Ivy Feb 23, 2014 No Comments
Using data to drive HR (Human Resource) strategy
Where does the best talent come from? Which businesses or managers are the best talent scouts and coaches?
How can I compare the attrition rates over the last 3 financial years?
Does the staff turnover rate in the sales department have a relation with recent revisions in sales performance policies?
Is workforce productivity increasing, decreasing or static? How is our performance as compared to the industry?
HR analytics has taken the industry by storm as business leaders make strategic decisions based on people intelligence. From a traditional art, Human Resource management has become a science, where investments are made in data and technology for business insights.
Whether you term it Human Resource, Workforce, Talent or Human Capital – the employees of an organisation are recognised as the most valuable capital. With salary cheques touching all-time highs and employee attrition rates becoming common across industries, it is more a question of finding and keeping the right people. Take a look at these infographics – a revelation on why employee engagement is pertinent.
Is HR Analytics just another buzzword?
The Indian industry is abuzz with the news of Infosys reducing its top official counts because they were “deriving high salaries and not adding value”, according to the Chairman. How do you think they arrived at this decision to identify three areas to cut employee costs? Use of Workforce Analytics, and of course, their in-house interactive dashboard Infosys TalentEdge.
With the entire HR process being automated – from hiring, recruitment, evaluation and compensation – administrative HR is becoming more strategic and analytical. However, to be useful for business strategy, HR analytics extends beyond conventional reporting to stratgic and predictive modeling.
In an uncertain economic climate, workforce planning and management is part of strategic planning for a business. The need to achieve higher efficiency, improved performance, ROI and growth has compelled HR management to be aligned with company objectives.
Senior HR Consultant and Director OF PEOPLExcellence, Kolkata, Sriparna Bose Pyne, who has put in more than twenty years as a HR professional across industries, comments
“With roles becoming more complex in the changing business scenario HR analytics can become an important tool for mapping talent in terms of their functional and leadership competencies.” As one who engages in the complete HR process, she feels, “this will greatly reduce the need for recruitment and orientation time, while providing growth opportunities to internal talent, thereby promoting retention”.
So what is HR Analytics?
A simple definition from Techopedia
“Establishing a cause-and-effect relationship between what HR does and business outcomes – and then creating strategies based on that information – is what HR analytics is all about. In totality, it is reveals how HR department has an impact on the organization as a whole”.
However, as systems integrate HR analytics, the concept has assumed a new form best defined by Gartner
“Workforce analytics is an advanced set of data analysis tools and metrics for comprehensive workforce performance measurement and improvement. It analyzes recruitment, staffing, training and development, personnel, and compensation and benefits, as well as standard ratios that consist of time to fill, cost per hire, accession rate, retention rate, add rate, replacement rate, time to start and offer acceptance rate”.
What value does HR Analytics bring to an organisation?
# lean, efficient and engaged workforce
# fewer headcount reductions during recession / cost-cutting
# measuring return on human capital investment
# HR impact on performance, productivity and profitability
# deep insights into business processes and performance
# compile, compare and examine trends in workforce data
# identify gaps / inefficiencies caused by wrong talent-mix
As HR Advisor and coach C. Mahalingam says “Analytics in HR is not about reporting, dashboards or complex math. It is the link that enables leaders to identify top people drivers of business results.”
HR’s Evolving Role in Organizations and Its Impact on Business Strategy – Linking Critical HR Functions to Organizational Success
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