How HR Analytics can drive HR Success?

Before we move on to the HR Analytics, lets be clear on how do we define the term "Analytics" . There is always a misconception among many that the moment we use "Analytics" the first thing that comes to our mind is "Data" and we presume that data analytics is all about data ?

In reality "Analytics" is not only about Data, it is about the "?" Process, Problem statement , Questions we ask and what we are trying to solve, Data is just one of the key parameter that will help us in taking this step forward . What are the Methods we use to analyze the data determines the outcome we want to achieve

In Simple terms "Analytics" is - Process - Problem statement (Can be or cannot be) - Methods (Metrics , Dimensions, Parameters, Statistical, Reasoning etc) to use the Data . But it all starts with the "Question we ask or we want to answer by using the data points in a particular business process

Now we know what is "Analytics" then what is "HR Analytics" ? HR Analytics is in simple terms aligning people and process by leveraging on data points and metrics to resolve any business case in an organization. HR Data can be Employee Master Data, Attrition report, Turnover report, MIS reports , Absence report, Payroll reports etc . how we interpret the data points by aligning with the issue we are trying to resolve will all be part of "HR Analytics" with prime focus on aligning people and systems with the Process.

Lets see how the HR Analytics can be used to drive key Business strategies and Enhance employee engagement , customer satisfaction in a organization. before we move on to this we should understand the different phases of "questions" that will determine the categories of Analytics

1. What is my current status using report analysis : This is Descriptive Phase where we are trying to understand the current scenario using the data or report analysis . for Example we want to understand the current Attrition Rate in a particular team , The data we use will give subjective interpretation with qualitative and quantitative results mostly representing current status
2. How / Why this has happened : This is Diagnostic or Causal phase where we are finding the root cause/ reasons for the particular event , for example : We want to understand the reasons for the High Attrition rate in a particular team or entire organization. Here the data analysis will be done to find out the reasons or cause for particular event or problem
3. What if the current scenario continues : This is Predictive phase where we are trying to identify the potential scenarios that can happen if the current state continues. for example : What will happen if the current High attrition rate continues, this is Hypothesis kind of scenario building and interpretation that help us understand the forecasting the future scenarios using the current trend analysis
4. What can be done to avoid the same : This is Prescriptive phase which will be like a suggestion or possible recommendations we try to conclude using the trend analysis and hypothetical factors identified as a top most reasons for a particular problem or issue. For example for High Attrition rate the top 3 problem creators can be 1. Employee vs Manager relationships 2. Lack of Growth options 3. Lack of Learning opportunities etc . using this phase we try to address the problems by focusing on key or top problem creators as recommendation using Analysis.

Image Source : Spiceworks

As per the above Image , it is very much evident that the Primary step we as a HR has to follow is to clearly understand the Business goals of Organization and Individuals then identify the metrics to be analyzed followed by collecting and analyzing the relevant data sets, Once we arrive at Insights then the same needs to be communicated clearly to to the top management that how it impacts the Organization overall.

In nutshell, we are trying to resolve a business case scenario or problem by using data as a key driver fuel by the metrics in which we want to analyze the data overall. HR must focus on the "Right Question" to be asked for a particular process or Business model " What are we trying to measure and resolve " Different process has its own metrics as a measure

• Recruitment : Metrics can be to see the Hiring rate , Hiring cost, Time for Hire, Candidate satisfaction rate, etc
• Onboarding : Time for Onboarding , Employee satisfaction score, Tenure or Longevity of the employee from Onboarding , Process understanding levels, Skills and competencies utilized ratio
• Learning Curve : Learning Agility ratio, Total Cost Benefit of Learning program, Successful completion rate , Implementation or practicability ratio, Promotion rate
• Performance Measure : Performance evaluation rate, Timely completion of assessment ratio, Feedback Vs Actual comparison ratio, Actual VS Budgeted achievement rate, Promotion rate, Tenure Vs Key Project ratio, Behavioral competencies exhibit rate, Rewards & Recognition ratio, Retention rate, Attrition Rate, Absence rate
• Employee Vs Organization : Employee Engagement rate, Mood swing ratio, Employee satisfaction levels , Ease of Process ratio, Employee turnover ratio, Mental wellness program effectiveness rate etc.
• Exit Management : Voluntary Vs Involuntary Resignation / Termination Ratio, Reasons of Leaving , Culture or climate survey result / rate, Attrition Ratio etc.

There are so many Metrics or parameters we as a HR can focus on , Above mentioned are some of the key focus areas where we see mostly People centric focus as the key driver to take any business critical decisions and ensure employee friendly culture in any organization

Conclusion : #bharathspeaks : HR must change their perception now while seeing the data , It is not just data analysis but overall Business process realignment exercise to improve the workplace culture and drive employee engagement and satisfaction at each process level along with ensuring the Organization goals are achieved successfully. With the Advancement of Technology day by day it is now easy to build a data source and leverage on the Analytical tools to interpret the data but what is more critical is we as a HR must be clear and transparent in what we want to solve or achieve using the HR Analytics as a medium.