HRD analytics

1. HRD ANALYTICS KMS 2154
CHAPTER 1
Overview of HRD Analysis
& Assessment
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Instructor: Helmi Sumilan
shelmi@unimas.my
+6082584511 / +60198471184

2. LEARNING OUTCOMES
By the end of this chapter, you will be able to:
1. Explain the concept of HRD analytics
2. Describe the purpose of HRD analytics
3. Identify the data points for HRD analytics
4. Discuss the importance & benefits of HRD analytics

3. What is HRD
Analytics?
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4. INTRODUCTION
The use of
descriptive &
historic metrics
in human
resources is an
old practice in
organization.
Complexities of
businesses
today require
the alignment
of HR decisions
with strategies
& business
goals.
Rather than
analysing the
past & present,
human
resources
requires a
forward-looking
approach to
predict future.
Building organizational and individual
employees’ capabilities to respond to
changes require the availability of agile
and competent manpower and linking
of human resources with the strategies
& business goals of organization.

5. HR Departments
struggled for decades
to derive valuable
insights from the piles
of data they were
sitting on.
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6. Lately enough with the big data boom,
the data doesn’t just stagnate but is
finding its use in building strategies.
Companies have been maintaining
HR data warehouses for more
than two decades, reports are
generated based on the data.
Today, it is the HR who records
employee productivity, training hours,
performance, employee engagement,
and many more parameters.
Picture source: https://www.digitalvidya.com/blog/hr-analytics/
Work Schedule of an HR

7. HR ANALYTICS
is a process of collation, integration &
measurement of data that are appropriate
for specific HR decisions. Adapted from Dipak Kumar (2017)

8. CONCEPT OF
HR ANALYTICS
• Brings “analysis” & “statistics” together to
find the application of the data pool
created by HR.
• It’s a data-driven approach to manage the
employees.

9. CONCEPT OF HR ANALYTICS
HR analytics provide opportunity to assess how
employees contribute to the organizations &
assess the extent to which employees can meet
their career expectation
Using HR analytics substantially can reduce
the risk of wrong decisions & can improve
the quality & process of critical HR decisions
such as retention, potential talent,
motivation, performance improvement,
employees’ capability etc.

10. CONCEPTS OF
HR ANALYTICS
The application of
analytic logic for HR
functions
Can benefit
organizations in:
Improving the
performance of
employees
Help in rationalizing
HR decision-making
process
Improve ROI from
human resources
Adapted from Dipak Kumar (2017)

11. HR analytics tools
utilize techniques
of data mining and
business analytics
to churn the HR
data and transform
it into a valuable
commodity for the
organization.
This Photo by Unknown Author is licensed under CC BY-SA
Adapted from Dipak Kumar (2017)

12. 1
Google started a one-off piece of
research in 2008 – codenamed
‘Project Oxygen’ – soon developed
into a strategy, helping shape the
way the technology giant operated.
2
They deep-dive into exactly how
Google have made HR analytics
integral to not only their People
strategy, but the building blocks of
their entire business practice.
3
Google’s People Operations team used a
mix of productivity data and employee
feedback to determine employee
behaviours & skills through Project
Oxygen, an initiative designed to find out
what successful Google managers do.
4
Performance ratings and employee
feedback were analysed and compared
with productivity metrics to determine
the impact of different leadership styles
on employee engagement and
productivity. From this, Google was
able to create the ‘Oxygen 10
Behaviours for Great Managers’ & used
it to train and select its company
leaders.
EXAMPLE OF
HR ANALYTICS
Source: https://www.sagepeople.com/about-us/news-hub/case-study-how-google-
uses-people-analytics/#

13. Purpose of HR Analytics
Reaching Business
Goals
Aims to provide the organization insight into the
current state of operations.
Such insights expedite the fulfilment of business
goals according to the set timeframes.
Data-Driven Strategy
Building
It helps build prediction models to identify the
strategy that could lead to the optimum return
on investment (ROI) for its human resources.
HR analytics makes it easy for the HR
professional to create job offers that can procure
them the best talent in the market, manage and
retain them to give a boost to ROI.
Adapted from Dipak Kumar (2017)

14. Data Points for HR Analytic
EMPLOYEE
PERFORMANCE
EMPLOYEE
ATTENDANCE
MULTI-RATER OR 360-
DEGREE REVIEWS
SALARY DATA PROMOTION DATA
EMPLOYEE WORK
HISTORY
DEMOGRAPHIC
DETAILS
EMPLOYEE
TEMPERAMENT DATA

15. HR Analytic Tools helps in …
Close alignment of employee data and HRD initiatives to direct them
towards the achievement of the organization’s goals.
Once the employee data is gathered, the analysts feed the same into
sophisticated data modelling programs, run them through the algorithms,
and predictive tools to gain insights that can be acted upon.
The insights could be represented in the reports, dashboards or
visualizations.

16. FRAMEWORK
OF HR
ANALYTICS
Individual factors : skills,
competencies, motivation, job
alignment, career aspirations,
number of years working with the
organization
Group factors : interpersonal
relations, leadership, group
cohesiveness, collaboration
Strategic results in terms of
improved market share, market
growth, successful new product
launch, brand awareness,
customer satisfaction and
retention
Financial results in terms of
market capitalisations, profit,
return on assets and equity,
improved cash flow
HR Action: training, team
building, compensation &
rewards, career development,
talent management,
performance management.
HR process improvements in
terms of cost, quality, cycle time
improvement, innovation &
productivity
Adapted from Dipak Kumar (2017)

17. IMPORTANCE & BENEFITS
OF HRD ANALYTICS
Helping
organizations in
effective talent
management
1
Rationalizing
manpower
requirement
2
Facilitating in
making available
right people at the
right time
3
Improving business
performance
through quality HR
decision making
4
Planning for
effective career
development of
employees
5
Strengthening
organizational
competitive
strength making
available quality
manpower
6

18. IMPORTANCE & BENEFITS
OF HRD ANALYTICS
Ensuring right-fit
recruitment and
selection
Helping in identifying
factors that can
contribute to
increased employees
satisfaction &
performance
Helping in
identification of KPIs
that can contribute to
business
Help organizations to
achieve strategic &
business goals
Improving talent
retention

19. Thank you.