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I.

INTRODUCTION

We can see that the application of data analytics in HR management is


increasing in today's 21st century. It's not a new concept, though. It's been
more than a decade of discussion, it's at different levels of maturity when it
comes to its organizational adaptation. Some use it for simple report writing
while others use it to carry out deep study predictive analysis. Adaptation of HR
analytics at different levels to varying goals in different industries.

In recent years, HR analytics has played a major role in the business world.
The changing environment has increased requirements for more organizational
efficiency. HR analytics is used to make better decisions about the workforce
by employee data, to map HR metrics with strategic goals, to acquire talent to
assess future HR needs by improving employee morale and satisfaction, to
interpret data to recognize trends and to take corrective measures for business
profits.

HR analytics is an evidence-based study that helps Businesses Bridge the


rationality of their decision-making process by prioritizing the impact of HR
investment on business. HR analytics helps to upgrade HR professionals '
standards and leverage the competitive advantage. HR's art and science role
is specific to HR's creative aspect with knowledge, rationality, and data
quantification in decision-making. Therefore we can say that HR analytics
brings together the status of both HR rationality and creativity.

HR is least popular among all functional departments. This is due to two


reasons. First, we know it's something bad if HR calls us to his office. We may
be reprimanded or even fired, but our manager tells us rather than HR in case
of promotion. Second, we see HR as soft and old-fashioned. HR is based on
instincts because it's done that way or it feels good to do that in some way.
Things like measuring success, playing a game of numbers, or bringing in the
big bucks go to other departments as HR is not known for that.

II. WHAT IS HR ANALYTICS?

HR analytics has many names which are used interchangeably such as


workforce, people or talent analytics. Organizations solve problems related to
human resources by analyzing data. It helps in answering annual employee
turnover or employees likely to leave company etc. Also helps in decision
making liking managing, attracting or retaining employees which in turn
increases return on investment. Decision making can be increasing employee
productivity or good work environment or perks and benefits.

Organizations have data like employee database, recruitment process


information, attendance record, salary and promotion history, telemetric data,
demographic data, personality information etc.

HR managers bring these data into line much with their corporate strategic
goals and aims. Once the data is cleaned up, the HR analyst uses these data
to feed into a large number of tools and algorithms to gain insights.
III. BENEFITS OF HR ANALYTICS

We have many operational and strategic advantages by using HR analytics.


Few are listed below.

1) Increased data and analysis tool in HR for better decision making in


HR

HR analytics play an important role in providing access to critical data


and employee insights that could then be analyzed in order to take better
decisions. It not only improves HR performance, but also provides an
understanding of how workers are motivated to work productively, and how
the organizational culture affects the performance of employees.

2) Hiring better quality people through analytics

Machines with algorithms on person who wants job data helps


companies to identify the best match for vacant job roles which improves
quality of people hired.

3) Increase employee retention

Recruiters may use employee data to recognize a high performance


pattern of employees and thus amend the employee recruitment and
retention strategies. The HR analysis helps to determine the departments
and the reasons for the highest attrition. It can also help HR to identify
activities that have the greatest impact on the engagement of employees
and therefore allow organizations to invest in them.

4) One of the benefits of workforce analytics is to transform human


resources as a strategic partner

HR analysis can give the HR department a unique advantage to


confirm its importance and role as a strategic partner in the performance of
a company. HR professionals can provide companies with verifiable
information to support their talent recruitment, retention and commitment
policies.

5) Can predict an organization's recruitment needs

HR analytics can assist in predicting changes in the future of the


organization. By using HR analysis, the skills and positions required to
improve business performance can be predicted. We can expect that more
focus areas will be added to the list where HR Analytics can play a role in
ensuring better human resources performance and improving the whole of
our business performance, as HR technology is never before evident.

IV. HR ANALYTICS PROCESS STEPS

1) Research data which is relevant


2) Use of different analytical tools
3) Decide an action plan
4) Make sure gathered data is legal in accordance with standard
5) Streamline the process
6) Right Skillset
7) Concentrate on facts
8) Make Business Strategy
9) Support the process using HR tech

A. Research data which is relevant


This is the step where we gather data which is relevant to the goals of
organization. By keeping an eye on business with performance indicator that help
us track which direction our organization is headed, we can explore areas that
need to be monitored and improved for organizational success.
The data which is gathered to analyze should be of strategic value else it is
money and time waste.

We can say:

“Your ability to find the right answer for a business question increases when
your maturity in statistics, data mining, machine learning tools, survey
management and strategic workforce management is high”
“Taking a strategic and planned approach to HR analytics, for example
tackling a specific business issue, is likely to create the most value for the
business and create further demand for HR insights”

B. Use of different analytical tools

There are many tools which help in data mining techniques, data
transformation techniques and data visuals with easy and user friendly platform.
This has made data exploration easy and quick to get an action plan intact to move
forward.

C. Decide an action plan

By previous two steps we see that data is gathered and various analytical
tools are used. With these two steps we have some elements which can be used
to create good action plan and deliver it to the clients and customers of business.

D. Make sure gathered data is legal in accordance with standard

We must ensure that the data that needs to be gathered and analyzed is in
accordance to the standard so we can get it approved by the legal team to start a
HR project. Also the approval of the end result to avoid risk or damage to the
company. Data protection and privacy needs to be maintained when you intend to
collect and analyze data because it is punishable offence. So make it in
accordance with standard from beginning to end. In digital era privacy is priority.

E. Streamline the process

There are few approaches 1) intake and design 2) data cleaning 3) data
analysis 4) share insights
F. Right Skillset

HR required to have certain skills and capabilities like understanding


organizations goals and objectives, organizational processes and it skills. They
should also be curious and inquisitive. They should play an important role in getting
effective outcomes by applying analytics and bring the data in understandable
format to the company.

G. Concentrate on facts

A fact-based human resources organization is a concept in which you can


demonstrate the efficiency of your HR policies and procedures in support of the
general objectives of your company.

This not only increases the credibility of your HR function with the provision
of data and forecasting results, but is also effective when changes are necessary,
so push your HR to be more fact-reliant rather than simply measure key
performance indicators or return on investment.

H. Make Business Strategy

We should understand and translate the information which we have


gathered to create a human resource business strategy. We must create the
business strategy which supports organizational goals so we can fit our workforce
and think of solutions to the problems using analytics.

I. Support the process using HR tech

Now with more use of analytics in HR functions, technology is main component in


management which reduces errors. HR technology in organization data
management and real time data easily available applying analytics in HR
processes has made it easy through Wi-Fi from anywhere.

V. HR ANALYTICS IN HUMAN RESOURCE MANAGEMENT

In recent most of HR concentrates on reporting workforce data. This doesn’t


serve the purpose in today’s data driven world. Strategic value is not met by
just keeping records. We can say that “The goal is to turn data into information
and information into insight”. This ensures strategic level of decision making for
HR. Below picture describes the same.
VI. HR ANALYTIS TOOLS

1) RStudio

R is the HR analysis tool most frequently used. R for statistical


analysis and display is ideal for exploring large-scale data sets. This allows
the analysis and cleaning of data sets with millions of data rows. It also
allows you to view and analyze your information, as shown below.

2) Python

Python is another language of programming and can be used for R.


There is a lot of excitement in the data science community that is becoming
the tool of choice for the data scientist.
Python has a faster learning curve, while R is better at statistical
analyzes, has a more active statistics community, and is better for
visualization.

3) Excel

Most of us started from Excel. No surprise, it most often takes the


format of a Comma-Separated Value (CSV) file when you manually extract
data from any of your HR systems. You can open and edit these files easily
via Excel.

4) Power BI

Power BI makes it possible, as with SQL databases with people's


data, live twitter and/or machine-learning APIs, to connect to multiple source
systems. This simple aggregation process allows you to combine multiple
data sources in one large database. Consolidated data is then used to
create a pivot table (using Power Pivot). All these different data sources are
then combined in Power BI. This allows you to quickly gain insight in key
workforce areas. Use Power BI's dashboard capacity to convert the same
data into a dashboard.

5) SPSS

SPSS is one of the most frequently used social science HR analysis


tools. Thanks to its easy-to-use interface, you can analyze data without
extensive statistical knowledge. Moreover, SPSS is frequently used in the
social sciences field. This means that many HR professionals, in particular
those who are interested in data analysis, know how to use it.

VII. CHALLENGES OF HR ANALYTICS

True, the different HR tools used today collect a large amount of data every
morning, but it is difficult to gain the true power of HR analytics without knowing
how this data can be useful for a given decision-making process. Although a
company faces many local challenges in the implementation of HR analytics.
1) Multiple sources of data: There are too many sources of data
working in isolation with various HR tools that cater to different HR
functions. Every tool creates its own data and integrates it in other
sources, regardless of whether it is your personal information system,
applicant tracking system, learning management system or a
reference software. You might be surprised to know that data
scientists only collect and clean data, that is to say separate useful
data from noise, for 85 percent of their time. Furthermore, when
making strategic business decisions, you can not isolate data from one
source.
2) Lack of Skills and Training: Although data scientific researchers are
at the forefront of this data & analytics revolution, recruitment
managers and even CHROs have a pre-conceived idea that HR
departments play no role in analyzing the data. In view of the
technological aspects involved, these tools are reluctant to learn and
implement, supported by a way of thinking that fears the learning
curve. The HR managers prefer to rely on their understanding and
human intellect than to train for a HR analytical instrument. They often
rely on an incorrect argument that the intelligence of machines takes
people out of human resources, which is certainly not true.

VIII. FUTURE OF HR ANALYTICS

1) One time to real time: As a consulting project, many workforce analytics


work begins. A question ("What is our journey to our employees?"), many
people are interviewed, data is collected, a nice report is written and many
follow-up projects to refurbish the journey of our staff members are defined
with assistance from external consultants. One-time effort is nice, but
develop ways to gather feedback from candidates, employees and other
relevant groups more regularly and perhaps even in real time.
2) People to workforce analytics: More and more people are employed than
just people. The employee enters robots and chat bots. The first legal
debate has begun: who is responsible for these robots ' actions? If we also
analyze robots, we move from the analytics of people to the analysis of
workers. Robot welfare and productivity of the robot is a good domain for
HR.
3) Transparency: Without a GDPR reference, this review of the trends in
employee analytics can not be completed. A large number of positive
developments are fueling GDPR, among them much more transparency.
What kind of information is gathered, how it is used, and how algorithms are
used to make people's decisions. There are also inconveniences, however.
GDPR created a great deal of insecurity regarding the type and degree of
allowable data processing. Companies must also put in place a series of
measures to provide data access. Employees can have their data erased,
and businesses must perform processes to do this.
The steep peak fines referred to in the regulation and the absence of
case-law on these matters lead to restriction in the next step in the field of
workforce analysis. The problem of data ownership also exists. Employees
are expected to no longer accept their own personal information.
Employees must be able to show their data as evidence of their productivity
and involvement to their potential future employer.
4) Concentrate on productivity: Capacity issues have traditionally been
resolved through new recruitments. This led to a number of difficulties. I saw
this in rapidly growing scale-ups several times. Because growth is reduced
by the capacity to find new people, (often unconsciously) selection criteria
are lowered because many people are needed quickly. The new members
are not as efficient as the current team. You need more managers because
you have more people. The other approach is to focus more on improving
existing employees ' productivity than hiring more employees and improving
selection criteria. More people are less quality and more managers are
lower productivity.
You can analyze the characteristics of the highly successful people
and teams, and the conditions which enable high performance using
workforce analysis. The results can be used to improve productivity and
select candidates with top performers ' characteristics. If you increase
productivity, you need fewer people to achieve the same results.
IX. CONCLUSION

The results show that the data and information landscape has dramatically
changed and leading companies are building strategic capacities and
competitive advantages through advanced HR analytics practices. The
companies surveyed are conducting a wide variety of HR research and analysis
practices, which go beyond simple measurement and scorecard
measurements. The profession still has a great deal to do with the development
and decision-making of human resources strategies.

The challenge of making sense of the disparate data sources of all HR


research and analysis activity is another challenging one that was not
specifically addressed in the present study. Certainly, leading software
companies with employee analytical capabilities have made numerous
advances and innovations in their products. However, none of these SaaS-
based tools can encode, analyze or interpret all the "large data" that are
available to us. As regards the yearly HR strategy and the planning cycles of a
company, experts in human resources, analysts and data scientists continue
to do a lot of work manually.

Finally, our success depends on our collective ability to exploit the power
and ethics of advanced analysis, responsibility and to raise the bar more
evidence based on the recommendations and the implementation of human
resources policies, programs and procedures. In summary, proactive human
resource intelligence weapons strategists and decision-makers with the right
knowledge and understanding to take critical human capital decisions.

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