mxcp

KMS2154

THE HR
ANALYTIC CYCLE






(A SEVEN STEP
PROCESS FOR
BUILDING EVIDENCE-
BASED AND ETHICAL
HR ANALYTICS
CAPABILITIES)




INSTRUCTOR:
DR. AGATHA LAMENTAN ANAK MUDA

MAKING BETTER HUMAN CAPITAL THE MEANING OF HR
DECISIONS BY USING THE BEST AVAILABLE ANALYTICS

SCIENTIFIC EVIDENCE AND
ORGANIZATIONAL FACTS WITH RESPECT

TO ‘EVIDENCE-BASED
HR’

MOVING BEYOND DESCRIPTIVE HR
METRICS TO PREDICTIVE HR METRICS

S

SEGMENTING THE WORKFORCE, USING STATISTICAL
ANALYSES AND PREDICTIVE MODELLING PROCEDURES TO
IDENTIFY KEY DRIVERS THAT ENABLE AND INHIBIT IMPORTANT

BUSINESS OUTCOMES

MAIN PURPOSE

The main purpose of the
article is to evaluate the

meaning of Human
Resource (HR) analytics and
introduce the HR analytics

cycle as a proactive and
systematic process for
gathering, analysing,
communicating, and using

evidence-based HR
research and analytical

insights to assist
organizations in achieving
their strategic objectives.

MAIN POINT

The HR analytics cycle involves
seven steps to help organizations
develop HR research and analytics
capabilities. More importantly, it
serves as a proactive and systematic

process for establishing a
comprehensive portfolio of strategic
HR analytics practices, projects and

priorities that enable HR strategy,
evidence-based decision-making
and the execution of the overall

business strategy.



Figure 1: HR Analytic Cycle

is a key phase in the HR analytics

cycle for firms to establish HR
research and analytics
capabilities.

In relation to the HR analysis cycle, ongoing
and proactive partnerships with key

stakeholders play an important role in
ensuring initial trust and legitimacy to

obtain an accurate picture of the
organization’s most pressing problems.

Executives and senior HR leaders, for
example, are more interested in how HR
analysis is enabling HR strategy and
implementation, critical workforce decisions
and other important business outcomes

It is much more than meeting with a few
influential or vocal stakeholders each year to
formulate an annual HR research and analysis
agenda. It's also about creating and nurturing
partnerships and being a legitimate player by
adding value to the business.

The HR research and analysis agenda

may be long term or short term. The

constantly evolving nature of business
and the future of work redefines what
is considered long term and short
term.

Therefore it is important to note that
short term does not necessarily
mean tactical or reactive while long
term is also not equated with
strategic because short term and
long term research can be strategic
and tactical in nature.

In the age of aggregation and visualization of
data on demand, algorithms, artificial
intelligence and long term automation are no
longer 3 to 5 years out.

Human Resource and Talent Management

Next step is to identify data resources

that will help to answer the questions
and hypotheses of HR research and
analysis.

While personal data includes the While reviewing data sources, the questions
organization’s internal employee data stored that may come out is whether organizational
in HRIS as well as external benchmark data HR research and analytics practices are still
from best in class organizations. For example, useful to businesses as some practices may
the UK Office for National Statistics and U.S. have been institutionalized over the years.
Department of Labor Statistics. Therefore, some difficult decisions may need
to be made with respect to modifying existing
HR research and analytics practices to stop
outdated or symbolic practices and accept
new practices.

Selection research uses validated personality HR analysis involved the collection of
instruments for leadership succession, data through primary research,
employee and organizational surveys for secondary research or mining the
action and change planning to determine organization’s internal data in HRIS.
the level of cooperation according to specific
occupations and roles. Primary research is new or original research

that addresses a specific research question

or set of questions.

For example, a research or experimental project
to identify which factors enable or hinder
employee performance engagement.

the most important but A meta-analysis in the For example, predictive
context of HR analytics is analytics, process
most challenging step a very important and analytics, text and
valuable tool that can be sentiment analytics and
which is transforming used for summarizing real-time analytics that are
data from multiple data suitable products in
data. The goal in sources in relation to each incorporated HR
other. However, it is not analytical capabilities.
transforming data is to an easy task because Likewise, several
turn the data into performing meta-analysis promising data
information and can be simple or complex aggregation and
information into insight as it requires careful visualization platforms
which also applies to HR thought and planning to have entered the market
research. provide accurate and though not even a bit of
useful information. these platforms can
analyze, visualize and
interpret data. So, the
organizations should
perform a meta-analysis
to establish statistical
procedures in targeted
data sources.

Storytelling is a method Storytelling with data can An important part for HR
that has been empower organizations to analytics capabilities is
progressively used by better utilize important storytelling with data
organizations as a tool to communication strategic and visualizing the data
communicate data-driven metrics by turning them in the context of
insight for both visually into useful and actionable organization's most
and words because it can insight and presenting pressing problems and
ignite emotions, simplify them in the form of data successes, because the
and transmit complex stories. However,
data analysis. For misleading insight and story is powered with
example, build a inaccurate data will
compelling narrative with invariably lead to bad compelling data.
the insight data to give an workforce decisions and
example of the power of big organizational
storytelling with data consequences.
visualization.

The final step of the HR strategy engaging in specific evidence-based HR that is
behaviors and consistent made based on the analysis
analytics cycle is to enable action to effectively and interpretation of
implement the strategy. HR relevant, accurate and
HR strategy creation and strategy is very important for timely data should support
realizing employee, and inform the decision
evidence-based decision- operational, stakeholder and maker in order to achieve
financial outcomes and as strategic objectives. This
making. Organizations well for sustaining a will enable HR strategy to
competitive advantage. make a decision and plan
increasingly utilize data to accordingly in order to
effectively minimize the
make decisions that possibility of failure when
implementing their future
ultimately impact their initiatives.

bottom line. This has
provoked the transition
into an evidence-based
approach to HR strategy
functions which expanded
the responsibilities of HR
function.

IMPACTS BENEFITS

O
F HR ANALYTIC CYCL
E

The HR Analytics cycle is very
It can improve employee’s
performance, experience,
crucial in achieving their strategic and maximize business
objectives. To ensure that the outcome. Other than that, by

practitioner and organization using the HR Analytics cycle it

achieve the key metrics plus can help in measuring
investment and reskilling
collecting the data requirement is practitioners and leaders of

needed in implementing the HR that can lead to the right

decision to achieve the best competencies. Overall, HR
workforce performance. Thus, the
analytics cycle steps are really
HR analytics cycle is being used to
beneficials in HR analytics as it
introduce the organization on its
function and impacts on business produces smarter workforce
goals. HR Analytics cycle also can decisions or individual and
organizational performance
drive business value through data outcomes.

collection. Besides, HR has access
to valuable employee’s data.

UNDERSTANDING
OF THE TOPIC

Based on our understanding, this article showing the
process of implementation of HR analytics into an
organization. it also shows the function of HR analytics in
an organization, the impact and benefits which make
optimizations to achieve better performance.

We understand that HR analytics cycle framework makes use of these
data collection to analyze patterns that will assist in effective decision-
making. Besides, it enhances the organizations productivity by
organizing the data strategically that will be useful for organizational
development.

The implementation of HR analytics is a slow process that depends on
many parties. The practice of HR analytics particularly used in
profitability, financial performance and organization.

To win the marketplace, you must first win the workplace
-Dough Conant

RONIA JELENA PUAU ILMIE ERYCIA ANAK
GIRA (75037)
ANAK ROBERT (76654)

UMI MARDYNA
BINTI AZAM (73864)

SHERLEY EMYLIA (77449) CAROLINA ANAK
CASSIDY (74339)