A lot can happen over Data…
When we have analytics to speak for Data.
That’s exactly what happened when Data was invited to mingle with the HR operations. From soft-operations, it took a century for the HR operations to transform from volunteers for worker’s welfare to HR in operations and slowly into tailoring strategies to improve the organizational performance. While the strategic bent has taught the HR professionals to have parameters to measure, statistical models, on the other hand, gave them the power to derive insights by identifying the pattern of evolution and the variation.
The concept of data visualization on analytics was born of the concept introduced by Google way back in 2006 with a pipedream of people analytics. And with years of iterations, they have perfected the techniques to implement analytics in HR businesses until it was recognized, established, and practiced today as HR analytics. Now the impact lies in how predictive HR analytics will take metrics to a new level and in turn how selective metrics can discipline analytics for HR operations.
Describing HR Metrics with Analytics Standpoint
HR analytics, often synonymously used as people analytics, provides insights that are beyond past and present observations. It gathers data from each event and prescribes to make a better decision for the cause. Analytics reviews an ‘outside-in perspective’ in uptaking business decisions. If you are wondering how HR analytics fits in the picture, well analytics helps to understand why there is a fluctuation in data points.
While HR metrics are indicators that help measure performance, HR analytics go further to provide insight into the metrics such as the influencing factors, impact on business objectives as well as possible courses of action.
For example: Let’s say we are trying to understand the employee turnover in a department.
- Number of employees who left the company during a period is a data point.
- Percentage of employee turnover as a percentage of total employees in the department is an HR metric. This is a measure of performance which can be compared across metrics over time or across departments
HR analytics would go further and try to answer questions such as-
- What are the patterns of employee turnover—are these high-performance employees or low-performing employees?
- Predicting which of the new hires will leave within the next 6-12 months?
- Is there a gap in the fit of the employee to the job function?
In brief, metrics focus on counting, tracking, and presenting past data obtained from effective acquisitions like-Employee Surveys, Telemetric Data, Employee Attendance, Reviews & Ratings, Employee Work History, Demographic Data, Temperament Data, Recruitment Registers, Updated Employee Databases, and others. Where analytics answers ‘What went wrong’, ‘How it went wrong’ and can we mitigate the gap in enterprise productivity with corrective measures to improve the data derived after measuring the metrics.
How both the Metrics and Analytics Drives Value to HR Operations
From work planning and talent management to workforce training and organizational designs, both HR metrics and analytics entail an absolute value chain for the HR processes. HR metrics not only mark the boundary on what to search and where to improve, but they can also calculate the efficiency and effectiveness of functional HRs. Therefore, at the end of the day, we can obtain strategically acquired data and a multimodal review of the performance ROI of the department.
HR analytics tracks the outcomes of metrics on business performance and provides near accurate insights to improve organizational performance, optimize the hiring protocol, and improve their employee engagement. After the acquisition of the observed data-points from the aligned metrics, analytics charts a strategic map to improvise the bottom line in taking adept business decisions. It answers: ‘What happened? ‘Why did it happen? ’What should happen?’ and ‘How to execute the change?’ before executing an enhancement plan through smart tooling and data visualization techniques.
How HR Metrics Is Impacting Strategic Decision Making
The most significant way HR metrics can impact the plan is to track parameters that align with your business objectives. According to a survey report, 82 percent of the HR participants replied that the HR metrics that relate to the core business objectives are – somewhat useful, useful, or extremely useful for their organization. Therefore, understanding the areas of improvement to finalize a particular business objective, will ensure that we are analyzing the prime cause that requires an immediate call to action.
To step ahead in the data analytics game, one has to mark the start and the endpoint of the data mining process. It is important to understand why a particular data set has been chosen to be evaluated and why there is a need to know the data variations for planning out the business prospects and drive organizational development. In another survey report, two-thirds of respondents working for the organization agreed that well-thought survey initiatives from HR’s ground have brought impressive changes in the work environments. Proving the point that- “What gets measured gets improved”.
Know-How to effectively gain a strategic value
Sitting on data goldmine won’t get the job done. The entire process should have properly organized to conclude a prolific result. Here are a few suggestions to better align the metrics to score better analytic temperament in planning the execution.
Arranging the data: As metrics is the string to pull the data together and that helps to organize the data before it gets lost to the data pool, the collected data must be clean and error-free. This requires smart HR systems & dashboards to maintain the data quality as we invest in analyzing the metrics to start reporting.
Getting the metrics right: There should be enough sophistication to track the more complicated metrics which requires a deeper understanding. Metrics such as unwanted turnover are a point of concern for many customers as it requires collecting data from both the HR logbook and on the performance system.
KPIs of relevance: Where most fail is to connect the key performance with the HR goals. Applying an HR target goal with key KPIs minds the place where human capital can play the role of the growth and improvement of the organization, in turn helping them gain insights into the ROI from employee engagement.
Identifying value-driven metrics: You can leverage the data and metrics to add value using analytics. This starts by identifying a business case that, when solved, would add value to the business. This means that your outcomes need to be actionable.
Executing the end-goal: After finishing the first set of analytics, the next step will be implementing the acquired insights into strategic management to create strategic goals for the organization.
Managing factors that align with the objectives: It’s very important to measure factors that ultimately respond to or complement the organization’s goal. Recognizing the agenda whether the need lies to involve skilled technocrats to manage the IT for the organization or communicators to engage in client conversations. It’s always easier to set forth a plan with a pre-set end-goal, benefiting both the organization and the hire to grow.
Informing the management about the motives: What’s optimum is to give a heads-up to the directors and the top executives of the organization. It can help them reorganize the department or give them a hint before new regulations are in place so that the workflow is not disturbed.
Merging people factors with organization metrics: It’s not only about measuring the HR metrics, employee performance management is also important. Knowing the impact of the measures taken is relevant – whether it has helped the employees with the comfort they are seeking at work and how it is impacting the organization’s financial growth.
Deciding the needful: Then comes the final evaluation where the HRs have to show measured figures for cost per hire, turnover rate, attrition, retention, and more. It is for the HRs to decide how important are these factors for the business and how the extremes can affect the company. Here HR analytics is the only way out to find the reasons, pinpoint the bad decisions and suggestions for improvement, and optimizing metrics beforehand gives focus to effective analysis in place.
To apply all the factors in the human capital management framework the professionals need ready tools and the knowledge for application. In the fast-paced world, upskilling will be the only tool to win the race. In India, 92 percent of the talent acquisition heads support analytics in shaping the future of HR and recruiting, while 71 percent of companies see people analytics as a high priority. The gap in the talent pool is only acknowledged by 22 percent of the professionals. Now, India’s most prestigious B-school chain, IIM Lucknow is offering an executive course work of Talent Analytics and Human Resource Management in association with Miles Education as their official channel partner.
Miles Education is always committed to your career success and brings to you new-age certifications in Finance and Emerging Technologies. We have partnered with WileyNXT to offer PG Certifications in AI from top IITs/IIMs in AI, ML, Deep Learning, and Analytics.
To know more take a tour to the Miles Education website and suite yourself with the courses that you need to up-skill or re-skill to stay relevant in industry standards.