A Primer on HR Analytics

www.workforcegroup.com
• Welcome to the Master Class on HR
Analytics.
• Analytics has become one of the most
important topics in the business world
today simple because of it Value Creation
and Game Changing potential.
• When Analytics is done right, the benefits
are huge and unquantifiable.

Interesting Analytics Stories…..
ATelecoms Company
A Retail Company
Companies are doing unbelievable things with predictive analytics.
Consider these companies…

An angry man walks into a mall demanding to see the manager and shouting “my
daughter is still in high school, and you’re sending her coupons for baby clothes and
cribs? Are you trying to encourage her to get pregnant?
The manager didn’t have any idea what the man was talking about but apologized
when he confirmed it.
Few days later, the manager called the man to apologise again.
This time, the girl’s father says “It turns out there’s been some activities in my house I
haven’t been completely aware of. She’s due inAugust. I owe you an apology.”
How did the company know the girl was pregnant long before the father found out?
Story – Retail Company

• By leveraging its extensive customer data, it was able to build
models that can profile and identify potential high value
customers. Some of the criteria include;
• Frequency of Call within the first 2 weeks
• Duration of calls
• Type of Phone
• User’s Residence
• User’s network of influence
• The company believes it can now identify within 2 weeks of
purchasing a line, customers that have potential to become key
accounts with accuracy level above 95%.
Story -Telecoms Company
A Telecoms company started
looking for indicators that could
help with the identification of
potential High Net Worth
Customers as early as 2 weeks
after line activation as well as
predict customer loyalty

 The importance of Analytics lies in the area of helping organization gain hard-
to-duplicate competitive advantages.
 Every function in an organization has the potential to create value through
analytics including the Human Resource Function.
Why Are We Here?

Right now, 86% of companies report no analytics capability in the HR function,
compared to 81% of companies that utilize analytics in finance, 77% in
operations, 58% in sales, and 56% in marketing.
….But HR is not coming to the Party!
AnalyticsCapability
Finance Operations Sales Marketing HR Functions

This is just not good enough and the HR Profession has to do a lot
more to help the business mine the diamonds of insights available
through HR data.
As HR Professionals, we need to be more data-driven and practice
Evidence-based HR.
We need to reduce or eliminate completely our tendencies to assume
and arrive at conclusions without data to back up our claims.
Why Are We Here?

There are two primary approaches to making decisions;
Why Are We Here?
Opinion/
Perception-based
Decision Making
Evidenced-based
Decision Making
VS

• Three critical questions for our profession:
What are the most
important activities HR
Functions should Engage
in?
How should the success
of HR functions be
measured ?
HR Doables HR Measurables/Metrics
What are the most
important results
/outcomes that HR
function should deliver?
HR Deliverables
We can’t answer these questions effectively without
Analytics.
Why Are We Here?

11
Help us become more
data driven in our
actions and decisions
and embrace
evidence-based HRM
Develop the required
capability to guide
our organisation in
using Meaningful
Analytics to enable
better decisions and
performance
Focus on practical
uses, real world
examples and
outcomes, not
abstract or
conceptual
treatments of HR
analytics
Aim of the Session…

12
ANALYTICS – DEFINITIONS, INSIGHT SOURCES, DATA & BIG DATA1
HR ANALYTICS – IMPLEMENTATION3
HR ANALYTICS –WHAT,WHYANDWHO2
Session Outline
HR ANALYTICS – PUTTING IT ALLTOGETHER4

ANALYTICS –
DEFINITIONS, INSIGHT,
DATA, BIG DATA
MODULE 1

14 So what is Analytics?
The goal of analytics is to gain insight
from data which can be used to make
improvements or changes to
businesses.
Analytics is defined as the scientific process
of transforming data into insight
for making better decisions

Analytics & Insight
Context Customers Questions Models/Frameworks
There are four primary sources of insight:
Nothing is more terrible than activity without
insight.
Thomas Carlyle

1. How will we grow our business?
2. What are the key drivers of our Success/Performance?
3. What culture and capabilities are essential to grow our business?
4. What obstacles do we face and how will we overcome them?
5. How can we accelerate our progress?
6. How do we build predictability into our business model?
7. What metrics measure our success?
8. What can we learn from our past that can help create the future we
want?
16
ANALYTICS HELP PROVIDE ANSWERSTO KEY QUESTIONS
Questions

17 Analytics Framework – 4I
INFORMATION
What is going on?
INSIGHT
What does it mean?
IMPACT
What difference can we
make?
INTERVENTION
What can we do with
it?
ANALYTICS
MODEL
ANALYTICS
MODEL

18
“If you torture the data long enough,
it will confess.”
- Ronald Coase, Economist
Analytics & Data

www.workforcegroup.comA New Look at HR Metrics – P Version 10-28-2014
19
Data for
Strategic
Decision
Making

20
WHAT IS DATA?

21 What is Data?
is information in its raw or unorganised form.
Data

22 Types of Data
Structured data
1
Data that resides in a fixed field
within a record or file.
E.g. Spread sheets and
relational databases.
Unstructured data
2
Data that does not have a pre-
defined data model or is not
organised in a pre-defined manner.
E.g. Untagged data and data from
sensors.

23 What is Big Data?
So, is this Big Data?

24
Big data is the term applied to the fast moving large volume of information
available in the digital era.
This includes a massive volume of both structured and
unstructured data from:
Post to social
media sites
Internet chatter
Worldwide, about 2.5 quintillion (1018) bytes of
data is created every 24 hours
Source: SSL IT Solutions
Digital pictures
and videos
Device-
derived data
Purchase transactional
records, and many
more
Cell phone GPS
signals
What is Big Data?

25 Characteristics of Big Data

HR ANALYTICS:
WHAT, WHY AND
WHO?
MODULE 2

27
“Without analytics, companies are blind and deaf,
wandering out onto the business arena like deer on a
freeway.”
- Geoffrey Moore, Author of
Crossing the Chasm & Inside the
Tornado

28 What is HR Analytics?
It is the process of transforming Workforce and
Human Resources Function data into insight for
making better people and business decision.
Human resources analytics is a process that
provides organisations detailed insights into
HR programmes and workforce performance.

29
Organisations have lots of data elements about their employees.
This data can be correlated and matched to many different types of business data to help
companies understand profiles and behaviours which create high performance.
Job history CompensationPerformance data
Demographic data
Mobility
TrainingAssessment
What is HR Analytics?

Success of your HR Analytics is determined by the quality of your
Questions
Are your people better than those of
your competitors in your critical
roles/functions?
Which segment of yourWorkforce is the
most critical to the success of your
business?
Where do your best employees
come from?Which company?
Which University?What Industry?
Are your people better than they were
last year? And the year before?
Are employees in that segment highly
engaged or disengaged?

31 Why HR Analytics?
Increase retention levels
and attract excellent talent
Predict the impact of
policies and administration
on employee performance
Adapt to changing external and
internal needs
Determine key factors that
drive employee productivity
Many organisations have high quality HR data but still struggle to use it
effectively to predict workforce trends, minimise risks and maximise returns.
HR Analytics will help organisations to:
Identify leadership or talent
gap
Identify what talent factors are
needed to drive higher levels
of customer satisfaction and
retention

32
24% higher net
operating income
8% higher sales growth
Source: Oracle – HR Analytics Impact on Organisations
58% higher sales per
employee
Oracle compared the performance of organisations that have implemented the HR
Analytics model to companies that have not and it was discovered that there was a:
Why HR Analytics?

33 Analytics Maturity Model – Where are you in the Journey?
Basic Reporting
(Data)
180 staff resigned
from the company
last month
Advance
Reporting
(Interpretation)
Attrition rate
increased by 8%
over the last year
Analytics
(Insight )
5% of staff that
resigned are in
critical roles
Predictive
Analytics
(Foresight)
Attrition rate will
increase by 10% over
the next 2 years at
current incentive rate

34 Analytics Maturity Model – Where are you in the Journey?
Basic Reporting
Reactive, Operational Reporting of Efficiency & Compliance Measures •
Focus on Data Accuracy, Consistency,Timeliness
Advanced Reporting
Proactive, Operational Reporting for Benchmarking & Decision-Making •
Multidimensional Analysis & Dashboards
Analytics
Statistical Modeling and Root Cause Analysis to Solve Business Problems •
Proactive in Identifying Issues & Actionable Solutions
Advanced/Predictive Analytics
Development of Predictive Models • Scenario Planning •
Risk Analysis & Mitigation • Integration with Strategic Planning
4%
10%
30%
56%
86% of organisations
surveyed are focused
on reporting
In a recent survey done by “Bersin by Deloitte” on Organisations, it was discovered that:
10% of the organisations were
focused on Analytics
4% of the organisations were
focused on Advanced/
Predictive Analytics

35 Poll – Where AreYou?
Basic Reporting
Reactive, Operational Reporting of Efficiency & Compliance Measures •
Focus on Data Accuracy, Consistency,Timeliness
Advanced Reporting
Proactive, Operational Reporting for Benchmarking & Decision-Making •
Multidimensional Analysis & Dashboards
Analytics
Statistical Modeling and Root Cause Analysis to Solve Business Problems •
Proactive in Identifying Issues & Actionable Solutions
Advanced /Predictive Analytics
Development of Predictive Models • Scenario Planning •
Risk Analysis & Mitigation • Integration with Strategic Planning
Level 1
Level 2
Level 3
Level 4

36
HR Analytics in Action
Interesting Examples of How Companies are Using HR
Analytics to Create Competitive Advantage

Analytics Success…. Always start with a Great Question
Data-‐Driven Sourcing
• Sources engineering talent at Waterloo University (Toronto)
• Virtuous cycle of investment and payoff.

Minimum Work Experience
• Guinness discovered that Graduate
Trainees hired with less than 2 years work
experience go on to be more successful in
the organization when compared to those
with more years of work experience
The Value of Networks
• IBM found that employees who
enjoyed a larger professional
network had increased productivity.

39
Almost all Google's people/talent decisions are backed by data and analytics.
Their Project Oxygen analysed their internal
data to quantify what effective managers do
and they discovered that essentially effective
managers have eight key behaviours.
They developed a management training program
that incorporated these eight behaviours which
led to positively better manager quality.

Be a good coach
Empower the team and
do not micromanage
Express
interest/concern for
team member’s success
and personal well-being
Be productive and
results-oriented
“He caters to your skillset
and personality with his
guidance and feedback
and pushes you to grow
while still make you feel
strongly supported.”
“I like the trust my manager
gives me and my team…
There is no micro-
managing…Yet we know
that he is there to answer
our questions/guide us if
need be.”
“He is incredibly authentic,
credible, and caring, and
manages to do a brilliant job
ensuring our team members
achieve their goals, while
ensuring everyone on the
team also feels valuable.”
“He is relentless in removing
obstacles on the team. He
created a concept called
“RUSH”, where any decision
that needs to get made,
gets made quickly.
Meetings begin on time and
end on time, always.”
The Oxygen Eight Behaviours for Great Managers
…and how Googlers explain them

The Oxygen Eight Behaviours for Great Managers
Be a good
communicator
Help with career
development
Have a vision
Use your technical skills
to advise
“My manager encourages an
extremely open dialogue
that permits us to share
issues and concerns that, in
most organisations, would
be concealed.”
“I tell them career
development isn’t about just
being promoted, it’s about
growing, acquiring, sharing
expertise.”
“Her team is the only team
I’ve been on at Google in
which we’ve taken the time to
collaboratively create a vision,
and then to share and act on
that vision with relevant
teams. I felt part of an
important effort.”
“He has deep knowledge of
our infrastructure. He is a
hands-on-guy and willing to
roll up his sleeves and get to
the bottom of the problem.”
…and how Googlers explain them

42 HR ANALYTICS:
IMPLEMENTATION
MODULE 3

01 02 03 04 05 06 07
Start with a
Business
Question
Develop your
Analysis Plan
& Build your
Team
Collect
Necessary
Data & Ensure
Completeness
Conduct Data
Analysis –
Ensure Rigor
Generate Key
Insights and
Tell a Story
Create
Initiatives &
Take Actions
Monitor,
Measure &
Adjust
7 Steps Analytics Implementation
Framework

Correlation Analysis
Finding the relationship
between two factors.
Trend Analysis
Determining the pattern
that events and activities
seem to be heading
toward.
Sizing and Estimation
Giving informed
estimates of expected
values.
Profiling
Exploration of
information based
on known qualities.
Predictive Analysis and
Time Series
Using information of past
events to guess future
outcomes.
Segmentation
Dividing factors into
smaller groups with
similar needs, interests
and priorities.
Customer Life Cycle
Progression of steps
a customer goes through when
considering, purchasing, using,
and maintaining loyalty to a
product or service.
Common AnalyticsTechniques
Most
Common

Soft Skills Technical Skills
Business Strategy
Complete Industry
Knowledge
Negotiation
Communication
Project Management
Human Resource
Management
Data Mining
Statistics
Computer Programming (R,
Python)
Database Management (SQL)
Data Representation
Quantitative and Qualitative
Analytics Skill Set

Predictive Analytics for
Human Resources
- Dr. Jac Fitz-enz and John
Mattox II
The New HR Analytics:
Predicting the Economic
Value of your Company’s
Human Capital Investment
- Dr. Jac Fitz-enz
StrategicAnalytics: Advancing
Strategy Execution and
Organisational Effectiveness
-Alec Levenson
BusinessAnalytics
University of Pennsylvania
Available on Coursera
Introduction to People
Analytics
Moscow Institute of Physics
andTechnology
Operations Analytics
University of Pennsylvania
Books Courses

Industry News.
Product Features.
Best Practices.
http://demosphere.com/blog/
Integrated Reporting,
Planning andAnalytics.
http://www.insightsoftware.
com/blog/
Business Intelligence.
Big Data.
Marketing and Strategy.
Data Insights.
http://blogs.forrester.com/
Software Web Resources

48 Other Analytics Software
Microsoft dynamics innervationMicrosoft Excel
Visier
SAP success factors

49
“If you can’t explain it simply, you don’t understand it
well enough.”
- Albert Einstein, Physicist
Regardless of the brilliance of your analysis or the importance of your insights, you need
to be able to communicate your findings successfully to others. If you’re the only one
who “gets it,” then you’ve failed.You need to consider how you can simplify your
message so that it resonates with your audience and they know how to act on your
insights.

50 HR ANALYTICS:
PUTTING IT ALL
TOGETHER
MODULE 4

51
INFORMATION
What is going on?
INSIGHT
What does it mean?
IMPACT
What difference can we
make?
INTERVENTION
What can we do with
it?
ANALYTICS
MODEL
ANALYTICS
MODEL
Applying the 4I Analytics Framework

What are the leading
human capital practices
that predicts the success of
an organisation?
Information – What is going on?
What critical success
factors/quality attributes
makes a great HR Function?
From a combination of several
landmark researches on the
studies of the impact of HRM
practices on organisations, we
have identified 8 Human
Resource Conditions that are key
drivers of success for best-in-class
organisations.

Leadership and
Managerial
Capabilities
Hiring the Right
People
Use of competencies
(non-negotiable criteria)
in employee selection,
development &
performance
management
Effective & Strategic
investment in
employee
compensation and
development
A strong
Performance-
oriented culture
Low turnover
(particularly in superior
performers/ premium
employee group)
A cadre of qualified
replacements
High levels of
Employee
Engagement
8 HR
CONDITIONS
Insight - What does it mean?

How well is your organisation
currently faring with respect to
the Eight (8) Human Resource
Conditions on a scale of 1 – 5?
54 What about you and your Organisation?
we are NOT doing
very well in this
area
we are top of our
game

55 What about you and your Organisation?
How did we
arrive at our
answers?
What data did
we use in our
analysis?
What metrics
did we employ?
What is our confidence
level regarding the
accuracy of our
response?
What can our
organisation do to
improve on the
ratings?

Reporting
Advance
Reporting Analytics
Moving fromVagueness to Clarity
“In God we trust. All others bring data.”
-W. Edwards Deming

Intervention & Impact –
What Can we do with it & What Difference will it make?
High Performance Businesses, through analytics identify where they need to
excel, focus energy and resource on those areas, and measure achievement and
impact on business results.

The High Performance Business
• Hiring right
• Strong Performance
Oriented Culture
• Low turnover in Premium
Employee Group
• A cadre of qualified
replacements
• High Level of Employee
Engagement
• Use of competencies
Basic Progressive Pioneering
• Strategic investment in
Development & Compensation
• Leadership

59 SUMMARY OF KEY
POINTS
WRAP UP

60 Summary of Key Points
Importance of Analytics to
value creation in an
organization
HR Doables, Deliverables
and Measurables
Data, Big Data and Analytics
Examples of How companies
are using Analytics
Below are the highlights of some of the key areas covered in the Workshop
Analytics and Sources of
Insight
HR Analytics – What, Why and
how.

• Three critical questions for our profession:
What are the most
important activities HR
Functions should Engage
in?
How should the success
of HR functions be
measured ?
HR Doables HR Measurables/Metrics
What are the most
important results
/outcomes that HR
function should deliver?
HR Deliverables
We can’t answer these questions effectively without
Analytics.
HR Ables

These Measures are No Longer Good Enough…
Time to hire and
cost to hire
Number of
training days per year
Summary of turnover
percentages
Cost of compensation
and benefits
HR staff per
employee ratio
Satisfaction with courses
and materials

• From our perspective, HR Analytics is a required business process and an
indispensable part of being competitive within any industry.
• This session was designed to share HR Analytics knowledge and hopefully provide a
compelling justification for why you and your organization should get serious about
Analytics.
In Conclusion…..

64
“There are three types of relationships one
can have with work: a job, a career or a
calling.”
- Chip Conley

65
•Open/Public Programmes
•In-Company Programmes
•High Performance Induction
Programmes
•Train The Internal Trainer &
Course Content Development
•High Performance Team Building
Solutions
•E-Learning
•Research
•Learning & Performance
Consulting
•Strategy Education
•Organisation Effectiveness
Diagnosis
•Strategic Planning retreats and
Execution Management
•Organisation Design and
Transformation
•HR Consulting
•People Outsourcing
•Task Outsourcing
•Project and Business
Process Outsourcing
•Talent Sourcing
•Talent Assessment
– Pre hire
– Post hire
•Talent Verification
Learn More, Be More Helping You Win Delivering Results Talent Redefined
Even Better!
OurBrandsOurOfferings
Workforce Group

ThankYou For
Your Attention
The End

A Primer on HR Analytics

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Similar a A Primer on HR Analytics

Similar a A Primer on HR Analytics (20)

Más de Workforce Group

Más de Workforce Group (6)

Último

Último (20)

A Primer on HR Analytics