An overview of hr analytics
- 1. AN OVERVIEW OF HR ANALYTICS PRESENTED BY- JIBY VARGHESE S2 MBA (DAKSHA) HUMAN RESOURCE MANAGEMENT
- 2. Application of a methodology and integrated process. Relies on statistical tools and analysis. Requires high quality data, well chosen targets, talented analysts, leadership, broad based agreement. Involves descriptive components and predictive components.
- 3. HR analytics is a hot topic these days. With new conferences, books and software emerging at a dizzying pace, it’s easy to lose sight of what’s really important in this realm- the reasons why analytics has become so important in HR. In a nutshell, the increased attention on analytics is
- 4. the result of both necessity and opportunity. Necessity arises from the growing centrality of human capital management as an essential organizational core competence. Whereas 35 years ago “intangible assets” accounted for only 9% of value creation, today intangibles
- 5. account for 65% of value. Those intangibles? They are created by people. Opportunity arises from the growing availability of readily accessible data on virtually every aspect of the management and development of people. This is the data that, with some analytic.
- 6. ingenuity and the assistance of increasingly powerful and accessible software applications, can be transformed into valuable, actionable insights and intelligence
- 7. MEASURE AND MANAGE RETURN ON INVESTMENT LINKAGE OF BUSINESS OBJECTIVES AND PEOPLE STRATEGIES PERFORMANCE IMPROVEMENT “WHAT GETS MEASURED GETS MANAGED. WHAT GETS MANAGED GETS EXECUTED” -PETER DRUKER “THE BUSINESS DEMANDS ON HR ARE INCREASINGLY GOING TO BE ON ANALYSIS JUST BECAUSE PEOPLE ARE SO EXPENSIVE.” -DAVID FOSTER “TO CLEARLY DEMONSTRATE THE INTERACTION OF BUSINESS OBJECTIVES AND WORKFORCE STRATEGIES TO DETERMINE A FULL PICTURE OF LIKELY OUTCOMES.” -HR DASHBOARDS- SAP “GLOBAL ORGANIZATION S WITH WORKFORCE ANALYTICS AND WORKFORCE PLANNING OUTPERFORM ALL OTHER ORGANIZATIONS BY 30% MORE SALES PER EMPLOYEE” -CEDAR CRESTONE
- 8. The statistical techniques deployed in HR Analytics run the gamut from the very simple (calculating the average value of a variable) to the complex (multivariate regressions, factor analysis, simultaneous equations and neural networks). In truth, though, we have found that
- 9. the importance of the problem being analyzed is often inversely related to the sophistication of the statistics available. The reality is that the most advanced statistical methods need plenty of comparable units for analysis. As a result, they are much less likely to work on big questions,
- 10. such as “How do we become more innovative?” Often answering the biggest questions may depend on more basic statistical techniques. So don’t shy away from comparison of means or correlations just because other methods seem to look more impressive
- 11. When leaders need accurate statistics or fact based predictions in order to make better business decisions In a growing number of organizations, this analytic approach is beginning to permeate every aspect of the HR function.
- 12. Bottom Line: Pursuing HR analytics takes some courage. It brings a new accountability to HR which many leading edge HR practitioners welcome. It’s a central part of earning HR’s long sought “seat at the table”.
- 13. THANK YOU