HR ANALYTICS
II MAHRM
WHAT IS ANALYTICS?
Is a meeting of art and science
Art teach us how to look at the world
Science teach us how to do something
A mental framework, a logistical progression and second a set of statistical operations
Jac Fitz-Enz &John R.MattoxII
HR Analytics
Taking Decisions scientifically with statistical model
but HR analytics is not completely depend on
statistics, rather it is purely on logical thinking and
gut feeling
It is defined as the application of analytic logic for the HRM function
(D.K.Bhattacharya)
HR analytics is the systematic identification and quantification of the people
drivers of business outcomes.
(Heuvel &Bondarouk,2016)
Importance and Benefits of HR
analytics
Helping organizations in effective hr functions
Rationalizing manpower requirements
Facilitating in making available right people at right time
Improving business performance through quality HR decision making
Planning for effective career development
Benefits….
Improving talent retention
Helping in identifying factors that can contribute to increased employee satisfaction and
performance.
Helping in identification of KPIs that can contribute to business
Help organisations to achieve strategic and business goals
Steps to implement HR Analytics
✔ Clarity on HR Analytics
✔ Top Management Acceptance
✔ Incremental approach in implementation
✔ Design common glossaries and definitions
✔ Develop cross functional team
✔ Train the people
Changing Nature of HR
Democratization and Consumerization
What is it?
Consumerization of HR
Democratization of HR
CONSUMERIZATION DEMOCRATIZATION
• Consumerization of HR refers to creating • Democratization of HR refers to
a social, mobile, and consumer-style
experience for employees inside the give access to all the employees for
company. taking decisions.
Alignment of HR analytics with
business goals and strategies
Traditional HR to Strategic HR
Areas to align with Business
Predictive Modelling helps HR Analytics align with business
Steps for Alignment of HR Analytics
with Business Goal and Strategies
Framing of Questions
Understanding appropriate Data
Building an appropriate platform for HR Analytics
Gradual Enhancement of HR Analytics capabilities
Disseminating the importance and value of HR Analytics
Understanding appropriate data and metrics
What is relevant data with regard to question no 1?
Framing Questions
What to be measured? Or What is the problem in the organisation?
For instance.
What motivates talented employees to continue with the organisation?
What could be the possible reasons in the case of those talents who had left the organisation in the
past?
Building an appropriate Platform
It depends on Specific business and strategic needs of the organisations.
It is built on various ERP,CRM modules, sales,finance,and operational data and so on.
It is named as Functional Analytics
Gradual Enhancement of HR analytics capabilities.
How?.........
Disseminating the importance and value of HR
analytics
How?.......
Check lists for Strategies and business aligned HR analytics
Let’ us explore….
Check list continues
To understand
Nature of work to be done
Existing role of various function, structures
Influence of various roles in HR quality
Data integration for hr analytics
Dissemination of hr analytics to all stake holders
Enhance capabilities of employees for data driven decision making
Leadership Attributes
Capacity to think
Willingness to develop others
Ability to inspire
Drive to achiever
CEO’s Responsibilities
Manage
Challenge
Integrate
Represent
HR measurement-Traditional vs
contemporary
HR metrics
Fundamental concepts
BUSINESS ANALYTICS
What is business analytics
Business analytics is a set of statistical and operations research
techniques, artificial intelligence, information technology and
management strategies used for framing a business problem, collecting
data and analysing the data to create value to organization.
U .Dinesh Kumar, IIMB
BA can be broken into 3
components
Business context
Technology
Data Science
Business context
BA projects start with business context and the ability to ask right questions.
For instance: Question: Did you forget feature
Pregnancy prediction
Technology
To find out the answer for the questions ? What we need?
Techonology such as R software, Spss. SAS, Tableuar, and to capture the _________
images, texts, voice, video, click stream
Data Science
DS consists of stastical, operations research, machine learning and deep learning algorthims.
Object of DS is to identify the most appropriate statistical model/machine learning and best
based on measure accuracy.
BUSINESS INTELLIGENCE
Business intelligence (BI) is a technology-driven process for analyzing data and
delivering actionable information that helps executives, managers and workers make
informed business decisions. As part of the BI process, organizations collect data
from internal IT systems and external sources, prepare it for analysis, run queries
against the data and create data visualizations, BI dashboards and reports to make
the analytics results available to business users for operational decision-making and
strategic planning.
PILLARS OF BUSINESS
ANALYTICS
BUSINESS ANALYTICS
BUSINESS CHALLENGES
DATA FOUNDATION
ANALYTICS IMPLEMENTATION
INSIGHT
EXECUTION AND MEASUREMENT
DISTRIBUTED KNOWLEDGE
INNOVATION
BUSINESS CHALLENGES
Any business analytics initiative must be grounded in critical challenges.
How can I increase customer acquisition and retention?
What prospects do I need to target in order to increase market share/customer
spending?
What are the emergent competitive threats, an d h ow can m y organization
manage them?
Who are my most profitable customers, and how do I bring in more like them?
What types of our customers are most loyal, and what can we do to increase
loyalty am on g the others? What new products do customers want from u s?
How are customer prospects u sin g ou r online environment, an d
h ow can we increase con version to a customer in our online experience?
What are customers saying about us in the marketplace?
DATA FOUNDATION
Data is the foundation for analytics, without data we cannot think of analytics, decision making
and so on,
Question: How to build data?
ANALYTICS
IMPLEMENTATION
INSIGHT
What insights do the business leaders get out of the data analytics?
Execution and measurement pillar
Execution is the step where the business analytics becomes reality.
Measurement in simple words tracking the results of the execution of the business analytics
vision and initiatives.
Distributed knowledge
It is unfair to maintain the knowledge of analytics in one segment of
employee, the knowledge which they got from the analytics should
disseminate to across the department members.
Innovation
It is an ongoing activity where the business leaders take a cue from
the business analytics intiative.
COMPA-RATIO
Compa-ratio
• Compa-ratio (comparison ratio) is a compensation metric that compares
the salary an employee is paid to the midpoint of the salary range for
their position or similar positions at other companies.
• Compa-ratios reveal how far an employee’s pay is from the market
midpoint. If an employee has a compa-ratio of 100 percent, they would
be considered right “at market.
• It helps to determine the employer if they are appropriately compensating
the employees.
HOW TO CALCULATE COMPA RATIO
A compa-ratio of 1.0 means that the employee is paid at the exact midpoint of the range,
whereas values higher or lower than 1.0 indicate how they are paid relative to the
midpoint.
EXAMPLE
For example, if the midpoint of your salary range is RS50,000, and an
individual within that range is paid RS.45,000,
CALCULATE COMPA RATIO
