HRD ANALYTICS

CHAPTER 1
Overview of HRD Analysis
& Assessment

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LEARNING OUTCOMES
By the end of this chapter, you will be able to:

1. Explain the concept of HRD analytics

2. Describe the purpose of HRD analytics

3. Identify the data points for HRD analytics

4. Discuss the importance & benefits of HRD analytics

What is HRD
Analytics?

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 The use of
descriptive &
historic metrics
in human
INTRODUCTION resources is an
old practice in
organization.
Building organizational and individual
employees’ capabilities to respond to
changes require the availability of agile
and competent manpower and linking
of human resources with the strategies
& business goals of organization. Complexities of
businesses
today require
the alignment of
HR decisions
with strategies
& business
goals.

Rather than
analysing the
past & present,
human resources
requires a
forward-looking
approach to
 HR Departments
struggled for decades
to derive valuable
insights from the piles
of data they were
sitting on.

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Lately enough with the big data boom, Work Schedule of an HR
the data doesn’t just stagnate but is
finding its use in building strategies.

Companies have been maintaining HR data

warehouses for more than two decades,
reports are generated based on the data.

Today, it is the HR who records employee Picture source: https://www.digitalvidya.com/blog/hr-analytics/

productivity, training hours, performance,
employee engagement, and many more
parameters.
HR ANALYTICS
is a process of collation, integration &
measurement of data that are appropriate
for specific HR decisions.
• Brings “analysis” & “statistics” together to find
the application of the data pool created by HR. CONCEPT OF
• It’s a data-driven approach to manage the HR ANALYTICS
employees.
 CONCEPT OF HR ANALYTICS
HR analytics provide opportunity to assess how
employees contribute to the organizations &
assess the extent to which employees can meet
their career expectation
Using HR analytics substantially can reduce
the risk of wrong decisions & can improve
the quality & process of critical HR decisions
such as retention, potential talent,
motivation, performance improvement,
employees’ capability etc.
 CONCEPTS OF
HR ANALYTICS
The application of Improving the
analytic logic for HR performance of
functions employees

Help in rationalizing
Can benefit
HR decision-making
organizations in:
process

Improve ROI from

human resources
Adapted from Dipak Kumar (2017)
 HR analytics tools
utilize techniques
of data mining and
business analytics
to churn the HR
data and transform
it into a valuable
commodity for the
organization.
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Adapted from Dipak Kumar (2017)

EXAMPLE OF
HR ANALYTICS Sample 5

1 3
Google started a one-off piece of
research in 2008 – codenamed
‘Project Oxygen’ – soon developed
into a strategy, helping shape the
way the technology giant operated.
Google’s People Operations team used a
mix of productivity data and employee
feedback to determine employee
behaviours & skills through Project
Oxygen, an initiative designed to find out
what successful Google managers do.

2 4
They deep-dive into exactly how
Google have made HR analytics
integral to not only their People
strategy, but the building blocks of
their entire business practice.
Source: https://www.sagepeople.com/about-us/news-hub/case-study-how-google-
uses-people-analytics/#
Performance ratings and employee
feedback were analysed and compared
with productivity metrics to determine
the impact of different leadership styles
on employee engagement and
productivity. From this, Google was
able to create the ‘Oxygen 10
Behaviours for Great Managers’ & used
it to train and select its company
leaders.
 Purpose of HR Analytics

Reaching Business Data-Driven Strategy

Goals Building
Aims to provide the organization insight into the It helps build prediction models to identify the
current state of operations. strategy that could lead to the optimum return
Such insights expedite the fulfilment of business on investment (ROI) for its human resources.
goals according to the set timeframes. HR analytics makes it easy for the HR
professional to create job offers that can procure
them the best talent in the market, manage and
retain them to give a boost to ROI.

Adapted from Dipak Kumar (2017)

 Data Points for HR Analytic

EMPLOYEE EMPLOYEE MULTI-RATER OR 360- SALARY DATA PROMOTION DATA

PERFORMANCE ATTENDANCE DEGREE REVIEWS

EMPLOYEE WORK DEMOGRAPHIC EMPLOYEE

HISTORY DETAILS TEMPERAMENT DATA
HR Analytic Tools helps in …
Close alignment of employee data and HRD initiatives to direct them
towards the achievement of the organization’s goals.

Once the employee data is gathered, the analysts feed the same into
sophisticated data modelling programs, run them through the algorithms,
and predictive tools to gain insights that can be acted upon.

The insights could be represented in the reports, dashboards or

visualizations.
 Individual factors : skills,
competencies, motivation, job Group factors : interpersonal
alignment, career aspirations, relations, leadership, group
number of years working with the cohesiveness, collaboration
organization HR Action: training, team
building, compensation &
FRAMEWORK rewards, career development,
talent management,
OF HR performance management.

ANALYTICS HR process improvements in

terms of cost, quality, cycle time
improvement, innovation &
Strategic results in terms ofproductivity
improved market share, market Financial results in terms of
growth, successful new product market capitalisations, profit,
launch, brand awareness, return on assets and equity,
customer satisfaction and improved cash flow
retention

Adapted from Dipak Kumar (2017)

 IMPORTANCE & BENEFITS
OF HRD ANALYTICS

1 2 3 4 5 6
Helping Rationalizing Facilitating in Improving business Planning for Strengthening
organizations in manpower making available performance effective career organizational
effective talent requirement right people at the through quality HR development of competitive
management right time decision making employees strength making
available quality
manpower
 IMPORTANCE & BENEFITS
OF HRD ANALYTICS
Helping in identifying
factors that can Helping in
Ensuring right-fit
contribute to identification of KPIs
recruitment and
increased employees that can contribute to
selection
satisfaction & business
performance

Help organizations to
Improving talent
achieve strategic &
retention
business goals
Thank you.