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What is HR Analytics? Human Resources Analytics [Updated 2021] | AIHR

What Is HR Analytics? Definition, Importance, Key Metrics, Data Requirements, and Implementation | Toolbox Hr

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What are HR metrics?

HR metrics are specific indicators that allow businesses to measure performance, efficiency, and the impact
of business processes and changes.

Metrics are based on measurable, hard data – or numbers – and they tell you what’s happening since they’re
often defined by an objective. Metrics are essential in determining the value and effectiveness of HR
initiatives in a factual way, tracking and presenting past data to influence future decision making.

For example, if a company is looking to understand more about their employee turnover in a particular
department, it can be calculated as a percentage based on the department’s staff count, turning that result
into a metric.

Why do we need HR metrics?

HR analytics uses HR metrics to help leaders better understand how to move forward with business
decisions.

It’s necessary to study HR metrics to help quantify the costs and impacts of HR and business processes as
metrics provide the straightforward informational data that leaders need to make immediate and pressing
decisions for their business.

HR metrics track activity and report numbers on areas such as:

 Recruitment and onboarding costs

 Training and development
 HR operations

Metrics provide an inside perspective of organisations because they use data from internal business sources.
While this information is useful, it’s still important to remember that these metrics give only the basic
insights into functional areas.

The Difference: Made Simple

Both HR analytics and metrics are influential tools, and when used together they create a powerhouse of
information and feedback for individual organisations, ultimately saving them time and money.

The great thing about metrics is that they can act as a barometer for businesses, indicating which areas of the
business are performing as needed and pointing out any potential pitfalls. Though metrics on their own don’t
provide the in-depth information needed to uncover areas of improvement and shape future objectives – they
can only track activity.

That’s where HR analytics comes in.

HR metrics feed into HR analytics, and together they pave a road towards potential solutions when HR
analytics utilises the concrete data that HR metrics provide.

So, to recap:

 HR metrics support HR analytics

 HR analytics provide direction on how to improve HR metrics
  HR metrics give insight into whether the results of the HR analytics is correct

Now that you can be sure of the difference between HR analytics and HR metrics, you can also see why the
two concepts work better in conjunction with one another.

Reliable, high-quality data is essential in solving business problems and for providing opportunities to
predict future outcomes and plan accordingly. This data is important for companies because it provides
insights that lead to action and continual improvement, ultimately making for happier and more efficient
employees.

https://www.icslearn.co.uk/blog/posts/20
20/june/whats-the-difference-between-
hr-analytics-and-hr-metrics/
HR metrics are measurements used to determine the effectiveness and efficiency of HR policies.

Metrics help compare different data points. For example, if turnover was 5% last year and is now 7.5%, it
has increased by 50%. The former are data points, the latter is the metric.

Metrics don´t say anything about a cause, they just measure the difference between numbers.

HR analytics, also called people analytics, is the quantification of people drivers on business outcomes.
Analytics measures why something is happening and what the impact is of what’s happening.

Consider the following example:

Definitions of HR metrics and Analytics

HR metrics are measurements used to determine the effectiveness and efficiency of HR policies.

Metrics help compare different data points. For example, if turnover was 5% last year and is now 7.5%, it
has increased by 50%. The former are data points, the latter is the metric.

Metrics don´t say anything about a cause, they just measure the difference between numbers.

HR analytics, also called people analytics, is the quantification of people drivers on business outcomes.
Analytics measures why something is happening and what the impact is of what’s happening.

Consider the following example:

Related (free) resource ahead! Continue reading below ↓

People Analytics Resource Library

Download our list of key HR Analytics resources (90+) that will help you improve your expertise and
initiatives. Your one-stop-shop for People Analytics!

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 1. This example starts with an opinion: “I feel like a lot of people are ill this month!” This opinion, however, is a
gut feeling, it’s not a fact. The person could be mistaken.
2. Data helps to factualize the opinion. When we look at the data, we see that absence levels are at 12% this
month. With this data we still can’t make a value judgment. We don’t know if 12% is high or low.
3. To understand this, we need a norm (a.k.a. compare with a second data point). For example, when we know
that the company average is 8.5%, and the national average is 4%, we know that this month is a really bad
month – and that there’s a potential problem in the company! This is where the metrics come in.Another
metric could be ‘cost of lost productivity due to absence’. For this, we need the following numbers:

Ass
uming that the organization has 60,000 employees with an average annual labor cost of $45,000, the
formula for this month alone is:

4. Analytics helps identify causes and how it impacts the business. For example, the number of people who
report flu-like symptoms has significantly increased, or the number of flu symptoms reported in the
company increased at similar rates as in the country. This information helps to identify a cause.
5. The final step is insight. What will we do with these numbers? First of all, cost of absence is far above the
market average. It is so high that it threatens the competitive position of the company. Second, we should
try to reduce the absence of employees in a flexible manner in case a new flu epidemic sweeps the land. This
can be done by fighting the cause or by fighting the symptoms: sponsoring flu vaccinations or enabling
flexible deployment of on-call workers.

This example shows how HR metrics and analytics relate.

Analytics tracks the effects of metrics on business performance

To properly explain the relationship between HR metrics and analytics, we’ll use the HR value chain. The
value chain shows different kinds of HR metrics and how they impact business performance.

On the left, we have the so-called efficiency metrics. They show how efficient HR is in its work. Examples
include cost of training, cost of hiring, number of applications, average years until promotion, et cetera.

In the middle, we have effectiveness metrics. They tell us how well HR is performing its role. Outcomes
include employee retention, employee engagement, employee performance, et cetera.

The difference between efficiency and effectiveness can be described as HR input and HR output. However,
the third category, the impact metrics, are the business impact of everything HR is doing. These are the
results that count and that influence the (long-term) viability of the company.

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Reporting Specialist Master data-driven HR and learn to create powerful HR dashboards
in just 10 weeks with 4 hours of studying a week.

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Everything we do in HR needs to serve these business goals – which can differ between organizations.

Now where does analytics fit in? Analytics tracks the effectiveness of HR metrics on HR and business
outcomes. It helps to answer the following example questions:

 How does learning & development investment impact sales performance for my account managers?
 Will quicker promotions help us retain our top talent?
 What can we do to retain employees and thus save money?
 How can we best improve customer satisfaction through smart people processes?

All these questions can be answered using analytics and the aforementioned HR value chain.
How to get from metrics to analytics
Now you have a basic understanding of the difference between metrics and analytics, we’ll finish with how
to get from metrics to analytics.

1. Start with your data: As you know now, metrics are the relations between data points. In order to start with
metrics, you need to have your data right. Smart HR system design and high data quality are key
components to improve before you invest into getting your metrics ready for HR reporting
2. Getting the metrics right: This step sounds easier than it is. Measuring basic data is easy but keeping track of
more complicated metrics, like the % of unwanted turnover, is something a lot of companies are struggling
with, as it requires them to combine multiple systems (their main HRIS and their performance system in this
case).
3. Select the relevant KPIs: The second step is to select the HR Key Performance Indicators that matter most
for your business. These KPIs should be connected to business goals. For each KPI a target score should be
specified.
4. Identify areas where analytics adds value: You can leverage the data and metrics to add value using
analytics. This starts by identifying a business case that, when solved, would add value to the business. This
means that your outcomes need to be actionable.
5. Implementation of results: Once you’ve completed your first analytics project, you can implement the
results in the organization. At this point, you’ve leveraged your HR data to create value for the organization
and you’ve added to the organization’s strategic goals.

Read more about how to align metrics to create strategic value, or find out how HR analytics works in
practice by clicking the links.

If you’re serious about learning more about these topics, check our courses on Strategic HR Metrics and on
HR analytics. We offer a course that teaches you how to create an analytics department and manage projects
and one, the HR analyst course, that teaches you how to do analytics in Excel and

What Is the Difference Between Analytics and Metrics in HR?

Posted December 27th, 2017

As more companies turn to data to help guide business decisions, you often come across two concepts:
metrics and analytics. While the two do share some common features, they are fundamentally different in
many ways. However, they are both incredibly valuable, as long as you know how to use them wisely. To
help you understand their role in business more clearly, here’s what you need to know.

What is Metrics?
At their core, metrics are typically associated with operational measures1. They are used to analyze
performance, efficiency and the impact of certain practices or changes. For example, if you examine the
amount of turnover in a particular department and calculate it as a percentage based on that area’s total staff
count, that would be a metric.

Metrics tell you what is happening, or has recently happened, based on hard data. They are often defined by
an objective, such as having a particular retention rate or increasing production by a specific percentage and
tend to represent a fairly rigid target.

What is Analytics?
Analytics focus on comparing variables to guide future decisions. Often, the focus is on developing business
measures that can predict future outcomes, allowing you to anticipate the impact of individual decisions in
advance.
Often, analytics help identify patterns that may not be easily visible. For example, you may use analytics to
find commonalities between employees who chose to leave the company, allowing you to create a plan to
remedy issues that may lead other workers to go down the same path.

Analytics, like metrics, are based on hard data, but they look beyond the numbers to try to find causations
and correlations that may otherwise be difficult to spot.

Business Value
Both metrics and analytics are powerful tools, as they provide you with insights into your company’s
operations. Ultimately, metrics can feed analytics, as it is a source of vital data that, when reviewed
properly, can help shape future decisions and objectives.

Generally, metrics serve as a barometer, indicating which areas of the business are performing as desired
and identifying potential shortcomings. However, they alone won’t tell you what needs to be done to
improve the areas that are struggling.

Analytics creates a path towards solutions, but doesn’t provide much value without the sound data metrics
can provide. In that regard, the two concepts are best used in conjunction with one another, as metrics
support analytics, analytics offer guidance about how to improve your metrics, and future metrics let you
know if the results of the analytics were accurate.

Once you begin using them both, you’ll see the relationship is highly symbiotic, with metrics and analytics
creating a circular process for measuring business health and the effectiveness of policies and procedures.
However, to be reliable, high-quality data is required, as faulty data will create inaccurate results.

What is the Importance of HR Metrics Analysis?

HR metrics, or Human Resources metrics, are Key Performance Indicators (KPIs). Businesses track them to
measure the people processes in the company.

Small business HR teams can track metrics for all core and non-core areas. This includes hiring, pay, time
and labor, training, engagement and retention.

Common HR metrics include:

 Time-to-hire: average number of days it takes to fill a position

 Cost-per-hire: the average cost of hiring a new employee
 Time-to-productivity: the period of time from hire to full productivity
 Employee turnover: the number of separations per year divided by headcount
 Absenteeism or absence rate: employee absences divided by number of employees
 Overtime: the ratio of overtime to total hours worked for a given period
 Revenue per employee: net revenue divided by number of employees
 Diversity and inclusion: total hires within a set period of time divided by specified demographic

What is the importance of HR metrics analysis?

HR metrics provide insights so you can make better decisions. They are essential for optimizing processes.

“Without big data, you are blind and deaf and in the middle of a freeway.” – Geoffrey Moore
Using analytics isn’t difficult but it does take time and persistence:

1. Gather data about your workforce

2. Analyze the data in the context of overall business strategy
3. Make changes to improve operations
4. Assess whether the changes are working
5. Adjust as necessary

“The point is to “get past the ‘what’ and fully understand the ‘why,’ The benefit of using metrics is that the
decisions are better-informed and backed by facts—rather than hunches—and thus make key people
decisions far more ‘sellable’ to the business.” Cecile Alper-Leroux, VP of Human Capital Management
Innovation for Ultimate Software, 9 Tips for Using HR Metrics Strategically, SHRM

What are the benefits of tracking HR metrics?

Certainly, the importance of using analytics cannot be overstated. Any small business that doesn’t use HR
metrics analysis will fall behind. Indeed, today’s environment is too volatile and competitive not to take a
scientific approach.

Let’s highlight some high-level benefits. As you read through these, consider the components within each
category:

 Improve labor resources allocation (scheduling, bidding, hiring, compensation)

 Predict the results of proposed changes with ‘what if’ scenarios (PTO policies, benefits changes, additional
shifts, additional locations, team makeup)
 Decrease compliance risks (overtime, minimum wage, exempt vs non-exempt classification, FMLA, PBJ, ACA)
 Improve the ROI of HR programs (engagement, wellness, financial planning, performance)

Start with one process

So, how do you get started? We recommend starting with just one process. When you improve even one
variable using HR metrics analysis, it can trigger a chain reaction of benefits.

Example: overtime per manager

As an example, let’s talk about tracking overtime per manager. You can do this with a simple timecard
report.

Suppose you discover that 60% of overtime occurs with one manager. Now it’s time to dig into the data and
figure out why. Perhaps the production goals are unrealistic. Maybe the team is understaffed. Or perhaps the
manager simply doesn’t know how to build shift schedules.

In our example, let’s suppose you compare scheduled hours to actual hours worked for the manager’s team.
When you review the timecards, you discover that several employees habitually stay on the clock for lunch,
which is supposed to be unpaid.

With this knowledge, you can take measures to solve the problem. First, you would need to review the
policy with the manager who should, in turn, review it with the team members. You could also get a time
clock with meal break prompts. Furthermore, a timekeeping system with missed punch alerts could help.

When you’ve worked to fix the situation (adjusting as needed) the improvements would compound. First,
your profit margin would increase due to less overtime. Secondly, less overtime could improve employee
morale. Thirdly, better morale could help you keep employees longer. Lastly, improved retention would
save on recruiting and training costs.
This is an example of working on just one process. Consider the impact of using HR analytics to improve
many processes. It could make a big difference.

In addition to comparing metrics to historical data, compare them to similarly-sized companies in your
industry. It’s good to know the average turnover rate, for example, or time-to-hire.

What tech simplifies HR analysis?

Human Resources Management Systems (HRMS), Human Resources Information Systems (HRIS), and
Human Capital Management (HCM) are all types of HR software that can track metrics.

These systems are suites of HR tools that work together. These tools include:

Applicant tracking system (ATS)

An ATS helps recruiting teams lower hiring costs, find better talent and use hiring metrics to fine tune
processes.

Onboarding systems

When you use an onboarding system with a well-designed process, you will increase new hire engagement.
This speeds up time-to-productivity. In addition, it lowers the risk of the employee quitting in the first year.

Performance management systems

Successful companies make sure managers do performance reviews often. Performance management
software helps teams track performance over time.

Leave management systems

With COVID leave added to the mix, leave management has never been more complex. Tracking PTO, state
and federal family leave, and other types of leave with spreadsheets is hard. Leave management software
makes it a lot easier. Employers can customize the software for their company PTO policies, state and
federal laws, and union or government contracts. Automating this process saves time, improves accuracy
and protects against compliance issues.

Learning management systems (LMS)

An LMS is an online platform for managing training. (Self-directed digital training is also called eLearning.)
An LMS allows HR teams to customize and track training in a centralized location. These products often
integrate with onboarding or performance management software. With the increase in remote working, an
LMS is a must-have for modern workforces.

Employee timekeeping and scheduling software

Time tracking is a foundational business process. Paycheck accuracy is paramount. To best use your
workforce, you need to-the-minute employee time and attendance. Cloud-based software synced with
hardware clocks provides a unified timekeeping solution. The system captures punches, confirms identity,
tracks hours, meals and PTO, enforces schedules and prevents time theft. Mobile clock-in and geofencing
allow companies to track offsite punches and location.

Employee scheduling and timekeeping are interrelated. Certainly, shift planning impacts efficiency.
Scheduling software allows you to create schedules in minutes using templates and drag-and-drop. Schedule
modules synced to timekeeping simplifies schedule access, timecard submission, shift trades, and PTO.
Overtime alerts help prevent unplanned overtime and related compliance issues.

Benefit management systems

Employee benefits are both extremely important and notoriously difficult to manage. Using specialized
software to manage retirement plans, health insurance and other benefits is a best practice used by successful
companies.

Up to date HR tech is essential if you want your business to grow. But many business owners are hesitant to
dive in.

It’s not complicated…

Why don’t more small business owners invest in intelligent HR automation? Some think it sounds too
complicated. The reality is that running a business without it couldn’t be more complicated. It’s like trying
to navigate an obstacle course in the dark.

Even in a small business, there are plenty of moving parts. And they could move a lot better with the right
tools.

Analysis saves time in the long run

Does it sound time-consuming to use HR metrics analysis? It isn’t with the right software. An HR system
saves everyone time. That includes you, your employees, your managers, Human Resources staff, and even
your customers. An HR system automates processes along with metrics analysis and reporting. In fact, some
businesses can automate up to 80% of HR functions with the right software.

WorkforceHub is an affordable, quick to deploy HR system intentionally designed for the complexities of
running a small business. To see it in action visit WorkforceHub to schedule a demo.
https://www.peopleinsight.com/guide-to-
people-analytics
https://www.slideshare.net/abhipsamish
rasatpathy/stratetic-hrm-hr-scorecard
https://www.slideshare.net/Mohammed
Ghousuddin/the-power-of-hr-metrics-
analytics
Human Resource ManagementProfessor Sturman, Spring 2010 Individual
Performance and HR Metrics February 2, 2010.
Published byDwayne Greer Modified over 5 years ago

Presentation on theme: "HA 7712: Human Resource

ManagementProfessor Sturman, Spring 2010 Individual
Performance and HR Metrics February 2, 2010."— Presentation
transcript:
1 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Individual Performance and HR
Metrics February 2, 2010
2 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 What Matters about the
Employee Key Outcomes: Performance Turnover Important Characteristics Withdrawal behaviors Job
satisfaction Organizational commitment Perceived organizational support

3 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 What is Performance? Task
performance Organizational citizenship behaviors – helping behaviors – not specifically part of the job but
beyond the scope of the job but beneficial to the job (such as extra customer services when it is not your job)
– how much your people contribute beyond their job description. Counterproductive performance – deals
with tardiness, gossiping, stealing, violence at work, showing up late… all issues that you want to eliminate
Overall Ratings – generally capture all aspect of the above three.

4 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Job Performance

MotivationAbilityOpportunity Incentives Personality Job Design Attitudes Intelligence Personality
Experience Constraints Rules and & Regulations Resources Culture

5 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Medium Complexity

Complexity and the Prediction of Performance Low Complexity Motivation or Ability Job Complexity High
Complexity Motivation + Ability Motivation x Ability

6 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 What is the Role of Job
Satisfaction? How well does it predict job performance? How much does job satisfaction cause job
performance? What else is related to job satisfaction? Dissatisfied people are more likely to quit than
satisfied people. Why is it important to increase job satisfaction? Other ways to manage employees: Clear
instructions lead correlation to occur between performing and employee satisfaction because people
understand the instructions better

7 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 How Does HR Affect Employee
Job Performance? 1.)Increase the performance levels of current employees Training Compensation
Empowerment, feedback (employees don’t know when they’re not performing well because no one is telling
them), etc. 2.)Selectively choose better performers Selection Turnover

8 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Better Performance Through
Selectivity Must be able to be “picky” You must be able to choose Without the ability to choose, you cannot
add value Must have validity Must be able to predict (have to be able to predict people’s performance)
Without prediction, you also cannot add value

9 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Net Increases to Performance
Improve employees’ current skills Give employees new skills Increase employees’ motivation – (incentives)
Give employees the opportunity to perform better

10 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 How Much Does Employee
Performance Matter? What can a bad employee do? What can a great employee do? Essentially can make
other employees perform better. They can be simply more efficient What is a great employee worth to you
compared to an average employee? Equality isn’t necessarily fair. Giving people who perform differently
the same isn’t fair. In HR you should invest your money where the performance is going to have the highest
return to the firm.

11 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 The Workforce Contribution
Model Mindset and culture Competencies Behaviors & Performance Workforce Success Organizational
Performance Leading Workforce Indicators Lagging Workforce Indicators

12 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Why Consider HR Metrics and
Analytics? If employee behaviors can add value… … to what extent is that happening? The extent to which
employee performance is occurring If HR decisions can add strategic value…... how do you see how well it
is doing? – how well HR decisions are occurring (such as implementing new training and measure if
decisions are adding value) If you are developing your leaders… … is it affecting the followers? If you
implement systems to improve customer satisfaction… … are they working? If you want to maximize value
from your investments… … shouldn’t you measure where over 50% of your money goes?

13 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 The Challenges of Successful
Workforce Measurement and Management The Perspective Challenge How do you think about the
workforce? What you should be observing and how you will measure it. The Metrics Challenge What data
do you collect? Not only collecting what’s easy. The Execution Challenge Do you use to data to monitor
your progress and change your behaviors? Change the way you manage HR so that it does indeed add value

14 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Develop a New Perspective
The purpose of strategy – what is HR strategy. Has to match the company strategy. How HR can help the
company achieve that? The purpose of employee performance The purpose of HR Systems – how do HR
systems make that happen? The purpose of HR Metrics – how can I measure that or are there any Matrix
that exist that will allow me to get that information?

15 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Types of HR Metrics

Efficiency – easy matrix to collect – can help point out problems if you are aware of it. Outcomes ÷ Time
Frequency of event (turnover rate, time to fill a position that is open)… tells you how efficient you are but
doesn’t tell you how well you’re doing. Effectiveness – not how long it takes me to fill a position but what
percentage of the people pass the probationary period… I need to look for better capable period… those that
will actually pass the probation period. Outcomes ÷ Inputs Accuracy Change in performance Outcomes –
IDEAL – how much am I changing… how much employees are contributing to the bottom line. In many
cases it’s impossible. You want to know how HR contributes to value. Change ÷ Inputs Improvement in
accuracy Change in business outcomes

16 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 HR Analytics = Using HR

metrics to make human resource decisions Requires an understanding of how a company’s human resources
contribute Requires you to understand what job performance really is: What do you mean by job
performance What are its implications What are its antecedents (what causes it) How can you affect those
antecedents (how you can affect those causes)

17 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Returning to this Idea of Job
Performance: What is a GREAT performer worth? Housekeeper – clean more rooms faster and better…
means you employee fewer people and therefore you increase profitability Front desk clerk - General
manager

18 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Introducing the Metric of SDy:
Estimating the $ Value of Employee Performance Definition The dollar value of an employee who performs
one standard deviation above average on a given job Method of calculating (estimating) SDy Based on
output Based on efficiency Based on job analysis and performance ratings Based on salary

19 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Calculating SDy Based on
Output Amount Sold Number of Employees $10,000$35,000$60,000$85,000$110,000

20 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Calculating SDy Based on
Efficiency

21 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Calculating SDy Based on Job
Analysis and Performance Evaluation 1.Identify principle activities 2.Rate each activities’ frequency and
importance 3. Multiple frequency x importance for each principle activity 4.Assign dollar values to each
principle activity 5.Rate each employee (from 0 – 200) on each principle activity (with 100 being average)
6.Multiply the rating by the activity’s value 7.Compute each person’s economic value 8.Compute the SD of
performance
22 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Compute SDy Based on Salary
Low complexity jobs: Bus person, cashier housekeeper, cashier, front desk clerk SDy = 40% of salary
Moderate complexity jobs: Housekeeping supervisor, room service supervisor, concierge SDy = 60% of
salary High complexity jobs: General manager, restaurant manager SDy => 100% of salary

23 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Does this all matter? Does it
work? Research suggests yes! Firms that diagnosed and evaluated the linkages between non-financial
performance measures and strategic outcomes had an ROA that was 3% points greater, and an ROE that was
5% points greater Sears included Workforce Metrics as part of its dramatic turnaround, and can document
how changes in employee attitudes leads to increases in revenues Other success stories of implementing
Workforce Metrics at IBM, Verizon, LEGO, Dell, Prudential,

24 HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Why is SDy Important? Types
of questions you can answer if you know SDy: A structured interview costs $10,000 to design, will cost
$400 per interview to conduct, but has a high validity (r =.40). Should you invest in it? A training program
costs $3,000 per employee and has a moderate effect on job performance (d t = 0.30). Should you invest in
it? A pay-for-performance plan will cost $2500 per employee. It will help retain high performers, but likely
increase turnover of poor performers. Should you invest in it?

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Staffing  Implications of Definition Staffing Models.

Human Resource Staffing and Performance Management Introduction

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1-1 Organizational Theory, Design,
and Change Sixth Edition Gareth R. Jones Chapter.

Managing Employee Retention and Separation. STRATEGIC EMPLOYEE RETENTION AND

SEPARATION Employee retention, a set of actions designed to keep good employees.
Measurement Systems. Development of Information Information is necessary for both control and
improvement Information derives from analysis of data Data,

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HR ANALYTICS: WHY IT MATTERS
 S. Ekka

 Published 2021

 Business

 The Journal of Contemporary Issues in Business and Government

In today‟s data driven world, HRM strategies are changing in terms of HR metrics and HR analytics being used in the
organization for better decision making. This digitalization will help the organization to become more reliable
towards data driven decision making rather than intuition. Which can assist organizations to take up present
strategic and operational data and turn it into an effective approach to the HR problems of tomorrow.

HR analytics has become a significant instrument for achieving success; taking advantage of present data to
anticipate future ROI as a source of strategic advantage. The current study is an attempt to give an overview of
developments in HR analytics at present by briefly focusing to identify the shift in the HR roles in different
perspective. This paper also discusses the importance of understanding the implications of HRA. In addition, article
also highlighted the future need for HR analytics, befitting for today‟s world of business industry. C

https://www.mbaskool.com/business-
articles/human-resource/10149-
strategic-workforce-planning-impact-of-
hr-metrics-and-business-

What Data Does an HR Analytics Tool

Need?
https://www.slideshare.net/pjgreat/hr-
metrics-and-analytics-pj
 

Broadly, the data required by an HR analytics tool is classified into internal and
external data. One of the biggest challenges in data collection is the collection of the
right data and quality data.

Common data sources HR analytics solutions

 
I. Internal data

 Internal data specifically refers to data obtained from the HR department of an

organization. The core HR system contains several data points that can be used for an
HR analytics tool. Some of the metrics that an HRIS system contains includes:
 1. Employee tenure
2. Employee compensation
3. Employee training records
4. Performance appraisal data
5. Reporting structure
6. Details on high-value, high-potential employees
7. Details on any disciplinary action taken against an employee
 The only challenge here is that sometimes, this data is disconnected and so may not
serve as a reliable measure. This is where the data scientist can play a meaningful role.
They can organize this scattered data and create buckets of relevant data points, which
can then be used for the analytics tool.
 

II. External data

 External data is obtained by establishing working relationships with other departments

of the organization. Data from outside the organization is also essential, as it offers a
global perspective that working with data from within the organization cannot.
 1. Financial data: Organization-wide financial data is key in any HR analysis to
calculate, for instance, the revenue per employee or the cost of hire.
 2. Organization-specific data: Depending on the type of organization and its core
offering (product or service), the type of data that HR needs to supplement analytics
will vary.

For example, says Collins, “HR leaders at a global retailer should power their analytics
engine with store revenue and costs and customer experience data, whereas HR at a
construction company might pursue operational – health and safety – data and data
related to contingent labour costs.”

 3. Passive data from employees: Employees continually provide data that is stored in
the HRIS from the moment they are approached for a job. Additionally, data from their
social media posts and shares and from feedback surveys can be used to guide HR data
analysis.

4. Historical data: Several global economic, political, or environmental events

determine patterns in employee behavior. Such data can offer insights that limited
internal data cannot.
 For example, the recession in 2008 was a global event that changed the way
employees perceived jobs or “work.” The freelance, start-up and gig economies took
off as people continued to lose their jobs. Data from such a critical historical event can
help predict how the workforce may react to similar shifts in the future. It can then be
used to identify trends in the current workforce and predict voluntary and involuntary
turnover.