HR ANALYTICS_THE PEOPLE ANALYTICS AGE

THE PEOPLE ANALYTICS AGE

1ST APRIL 2021

LEARNING OBJECTIVES

• Understand the concept of talents
• The roles of people
• The evolution of HR

INTRODUCTION In a midst of acquire –
skills workers

In US – USD400 billion –
locating, securing and
holding

THE PEOPLE ANALYTICS ADVANTAGE

ADVANTAGES

Improve retention.
Drive employee performance.
Create better compensation and incentive programmes.
Supercharge recruitment.
Make real change to company culture.
Improve employee engagement.
Enable better workforce planning.
Promote better employee development.

HR TRENDS – HR ANALYTICS

Digital technology
Decrease employee tenure and loyalty
Influence of millennials
Globalization
Engaging talent
Talent competition
Skills gap
Talent Management

DIGITAL Roles of digital media
TECHNOLOGY
Internet and other digital environments
have changed the workforce equation

Enhanced the word-of-mouth channels

Affected HR practices

• Talent sourcing
• Retention
• Hiring
• Recruitment

DECREASE Issues of employee turnover
EMPLOYEE
TENURE AND Less engaged
LOYALTY
Working from home – telecommuting
– tele-work
Causing low morale, high turnover,
disengagement, lack of team spirit

Millennial – Job Hopper

THE DIFFERENT ATTTITUDES STRONGER DESIRE ON
INFLUENCE PERSONAL MEANING OF THE
OF
MILLENNIALS JOB

AFFECTED – PERFORMANCE
APPRAISAL

GLOBALIZATION Complex labor market
OF THE dynamics
WORKFORCE
ECONOMY Brain Sharing

Lead to – complexity
leaders in driving force

EMPLOYERS AS ENGAGING
TALENT

Attract Acquire Advance

Engagement Cycle

INCREASED COMPETITION FOR TALENT

Tracking Analyzing Integrating

SKILLS GAP COMPETENCY BASED OR DISRUPTIVE FORCES –
IN THE TIME BASED? SHAPING GLOBAL ECONOMY
LABOR
MARKET

TALENT IS ONE OF THE LAST COMPETITIVE
DIFFERENTIATORS

Structural changed Gold Collar Talents

Decentralized High-end talent
Flat structure
Effects of technology

HR EVOLVES INTO TALENT MANAGEMENT

PUTTING IT HR as tactical to Strategic Partner
INTO
PRACTICE Enhancing
• Alignment of Corporate Priorities
• Effective Communicaiton

WHAT EXACTLY IS PREDICTIVE ANALYTICS, AND WHY IS
IT USEFUL

WORKFORCE
PLANNING

WORKFORCE
OPTIMIZATION

WHAT CAN
ANALYTICS
DO FOR YOU?

PREDICTIVE ANALYTICS
AND HR

Diversity and Reducing
Inclusion turnover and
unstructured data

5 TIPS FOR DEVELOPING AND
MANAGING HR METRICS

Know and show why
an HR metric matters

• Why are you keeping track of the metric?
• Why is it important?
• If a metric’s connection to a business priority is not apparent,

don’t track it.

HR to Staff Ratio = Employees / HR Team Members. This ratio is
important since during the recession HR departments have
reduced in number dramatically. HR serves as the internal
customer support staff just like call center customer service
employees serve as external facing.

KISS: Keep it Simple

The metric will no be used if the
information is not clear or it is
complicated to gather and calculate

• Sophisticated calculations are time consuming, so
keep it simple!

Employee Absence Rate = number of
days in month / (average number of
employees during month x number of
days).

Keep your Managers
in Mind

High level managers may not be interested in the same metrics as HR

Create some metrics that tracks HR efficiency and gather other reports for
executives.

Average Employee Age = Total Age of Employees / Headcount. This is an
important metric in my mind when looking at succession planning and forecasting
staffing areas of opportunity as older workers begin to consider retirement. Also an
important metric when calculating benefits cost for your organization.

Connect HR Metrics to
Business Metrics

HR metrics should always be connected to strategic objectives!
Start with understanding the organizational strategy
Create a strategy map
Ready to create HR metrics

Don’t know what they
are?

• Ask:
“What are the business Metrics”

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Building the
Metrics Model

Metric/Tool Examples

Metrics Surveys Smile Sheets, 30 Day Behavior Change,
Comparisons Annual Corporate Employee Satisfaction
Survey

•Performance •Promotion Rates
• 360 Assessments
Mgmt System •LDP vs. Everyone
•Competency/Beh
else
avior Change
• Performance of

Direct Reports

Mentoring Mentoring Surveys +

Relationship involvement across the business
View from Mentee / Mentor

Business • Individual and Group contribution to
Metrics
Business Goals
• Business Case Results
• Performance and Annual Reviews
• Delivery on Change Management
• Increase Coaching and Business

Contribution

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Promote, communicate and • Be sure to promote metrics
share metrics widely that demonstrate a positive
impact of people on the
bottom line

• Should be presented in the
proper context to show the
strategic impact of what is
being measured.

• Promotion
Rate = Promotions /
Headcount.

3 Basic HR #1 Staff Absentee Rate
Metrics
• Formula: # of days in month / (# of
employees x # of days)

#2 Monthly Turnover Rate

• Formula: # of separations in month / #
of employees

#3 Recruiting Source Yield

• Formula: # of applicants hired / # of
applicants from recruiting source

Organization’s most important issues (e.g., dollar sales per Other
employee) Measurement
Methods
Human capital ROI
Turnover cost

Compensation as a percentage of operating expense
Training investment factor
Time to start
Cost per hire

Metric Always be willing to learn!
“Don’ts”
Bigger is not better

Don’t neglect the organizational strategy –THIS IS THE
MOST COMMON MISTAKE

• The organizational strategy is key to determining what measure
matters most.

• Essential in determining which people metrics will measure human
capital impact.

Remember to include information that interests top
executives and not just HR

Not every HR function that can be measured should be.

Know Where Your Org Is

HR Focus: Staffing and Compensation, HR planning, Change management,
Staffing training training outplacement, cross-
training
Challenge:
Bureaucracy Challenge:
Change resistance
Challenge:
Delegation Need:
• Streamlined
Challenge: Need:
Leadership Formal systems decision making
• Flexibility
Need: Need: Maturity • Small-company thinking
Creativity Clear direction
Decline
Introduction Growth

COMPETITIVE Comparisons

35

Thank you

Questions? Input?

ASSIGNMENT

HR WORKFORCE
TECHNOLOGY ANALYTICS

REPORT REPORT

REPORT

Identify the Issue/s from the report – 20 marks
Extract the Important points and explain – 20 marks
Link the point with 4 LR – 20 marks
Your 3 – 4 suggestions on the issue/s – 40 marks