Human Resources is successfully changing and its role is shifting from administrative support to strategic management of the organization. However, such a change is unthinkable without quality and smart data support. That’s why HR Analytics (often also known as Workforce Analytics or People Analytics) is a highly dynamic area of contemporary and modern HR Management. Good data and its value-added interpretation contribute significantly to the development of the entire industry. HR Analytics enables HR Professionals to increase the performance and accuracy of HR teams.
It is a relatively young part of the HR Department and provides a great deal of opportunity for personal development. As a subfunction of HR Management function, it can significantly influence business outcomes. It does not work just with historical data, it provides useful forecasts, identify trends and predictions. Predictive HR Analytics is a quickly growing area supporting the most successful HR leaders and gives them useful HR analytics tools how to improve employee performance or employee productivity, for example by decreasing Employee Turnover.
Predictive Human Resource analytics can significantly influence critical decisions that the leadership team makes, which can have a profound impact on the organization. By examining employee data, HR analytics can identify areas for improvement, allowing organizations to maximize their resources and drive better results. Modern Data analytics collect data from various data sources and turn them into relevant data for strategic decision making. Also, such data can support many HR initiatives by choosing right HR Analytics metrics.
For example, using predictive models, HR professionals are able to identify which employees are more likely to leave the organization, so they can take pro-active steps to retain them. HR analytics also allows HR professionals to measure and monitor employee engagement, performance, and satisfaction levels. This data-driven evidence helps HR teams make strategic decisions about training, development, and succession planning. Talent Analytics is a major component of HR Analytics.
It serves as an important component in every important decision. It provides important inforrmation to top management, pushes the development of technology in HR forward and provides valuable feedback on HR performance.
Ultimately, data-driven decision making is the cornerstone of modern HR, and HR analytics provides the necessary insights to make more informed decisions. By leveraging data and technology, organizations can ensure they are making decisions based on facts, evidence and analysis. This will help them stay competitive in their industry and make sure their employees are engaged and satisfied.
Just a decade ago, top executives did not expect to receive a regular supply of numbers, information and reports from the Human Resources department on the status, trends and developments in the organization’s people. The data was inconsistent and its quality was questionable. The informational value was close to zero and the leadership team did not usually give weight to the data presented in their decisions on how to proceed.
Today, Human Resources routinely works with data, uses modern technology and bases decisions on the right data. Workforce Analytics is a dynamic area of employee management and provides important data and information for management decision making.
A competitive and modern company makes decisions based on facts, evidence and analysis. The utilization of machine learning in HR analytics provides immense benefits to both employers and employees. It enables employers to access comprehensive and accurate data, allowing them to make informed decisions on personnel management and development. Machine learning is especially helpful when it comes to identifying recruitment trends, analyzing employee performance and predicting workforce behavior. It is not just about defining and measuring right HR metrics anymore.
Each decision brings together data, critical perspectives on the topic from different angles, opinions and a good mix of emotions. HR Analytics cannot predict the future, but it can reveal hidden trends in an organization and highlight unhealthy developments. Of course, it’s not 100% accurate, but it can provide a reasonable level of assurance.
In Human Resources, feelings and emotions have always been important. Emotions will continue to be an important and essential component of decision making. However, it is important to look for the right data to support a particular decision, to provide appropriate reasoning for it. It will also determine the future direction of work, projects and initiatives. Without data and its interpretation, further development of HRM is no longer conceivable.
What is HR Analytics?
HR analytics is a way of looking at data to help make decisions about how to manage people. It helps employers understand what their employees are doing and how they can do it better. It also helps people figure out if they are doing a good job and what changes might be needed. HR analytics can help organizations become more competitive by giving them accurate information about their workforce, so they can make smart decisions for the future.
By allowing employers to gather and analyze data, they can better understand their employees’ performance, identify areas of improvement, and make decisions based on evidence. In the end, HR analytics is all about making sure that companies are able to get the most out of their people and maximize their potential. By utilizing available data, organizations can ensure that they have the< necessary insights to make more informed decisions. By leveraging data and technology, organizations can ensure they are making decisions based on facts, evidence and analysis. This will help them stay competitive in their industry and make sure their employees are engaged and satisfied.
HR analytics is becoming increasingly important as the workplace evolves. As technology advances, HR professionals need to be able to use the tools and data available to them. This can help them gain insights into their organization, identify areas for improvement and make sure that they are making the best decisions possible. HR analytics is also becoming increasingly important as employers look for ways to become more efficient and effective. By utilizing HR analytics, people can understand what works and what doesn’t, as well as identify areas for improvement. This can help them make better decisions and create a more productive work environment.
Overall, HR analytics is becoming increasingly important for businesses of all sizes. By leveraging data-driven insights and technology, employers can make the most informed decisions possible and ensure that they are getting the most out of their people. By utilizing available data, organizations can ensure that they have the necessary insights to make more informed decisions and remain competitive in their industry. HR analytics allows employers to access comprehensive and accurate data, allowing them to make informed decisions on personnel management and development. Moreover, it reveals hidden trends in an organization and highlights unhealthy developments.
What is predictive analytics?
Predictive analytics is a way to use data to make predictions about the future. It helps HR professionals make decisions that are based on facts and evidence. It can help them figure out what will work and what won’t, so they can make sure their decisions are the best ones for their team. This can also help them identify areas of improvement and understand how people are performing in their organization.
It helps employers get the most out of their employees by giving them accurate information about performances, which allows them to maximize potentials. Smart future focused analytics can be used to identify trends and create forecasts, making it easier for HR departments to make better decisions. By utilizing this kind of analytics, employers can gain a deeper understanding of their workforce and gain insight into the future of their organization.
Overall, predictive analytics is an important tool for HR professionals as it helps them make informed decisions and identify areas where they can improve. By using it, employers can gain deeper insights into their employees’ performance and make sure that they are making the best decisions for their organization. It supports HR Business Partners in gaining valuable insights into their company’s future, helping them make more informed decisions and stay competitive in their industry.
Overall, HR analytics and predictive analytics are two important tools for employers to utilize. They allow HR Managers to gain insights into their organization, identify areas for improvement and make sure that they are making the best decisions possible. By leveraging data-driven insights and technology, employers can ensure that they are getting the most out of their people and maximize their potential. This helps them create a more productive and engaged work environment, where their employees are engaged and satisfied.
What is HR predictive analytics?
HR predictive analytics is a way for businesses to use data and technology to make decisions about their employees. It looks at things like who may leave the company or who needs more training. It also helps businesses plan for future projects and activities. HR predictive analytics uses data from different sources and applies predictive models to analyze the data and draw conclusions about employee-related decisions.
This helps businesses identify areas for improvement, allowing organizations to maximize their resources and drive better results. And it does help just to predict Employee Turnover.
HR analytics also allows HR professionals to measure and monitor employee engagement, performance, satisfaction levels. Talent Analytics is a major component of HR analytics. It serves as an important component in every strategic decision about training, development and succession planning. By using data-driven insights, organizations can make better informed decisions that positively impact the success of their business. This helps improve recruitment processes and retention rates as well as identify areas for improvement to reduce costs.
In conclusion, HR analytics provides organizations with the ability to measure and monitor employee performance, engagement and satisfaction levels. It helps employers make better informed decisions that lead to improved business results. HR analytics also helps identify areas for improvement in recruitment, retention and costs. Data-driven insights can help organizations maximize their resources and drive better outcomes.
Why is HR Analytics important?
Any strategic plan is only as good as its input data and the decisions made in its implementation. Quality input from analysts is vital to good quality HR Planning and they must deliver accurate data on employee demographics, turnover trends, salary information and estimate labor productivity trends. In addition, they must link all of this to available external information. A successful HR strategy cannot exist without good and continuous analytical support.
Today, only a company that is constantly changing will succeed. It embraces change as the norm and everyone contributes to the fact that the organization is evolving. Of course, even in such a company, it is important to have anchors to latch on to when change occurs. And that’s the role of HR Analytics. To provide the data that will help anchor each incremental change. To understand their impact and adjust the way forward if necessary.
Successful change also needs a good understanding of the problem. This often cannot be done without detailed discussions in which different data and perspectives are presented. In the discussion, a common view of the problem is born and a team consensus is reached. However, this is not possible without good and quality data.
Fast, simple and efficient HR processes support employee engagement, employee satisfaction and targeted and effective human capital development. Regular performance measurement of the HR department is necessary so that HR staff know what weak areas to focus on. In addition, it is important to understand strengths as well, as a unique recruitment strategy can be built on these strengths.
Working well with employees is necessary for a good employee experience. Employees tend to evaluate the quality of the HR department’s work based on transactional processes. They want to make sure that payroll is calculated and paid in perfect order. They want to get a quick response to every request. When all this works, they focus on the scope of services and benefits provided. To keep everything running smoothly, HR processes need to be measured and have clearly defined HR KPIs. The HR team needs to be clear about what goals they want to achieve and continually work to improve the team’s performance.
Good analytics are also necessary to share best practices. If Human Resources wants to share some of its practices with others, it must deliver them including data that proves that it is not just a process in itself, but has an impact in increasing satisfaction and as a result, will be reflected in the overall company results.
No project can be organized and completed successfully today without good data and critical KPIs. Human Resources is no exception. Having a good plan, set up measurements at the beginning and at the end of the project is a sure way to success. Without measurement and data, no project knows which issues to focus on and which things need to be addressed in the organization. HR Analytics plays a vital role and having a good data analyst on the team is a must.
Even a credible Cost & Benefit analysis cannot do without good employee data. This is not only true for employee management projects, but it is a necessity for virtually all projects today as they all bring about changes that affect everyone in the company. It needs to include basic demographics, trends in the organization, and tie the whole thing to the project. It must identify the guidelines, the costs associated with implementation and estimate the benefits to the company as accurately as possible.
High and consistent performance is necessary for the success of the organization. It is only through high employee performance that a company can generate sufficient added value to invest in the future of the organisation. This performance must also be supported by innovation and creative thinking. Decision-making must be based on critical thinking and decision-making processes must be flexible and fast enough to ensure that the organisation does not lose its place in the market. HR Analytics reveals the weak points that prevent a company from improving its overall performance.
Key Stakeholders for People Analytics
Having good data and understanding the mood of the organization is not an end in itself. HR doesn’t just need data and good analytics for its own sake. In particular, it needs to work for its key stakeholders who need accurate information about the state of human capital in the organization.
These key stakeholders are:
- top management
- line management
- company employees
- human resources staff
- external communities
- regulators and other government agencies.
In particular, top management needs accurate information about the development of human capital in the company. They decide on major investments and employee satisfaction and engagement is a necessary condition for success in business.
Providing accurate and truthful information to the necessary extent to each group of stakeholders promotes the reputation of the HR department and creates the necessary precondition for wider recognition of the entire department in the company. It is always true that a good reputation must be earned.
The HR Leader must not underestimate any stakeholder group. They are all equally important, just different information is critical to them. The analyses that HR provides them must be tailored to each group so that they receive regular data that will help them in their insight into the work of HR staff and the company as a whole.
What does the company’s leadership team expect from HR Analytics?
The Leadership Team must unconditionally understand employee sentiment and attitudes. In a Western company, employees are the main source of competitive advantage. They hold the key know-how, know the often very complex internal processes and procedures, have a perfect command of the company’s products and are the engine of all major innovations. If something is wrong with their motivation, sooner or later it will have a major impact on profitability and productivity.
Human Resources must not be focused only internally or externally. It is often the case that they focus on one area in which they are performing excellently but ignore the others. HR Analytics must be able to link the external data available to the internal data. Then you can see at a glance which direction HR needs to focus in to increase employee satisfaction, engagement and productivity. The Leadership Team always expects a well-balanced approach that respects internal capabilities and with external opportunities.
The Leadership Team expects analytical, value-added HR reports. A clean excel spreadsheet will never generate interest like its correct and accurate interpretation with a story. It will immediately and offer opportunities to influence the given metrics and effect change in the desired direction.
HR Dashboard and Balanced Scorecard approach
Covering key internal customers with a plethora of detailed reports is not a solution that will be successful. Internal clients need to receive regular reports with a few key metrics and critical commentary from HR analysts. The best way to do this is with a simple HR Dashboard.
The HR Dashboard builds on the HR department’s strategy. All HR strategic initiatives need to have defined KPIs that they track and targets for each project and initiative to achieve. The HR Dashboard accurately tracks the progress of work and the development of each measurement on a monthly or quarterly basis.
The HR Dashboard is also linked to Strategic Human Resource Management (SHRM). It clearly displays basic and critical trends in the organization, not only the number of employees, but also information on recruitment and departures from critical departments and positions.
However, it’s not just a static snapshot, it’s a report that provides information about trends in Human Resources and how they impact the company’s financial results.
Tracking employee performance and how it changes over time is also an important section. It shows the different groups by performance, how they are evolving over time and planned actions. It also connects all this to compensation to see if the pay for performance policy set up is working.
Data as a solid foundation
A pivotal moment for People Analytics was the massive introduction of information technology into human resource management. The use of modern HRIS has made it possible for one system to become a universal source of truth. Digitized processes are easy to follow and dozens of different Microsoft Excel spreadsheets were able to leave the scene. Human Resources could create a solid foundation – a robust and unified HR Data Model.
It is no longer the case that Human Resources will always deliver a new set of reports and data that cannot be linked to previous reports. The usual argument that organizations evolve and change and therefore it is impossible to do the same report is no longer valid. Modern systems keep track of all changes and correctly transcribe them into reports.
A sustainable competitive advantage must be supported by good and reliable data. The company must strive for incremental improvements in labour productivity in order to continue to invest in innovation. And that includes innovation in human resource management.
Good analysis is behind most changes in a company. The right data determines whether a change will be successful or whether its implementation will fail. That’s why the top team must have a good understanding of the whole problem before making critical decisions. They need to see the whole area from different perspectives and have an overview of all the costs, benefits and risks. HR Analytics provides a view through employees as important stakeholders in strategic decisions.
Data Model and Technology in Human Resources
The rapid advent of modern technology has changed the world of human resource management. It all started with a simple self service portal for employees and so far it ends with HR system in cloud. Implementing a new HRIS solution is no longer about high costs, you just need to pay bearable monthly fees according to the number of employees.
A good HRIS solution comes with the implementation of a robust HR Data Model. No longer is data maintained in various Microsoft Excel spreadsheets. All data about the entire Employee Lifecycle is in one system and is consistent.
Creating a good HR Data Model is a complex task, but modern HR systems can help with its design and implementation. It is a challenging task for the entire HR team, but the benefits are incalculable. Satisfaction with the data delivered will gradually increase throughout the organization, and over time, credibility will also increase. No one will challenge the delivered reports anymore and ask to check them and interpret them differently.
The existence of a good HR Data Model will also simplify the implementation of HR projects and initiatives as there is no need to create additional support systems to track critical HR metrics. Measurement is automated and performed by the HRIS.