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Module 2 RISE IN HR ANALYTICS

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34 views12 pages

Module 2 RISE IN HR ANALYTICS

Uploaded by

Munni Chukka
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MODULE 2

RISE OF HUMAN RESOURCE ANALYTICS


INTRODUCTION
Human Resource analytics is a data-driven approach to managing people at
work. HR analytics, also known as people analytics, workforce analytics, or
talent analytics, revolves around analyzing people problems using data to
answer critical questions about your organization.

HR analytics is the application of statistics, modeling, and analysis of


employee-related factors to improve business outcomes.
Human Resources Analytics (HR Analytics)

MEANING
Human Resources Analytics (HR Analytics) is a field of analytics that
refers to implementing an analytics process in an organization's human
resources department in the hope of improving employee performance
and return on investment.

HR Analytics does more than just collect data about employee efficiency.

Purpose is to provide an understanding of each process by collecting


data and making relevant decisions about how to use it to improve these
processes.
DEFINITION

• area in the field of analytics that deals with people analysis and
applying analytical process to the human capital within the
organization to improve employee performance and
improving employee retention.
How does HR analytics work?

 HR analytics follows a pattern of acquiring and analyzing information, which


can help the organization derive crucial insight into their functions.
 Overall, HR analytics follows a multi-step process to understand their
workforce more thoroughly.

1. Data collection

This data includes employee profiles, performance, data on high-performers and


low-performers, employee demographics, salaries, promotions, training,
attendance, engagement, retention, and turnover.

evaluate the efficacy of crucial HR practices like talent management,


recruitment, and training.
2. Measurement of data
• evaluate and compare the data that they have acquired using HR metrics. 
• A continuous inflow of data will be required for HR to be able to compare
present data and evaluate changes.
• three key metrics - organizational performance, operations, and process
optimization
• These metrics are gathered over time and then compared with an acceptable
rate set by the company to evaluate its performance.

3. Analysis of data
• analyzing the data gathered and measured.
• This stage focuses on identifying critical patterns and trends that can impact
the organization in the long run.
• The analytical stage uses the information from the HR metric stage to see how
the data can help in giving the HR insight into the company’s current
operations and determine areas of improvement.
 Descriptive analytics - historical data is used to understand ways in which
operations can be advanced.

 Predictive analytics - statistical models to predict future risks and opportunities


for the organization.

 Prescriptive analytics -  forecasts gathered by predictive analysis and uses it to


identify the consequences of these predicted outcomes.

4. Application of data

• application of the data that has been collected, measured, and analyzed.

• organizations can also implement new initiatives and strategies within the
workforce that can weed out the weaknesses and bring more efficiency in
operations.
Why is HR analytics needed?

 Understand own strengths and weaknesses.


 enhance productivity
 optimize cash flow
 achieve organizational success and development.
Benefits of HR Analytics

1. Improved Hiring Decisions


2. Improved Hiring Process
3.  Good Training
4. Better Employee Insights
5. Reduced Attrition Rate
6. More Productive Workforce
WHAT IS NOT HR ANALYTICS

HR analytics doesn't collect data about how your


employees are performing at work, instead, its sole aim is
to provide better insight into each of the human resource
processes, gathering related data and then using this data
to make informed decisions on how to improve these
processes.
EVOLUTION OF HR ANALYTICS
TYPES OF HUMAN RESOURCE ANALYTICS
Gartner’s model has described various kinds of depth levels HR analytics includes
which are discussed below:

 Descriptive: it explains “What” of HR data. It interprets the historical data to


analyses results. It includes
key performance indicators and dashboards to explain the data.
 Diagnostic: it explains the “Why” of HR data. It gives a deeper analysis of
descriptive data.
 Predictive: it explains "What will" of HR data. It uses statistical modeling to
predict results. It explains
the trend that would occur in the future.
 Prescriptive: it guides to understand the HR data and provide evidence-based
results. It uses simulation
and optimization techniques.

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