HR Metrics & Analytics

“That which is measured improves. That which is

measured and reported improves exponentially.”
Karl Perason
 Index
 What is HR Metrics?
 What is HR Analytics?
 How HR Metrics & Analytics relate
 Common Metrics measured by HR Analytics
 Data Required By HR Analytics Tools
 Implications of HR Analytics for HR Professional
 Types of HR Analytics
 Advantages of HR Analytics
 Disadvantages of HR Analytics
 Case study
 CONCLUSION
What is HR Metrics?
 HR metrics are measurements used to
determine the effectiveness and efficiency of
HR policies.
 Metrics don´t say anything about a cause,
they just measure the difference between
numbers.
 HR Metrics are indicators that enable HR to
track and measure performance on different
aspects and predict the future.
 Human Resource Metrics are measurements
that helps you to track key areas in HR data.
What is HR Analytics?

 Systematic identification and quantification on how

people strategies can lead to business outcomes.

 It drives Data Driven Decision Making and Evidence

Based HR Practices.

 HR analytics, also called people analytics, is the

quantification of people drivers on business outcomes.

 Analytics measures why something is happening and

what the impact is of what’s happening
This is show how
HR Metrics &
Analytics relate
Common Metrics measured by HR Analytics

 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.

 Offer acceptance rate: It shows how many candidates have accepted the
offer in comparison to the total number of offer letters extended by the
organization. 

 Training Expenses per Employee:

Common Metrics measured by HR Analytics
 Time to Hire: The total days it took to hire a job applicant after listing the job out on
platforms and the company website.

 Cost-per-hire: The average cost of hiring a new employee.

 Time-to-productivity: The period of time from hire to full productivity.

 Employee turnover rate: The number of separations per year divided by headcount

 Absenteeism: Employee absences in a given period divided by number of employees.

 Employee Satisfaction: It shows whether employees would recommend their organization

as a good place to work. Higher the rate, the happier is the workforce.

 Retention Rate: A key metric. It shows the number of employees who stayed in the
organization over a period divided by the total number of employees. It is considered a key
indicator of organizational culture.
Data Required By HR Analytics
Internal data: Internal data specifically refers to data obtained
from the HR department of an organization.
• Employee tenure
• Employee compensation
• Employee training records
• Performance appraisal data
• Reporting structure

External data: External data is obtained by establishing

working relationships with other departments of the organization.
Data from outside the organization is also essential, as it offers a
global perspective that working with data from within the
organization cannot.

• Financial data
• Organization specific data
• Passive data from employees
 • HR analytics will make the HR function
Implications of HR more strategic.

Analytics for HR • Analytics requires a data-driven mindset

for HR professionals.
Professional • The data going into the systems will
become more important.

• People analytics changes HR by busting

long-held beliefs.
 Types of HR Analytics
• Descriptive analytics
which is made up of observations and reports, are important as they consist of observing
the workplace to gain initial insight into what is going on.

• Diagnostic analytics
 takes the observations to the next level to understand why and what is the cause. It may be
clear that employees are unhappy, but it is important to find out why.

• Predictive analytics
is used less than the others, but is where organizations can predict ways of improving the
situation and attempt them.

• Prescriptive analytics
is the final step where it considers the cause of the issue and uses the data to prescribe what
needs to be done to fix it. Prescriptive analytics relies on the other three forms of analytics
to get the best outcome.
Advantages of HR Analytics
 HR Analytics Improves Talent Acquisition
The right HR analytics software will look at all the information & skills of the candidates provide in
their application & throughout the hiring process, compare that with our company listing, and draw
up an unbiased shortlist of the best potential candidates using its specific algorithms.
 It Increases Staff Retention
Find patterns in the gathered information to understand what is causing attrition & put remedial
measures in place to avoid that in the future.
 HR Analytics Improves Employee Experience
Using HR analytics to create unified employee support will improve company culture, create a better
working environment.
 It Uncovers Skills Gaps
With the type and amount of data that HR analytics software has access to, it can use its algorithm to
easily determine what kind of skills organisation is lacking & identify any knowledge gaps.
 HR Analytics Increases Productivity
By utilizing the available tools, employees are better able to manage their time & work. HR
analytics platforms even give insight to significant interactions among employees & the
collaboration between various divisions.
 1)Access to quality data can be a problem for companies that do
not have up-to-date systems.
2)Smaller HR teams may not always have the statistical and
Disadvantages analytical skill set for working with large datasets.
of HR Analytics 3)It is possible to miss opportunities or derive untrue insights if
the HR team uses a complex tool and is not skilled in data
analysis.
4)If HR analytics tools having access to sensitive information do
not fulfill the right security standards, it could lead to potential
security issues.
 o So basically we learn first of all from this about HR Metrics and
CONCLUSI Analytics. Then discuss how they can contribute to organisational
ON efficiency and effectiveness.
o As we know metrics are data elements that contributes in analyses
What gets measured which provides information to decision makers in effective decision
gets improved .... making.
o These both activities ( HR Metrics & Analytics) provides no benefit to
organisation unless the managers utilizes the information obtained
from reports or metrics in effective way.
o Managers need to know that what metrics are important to them and
what are least important in preference and should align the HR
activities and employee practices with company objectives and goals.
o HR team must fully understand the directions of business.
 Bibliography

Books Research Web

Paper Resources
• https://www.keka.com/hr-metrics-exa
1. “ How to Measure 1. Becker, B. E., & Huselid, M. A.
mples
Human Resource (1998). High Performance Work
Management” by Systems and Firm Performance: A • https://www.workforcehub.com/blog/
Jac Fitz-Enz sysnthesis of Research and what-is-the-importance-of-hr-metrics-
Managerial Implications. analysis/
2. “ Proving The Research In Personnel and • https://www.picked.ai/magazine/the-4
value of HR” by Human Resources Management, -types-of-hr-analytics/
Jack J. Phillips 16, 53-101. • https://blog.neocasesoftware.com/4-ty
and Patricia pes-analytics-mean-hr
Pulliam Phillios 2. Lawler, E. E (2003). Treat People
Right. San Francisco: Jossey-
Bass.
 Contributors
• Introduction (slide 3-5): Aratrika Biswas (Roll 28)

• Common HR metrics, Data required by HR Analytics,

Implications (Slide 6-9): Swikriti Chanda (Roll 32)

• Types of analytics, advantage & disadvantage (slide 10-12):

Sandip Kumar Jana (Roll 31)

• Case Study (slide 13-15): Ahtasham Noor (Roll 30)

• Case Study and Conclusion (slide 16-18): Labani Dawn (Roll 29)