Converting human capital data in to actionable management information
2 likes867 views
The December 2015 issue of 'Business Manager' discusses various aspects of leadership, HR management, and predictive analytics in the workplace. Key topics include challenges in attracting and retaining millennial talent, the importance of data-driven decision-making in HR, and the evolving dynamics of trade union leadership amid changing employee relations. Additionally, experts share insights on transforming HR practices to focus on strategic challenges rather than operational issues, particularly through the use of analytics and effective measurement of human capital.
Converting human capital data in to actionable management information
- 2. December 2015 Business Manager1 www.businessmanager.inIn this ISSUE Cover Feature 06 Leadership Consumed by self A leader always faces an unavoidable choice; whether to try and see,think or act on the 'idealistic' conviction,or whether to adopt the pragmatic stance of some so-called 'realism' and regard their leadership needs as driven by nothing more than a complex set of conflicting interests,of self-perpetuating selfishness,consumed by self and motivated by power to prevail evil over good.It's choice that they have and may need to exercise to differentiate their style.Dr.Ganesh Shermon In every ISSUE Response From the Editor’s Desk HR without PREJUDICE 03 04 05 11 Attract,engage & retain A 'job for life' is not what the new generation of employees aspires for in the fast developing global employment market. This makes talent sourcing and retention a top priority for HR departments.Here are top 10 tips for organization on how to attract and retain Gen-Ys.These pointers will help organizations to utilise the true potential of this workforce. Jana Venkata Ramakrishna 12 INTERVIEW with Dr.Ranjan Quote Me If You Can: Unravelling workplace happiness Handling Data Tsunami for better people management Dr.Reshmi Manna,Prof.Raghvendra Kumar Sharma HR Analytics - Converting human capital data in to actionable management information An interview with Manoj Kumar Correlation of people data with business Vishal Nagda Why HR managers should be data leaders too? Sanchita Lobo Does HR Metrics & Analytics have the answer? Dr.V.Vijaya Future of HR:Predictive talent analytics Dr.Deepak Sharma22-37 Cover Design Credit- Ankit Singh
- 3. December 2015 Business Manager2 www.businessmanager.in 16 42 Roundtable The DNA Leadership & Coaching In this Business Manager Roundtable,two prominent leadership and coaching experts D.K.BAKSHI,Chief Mentor & CEO,Global Talent Company and MARK BROWN, Executive Coach & Leadership Consultant dwell on the prominent traits of leaders globally. 57 Trade Union Leadership Is respect & dignity fading away? Workers will not hesitate to defy the trade union leadership and opt for establishing direct contact and negotiations with the managements.P.Soma Raju 38 Sexual Harassment at Workplace- A Case Study The best way to prevent sexual harassment is to adopt a comprehensive sexual harassment policy.The aim is to ensure that sexual harassment does not occur and,where it does occur,to ensure that adequate procedures are readily available to deal with the problem and prevent its recurrence.Sanjeev Himachali 59 Case STUDY The cause of concern in internal recruitment Dr. Pravin Durai 60 Case Analysis Feedback to rejected was missing ! - Mihir Gosalia In-house talent growth is the key -Bhaskar Dhariwal 40 Government Notifications Revised minimum wages in Gujarat & others 14 Types of Employees series-1 Steve factor based employees Dr.C.N.Daftuar helpLINE 62 63 64 Event Report WORKSHOP ON DNA OF LEADERSHIP BY GTC CFI ROUNDTABLE - GROWING LEADERS FROM WITHIN 44from the COURT ROOM Recent Important Judgments HR NEWS HR MANTRA
- 4. RESPONSE www.businessmanager.in https://www.facebook.com/businessmanagerhrmagazine Visit us on: December 2015 Business Manager3 https://www.facebook.com/businessmanagerhrmagazine Visit us on: DELHI : F- 482,Vikaspuri, New Delhi-18 GHAZIABAD : A - 39, Lohia Nagar, Naya Ghaziabad (UP) Owned, Published and Printed by Anil Kaushik at Sun Prints, Ganpati Tower, Nangli Circle, Alwar - 301001 and Published From B-138, Ambedkar Nagar, Alwar - 301001 ( Raj.) India. Editor : Anil Kaushik The views expressed in the articles published in Business Manager are those of the authors only and not necessarily of the Publisher/Editor. While every effort is made to have no mistake in the magazine, errors do occur. Publishers do not own any responsibility for the losses or damages caused to any one due to such ommissions or errors. Annual Subscription 1000/- through DD (by ordinary Book-Post) (by Courier 1300/-) favouring Business Manager ( Please add 90/- to outstation Cheques) may be sent to: B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) India Ph. : 0144-6550134, Mob.: 09785585134 www.businessmanager.in E-mail : subscription@businessmanager.in bmalwar@gmail.com Published on 1st of Every Month This issue of Business Manager contains 68 pages including cover Chief Editor ANIL KAUSHIK Associate Editor ANJANA ANIL Hon'y Editorial Board Dr. T.V. Rao Dr. V.P. Singh Dr. Rajen Mehrotra H. L. Kumar Excellent Your cover feature on“Gen-Y”talking about perception vs. reality is one which can be backed by a recent study of Bentely University which says 70% of the older generation group think that millennials are reluctant to“pay their dues”. Opposite to it nine out of ten young generation employee think they come with a strong work ethics which conflicts with the older school of thought. Congrats to you and BM team for bringing out such an excellent issue. -Kumaran S. Step by step The article of Dr. Daftuar is very informative and beneficial to practicing managers. Away from theoritical jargons, article provides step by step move to make an employee effective. -Shanath M.V. Grey area The case study on recruitment process and intervewing skills of managers is capable enough of showing mirror to many officers who take this process in a casual way and then make HR responsible for the fall out. In fact it is a grey area in many organisations. Managers have to take notice and work seriously on improving their recruitment skills and process. -Arti Verma Need more Thanks for the copy. I have gone through the article penned by Mr HL Kumar re : " registration & recognition of TUs " appeared in Nov,15 issue. It would have been more knowledgeable for us had he mentioned also different state laws with regard to procedure of recognition of TUs, in short, as there is no central statute on the subject. I hope he will highlight this area in coming issues. I have been reading his articles for so many years & it helped me a lot to learn, in depth, so many subjects on labour related matters. With regard to Mr Kumar's article " Maharajas to lose the status of workmen" in Oct,15 issue , I feel nothing will happen till the legislators bring a drastic change in the definition of workman and or SC reviews its earlier judgement . It is really pity that poor Admn/ Mangt staff getting say Rs 17000/- pm is not a workman whereas a pilot/ technical person drawing more than Rs 1.5 lacs or even more pm is so called " Workman" ! What a fallacy ! -PK Dasgupta Wonderful July issue cover of“Legends of HRD”is wonderful. -Dave Ulrich To know all The cover story on“Decoding Gen-Y”provides much to ponder upon and know about this generation of workforce. It will certainly help managers of old generation to understand them and handle them in a better way. -Padma N. Substantive Roundtable of“perception vs. reality”about gen-y is full of substance and makes sense. All panelists have answered the questions with their own perception which in totality makes a good read. -N.K. Chaturvedi Conflicting perception Young generation of workforce probably have the most complicated story to tell all of us as compared to their previous generation and the managers of today are not finding enough time to listen. The problem is of empathy. By 2030 millennials might account for 75% of the workforce and this will be a challenge. Why younger generation has quietly evolved as advisor to the older generation is because of the role of technology in the fast paced era, millennials have embraced. So the crux of the issue should be earlier we appreciate their strenght, better would be for the organisation. Connectivity through wire is the USP and the business running 24x7 looks at them as they also believe in delivery. -Somendra Readers are invited to comment on articles published in BM through email at : bmalwar@gmail.com
- 5. www.businessmanager.in December 2015 Business Manager4 Data vs. instinct December, 2015 Vol.18, No.6 P redictive analytics based on data is increasingly making space in human resource function. Various researches and surveys have indicated this trend. it is being used mainly in talent acquisition,employeeengagement,absenteeism,retention,learninganddevelopmentand performance management.It helps HR find blind spots in the organization.In fact it is predictive nature of analytics that is changing the role of HR for the better. Till now,though the HR used to store employee data but was used reactively and not to provide a bigger picture to business leaders that could help maximizing return on employee investment.HR analytics is making a difference in organizations that have embraced this tool for analyzing their employee data with workforce analytics to answer a variety of critical questions.What critical is the HR’sroletoasktherelevantquestionsfailingwhichdataanalyticswouldberenderedirrelevant.By using data analytics in people management, HR can help organisations maximize return on workforce investment. But it is a trend that excites many and worries others.Experts not believing fully in this mechanism to predict human behavior can raise a question that in spite of the fact that statistics have their usesinbusiness,youcannothaveanumbertosumupthewholeemployeremployeerelationship. HR is all about relationship and relationship can not be measured by numbers. It can not be arithmetic.It is chemistry.When you do predictive analysis looking at data,you take emotion out of it.The question can also be asked as to what is the unit of measure for loyalty or trust or initiative or enthusiasm? It may be difficult to measure but can only be felt by instinct.The data remains to beinterpretedbypersonthatmaynotbefreefrombias.Thedatashowsyouapatternandstillyou need to indentify what the pattern says and how to use that.Too much statistics may miss the nuances and the fact that the behaviours, competencies, motivation and culture are core to running the business. This side of HR analytics may have its own weightage and relevance that’s why the numbers of organizationsusingdataforHRpredictiveanalyticsarenotincreasingveryfastthoughITsectorhas embraced data driven approach to the unpredictable business of human interactions to much extent. The challenge to this data driven approach in HR is that you need to develop capability for synthesizing information.The skill of synthesizing the data is very crucial.The analytics related to people must be relevant, valid, compelling and transformative. Another challenge is having a unified set of data from same context.The data element is all scattered. Unified profile has to be created by accumulating all data because it is the foundation on which predictive analytics is done.HR analytics should not be seen merely as IT implementation to optimize decision making. These IT solutions are needed to be integrated seamlessly with HR leadership and business objectives. The cover story of this issue talks about data driven approach in predictive analytics of human interactions and behavior in organizations that may open a new chapter in HR credibility assisting business leaders.Experts on HR analytics have talked about this potential and challenges. If you like it let us know.If not,well,let us know that too. Happy Reading! Anil Kaushik From the Editor’s Desk
- 6. What is the new way of measuring long term profitability & sustainability of any organizationfrom stakeholder's point of view and the role of HR in delivering that? MK: Today's stakeholders - customers, business partners, employees, reg- ulators, communities etc. are not only interested in knowing financial capital of the organization but also intangible assets too i.e. Human Capital. The Human Capital that enables organization deliver superior sustainable long-term returns through superior performance by execut- ing short to long-term market competitive strategy and guarding organi- zation against any operational risk to maximize expected stakeholder val- ues. The stakeholders want to listen an integrated story to support informed investments in future capability and are less likely to priortize for short term moves that undermine long-term performance. Leading companies have already started telling Human Capital story via their annual reports as comparative advantage for long-term sustainabili- ty in the competitive market. This not only interest investors - why invest here but also other stakeholders to answer - Why should I buy from them, why should I work here, why should I partner with them etc. What are the challenges HR is facing today and how does application of Analytics can help overcome these? Today's organization is complex - multi generation, multi geography, employment type, diverse workforce etc., that poses significant chal- lenge for HR function to manage right talent at right place at right time. "What gets measured, gets managed" - Peter Drucker This complex situation can be managed only if decisions are taken on the basis of data insights than gut-feel. However most of the organizations are still lagging and especially HR function is stuck in solving operational issues or being compliance-driven function and has not been in the cen- tre solving related strategic problem(s) while articulating the organiza- tion performance. They need to reach the standards of financial and other performance information system when it comes to Human Capital December 2015 Business Manager28 www.businessmanager.in HR Analytics Converting human capital data in to actionable management information I N T E R V I E W MANOJ KUMAR Senior HR Analytics Practioner,Vice President,HR Analytics,for one of the leading International Bank,Mumbai It's high time to build "HR for HR" to keep function focused on solving business specific strategic problems and not getting stuck with operational and HR process related problems only. CoverFeature
- 7. measurement of the organization to provide reliable insight based story for stakeholders. What are the challenges HR is facing in adopting application of Analytics in day-to- day job? MK: The challenges that conventional HR has been facing in getting started with Human Capital meas- urement is to define what to measure, how to meas- ure, where to find relevant data and more important- ly the commercial interpretation & communication of the outcome. Additionally, lack of data governance, missing reconciliation between Finance & HR and regulatory & compliance obligation increases the gap further. Is HR Analytics about implementing HR Software? MK: HR Analytics is not about implementing HR soft- ware but developing a competency within the organization and making it part of DNA. However, it wouldn't be an exaggeration if I say that most of the companies are spending millions in implementing HRMS systems without assessing their current capa- bilities from what they already have or need in future. Software is required to streamline the processes,integrating data from diverse HR systems and making delivery self-service but not the priority to start with. I highly recommend to leverage first what you already have and then use learning from that to leap frog to next maturity level. Companies can begin by improving their basic reporting capabilities; then work on improving such functions as recruiting, training and retention; and finally move into broader areas, such as workforce planning and organizational change. Ultimately, the goal is to develop more advanced analytics capabili- ties that enable companies to optimize performance and even predict what workforce changes and investments are likely to produce the best values for the stakeholders. Is there any silver bullet to get started with HR Analytics quickly to demonstrate the value to the organization with minimal investment? MK: Where to start? Build your minimum viable HR measurement product first and best place to start is, from existing payroll & rewards data. This is purely due to the fact that 1) cost related workforce metrics is one of the critical metrics of stakeholder's interest, 2) most of the organization does have reliable, com- plete and consistent payroll & rewards data and 3) provides a business centric metrics. Once workforce related cost & revenue measurements are estab- lished, top it up with HR related costs and other pos- sible workforce related metrics, if data is available, to get closer to as holistic picture as you can. Find hot spots by comparing them against previous year to define next course of action. Next is to "market your Story" i.e. Commercial inter- pretation and communication of early findings and recommendations from your minimum viable HR Analytics measurements to key stakeholders. Stay away from looking metrics in silos but build business centric holistic & integrated story basis the key met- rics which are related, to drive the action oriented message to stakeholders. Additionally, demonstrate possible future related analytical problem statement that further can be analysed to realize full potential of the human capital. After securing initial wins, how do we make it sustainable and way of living in the organi- zation? MK: As you make traction on the journey, collect feedback from CHRO, Business HR Heads, HR COOs & Function HR heads on what is important for them to measure on regular basis. Using this input build a Human Capital book of knowledge consisting key strategic Human Capital metrics and deliver it regu- larly. Get business used-to of using this pack but keep it agile and in-line with business interest. Usually, technology driven approach is better solu- tion to make such delivery self-service, sustainable and scalable. Find Analytical advocates within the organization who could sponsor analytical projects related to attract-build-retain to enable organization have right talent at right place at right time. Few examples - A simulator to predict FTE forecast, quantification of learning outcome and top 5 training that delivers maximum impact on employee performance, quan- tification of operationalization of organization values and quantification of quality reviews of performance management document etc.. Invest in continued education program for HR& Analytics capability to keep the pace with changing business ask - shift from being a data provider to Human Capital consulting role. HR is too busy taking care of others but who will take care of them. It's high time to build "HR for HR" to keep function focused on solving business specific strategic prob- lems and not getting stuck with operational and HR process related problems only. So, In a nutshell, the end game should be an enter- prise wide analytics capability, where the piece parts combine to solve problems. No doubt this may require more effort at first, more sponsorship from the leadership, and wider buy-in from other business stakeholders. But enterprise-scale results-in revenue growth, profitability, return on capital customer loyal- ty or other measures ofvalue-make the effort worth- while. December 2015 Business Manager29 www.businessmanager.inConverting human capital data in to actionable management information This complex situation can be managed only if decisions are taken on the basis of data insights than gut-feel. Interview CoverFeature BM