Analytics Assignment 1

Case Analysis: Using People Analytics Assignment

Kayla Blythe

School of Business, Liberty University

BUSI 652

Dr. Amy Riederich

March 25, 2024

Author Note

I, Kayla Blythe, have no known conflict of interest to disclose. Correspondence concerning

this article should be addressed to Kayla Blythe.

Email: [email protected]
Analytics Assignment 2

This essay shows the application of people analytics from the case documented by Arellano et al.

The transformative potential of data-driven management shows how companies can connect

people analytics to organizational goals, ultimately optimizing business outcomes. With the

focus on key performance indicators and putting employee behaviors into quantified tables, it is

clear conventional wisdom is confronted. The goals included customer satisfaction, service

speed, and lastly, revenue growth. Through this exploration, human resource metrics will be

analyzed to enhance talent-related decisions. Analysis of the ethical concerns of people analytics

will question the ethical dimensions in human resource functions.

Keywords: people analytics, data-driven, customer satisfaction, data privacy

Using People Analytics Assignment

Data-driven decision-making has ultimately changed how organizations use people

analytics in human capital management. The case study by Arellano et al. presents a quick-

service restaurant chain's successful application of people analytics. The company quantified

employee behaviors and used key performance indicators to provide data-driven insights. The

results supported growth in revenue, customer satisfaction, and service efficiency. This paper

will discuss human resources measures of talent-related decisions, aligning people analytics with

company objectives, and addressing ethical concerns with people analytics. The proposal for the

employee skill versatility index will measure employee skills for multiple roles and tasks. This

metric supports the approach of maximizing operational effecienty and adaptability.

How HR Measures Can Improve Talent-Related Decisions in Organizations

HR measures can use talent-related decisions instead of subjective assessments to create

strategies. Hiring, promotion, and development decisions usually rely on intuition and

experience, which can lead to biases and inconsistencies (Cascio, 2022). Quantifiable metrics

can be beneficial to the recruitment process. As an example, time-to-fill, cost-per-hire, and

quality-of-hire metrics provide insights on how well the recruitment process is achieving.

According to Arellano et al. (2017), using analytics in hiring practices can lead to the

identification of beneficial talent sources and encourage data-informed talent acquisition.

Performance metrics, such as employee productivity, goal attainment, and 360-degree feedback,

provide a comprehensive view of employee performance, enabling informed decisions regarding

those future decisions (Cascio, 2022). Retention rates, turnover costs, and data on employee

satisfaction provide insights into how well an organization's workforce is doing. As stated by

Arellano et al. (2017), leaders connected that employee turnover gap and customer experiences
Analytics Assignment 4

were the key to improving customer experience and revenue. Employee satisfaction surveys are

an example of how organizations can gain insight on employee morale. To go beyond that, the

use of metrics that track posture and computer interaction will help with understanding employee

performance and identifying potential areas for intervention (Wang et al., 2023). McCartney &

Fu (2024) focus on how "analytical skills and storytelling skills" are important to enact people

analytics. This means that not only do employees need to have these skills but also human

resource professionals who need to interpret the data and make meaningful changes.

Alignment of People Analytics with Company Objectives in the Case Study

The restaurant chain in the Arellano et al. (2017) case study effectively aligned people

analytics with its company objectives by focusing on specific key performance indicators. The

KPIs directly related to a business's success are revenue growth, customer satisfaction, and

service speed in this case. The problem of high turnover was impacting customer experience and

revenue. The company used data-driven problem solving to address this problem. The company

quantified employee behaviors to find the reason for the high turnover rate. To achieve this, they

collected data from psychometric assessments, organizational health indices, and sensor-tracked

employee behavior (Arellano et al., 2017). Counterintuitive insights were found for conventional

wisdom because customer satisfaction scores have increased by more than 100 percent and the

speed of service has improved by 30 seconds (Arellano et al., 2017). The company reached its

goals by aligning people analytics and collecting a wide range of data to lead improvements in

company objectives.

A Ethical Concern with People Analytics

People analytics does raise concerns about the privacy of employees. Reliance on data

analytics creates a need for privacy support strategies (Pramanik et al., 2021). Strategies to
Analytics Assignment 5

protect sensitive employee information could include anonymization techniques and data

minimization tools. Tran and Hu (2019) highlight the importance between privacy and

confidentiality. Defining the clear difference between the two terms is crucial when using people

analytics. Confidentiality is a data-oriented concept, while privacy is data-owner-oriented.

Collecting data should be directly related to the performance and productivity of the

organization.

Non-perturbative and perturbative are two categories that offer privacy-preserving

methods (Tran and Hu, 2019). To prevent identity linkage, non-purturbative methods sanitize

information to remove specific identifiers. On the other hand, perturbative methods use synthetic

data, which protects showing anyone's information. Organizations need to implement

monitoring technologies due to handling large data sets. To protect employees, consider these

methods to ensure ethical applications of people analytics are being used. Employees will trust

their company and understand how their data is being used. Pramanik et al. (2021) express that

privacy techniques should ensure that data analytics should never come at the expense of

individual privacy.

New Metric for the Restaurant

The company focused on analytics for its frontline staff and overall business performance

(Arellano et al., 2017). Not only does the company need to focus on customer satisfaction but

also employee well-being and performance. Morgan (2017) explores the Employee Experience

Index (EEI) by focusing on three key environments. They include culture, technology, and

physical space, which ultimately affect customer satisfaction and revenue growth. Investment

into employee experience ultimately translates into higher productivity, profit, revenue per

employee, and stock price performance. The concept of employee experience (EX), suggests that
Analytics Assignment 6

employee experiences are the sum of interactions and reflections, ultimately impacting employee

decisions (Lipka, 2023). With that being said, investments in EX have resulted in lower turnover

rates. Adapting the EEI (Morgan, 2017) will offer support in aligning human resources strategies

with restaurant chain organizational goals. Specifically focusing on culture, technology, and

physical space, using this framework will improve employee performance and support customer

satisfaction, service speed, and lastly, revenue growth.

To measure the EEI within this organization, it should align with the quantified employee

behaviors. This will ensure that the metrics being measured are all relevant to the restaurant

operations directly. As an example, for culture, the company can analyze the communication

between the team and even customer interactions. For technology, POS systems can be analyzed

and directly correlate with service speed data. For physical space, evaluations would be comfort

and efficiency within workstations and surrounding customer areas. Linking EEI with the

original quantifiable data in this case study will create a data-driven loop between employees and

customers ultimately driving organizational success. Effective human resource management

includes data-driven results incorporating the use of quantifiable metrics to inform strategic

decisions (Cascio, 2022).

Biblical Integration

People analytics specifically values humans and focuses on stewardship. In scripture,

justice and fairness for employees is a key aspect (King James Bible, 2017, Deuteronomy 24:14-

15; King James Bible, 2017, Colossians 4:1). Ecclesiastes 3:22 (King James Bible, 2017),

highlights the meaning of work which is the example of the metric of employee experience

which ultimately focuses on enjoying their labor. In addition, the ethical concerns that were

raised on people analytics goes with the biblical principle of honesty and integrity. Proverbs
Analytics Assignment 7

12:22 (King James Bible, 2017) says ‘Lying lips are abomination to the Lord: but they that deal

truly are his delight’. This emphisizee that the privacy and confidentiality of employees and

customers needs to be respected fully as lying lips are abonimation to the lord. Although lying is

not the underlying issues; not being transparent with employees and customers follows this same

respect. Lastly, it is very crucial to remember that all are created in the vision of god (King

James Bible, 2017, Genesis 1:27), and deserve the same respect and dignity of another. No

matter the data-driven metrics used, employees should feel that their company is committed to

their privacy and should be compassionate as they work together to meet organizational goals.

With all of the data and information received, it is crucial to ensure that insights retrieved do not

discriminate against employees. Data-driven decisions should promote equity and focus on the

dignity of each individual.

Conclusion

In conclusion, the Arellano et al. (2017) case study demonstrates the use of people

analytics to align with the company's goals. Data-driven insights show directly how the

alignment of human resource practices can support company goals and enhance overall

operational efficiency. Quantifiable metrics, as used in this case study, instead of subjective

assessments, provide insights on hiring, development, and performance management to be more

effective. The use of data-drive decisions should always be based on ethical values. Protecting

employee privacy through different techniques should be the focus to maintain trust and creating

a positive work environment. The use of the Employee Experience Index supports the concern

of employee well-being and the direct impact on organizational success while also ensuring

ethical data tracking. Focusing on the cultural, technological, and physical environments will

ultimately create a more supportive workforce that will influence customer positivity as well.
Analytics Assignment 8

Valuing employees and customers should be the most important aspect when attempting

to create successful applications of people analytics. This case study focused on connecting

people analytics to reach organizational goals and support business outcomes. The study used

key performance indicators and quantification of employee behaviors to challenge conventional

wisdom. Customer satisfaction, service speed, and revenue growth dive into the implications of

human resource metrics involving employees and customers combined. Data-informed

strategies, talent-related decisions, and ethical implementation all influence optimization within

organizations. Ultimately, the integration of people analytics requires a commitment to both data

integrity and ethical stewardship. As Cascio (2022) emphasizes, "The effective management of

human resources involves creating a work environment that fosters productivity, quality of work

life, and ultimately, profitability."

Resources
Analytics Assignment 9

Arellano, C., DiLeonardo, A., & Felix, I. (2017, July 27). Using people analytics to drive business

performance: A case study. McKinsey & Company.

https://www.mckinsey.com/capabilities/quantumblack/our-insights/using-people-analytics-

to-drive-business-performance-a-case-study

Cascio, W. F. (2022). Managing human resources: Productivity, quality of work life, profits

(12th ed.). McGraw Hill.

Lipka, A. (2023). Employee experience models – a comparative analysis. notes on the methodology

of global research on employees’ experiences and their perceptions of the meaning of work.

Acta Universitatis Lodziensis. Folia Oeconomica, 3(364), 52-77.

https://doi.org/10.18778/0208-6018.364.04

McCartney, S., & Fu, N. (2024). Enacting people analytics: Exploring the direct and

complementary effects of analytical and storytelling skills. Human Resource Management,

63(2), 187-205. https://doi.org/10.1002/hrm.22194

Morgan, J. (2017, May 8). Introducing the employee experience index - Jacob Morgan: Best-selling

author, speaker, & futurist: Leadership: Future of work: Employee experience. Jacob Morgan

| Best-Selling Author, Speaker, & Futurist | Leadership | Future of Work | Employee

Experience - Creating Great Leaders, Engaged Employees, & Future-Ready Organizations.

https://thefutureorganization.com/introducing-employee-experience-index/

Pramanik, M. I., Lau, R. Y. K., Hossain, M. S., Rahoman, M. M., Pramanik, M. I., Lau, R. Y.

K., Debnath, S. K., Rashed, M. G., & Uddin, M. Z. (2021). Privacy preserving big data

analytics: A critical analysis of state‐of‐the‐art. Wiley Interdisciplinary Reviews., 11(1).

https://doi.org/10.1002/widm.1387