performance. Common data sources and skills needed for people analytics are also outlined.

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Likith R
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0% found this document useful (0 votes)
151 views13 pages

HR Analytics-Introduction

This document discusses how HR analytics can help human resource management. It explains that HR analytics uses data to help HR professionals make better decisions, create a business case for interventions, test effectiveness, and become a more strategic partner. Some examples of people analytics include measuring the impact of engagement and learning programs on financial performance and predicting employee retention and performance. Common data sources and skills needed for people analytics are also outlined.

Uploaded by

Likith R
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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HR Analytics-Introduction

Nilanjan Sengupta
Why do we need HR Analytics
• HR not very popular- HR manager calling probably bad news-
• get reprimanded, put on notice, or even fired
• If it was good news, like getting a promotion, your manager would tell
you. Not HR
• Common perception- HR is a soft domain
• Fluffy-duddy, Old-fashioned,
• A lot of the work in HR is based on ‘gut feeling’
• HR doesn’t have a reputation of bringing in the big bucks or playing a
numbers game like sales
• HR also struggles to quantify and measure its success, as marketing and
finance do
• HR analytics changes all of this. A lot of the challenges just described can
be resolved by becoming more data-driven and analytical savvy.
Example questions
• How high is your annual employee turnover?
• How much of your employee turnover consists of regretted loss?
• Do you know which employees will be the most likely to leave your
company within a year?
• These questions can only be answered using data.
• Most HR professionals can easily answer the first question.
• However, answering the second question is harder.
• To answer this second question, you would need to combine two
different data sources: your Human Resources Information System
(HRIS) and your Performance Management System.
• To answer the third question, you would need even more data and
extensively analyze it as well.
HR analytics in literature
• HR analytics is the systematic identification and quantification of the
people drivers of business outcomes (Heuvel & Bondarouk, 2016)
• Over the past 100 years, Human Resource Management has changed.
It has moved from an operational discipline towards a more strategic
discipline.- Strategic human resource management (SHRM)
• The data-driven approach that characterizes HR analytics is in line
with this development
• Analytics enables HR professionals to make data-driven decisions
• analytics helps to test the effectiveness of HR policies and different
interventions
• Operational HR (1900s) ----- Strategic HR (2000s) ----- Data driven HR

(now)
How HR analytics helps Human Resource Management
• Like marketing analytics has revolutionized the field of marketing, HR
analytics is changing HR. It enables HR to:

• Make better decisions using data


• Create a business case for HR interventions
• Test the effectiveness of these interventions
• Move from an operational partner to a tactical, or even strategic
partner
• Today, the majority of HR departments focus on reporting employee
data. This doesn’t suffice in today’s data-driven economy.
Strategic use of data by HR
A few examples of People Analytics

1)Measuring employee engagement on financial performance


• To measure this relationship- we need to combine your annual
engagement survey with your performance data.
• you can calculate the impact of engagement on the financial
performance of different stores and departments.
2) you can calculate the business impact of your learning and
development budget!
3) you can predict which new hires will become your highest
performers in two years
4) You can predict which new hires will leave your company in the first
year.
Starting point for HR Analytics
How does People Analytics shape the business
• Indeed, analytics enables companies to measure the business impact of
people policies.
• By applying complex statistical analyses, HR can predict the future of the workforce.
• This enables managers to measure the financial impact of Human Resource practices.
• Measuring the impact of HR on bottom-line performance is the “holy grail” of HR
analytics (Lawler III, Levenson & Boudreau, 2004).
• This done by calculating a Return on Investment (ROI). It is the most powerful way for
HR to increase its strategic influence.
• Benefits:-
• It helps HR to align its strategy with business goals and to quantify the value it adds to
the business.
• It takes the guess-work out of HR.
• identifying the people-related drivers of business performance.
How does People Analytics shape the business?
Common data sources for HR analytics

• Internal data sources:


• demographic employee data
• payroll data
• social network data
• performance data
• engagement data
• External data sources:
• labor market data
• population data
• LinkedIn data, and so on.
• Any data that’s relevant for the specific project can be used
Skills are requirement for conducting people analytics

•  Business consulting to identify critical issues

• Analytical skills to run the analysis

• Stakeholder management to bring everyone together


and enable the people analytics project

• Storytelling and visualization in order to communicate


effectively with the business and share results.
Student presentations
• Case Study 1: Key Drivers of Retail Sales
Performance
• Case Study 2: Reducing Workplace Accidents
Using People Analytics
• Case Study 3: How we Determined Optimal
Staffing Levels

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