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