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Ebook Practitioners Guide To People Analytics 1700435502
Ebook Practitioners Guide To People Analytics 1700435502
People Analytics
for Practitioners
1 Foreword
2 Chapter 1
Introduction to People Analytics
3 Chapter 2
HR Information Systems and Data
4 Chapter 3
Measuring What is Important
5 Chapter 4
Analysis Strategies
6 Chapter 5
Articulating Business Value of HR Programs
7 Chapter 6
Choosing an Analytics Solution
8 About SplashBI
Talent leaders have been waiting for a organizations' largest asset has been tough
seat at the table for some time now. Every even for the best of the best.
time HR seeks strategic involvement in
An opportunity is being missed.
the business, it is asked to show evidence
linking HR investments to either top- or According to Deloitte Insights, while 71% of
bottom-line performance or gaining companies view people analytics as a big
competitive advantage and this is where ticket item, implementation has been slow.
talent leaders falter. While most business Despite the enormous focus on people
leaders/ functions are focused on analytics today, there is a good deal of
competition in the industry and challenges confusion on where HR should be focusing
such as innovation, productivity, scalability, their attention and what they should be
customer centricity, etc., HR has been doing. This guide will outline how talent
focusing on finding the right talent at the teams can operationalize their people data
right time and at the right cost. Articulating and link practices to business KPIs.
35%
witnessed a marked uptick in the adoption analytics, more than a third
of people analytics as the volume of
Big Data:
What it is and why it's valuable to organizations?
The information available in the form of data to be analyzed will vary greatly
depending on the type of organization. It is when this information is expanded,
linked together, and analyzed with rigorous statistical techniques that we find what
is truly happening in an organization.
Levels of employee
engagement
Performance appraisal
records
Multidimensional
databases
Employee attitude
(e.g., Cognos, Business Objects) - Also
survey known as online analytic processing
Data includes information from (OLAP) databases, remove data from
employee surveys assessing traditional relational systems to create
issues like job strain, employee a data warehouse. They store data
engagement, satisfaction, experience, by 'dimension' (i.e., such as a division
and others. or a year of hire) and calculate the
In addition, organizations frequently information. When you send a query,
store information in databases that the database retrieves answers
consolidate employee inputs from accordingly.
different sources. These include four
major types of databases.
Object-oriented
Relational databases databases
(e.g., Workday) store data as 'objects';
(e.g., SAP, Oracle, or Sybase) store
the 'employee object' would store
information in tables. Most HR systems
data about employees such as name,
use relational databases to link tables
address, start date, etc. It also stores'
together and query information using
rules' or 'methods' such as 'gender
the structured query language (SQL).
must be M or F' or 'start date must be
after 1900'. Object-oriented databases
are flexible and quickly adapt to
changes or additions in data and make
it available for all users.
Once you've gathered all this data, the next step is preparing data for analysis. Raw
data is typically unstructured, i.e., not organized or labeled, and current business
intelligence (BI) solutions struggle with unstructured data.
Raw data is difficult to analyze as it may contain missing values, inaccuracies, and
other data errors. Data from internal and external sources have different doormats
that require reconciliation. Accurate and consistent information is key to generating
valid results in BI interfaces.
Fixing errors, validating, and consolidating datasets are all a part of data preparation.
It involves blending different data sets, eliminating missing values and outliers,
and addressing inconsistencies that could distort the results. It also helps organize
data for use in other business/HR applications and reduces the cost of analytics.
Preparing data ensures that you receive meaningful and actionable insights.
Data preparation is especially beneficial for big data environments storing structured,
semi-structured, and unstructured raw data in predictive analytics, machine learning,
and other large data sets applications.
Volume Velocity
Refers to the amount of data. With Big Measures the rate at which data is
Data, you will have to process a lot of received. Internet-enabled smart
low-density, unstructured data. With products process data in real-time,
an increasing focus on data science, while other data may be shared in
it is not uncommon for organizations batches.
to have hundreds of terabytes or even
petabytes of data.
Variety
Traditionally, data was collected and stored in one place. With
the rise in big data, data is stored and shared in nontraditional
formats. It does not simply mean data from various sources.
Variety also means using analysis to interpret existing data and
presenting it in fresh ways.
Let's look at how organizations adopt analytics with existing tools and
strategies.
Time to hire:
Total time taken to assess and onboard a candidate.
Absence Rate:
Unscheduled absence rate over time indicates a worsening work environment.
Training Expense:
Helps assess training and development costs for each employee.
Training Efficiency:
Helps assess the effectiveness of your employees' training and development
opportunities.
But how do you collect data to support your data analysis? Your trusted survey methods are
useful here. A detailed and efficiently administered survey study can help you obtain notable
data for analytics.
With a surge in people analytics, organizations progressively use surveys to map business
issues and employee experience. But without a plan, your survey will generate inconclusive
data. So, despite the popularity of the survey as a tool, organizations face the following
questions:
Surveys are an excellent opportunity for HR leaders to access every person in the
organization and gain perspective. The data also provides a chance to direct the company in
the right direction. With technology supporting survey research, you can analyze data rapidly,
use data in various ways, and shape relationships with other data sets to derive sophisticated
conclusions.
Regarding frequency, you should survey as often as required, but if you are prepared to take
action. Research from the Josh Bersin Academy revealed that organizations that conducted
surveys and followed up with action during the COVID19 pandemic were more than two
times as likely to meet financial goals than organizations that neither surveyed nor took
action.
What type of
survey best
do answers Det
How an to e
p l your concerns turn rmine
you ss the (census vs. aro
u
the
a s s e
ted sample)? resu nd for
lec lts
col ta?
da
These questions will help you plan and implement a strategic study that produces desirable
results. If done well, you will have data that you can revisit to conduct follow-up surveys or
different analyses. With people analytics solutions, the process becomes efficient, and you
can regularly run studies based on your needs.
Strong data is the foundation of all predict HR or business outcomes, e.g., what
people analytics practices. Data in HR has drives employee performance or causes
traditionally focused on descriptive analysis an employee to leave the organization.
and reporting. Descriptive reports present Furthermore, you can apply these predictive
data as it happens at a given time. Once models to make tangible predictions
enough data is collected, you can spot about particular results or outcomes (e.g.,
trends and analyze patterns from this data employee turnover or commitment) that you
Adopting predictive analytics is a decisive expect to encounter in the future.
step in the direction of advanced analytics
Deloitte's report found that 52% of surveyed The ability to run predictive analyses is
companies planned to invest in data compelling and opens various avenues
collection and analysis within the year. for your business. You can use predictive
modeling to predict hiring, turnover, and
Predictive HR analytics applies predictive revenue. While venturing into data analytics,
modeling from inferential statistics to HR or it is crucial to learn about data management
people data and makes informed decisions and security. Problems in your data will lead
about key performance indicators' causes, to questionable results and hamper your
predictors, and factors. Predictive analytics progress.
enables you to test statistical models to
Companies have abundant data, collecting The Egress' Insider Data Breach
data about employee satisfaction, well-
being, engagement, and mood. With Survey 2021 found that 94% of
internet-of-things and cloud-based organizations have experienced
computational systems, concerns regarding
data privacy are rising. A majority of 79% of insider data breaches, of which
Americans expressed concern about how 75% of instances occurred due to
companies use their data.
security lapses by employees.
Data integrity refers to your data's accuracy,
reliability, and consistency. It also includes More than anything, data privacy is about
data safety and compliance with regulatory awareness – so invest in training and
bodies and data security. When data educating your workforce to tackle data
integrity practices are followed, your data threats. Ensure that sensitive information
remains accurate and reliable regardless is available to only certain people and
of the duration of storage and frequency of appropriate authorization measures are in
access. Your responsibility is to honor the place.
data privacy laws and adopt data security
measures. It is necessary to protect your While exploring people analytics tools,
HR data from a leak or threat from external choose a solution that is serious about
sources. data privacy and security. The service
provider should have a dedicated security
Although companies are vulnerable to team, independent audit and penetration
external threats, a majority of data test reports, and good market credentials
breaches occur from the inside. and should be GDPR compliant.
The data you collect can be of different types and analyses depending on the data type. A
fundamental understanding of data types is important to conduct and interpret data analysis.
There are two major types of data: Qualitative and Quantitative. Each data field is known as a
variable, something that changes or varies.
More than 70% of companies are investing in people analytics and integrating data to
transform their business. Whether measuring employee performance, engagement, or
turnover, people analytics can retrieve large unstructured datasets to inform key HR
decisions. People analytics helps you improve efficiency and productivity while reducing
operational costs. HR analytics leaders take advantage of employee data to attract, manage
and retain talent, resulting in a higher Return on Investment (ROI).
Following the pandemic, the market has significantly changed, shining a light on the
challenges of increasing skill gap, the importance of employee experience, and growth in HR
technology.
Support employee
career growth
The use of data in HR is not a new concept. Managing an organization and increasing
Over decades, HR has accumulated its overall performance begins with a
employee data to understand headcount, systematic understanding of the complete
turnover, and performance evaluation. But, business entity and its operational context.
the focus was on gathering information Next to advanced statistical solutions, basic
rather than using the data to make informed metrics can be valuable in gaining insights
talent decisions. With the use of HR tech into business and people's performance.
and the Human Capital Management (HCM) Measuring different HR and performance
suite, organizations could now play with metrics allows executives to track patterns
data to draw actionable insights. So began within the organization and undertake future
the first use of HR analytics. predictions.
Metrics to Track –
once you identify your business needs and goals are identified, you
can decide the metrics to track. For example, if you want to repurpose
your recruitment strategy, you must track recruiting metrics like time
to fill, time to hire, candidate dropout and cost per hire.
Business strategy, HR Analytics &
Competitive Advantage
Does people analytics give you a competitive advantage? The short answer is: YES. But,
HR analytics is no magic pill to improving business outcomes instantly. It is a strategic and
deliberate use of data science practices to understand the employee life cycle, recognize
pain points, and inform your business decisions.
Automation Interoperability
The solution should be able to Can you utilize the solution with other
connect to multiple sources easily BI and visualization tools such as
and schedule and distribute the Tableau and PowerBI for specific
dashboards or data. usecases? An ideal solution should
be able to run concurrently with other
BI, analytics, and visualization tools.
Integrations
The solution should easily integrate
with your existing tech stack. This
Data Access and
helps avoid unnecessary time Transparency
transferring data from your tools to The data for analytics will be shared
the analytics platform. between various team members. So
consider if the solution supports
simplified sharing and dashboards.
Data Visualization
Data visualization using dashboards
simplifies the insights making it easy Data Privacy and Security
for everyone to understand the results.
Visualizing trends and patterns is an Growing concerns over data privacy
essential feature of any analytics tool. require vendors to create robust data
privacy measures. Your solution
should protect your employee data
and against data breaches. Also, check
how data sharing is monitored and
Ease of Implementation access to control. This allows you to
share data with authorized members
Lastly, the solution should be easy to
and employees. Modern solutions like
set up and with customer support to
SplashBI offer rolebased security and
respond to your queries. The solution
leverage their internal security so that
should be flexible to deploy on any
your IT or cybersecurity teams don't
cloud or environment. Most solutions
need to rebuild it.
only support cloud deployment.
SplashHR can be deployed on-
premise, on-Cloud (public or private),
or as a hybrid solution.
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