Part B

2019BCS0071
Partha
1.

HR analytics is defined as the process of measuring the impact of HR metrics, such as time to hire and
retention rate, etc. on business performance. When used strategically, analytics can transform how HR
operates, giving the team insights and allowing it to actively and meaningfully contribute to the
organization’s bottom line. HR analytics is a methodology for creating insights on how investments in
human capital assets contribute to the success of four principal outcomes: (a) generating revenue, (b)
minimizing expenses, (c) mitigating risks, and (d) executing strategic plans. This is done by applying
statistical methods to integrated HR, talent management, financial, and operational data. All these metrics
are managed exclusively by HR for HR.

HR has access to valuable employee data. The data useful for the HR function can be used to improve
employee performance, the employee experience, and in turn, maximize business outcomes.

Some common metrics tracked by HR analytics are :

1. Revenue per employee : Obtained by dividing a company’s revenue by the total number of
employees in the company. This indicates the average revenue each employee generates. It is a
measure of how efficient an organization is at enabling revenue generation through employees.
2. Offer acceptance rate : The number of accepted formal job offers (not verbal) divided by the total
number of job offers given in a certain period. A higher rate indicates a good ratio. If it is lower, this
data can be used to redefine the company’s talent acquisition strategy.
3. Training expenses per employee : Obtained by dividing the total training expense by the total
number of employees who received training. The value of this expense can be determined from
measuring the training efficiency.
4. Training efficiency : Obtained from the analysis of multiple data points, such as performance
improvement, test scores, and upward transition in employees’ roles in the organization after
training. Measuring training efficiency can be crucial to evaluate the effectiveness of a training
program.
5. Voluntary turnover rate : Voluntary turnover occurs when employees voluntarily choose to leave
their jobs. It is calculated by dividing the number of employees who left voluntarily by the total
number of employees in the organization. This metric can lead to the identification of gaps in the
employee experience that are leading to voluntary attrition.
6. Involuntary turnover rate : When an employee is terminated from their position, it is termed
“involuntary.” The rate is calculated by dividing the number of employees who left involuntarily by
the total number of employees in the organization. This metric can be tied back to the recruitment
strategy and used to develop a plan to improve the quality of hires to avoid involuntary turnover.
 7. Time to fill : The number of days between advertising a job opening and hiring someone to fill
that position. By measuring the time to fill, recruiters can alter their recruitment strategy to identify
areas where the most time is being spent.
8. Time to hire : The number of days between approaching a candidate and the candidate’s
acceptance of the job offer. Data-driven analysis of time to hire can benefit recruiters and help them
improve the candidate experience to reduce this time.
9. Absenteeism : Absenteeism is a productivity metric, which is measured by dividing the number of
days missed by the total number of scheduled workdays. Absenteeism can offer insights into overall
employee health and can also serve as an indicator of employee happiness.
10. Human capital risk : This may include employee-related risks, such as the absence of a specific skill
to fill a new type of job, the lack of qualified employees to fill leadership positions, the potential of
an employee to leave the job based on several factors, such as relationship with managers,
compensation, and absence of a clear succession plan.

2.

The Human Resource Information System ( HRIS ) is a system that is used to collect and store data of an
organization’s employees. An HRIS encompasses the basic functionalities needed for end-to-end Human
Resources Management. It is a system for recruitment, performance management, learning & development.
It is in fact the most used software in the HR department.

An HRIS proves beneficial in the following ways -

● It is a record-keeping system that keeps track of changes to anything related to employees.
● Some data is collected and stored for compliance reasons including materials for the identification
of employees in case of theft, fraud, or other misbehaviors.
● Having all this information stored in one place not only benefits accuracy but also saves time.
● The final benefit is the ability to offer self-service HR to employees and managers. This enables
employees to manage their own affairs.

The applications / functions of an HRIS system are as follows :

1. Applicant Tracking System (ATS) : This software handles all the company’s recruiting needs. It
tracks candidate information and resumes, enables recruiters to match job openings to suitable
candidates from the company’s application pool, and helps in guiding the hiring process.
2. Payroll : Payroll automates the payment process of employees. Contractual data and information
on new hires is often entered into this system and at the end of the month, payment orders are
created.
3. Benefits administration : HRIS benefits management. Employee benefits are an important aspect
of compensation and are also managed in this system. More advanced systems offer an employee
self-service model for employee benefits. This self-service approach to benefits is also called a
cafeteria model.
 4. Time & Attendance : This module gathers time and attendance data from employees. These are
especially relevant for shift workers where employees clock in and out. Back in the day, employees
often wrote down their working hours on a piece of paper. Then, the manager would manually
enter the data into a time tracking system. Based on this data, payment orders were generated and
paid to all employees. Nowadays, workers often check into work by fingerprint or a card that is
synced with an HRIS. This gives an exact time for arrival and departure. Any issues with lateness are
easily detected.
5. Training : Learning and development is a key element when it comes to employee management.
This module allows HR to track qualification, certification, and skills of the employees, as well as an
outline of available courses for company employees. This module is often referred to as an LMS, or
Learning Management System, when it’s a stand-alone. An LMS usually includes available
e-learning and other courses to be followed by employees. Just like the moodle we use for our own
online classes in IIIT Kottayam.
6. Performance management : Performance management is a key part of managing people.
Performance ratings are generated once or multiple times a year by the direct manager or peers of
the employee.
7. Succession planning : Creating a talent pipeline and having replacements available for key roles in
the organization is another key component of an HRIS.
8. Employee self-service : Employee self-service has already been mentioned. Organizations are
focusing increasingly on having employees and their direct supervisors manage their own data.
Requests like holidays can be asked for by the employee him/herself. After approval, these are then
immediately saved into the system.
9. Reporting & Analytics : A much rarer module in HRIS systems is reporting and analytics.
Modern systems enable the creation of automated HR reports on various topics like employee
turnover, absence, performance, and more. Analytics involves the analysis of these insights for
better-informed decision making.

3.

Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve
optimum use of an organization's most valuable asset—quality employees. It ensures the best fit between
employees and jobs while avoiding manpower shortages or surpluses. HRP is an important investment for
any business as it allows companies to remain both productive and profitable. The challenges to HRP
include forces that are always changing, such as employees getting sick, getting promoted, or going on
vacation. HRP ensures there is the best fit between workers and jobs, avoiding shortages and surpluses in the
employee pool.

Human resource planning (HRP) allows a business to better maintain and target the right kind of talent to
employ - having the right technical and soft skills to optimize their function within the company. It also
allows managers to better train and develop the skills needed amongst the workforce.
To satisfy their objectives, HR managers have to make plans to do the following:

● Find and attract skilled employees.

● Select, train, and reward the best candidates.
● Cope with absences and deal with conflicts.
● Promote employees or let some of them go.

There are four key steps to the HRP process. They include -

1. Analyzing Labor Supply - The first step of human resource planning is to identify the company's
current human resources supply. In this step, the HR department studies the strength of the
organization based on the number of employees, their skills, qualifications, positions, benefits, and
performance levels.
2. Forecasting Labor Demand - The second step requires the company to outline the future of its
workforce. Here, the HR department can consider certain issues like promotions, retirements,
layoffs, and transfers—anything that factors into the future needs of a company. The HR
department can also look at external conditions impacting labor demand, such as new technology
that might increase or decrease the need for workers.
3. Balancing Labor Demand With Supply - The third step in the HRP process is forecasting the
employment demand. HR creates a gap analysis that lays out specific needs to narrow the supply of
the company's labor versus future demands such as -
● Whether or not employees should learn new skills.
● Whether or not the company needs more managers.
● Whether or not all employees play to their strengths in their current roles.
4. Developing and Implementing a Plan - The answers to questions from the gap analysis help HR
determine how to proceed, which is the final phase of the HRP process. HR must now take
practical steps to integrate its plan with the rest of the company. The department needs a budget,
the ability to implement the plan, and a collaborative effort with all departments to execute that
plan.