HR Analytics

HR Tells The Strategic Story

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Once upon a time the Human Resources role had little to do with numbers, data, and analytics. The numbers used to be in the purview of the organizational finance function. Data analysis, in its early stages, may have been linked to finance, but was usually found in the Information Technology department. The Human Resources (HR) function was associated with making sure people entered and exited the organization based on the needs of other business units. As these other functions were presumed to have control over numbers and data, the HR role was not seen the active driver for organizational strategy.

This story has changed.

According to a recent global research project comparing past and present use of data and analytics in organizations, HR is now the ‘most analytics function in business.’

Click here to read the results of the global research project and HR’s role.

As noted in the results, HR respondents outpace those from the finance areas in the use of artificial intelligence, predictive, and prescriptive analytics. These areas are used to track, monitor, and forecast key HR strategic planning elements such as supply and demand for human capital, succession planning, change management, downsizing, and restructuring. All of these are the elements of our studies and provide the focus for the strategic role of HR within any organization.

The tools provided through the use of artificial intelligence, including predictive and prescriptive analytics, are rightly placed in the realm of the HR function. Through the use of analytics, HR is both the transformational agent for, and the storyteller of, the strategic organizational plan. It is HR’s role to collect and control data, translate that data into information and use that information to shape and tell the organizational story.

That story is the tale of where the organization was, where it is and where it is going, as told through the power of analytics and HR.

Discussion Questions:

  1. How does predictive analytics link to the forecasting of HR supply and demand?
  2. Why is it important for the HR and the Finance function to work collaboratively when analyzing workforce data?
  3. How can HR use predictive analytics to shape a pro-active succession planning model?
  4. What is the difference in predictive and prescriptive analytics? How can each be used for HR planning?

Putting Analytics First

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There are two components in the structure of the world of human resources. The first component is defined by the word ‘human’. The second component is defined by the word ‘resources’. The work we do as human resources practitioners is to manage the combination of both the human and the resource elements in any organization. Our job is to analyze and problem solve when that combination of both human and resource capacities become tangled in problematic inefficiencies or blockages that prohibit organizational decision making and growth.

There is an ever-increasing expectation that the HR practitioner will be the decision making problem solver. In order to do this, the HR practitioner must have the capacity to use facts and data to begin an analysis before even starting to solve a particular problem. Unfortunately, for many HR practitioners, the skills and techniques needed to enter into an analytical problem solving methodology are still in development.

As outlined in a recent article published by Queen’s IRC, the human resources practitioner must take concrete data-driven steps to analyze a problem before jumping to a resolution which may provide misleading results.

Click here to read the article

The author identifies three critical elements that lead to poor problem solving analysis on the part of the HR practitioner. To counter balance each of these, it is clear that in the study of human resource management, we develop expertise in the areas of problem definition, capacity for understanding numbers, and defining the depth and breadth of data to be used in order to facilitate organizational decisions.

It is interesting to note that not one of these three elements refers to the human side of the human resources equation. All three elements are focused on the resource side. What we must keep in mind is that the provision of expertise and support through the resources side allows for the human part of the equation to make data based decisions based on sound resource practices.

Discussion Questions:

  1. Based on the article, what steps will you implement, as the HR practitioner, in order to ensure the integrity of a data based project?
  2. What are the perceived ‘weaknesses’ that face the HR practitioner when dealing with data based decision making?
  3. How can the HR practitioner control the amount and type of data that organizations use for decision making?

HR is More Important Than Ever

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The HR profession has evolved drastically over the years. HR professionals have seen a general shift from a transactional focus to a focus on strategic activities. HR also has an increased presence at the executive table and can truly influence an organization. In fact, HR may be more critical now than ever—indeed, not having an effective HR system in place may be the demise of an organization.

The quest to hire and to keep employees is at a critical juncture in North America: organizations that are able to retain employees will prosper, while those that are not will perish.

The statistics coming out of the USA are alarming. The Seattle Times states that American workers’ willingness to quit their jobs is at a 17-year high, and that “there are now just 0.91 unemployed workers for each available job, the lowest on record”.

Click here to read more about the hiring crunch.

These statistics are alarming for any employer that is trying to hire or keep employees. The potential supply of employees is small, meaning companies will have to do things differently to be successful — and HR has to be at the heart of this activity.

The activities HR must do differently include the following:

  1. Speed up the hiring process. Would-be employees do not wait for HR to get back to them, employment candidates move on very quickly.
  2. Focus on turnover rates. Find out why employees are leaving and address the issues.
  3. Be flexible. Millennials and older members of the working population represent two of the largest available hiring pools, but both of these groups want flexibility in the employment relationship.

HR has always been the gate keeper for hiring, and HR professionals now have to find ways to draw potential employees in as fast as they can by offering competitive wages and flexible policies.

 

Discussion Questions:

Research whether or not using applicant tracking software speeds up or slows down an employer’s ability to hire?

What can HR do to hire suitably qualified employees in a timely manner?

How an Organization Views Their Employees Matters!

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Big data it is a huge trend in today’s business world. It’s in the headlines and organizations are trying to gather and use it effectively. Big data analytics has expanded its scope yet again, the hot new topic being employee analytics. Actually, Deloitte has a fancier name for this leading-edge HR trend: High-impact people analytics.

Research conducted by Deloitte illustrates that when an organization reaches a high level of maturity on high-impact people analytics it is significantly more successful. The research demonstrates that organizations using people analytics in effective ways report 82 percent higher three-year average profit than “low-maturity” organizations.

An 82% increase in profit is a huge return. How does organizational success like that come about? Well, Deloitte provides a road map to develop a high-impact people analytics organization.

Click here to see the map.

The Bersin Deloitte consulting study outlines seven key findings on how an organization can mature their people analytics. This blog will focus on one key finding from this study, which is: “using multiple listening channels.”

Click here and scroll until to you see the concept of Enterprise “listening” architecture.

HR in today’s organizations is complex as many organizational problems have multiple causes. If there are multiple causes, the more information channels an organization can access, the greater the probability that it can solve a problem effectively.

This is where the use of multiple listening channels comes in. There are a number of ways to listen to what employees are saying about an organization. For example:

  • Organizational cultural audits
  • Frequent pulse surveys
  • Anonymous feedback tools
  • Performance reviews
  • Coaching programs
  • Exit interviews
  • HR key performance indicators
  • Social media monitoring

Which of the above channels is your organization listening to? Deciding which channels to listen to is key to designing your listening architecture. HR has always been about taking subjective information and making it more objective. By using sophisticated people-analytics and developing the correct listening architecture you can greatly improve your capabilities, which will in turn increase your organization’s chances of success.

Discussion Questions:

Pick three of the above listening channels, and for each one research a system that would allow you to collect credible information.

If you were an HR director, and were asked to pick only one listening channel, which one would you choose as your first priority and why?

 

HR Analytics – Use it. Own it.

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It is time for Human Resources to own the numbers.  After all, the words ‘Human’ and ‘Resources’ are used together for a reason.  Human Resources is not just about leading the humans.  It is also about the powerful management and leadership of resources associated with what the humans bring to the success of the organization.

Our role, as effective Human Resource leaders, is to ensure that we are constant in bringing forth both the human and the resource elements to the strategic management table.  One of the most powerful resource tools at our fingertips is Workforce Analytics.  Using the analytics tool effectively is key to ensuring both functional Human Resources and operational strategic success.

When we fail to bring both parts of the human and resources equation forward, we fail at our jobs as Human Resources leaders.  Failure is pretty easy as noted by Mark Barry, a successful Human Resources leader in the United States.  Mr. Barry offers us a step-by-step approach to how HR Analytics should be used as the resource tool, from the perspective of learning from one’s mistakes.

Click Here to Read the Article

What we learn from our mistakes, is how to change the outcome from failure to one of success by using HR Analytics effectively.  Of the seven Human Resources lessons learned from this article, there are two in particular that bear closer scrutiny.

First, where does HR Analytics report?  If the function of Human Resources is not responsible for the ownership of resources through understanding the people numbers, implementing the metrics, evaluating the measures, and leading everything that is data driven and comes from the organizational workforce for purposes of decision making, then the Human Resources function is not accountable for any of it.  If the Human Resources function is not responsible nor accountable for analytical resources, then that resource part of the Human Resources equation is lost.

When the power of analytical resources goes to others in the organization, Human Resources will have given up the fundamental strength that comes with workforce planning and development, which must be vested within the Human Resources function.

This leads to the second lesson, Human Resources needs to position itself strategically.  Again, if the Human Resources function is able to leverage the knowledge that comes from owning the resource of analytics, we can influence decision-making based on the powerful combination of putting the humans together with the resources to drive organizational success.

Discussion Questions:

  1. If analytics are not vested in the Human Resource function, where would they reside in an organizational structure? What impact will this have on Human Resources?
  2. What are the benefits of having organizational analytics available through the Human Resources function?
  3. Identify three Human Resources activities that can be measured and link directly to effective organizational performance.
  4. Identify three strategic decisions that HR can influence by bringing forward both a human (workforce) and resource (analytical) based plan or proposal to the corporate table.