In this part we will elaborate on HR
Analytics solutions.
What is HR analytics?
HR analytics is the application of data mining and statistical techniques
to Human Resources data and can also be renamed as Workforce analytics, Predictive
analytics or People analytics.
It helps in knowing the what, why, when and how of various HR functions
like, Recruitment, Training, Succession planning, Performance management,
retention and engagement. Workforce analytics can help organizations in taking
strategic decisions and optimizing the approach to recruit, retain and motivate
the workforce by analyzing the HR data.
Solutions offered by HR analytics:
To analyze an issue and make correct decisions, some key data like
attrition, reason for leaving, performance, employee costs revenue etc. needs
to be referred and this is already present in the database of the organization.
Analytics correlate this internal data with external data like Salary Bench Mark
and gives a detailed and statistically supported view for managers to take
strategic decisions proactively.
Types of Solution:
Predictive Analytics solution:
·
Assist business
leaders in predicting future needs and risks of the organization. Analytics tools
apply the data mining and statistical modelling techniques to HR data and
predict the future trends that aids in a more refined and timely planning.
Example- Seasonal demand, Retirement
period
BI (Business intelligence) solution:
·
BI offers the flexibility
to managers to generate ad-hoc reports using various reporting techniques,
dashboards and scorecard for a quick view and decision making.
Organizational growth management solution:
·
Performance
reporting tools can help in viewing the cost and performance pattern within the
various units of organization. Managers can check for association with various
other parameters for detailed analysis.
Applying analytics to HR
Challenges:
(a)
Attrition
analysis:
The various
predictive models can help in identifying the attrition risk score of high
performers across multiple units. It can
be done by using the various datasets like compensation, performance, market
survey, demographic data, engagement scores of employees etc. Managers can find
out the key reasons for attrition and can act to reduce the occurrence.
(b)
Forecasting
recruitment needs:
Predicting
resource requirement helps in effective resource utilization and in turn
results in cost revenue balance.
Future
requirement can be analyzed based on attrition rate, sales forecast,
departmental growth prospects, project pipelines, current employees, seasonal
need for a specific skillset, retirement data etc.
(c)
Employee
profile selection and segmentation:
Use of Analytics leads to an effective
talent management by segmentation & profiling. Employee data like location,
department, and education can be combined with responsibilities to identify the
specific set. This analysis can be used to identify the employees with specific
skillset, training needs, program enrollment, diversity etc. Such Talent
forecasting aids in the allocating the best fit resources as per the available
opportunities
(d)
Appropriate
profile selection and market benchmarking
One of the primary causes of attrition is the
incorrect mapping of Employee and their role thereby making it essential that
employee is mapped to a position based on the skillset and past performance. A
more effective employee-role mapping can be accomplished by correlating the
employee variables with profile variables like education, experience, skills
and performance. The analysis output helps HR managers to identify the suitable
profile leading to higher productivity and customer satisfaction.
The next and
concluding part will discuss the key features of HR analytical tools and some
major Players in the HR Analytics space.