HR METRICS & ANALYTICS

PART - 1
V CHANDRA SEKHAR
HR, ER, Statutory and
Labour Laws Advisor
94913 03742
18.11.2023 valiveti72@gmail.com
Why HR Metrics and Analytics..

“What’s not measured, cannot be monitored;

What’s not monitored, cannot be controlled;
What’s not controlled, cannot be directed;
And, What’s not directed, cannot become progress.”

2
HR Metrics and Analytics ?

Analytics use statistics to identify relationships between data sets to help firms
address problems and make talent decisions.

Metrics Analytics
Analytics refer to strategies for combining data
A metric measures and evaluates the
elements into metrics and for examining
effectiveness of processes.
relationships or changes in metrics.
Workforce analytics refer to strategies for
combining data elements into metrics and for
examining relationships or changes in metrics.
Metrics are data (numbers) that reflect some
detail about given outcomes, e.g., success in
Understanding these combinations is done to
recruiting new employees., absenteeism rate,
inform managers about the current or changing
turnover rate
state of human capital in an organization in a
way that can impact managerial decision
making.
Metrics reflect characteristics of the 3
organization’s HR programs and activities.
Some Key Definitions:

Dashboards are a component of reporting. Dashboards reflect efforts to align real-time

Dashboards analysis of organizational and HR processes as well as an increased capacity to
aggregate organizational data.
Infographs combine a number of data elements often incorporating pictures, figures,
Infographs tables, and text to help tell a story more effectively than can be done by any of these
elements.

Workforce modeling attempts to understand how an organization’s human capital

needs would change as a function of some expected change in the organization’s
Workforce
environment. This change may be a shift in the demand for the organization’s product,
Modelling
entry into a new market, divestiture of one of the organization’s businesses, or a
pending acquisition of or merger with another organization.

4
 What is HR Analytics ?

1. HR analytics is the process of collecting and analyzing Human Resource (HR) data
in order to improve an organization’s workforce performance. The process can also
be referred to as talent analytics, people analytics, or even workforce analytics.

2. HR Analytics is the science of gathering, organizing and identify the data related to
HR functions like recruitment, talent management, employee engagement,
performance and retention to assure better view making in all these areas.

3. HR Analytics is a multidisciplinary approach to integrate analytical and quantitative

methodology into HR decision making.

4. HR Analytics enables an organization to measure the impact of a range of HR

metrics on overall business performance and make decisions based on data.

5. HR Analytics provides data-backed insight on what is working well in human capital

assets and what is not… so that organizations can make improvements and plan
more effectively for the future. 5
 Main Objectives of HR Metrics and Analytics ?

1. HR Metrics and Analytics comprises an information system

2. Managers make different and better decisions as a result of information

3. Decisions have impact on Company’s strategy and goals.

4. Improving workforce planning and forecasting

5. Leaders can take better business decisions related to field of HR

6
HR Analytics

• A typical HR Analytics System collects employee data from HRIS (Human Resources
Information System), business performance records, mobile applications and social
media merges into a Data Warehouse, applies big data, statistical analysis and data
mining techniques to provide understanding of hidden data patterns, relations,
probabilities and forecasting.

• Predictive Analytics is unlike descriptive analysis which considers external

benchmarking data and involves tables, reports, ratios, metrics, dashboards or
complex maths; it is about data-derived insights that drive better decisions. It includes
statistical techniques, machine learning methods, and data mining models that analyse
and extract existing and historical facts to make predictions.

7
HR Analytics Process:

8
 How does HR Analytics work ?

1. To gain the problem-solving insights that HR Analytics promises, data must first
be collected. (Employee Profile, demographic data, On-boarding, Attendance,
Training, Performance, data on high-performers, data on low-performers, salary and
promotion history, engagement, retention, absenteeism, turnover etc.)

2. The data then needs to be monitored and measured against other data, such as
historical information, norms or averages. (HR Metrics)

3. This helps identify trends or patterns. It is at this point that the results can
be analyzed at the analytical stage.

4. The final step is to apply insight to organizational decisions.

9
 HR Analytics Process

1. Collecting Data 2. Measurement 3. Analysis 4. Application

Descriptive Analytics
HR – Big Data HR Metrics Organisational
Predictive Analytics
decision making.
Prescriptive Analytics

1. Collecting and tracking high-quality data is the first vital component of HR analytics.
2. At the measurement stage, the data begins a process of continuous measurement and comparison, also
known as HR metrics.
3. The analytical stage reviews the results from metric reporting to identify trends and patterns that may have
an organizational impact.
• Descriptive Analytics is focused solely on understanding historical data and what can be improved.
• Predictive Analytics uses statistical models to analyze historical data in order to forecast future risks or
opportunities.
• Prescriptive Analytics takes Predictive Analytics a step further and predicts consequences for
forecasted outcomes.
4. Once metrics are analyzed, the findings are used as actionable insight for organizational decision-making.10
Example:
1. What is your annual Can be answered easily with
employee turnover HR Metrics

2. How much of your employee Need two different data sources

turnover consists of regretted – HR Metrics and PMS
loss?

3. Do you know which

employees will be the most Requires huge data and
likely to leave the Company analysis
within a year ?

Once you start to analyze human resource challenges by using this data, you are engaged in
HR data analytics. 11
Example:

Appraisal Ratings

Which employees have Managing Teams effectively,

the highest potential for Team Development
progression and ready for
Participation in business
leadership roles ? development Initiatives

Learning Skills

Business Acumen, Leadership

Qualities, Decision Making

xxx

If we thoroughly analyze the data, for many HR related business challenges, through
predictive HR analytics, we can derive solutions. 12
Benefits of HR Analytics ?
• Improve your hiring process

• Reduce attrition

• Improve Employee Engagement

• Make your workforce productive

• Improve your talent processes

• Gain employee trust

• Guide workforce strategies

• Maximize HR’s return on investments

• Show what HR contributes to business results

13
• Make the business case for HR’s objectives
 HR Metrics
HEAD COUNT & DEMOGRAPHIC
1) Function & Category-wise head
count
2) Function-wise monthly additions /
exits
3) Average category-wise age,
experience, gender, rural / urban,
local / non-local
4) Location wise distribution
5) Multilingual distribution
6) Employee generations distribution
7) Function-wise average work hours
8) Average Span of Control
9) HR to employee ratio
10)Ratio of Management, Staff,
Workmen, Part-time, Contract
11)Retirement rate & cost
12)Time taken for F & F
TALENT ACQUISITION
13)Time to Hire
14)Interview, offer and joining
ratio
15)Recruitment cost per hire
16)Ratio of experienced Vs
Fresher
17)Internal Vs External sourcing
18)Recruitment source ratio
19)Referral rate
20)Referral conversion rate
21)Rehire rate
22)Quality of hire
23)New hire failure rate
24)Compliance to Recruitment
Plan
25)Cross Functional Mobility
26)Transfer Rate
LEARNING & DEVELOPMENT
27)Average training class size
28)Training days / hours per FTE
29)E- learning completion rate
30)Employee satisfaction with
training
31)Training expense per employee
32)Compliance to Training Calendar
33)Training Effectiveness
34)ROI on training
35)Readiness of employees for
future skills
36)Managerial, Staff, Workmen
training ratio
37)Behavioural, Technical training
ratio
14
 HR Metrics
PERFORMANCE &
CAREER MANAGEMENT
38)Average Rating
39)% of high, medium, low
performers
40)High Performers Growth Rate
41)Cross Functional Mobility –
Managers
42)Employee Satisfaction with
Leadership
43)Promotion Rate
44)Average number of years in
current job
COMPENSATION & BENEFITS COMMUNICATION
45)Total compensation per FTE 53)No of town hall meetings
46)Function-wise average conducted & participation
salary rate 54)Functional review meetings
47)Overtime rate 55)No. of Skip Level Meetings
48)Function-wise benefits
expense per FTE
49)Function-wise benefits
Satisfaction Index
50)Variable Compensation Cost
51)Cost of Incentives
52)Market Compensation Ratio
15
 HR Metrics
REWARDS & RECOGNITION
56)Recognised employees ratio
57)Rewarded employees ratio
58)Ratio of employees nominated
for Star Performer, spot awards,
special recognitions
59)Employees participation in
suggestion schemes and
appreciations
60)Employees participation in
sports
61)Employees participation in CSR
initiatives
EMPLOYEE RELATIONS
62)No of grievances raised and
resolved
63)No of misconducts in a month
64)Employee Engagement Index
65)Employee Satisfaction Index
66)Absenteeism
67)Glassdoor reviews
SEPARATION
68)Employee Turnover
69)Voluntary & Involuntary turnover
rate
70)New Hire Turnover rate
71)Turnover rate per manager /
function
72)No of accidents / incidents
happened, days of absence,
and recovery rate
73)No of complaints lodged under
POSH
74)Exit interview Data
16
HR Metrics
SUCCESSION PLANNING
75)% of competencies required for
strategic / leadership roles
76)Readiness of second level for
each function
77)% of high potentials identified
78)Succession conversion ratio
79)Manager instability ratio
80)Manager engagement score
81)High Performer resignation ratio
ORGANISATIONAL EFFECTIVENESS
82)Revenue per FTE
83)Profit per FTE
84)Human Capital ROI
85)Labour Cost per FTE
86)Total Cost of Workforce (TCOW) - % of Revenue
87)Total Cost of Workforce (TCOW) - % of Expenses
88)Benefit cost per FTE
89)Return on Human Investment Ratio
90)Market Capitalisation per FTE
17
 Few HR Analytics software tools:
1. MS Excel - MS Excel has the advantage of being well-known, easy to use, and easy to
learn.
2. Tableau – Tableau is considered by many to be the best BI tool available today. It is
efficient at aggregating data from multiple sources and converting them into insightful
visualized reports.
3. R - R is considered the best when it comes to analyzing statistics and creating visual
representations of those statistics.
4. Python - Python is relatively easy to learn and use.
5. Power BI - Power BI by Microsoft makes the process of aggregating data, analyzing it, and
creating useful visualizations extremely easy.
6. Visier – It shows trends in the data and can gain valuable insights; it focuses on
understanding what affects performance and productivity.
7. Qlik – It creates reports and provides information based on the HR data entered.
8. SPSS - It is the best HR analytics tool when it comes to analyzing that data.
9. Oracle HR Analytics - This tool is designed to work hand in hand with HR policies. This
software also aggregates data and provides valuable insights on what can be done to 18
resolve potential areas of concern.
 Thank You

This presentation is intended for
knowledge sharing purpose only.
V Chandra Sekhar
HR, ER, Statutory &
Labour Laws Advisor
94913 03742
valiveti72@gmail.com
https://www.linkedin.com/in/valivetichandrasekhar
19