The document discusses the importance of HR analytics for organizations. It states that top companies are more likely to be advanced users of workforce analytics. It provides examples of simple and more complex questions that can be answered through analytics. It also outlines how analytics can be used to validate hypotheses and drive strategy. The document then discusses the current state of analytics in most organizations and how an effective analytics program can help HR review processes and measure impact on business outcomes. Finally, it outlines services around consulting, training and evolving an organization's use of analytics.

1. HR Analytics
Overview

2. “ Top Companies are three times more likely to be
advanced users of workforce analytics than lower
performing companies.
- “ Analytics, the new path to value” MIT research

3. Some Easy Questions
● What is the cycle time for closing indents?
● What percent is contributed by each channel?
● What is the count of different training programs conducted?
● What is the average program feedback ?
● What is the normal distribution of performance ratings?
● What percent of the workforce have completed goal setting on time?
● What is our compensation cost?
● Where are we on the market percentile?
● What is our attrition percent for different job levels?
● What is our employee satisfaction for different job levels?

4. A little more complex
● What is the cycle time taken for each channel?
● What is the cost per join for each channel?
● What are the top 3 competencies that consume most training?
● What percent of workforce has completed their training needs?
● What percent of the workforce have been consistently exceeding
expectations?
● What is the standard deviation in individual performance ratings?
● What is the average premium for a top performer?
● What is the median salary to which we are losing people?
● How do people managers stack up on attrition %s?
● Which managers have the highest engagement scores?

5. Simple Questions on Outcomes
● What is the most effective hiring channel? How much has its contribution
increased in the last 3 years?
● Is there consistency in the top 3 competencies being trained for, in the past
3 years? Are these most important for business?
● Is our differentiation adequate? Are we able to engage and retain top
performers with this?
● Who are our best people managers? Are they in the right roles?
● Are our budget spends, aligned to our business challenges?

6. Analytics validates hypothesis
and drives strategy
DATA
ANALYTICS
HYPOTHESIS
STRATEGY
PROCESS/
PRACTICE
ARTICULATE
DELINEATEEXECUTE
VALIDATE

7. ILLUSTRATION
HYPOTHESIS: “ We need to hire the best people to become the best company in
the industry” .
STRATEGY : “ We will hire distinction students from top 20% campuses”.
“ We will hire on the basis of analytical ability”
PRACTICE : 1. We will only visit campuses rated in the top 20%.
2. In these colleges, we will shortlist students who have scored 75% and
above in all semesters.
3. We will shortlist such candidates on the basis of test scores
DATA : College percentages, analytical test scores of all employees.
Performance ratings, progression speed for all employees.
VALIDATION : 1. Do any of the recruitment criterion, correlate with performance ratings and
speed of career progression?
2. Are we able to establish superior performance in the market in
comparison
other competitors?
3. Are there competitors who are performing equal or better while having
access to a wider pool of talent?
4. Are our hiring practices sustainable from a cost and availability

8. State of organizations on the
model
THEME STATUS
Qualitative Expectations “ Best in class”; “ High performance” etc are
commonly used. However, lack uniqueness
Hypothesis Known only to a few in leadership.Usually, not
articulated.
Strategy Most companies have a strategy. However the
detailing and follow through vary widely
Process/Practice Used widely. Leads junior management to
think the HR function starts and ends here. (e-
g) Goal of performance management, is to
improve performance; not complete form!
Data Data availability determined by automation and
reporting requirements. Reliability varies within
the same organization. Several pockets of
data.

9. Where does an analytics
program help HR
● Review and rationalize HR offerings systematically.
Focus the function on “ Essential few” from “ Necessary
many” .
● Create a business case for new programs.
● Measure the impact of HR practices on business
outcomes.
● Articulate the value delivered by the function tangibly.

10. What are the requirements of a
good analytics program?
HR MANAGEMENT
● Measurable goals for the HR function.
● Reviews at regular frequencies, to take stock of progress.
● Monthly/ Quarterly performance indicators, that are shared with business.
DATA AND TECHNOLOGY
● Reliable data
● ERP or other systems for HR master data
● Applications for major HR processes like recruitment,training, performance
management.
● BI tools.
CAPABILITY AND MINDSET
● Dedicated headcount for analytics
● Roles in each function with analysis written into JDs
● Quantitative problem solving competence.
● Knowledge of business and financial measures.

11. Barriers to having an effective
analytics program
● Process orientation as against Outcome orientation
○ Training person days, average training feedback score, training plan
completion all measure process.
● Preference for “ right” measures that are simple, against improvised
measures that are less simple.
○ EPS, PE ratio etc. are derived measures from other numbers. Can we
connect win ratio and retention rates to appropriate training program
person days?
● Insufficient awareness of basic statistics and presenting data
○ Average of averages, is not an average!
○ 24% of all attrition is in “ Engineer” band does not mean anything in
isolation.
○ Preference to just show tables for complex analysis.
● Siloed approach to data analysis.

12. Who is an effective Manager?
Recruitment Engagement L&D Perf. Mgmt Discipline
Interview support
Employee
referrals
Conversion
Support
Timely
requisitions etc.
Survey score
Attrition
percentage
Participation in
engagement
programs.
Usage of R&R
Training plan
completion.
Career
development
discussion
completion
Project success
Appraisal
completion
Goal Setting
completion
Mid-cycle
discussion
Time sheet
submission.
Code of
conduct
completion
Approval
timeliness
To answer the question, we need to integrate inputs from several systems and processes.
Engagement score and attrition are very important, but need to be
supplemented.Effectiveness is also a measure of relative performance on the measures.
Effective Manager is systematic, successful and
engages with team.

13. SERVICES

14. Evolution from reporting to
analytics
No usage of data
Tracks information like
headcount, attrition.
Has basic information on
process compliance.
Limited automation
Primarily on spreadsheets
PREDICTIVE
INTEGRATED
REPEATABLE
BASIC Goals and reports based
on data.
Key headcount and
process measures
published at regular
frequency.
Key decisions are based
on data.
HR data and processes
automated.
Integrated dashboards
used.
Data available at
Manager, unit, employee
and company level.
Data used for ongoing
problem solving
Benchmarks with
competitors for multiple
outcomes
Has dedicated headcount
for analytics.
Baselined data used for
making forecasts.
Investments tracked for
results.
Technology leveraged for
analytics.
HR measures aligned to
business

15. Consulting
● Set up an analytics program to progress on the levels
○ Articulate hypothesis
○ Identify key measures, existing and new
○ Design dashboard for HR and for Business
○ Partner with IT in enabling.
○ Train identified team members in analytics concepts.
● Bespoke problem solving assignments, involving internal data and external
benchmarks. (e-g)
○ HR program portfolio analysis.
○ Predictability of attrition
○ C&B strategy

16. Training
● Conduct Basic and Advanced workshops for relevant teams.
● Can be delivered one shot or as a series of sessions.
● Course content to include
○ Business measures
○ HR indicators aligned to business
○ Statistics
○ Presentation of data
○ HR strategy and scorecard