MODULE 1

HR Analytics in Perspective
Role of Analytics, Defining HR Analytics, HR
Analytics: The Third Wave for HR value creation, HR
Measurement journey in tune with HR maturity
journey Understanding the organizational system
(Lean) , Locating the HR challenge in the system ,
Valuing HR Analytics in the organizational system,
Typical problems (working session)

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

9/7/2019 1
BANGALORE
 Definitions of HR analytics

• ―HR analytics is the systematic

identification and quantification of
the people drivers of business
outcomes‖
- Heuvel & Bondarouk, 2016
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 2
BANGALORE
• “It can be defined as a communication tool that
combines data from different sources to describe
the current situation and to predict the future”
- (Fitz-enz, 2010).

• According to Fitz-enz (2010: 4), “analytics is a

mental framework, a logical progression first and
a set of statistical tools second”

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

9/7/2019 3
BANGALORE
HR ANALYTICS: THE THIRD WAVE FOR
HR VALUE CREATION

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

9/7/2019 4
BANGALORE
CREATING VALUE THROUGH ANALYTICS
IN HR

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

9/7/2019 5
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 6
BANGALORE
THE INCREASED INTEREST AROUND HR ANALYTICS IS
DRIVEN BY THE FOLLOWING KEY FACTORS:

• PULL BASED FACTORS.

• PUSH BASED FACTORS.

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

9/7/2019 7
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 8
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 9
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 10
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 11
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 12
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 13
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 14
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 15
BANGALORE
 LEVELS OF ANALYTICS

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

9/7/2019 16
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 17
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 18
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 19
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 20
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 21
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 22
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 23
BANGALORE
 HR MEASUREMENT JOURNEY IN
TUNE WITH HR MATURITY
JOURNEY UNDERSTANDING THE
ORGANISATIONAL SYSTEM
(LEAN)

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

9/7/2019 24
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 25
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 26
BANGALORE
HR MEASUREMENT JOURNEY
FIVE METRICS NEED TO BE CONSIDERED THEY
ARE AS FOLLOWS:

• AVERAGE HEADCOUNT.

• AGE STAFFING BREAKDOWN.

• AVERAGE WORKFORCE TENURE.

• TERMINATION RATE.

• EMPLOYEE ENGAGEMENT INDEX.

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 27
BANGALORE
HR AND LEAN TRANSFORMATION
• Companies have begun to understand that lean is
about more than 5-S and U-shaped cells. It is also
about people, culture, and leadership. However,
Human Resource (HR) departments seldom seem
to take an active role in lean transformations. How
can companies and their HR departments better
engage the full human potential of lean? To assist
answering this question, we conducted a research
study. From it, we discovered from actual practice
not only how HR, but leadership creates better
organizational conditions to support lean
transformation.
9/7/2019
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
78
BANGALORE
 Five key variables
predict successful lean transformation
• Development of teams as a supporting structure of lean

• Calculation and communication of metrics

• Communication among organization members, particularly across

organizational barriers

• Communication to employees regarding their specific role in lean

transformation

• Acknowledgement and celebration of successes toward lean

transformation.
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 79
BANGALORE
• Adopting lean principles well beyond core
manufacturing has dramatically changed many other
corporate internal functions, including product
development, supply chain management, and more
recently, accounting. But in too many companies, HR
remains untouched by their company’s commitment to
lean. And for those who have engaged HR to help with
lean transformation, the contribution has not reached its
potential.
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 80
BANGALORE
 Culture: Creating a lean culture is to create
an environment that supports four of the
five predictors from this study: 1) teams
developed and functioning to support the
structure of lean, 2) communication
processes that operate across boundaries, 3)
clarity of all employees’ roles in the lean
organization, and 4) a process for
calculating and communicating metrics is in
place and followed by process owners.
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 81
BANGALORE
• Recruitment Seeking the Character Traits Needed:
Ability to communicate, work in teams, create and
follow measurements, work across organizational
boundaries, and identify and celebrate successes. If
these traits are present in some form in employees
implementing lean, they may be enhanced. But if not
basically present, they may not be able to be taught
(Collins, 2001). Therefore, the recruitment and hiring
process should identify and select these traits.
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 82
BANGALORE
• Pay/Recognition and Performance
Structure: identify the importance of
rewards and recognition and the
acknowledgement and celebrations of
success. A fair and suitable reward and
recognition program is vital in the
recruitment and retention of employees,
especially in a lean implementation process.
This does not imply a high pay structure,
but rather considered fair and equitable.
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 83
BANGALORE
• Developing, Choosing, and Maintaining Lean Leaders:
Leadership in a lean environment can quickly be
distinguished from traditional views on leadership. Lean
is a long-term, evolutionary, and inclusive environment.
Leadership for it differs from crisis- based, charge-the-
hill hero leadership. Understanding the choice between
developing leadership for lean and choosing leaders
who would support lean must be examined and methods
examined.
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 84
BANGALORE
LOCATING THE HR CHALLENGE IN THE SYSTEM
• Inconsistent and inaccessibility of data,
• Data quality issues,
• Lack of standard/generic methodologies to analyse HR
data,
• Executive buy-in,
• Skill gap in analytical knowledge & experience,
• Funding issues,
• Wrong or not targeting the right analytical opportunities,
• Problems in initiating the project
• Improper timing

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

9/7/2019 85
BANGALORE
 Challenges related to Data

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

9/7/2019 86
BANGALORE
ILLUSTRATION OF VALUE CREATION

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

9/7/2019 87
BANGALORE
VALUING HR ANALYTICS IN THE
ORGANIZATIONAL SYSTEM

• Business Intelligence (BI) Process

Maturity

• Manager Access to Analytics.

• Data Sources.

• Metrics Categories.
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 88
BANGALORE
Business Intelligence (BI) Process Maturity
• Does the organization use some form of BI or
workforce analytics in a way that is effective (aligned,
best practice, strategically focused) or transformational
(unique, stands above others, and contributes to
competitive advantage)? Organizations were scored on
a five-point scale, with QO’s scoring 3.2 and showing
that they are both effective and transformational in
their ability to do analyses.
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 89
BANGALORE
 Manager Access to Analytics.
• QO’s provide managers with direct access to analytics
rather than funneling it through analytics specialists. In
2014, the average manager usage for all survey
respondents was 20% — QO’s had an outstanding
average of 74% of their managers directly accessing
business intelligence and analytics to support their
decision making.

PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,

9/7/2019 90
BANGALORE
 Data Sources
• Organizations with twice as many data
sources are more ―quantified‖ in their
ability to juxtapose workforce data
(including core HR, talent management,
workforce management, financials, and
operational systems) and show the
impact of the workforce on business
results.
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 91
BANGALORE
 Metrics Categories

•QO’s used 50%

more metrics
categories than other
organizations.
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 92
BANGALORE
 The Value of HR Analytics
• ―organizations with workforce analytics
outperform,‖ but what does ―outperforming‖
mean exactly?
• Outperformance is measured in terms of a higher
Return On Equity (ROE), which quantifies an
organization’s success at generating profits from
every unit of shareholder equity, such as that
allocated to HR technologies (including the spend
on workforce analytics). A company that earns
ROE in excess of its cost of equity capital has
added value.
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 93
BANGALORE
• In 2013,Bersin by Deloitte research showed that the
stock prices of companies with high impact talent
analytics outperformed their peers by 30% over the
previous three years. Also in 2013, the CEB Analytics
Survey found that organizations moving from median to
leadership in workforce analytics improved their talent
outcomes by 12%, leading to a 4% improvement in gross
profit margin. This translates into $12.8 million in
savings for every $1 billion in revenue!
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 94
BANGALORE
• Outperforming other organizations and
achieving competitive advantage as a
result of their early adoption into
workforce intelligence solutions (which
support both HR analytics and strategic
workforce planning).
PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 95
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 96
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 97
BANGALORE
 PROF. BRIJESH SINGH, DEPT OF MBA, DBIT,
9/7/2019 98
BANGALORE