People Analytics for Human Resources

People Analytics for Human Resources

HR analytics, also known as people analytics, workforce analytics and talent analytics is transforming HR departments.

What is HR Analytics?

HR analytics refers to a specific area of analytics where data analysis is used to help managers, leaders and executives make logical decisions about their employees or workforce. HR analytics applies data visualization, statistics, and technology to a wide range of data sets. Examples include:

• Hiring and terminations

• Employee performance and salaries

• Employee surveys

• Recruiting performance and channels

• Attendance records

• Promotion data

• Demographics data

The application of numerical analysis to this data, and the combination of this data with core operational data, allow companies to make better management and business decisions.

HR analytics is a growing initiative for most HR departments. As the cost of the workforce increases and becomes a larger percentage of revenue, CFOs and CEOs are looking to create an increased return on their investment in people. It has become crucial that HR departments move away from the old approach of gut feel decision-making.

What are the Benefits of HR Analytics?

HR analytics enables leaders and professionals to make data-driven decisions to improve the performance of HR processes such as talent acquisition, employee retention, workforce management and strategic workforce planning. Additionally, data analysis helps leaders make decisions to improve the work environment and increase employee productivity. It can improve the bottom-line when applied to key business problems.

HR leaders must align HR data and initiatives to the company’s strategic objectives. For example, a company may want to improve its success rate in recruiting technical professionals or decrease the number of safety incidents each year. To determine how to improve these activities, HR analytics can be used to examine correlations (numerical relationships) between activities and the factors thought to drive them.

For example, a company with a goal to decrease the number of accidents in the factory, will gather data on employees, factory conditions, training records, employee schedules and other factors that are thought o impact safety. Once data is gathered, analysts can create data models, algorithms, and tools to test the hypothesized factors that may be impacting safety. These analyses can produce actionable insights to reduce the number of safety incidents, to reduce the cost of safety accidents and improve employee well-being.

These tools provide insights in the form of customized dashboards, data visualizations, and reports. An ongoing KPI measurement system can be developed to measure the success of the continuous improvement actions.

Case Studies in People Analytics

Companies have sought the expertise of Tracey Smith for HR analytics because she knows, first-hand, the challenges being faced in HR. Ms. Smith has been recognized as one of the "Top 15 HR Analytics Experts to Follow" and one of the "Top 50 Global Influencers."

She has helped clients answer workforce questions such as:

• How many times will an employee apply and get rejected internally before they leave the company for an external role?

• How long will employees stay at their current level before they seek opportunities elsewhere?

• Are our hiring, promotion and performance appraisals fair or skewed across our employee base?

• Are our training programs effective? Which purchased training programs are effective?

• What should our diversity goals be and what needs to happen to accomplish those goals?

• Are the needs of HR aligned to the needs of business leaders? How effective is HR at delivering on the needs?