HR Analytics

Why Analytics

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 HR Analytics

Marketing

Why Analytics

Sales

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 HR Analytics

HR Analytics

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 HR Analytics

1. Rising Popularity
• Companies get $10 for every $ invested in developing analytics skills

2. It is an ‘In Thing’
Reasons for • HBR magazine labelled business analytics as the ‘sexiest’ job of the century

learning data
3. Decision making
analytics • 85% of managers use data driven dashboards for decision making

4. Bright Career
• Jobs and research papers in the field of Data analytics and Machine learning
are increasing at a rapid pace

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 HR Analytics

HR Analytics is a combination of one or more of the following steps

What is HR 1. Data Integration

Analytics 2. Organisational and workforce Analysis

3. Insight generation

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 HR Analytics

1. Helps in identifying, classifying & quantifying the productivity of

employees
Advantages of
2. Calculate ROI of employee initiatives
HR Analytics
3. Helps in supporting the business decisions with the backing of data

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 Different levels of HR Analytics
Approach to data Mode Benefits

Data products, data validated actions,

What should I do to achieve my goal? Proactive Action increased success rate of strategic
initiatives

Support for strategic initiatives,

What is likely to happen? Proactive Decisions forward looking decision making

Proactive Significant improvements

Why did it happen?
Consumption from status quo, data backed
management

What happened ? Marginal business benefits,

Active process gap identification

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 HR Analytics

Value vs
Difficulty

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 HR Analytics

HR metrics, or human resources metrics, are key figures that help

HR Metrics organizations track their human capital and measure how effective their
human resources initiatives are

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 HR Metrics
1. Time-to-Start Total days elapsed from the date each filled position was available
Average number of days it took to fill a position. to the date each new person started in the position
=
Number of positions filled

2. Time-to-Productivity Total days elapsed from the date each filled position was available
Average number of days to satisfactory productivity to the date each new person achieved satisfactory productivity
=
Number of positions filled

3. Accession Rate
Rate at which employees are joining the organization in a given time period.
𝑇𝑜𝑡𝑎𝑙 𝐻𝑖𝑟𝑒
=
Staffing Metrics 4. Turnover Rate
Regular headcount

Rate at which employees are leaving the organization in a given time period.
Number of separations during the time period
=
average actual number of employees during the time period
5. Cost Per External/Internal Hire
Average cost incurred with an External/Internal hire.
Total costs related to all external/internal hires
=
Number of external/internal hires

Other Staffing matrics

Offer Rate, Offer Decline Rate, Promotion Rate, Retention, Vacancy/Occupancy Rate,
Vacancy Costs and Cost per Vacancy, Retirement Risk

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 HR Metrics
1. Competency Rate
Degree to which employees in key positions have the competencies necessary to achieve their
performance objectives.
(# of incumbents with competency ratings of Acceptable or better
=
# of incumbents who have received competency assessments)

2. Readiness
Training and Reflects how ready the organization is from a human capital perspective to execute on strategy
and achieve key goals and objectives
= Occupancy Rate x Competency Rate X 100
Development
3. Training Spend Rates
Metrics Relative importance of spend on training vs other operating and human capital activities.
= (Training spend/ Total Human Capital Spend) x 100

4. Training Headcount investment

Amount of investment in trainings for each employee
Total training cost
=
𝑅𝑒𝑔𝑢𝑙𝑎𝑟 ℎ𝑒𝑎𝑑𝑐𝑜𝑢𝑛𝑡

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 HR Metrics

1. Performance Review Completion Rate

Percentage of completed reviews
Number of completed performance reviews
=
Number of completed performance reviews schedule𝑑

Performance 2. Average Performance Rating

The mean performance rating across a selected group of employees receiving performance
Management assessments.
Total of all Performance Ratings
=
Metrics Number of employees who received a Performance Rating

3. Performance Rating Distribution

The employee representation across each of the available Performance Ratings.

Number of employees who received each rating

=
Number of employees who received a Performance Rating

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 HR Metrics
1. HR-to-Employee/Worker Ratio
The HR-to-Employee ratio and HR-to-Worker ratios provide a way to compare HR staffing levels
across and within organizations.
HR FTEs
=
total number of FTEs in the organization

2. Productivity
Describes the relationship between real output and the amount of labor time involved in its
production.
Revenue
=
Labor hour
Other Metrics
3. Total Compensation Spend Rate
The relationship of costs associated with Total Compensation spend, including salaries, overtime,
benefits, incentives and bonuses, to an organization’s Total Operating Costs.
Direct compensation + Indirect compensation)
=
Total operating spend

4. Employee Engagement
Degree to which employees are engaged with and committed to the strategy and objectives of
the organization
= 𝑁𝑜 𝑃𝑎𝑟𝑡𝑖𝑐𝑢𝑙𝑎𝑟 𝑓𝑜𝑟𝑚𝑢𝑙𝑎, 𝑑𝑒𝑝𝑒𝑛𝑑𝑠 𝑜𝑛 𝑡ℎ𝑒 𝑜𝑟𝑔𝑎𝑛𝑖𝑠𝑎𝑡𝑖𝑜𝑛

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 HR Analytics

For more Details:

HR Metrics https://www.shrm.org/learningandcareer/learning/publishingimages/p
ages/forms/allitems/shrm%20HR%20metrics.pdf

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 HR Analytics

Data
Visualization

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 HR Analytics

Data Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sweater 60 54 43 28 18 9 9 13 28 46 61 69
Visualization Towel 19 20 17 23 20 17 16 23 23 21 15 18

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 HR Analytics
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sweater 60 54 43 28 18 9 9 13 28 46 61 69
Towel 19 20 17 23 20 17 16 23 23 21 15 18

80

70

60
Data 50

Visualization 40

30

20

10

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sweater Towel

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 HR Analytics

Predictive
Analytics

GIF source : https://gfycat.com/zealousbewitchedhapuka

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Help John

John
HR Analytics Manager at STA IT services
STA hires hundreds of IT executives and managers for their
consulting business. John’s team invest a large amount of time
and effort in analyze each and every resume to calculate the
joining CTC/salary for new hires. John has recently completed a
course in Analytics and Machine Learning and he thinks that STA
can use Machine Learning to use past data to create data driven
process for setting of CTC/salary for new hires

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Help John

John
Finance Analytics Manager at STA Retailers
STA Retailers owns hundreds of grocery stores all across the
country. John’s team invests a large amount of time and effort in
analyzing different localities to find a location for new stores .
John has recently completed a course in Analytics and Machine
Learning and he thinks that STA can use Machine Learning to use
past data to create data-driven process for selecting new store
locations.

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