Everything to know about HR Analytics - eBook

HR analytics is defined as the systematic identification and quantification of the people drivers of business outcomes: as per Heuvel & Bondarouk 2016.?

In the organizational setup now there are no more promotions, salary raises, or training opportunities abroad on relational or intuition-based; (commended by Kremer and Kristian in 2018), and rather the data-driven approach is followed in letter and spirit for not only the said strategic decisions but even departmental coordination, inter-departmental transfers, human resource postings at different job locations on diverse changing roles, growth avenues, and so on are all made on decisive approach which in truly quantified along with qualitative in nature, what we call in academic research as the mixed approach, we may say some of the HR analytics domain.

HR Analytics is also defined as HR #dataanalytics, predictive analysis, human resource analytics, workforce analytics, long-term data collection, talent analytics, and employee data analytics. Whereas people analytics is concerning human functions but HR analytics is #people plus systems in place.

HR Analytics is the process of strategic decision-making through several steps:

• Step # 1:?Business Problem or Question:?In #hr research, we focus on applied research for finding a solution to current problem(s) at the Organizational level – that is “what” part of the question is replied to here. And, the basic research targets the recurrent nature of such problems which is the “why” portion of the question being addressed therein. Similarly, for a Business problem to be known is necessary for HR Analytics to carry on to its better next step of collecting data for the same = for the solution purpose of that problem indeed.
• Step # 2:?Relevant Correct Data Collection:?After an HR analyst is well versed in the current problem for conducting a solution that is applied research-based, step two is collecting relevant data from all the available cum reliable sources, where reliable sources of data are often known in HR language as data selection as well (in other words: data reliability in the academic HR research world).
• Step # 3:?Data Cleansing:?After HR personnel dealing with HR Analytics is done with the prior two steps, it is time to cleanse the data - in terms of taking out the outliers which are of no use - For example: if you want to know the average salary of a person in any company, you have twenty people out of those nineteen are taking approximately near to $ 15000 per annum, and the one employee is making $22,000 annually, this case needs only nineteen people to take data for because if you put the 20th?person drawing much salary would disturb the average wage of the year of that team. Therefore analysis needs proper cleansing i.e. considering/ taking required data only.
• Step # 4:?Data Analysis:?This is a crucial part of the HR Analytics action plan for strategic reasons. Proper data analysis needs expertise in the HR area of the working domain. For example, if someone claims s/he is going to change the organizational design and culture dramatically within no time OR it is easy to change economic indicators for an organizational setup; remember that these are far cry only! Therefore the workable SMART goals orientation-based data analysis work for your proper applications of HR analytics at organizational levels – both micro (inside organization like strengths, weaknesses, diversity of the workforce, organizational design and culture, people, policies, resources, rules, inter-departmental coordination; etc.) and macro (outside organizational factors: opportunities, threats, economy, technology, politics, societal corporate responsibility; etc.).
• Step # 5:?Decision making as per HR Analytics:?The last but pivotal step in HR analytics is the decision-making process - referring back to the last four steps, the decisions which are in favor of the organizational visionary strategies. And the decisions taken by utilization of HR Analytics, as research suggests so, are far better than before, towards the accomplishment of organizational goals and objectives.

Therefore, if the major recession worldwide is facing your organization in several aspects too, one is not there to follow the steps above and the #recession will diminish! But then again at the same time if one employee concerning HR analysis knows the real data which is relevant and reliable too, and that is sorted cum selected data, done a proper analysis of; hence after it is the possibility near to a better percentage of the business decisions so far that the selection of the #business decision(s) with the help of HR Analytics steps, even in a recession or like phase(s) of the global business cycle, would be sane and informed, thereby HR analysts are immensely helped by #hranalytics to take business decisions.

What is more to understand it, is to simply put: HR analytics is #hrmetrics interplay of statistical figures and facts finding some conclusive point of view inferred from the available data. That conclusive viewpoint is the decision-making in terms of not only employees’ professional progression but that too in line with the organizational strategic vision and mission at the back of the mind and at the forefront of the tasks.

There are five major characteristics of HR Analytics that must be known to your employees who are working for you in your HR section:

Turnover Awareness Analytics

Your employees working for you in the HR domain must know the employee turnover rates from the several past years’ slab history of switching jobs; not only this but using that data should estimate the manpower requirements for you in the future. Succession planning is the inevitable task of HR by way of the utilization of past turnover experiences, to-be retiring employees, and/or accidental/routine deaths in the company. Hence in HR analytics, turnover awareness analytics is one of the necessary areas to be known by your HR working employees or HR business partners.

Competency Cognizance Analytics

What competencies and capabilities your employees have, is another important part of HR Analytics to identify for employees working in your HR unit. HR is not only HR but your strategic partner who looks into the very details, through HR Analytics, of the peoples’ capabilities, qualities, competencies, knowledge, skills, and abilities profile (say: CQC-KSA profile). This profiling is then cross-matched within the working employees’ profiles to bridge the CQC-KSA Profiling gaps if any. The employees’ good traits are shared and the bad ones are tried to be decreased.

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