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HR ANALYTICS
Model and Data

©Ripples Learning Services 2007-2020


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development. We aim to achieve this through knowledge creation and inspiring action. We work with
the corporate world, NGOs, government and individuals.

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CONTENT

Understanding terminologies 4
Analytics Maturity Model 7
Descriptive statistics 7
Diagnostic statistics 7
Predictive analytics 7
Prescriptive analytics 7
Capability Evolution Model 8
Operational Reporting: 8
Advance Reporting: 8
Strategic Analytics 8
Predictive Analytics 8
Gartner Analytics Model 9
Deloitte Analytics Model 9
Five steps to use Analytics to solve a business problem 11
Data collection methods 12
Refining data 12
Analysis Steps 13
Suggest Action [insights & foresights] 13
Examples 14

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Understanding terminologies

Analysis
It looks backwards over time, with a historical view of what has happened

Analytics
Analytics looks forward to model the future or predict a result.

HR Data Warehouse
A database that aggregates and rearranges data, so that it is easy to read, relate to and analyze.

Metrics
An HR metric measures the performance of an HR process or structures data & makes it quantifiable.

Data Visualization
Data visualization is the graphic representation of data. It involves producing images that
communicate relationships among the represented data to viewers.

Algorithm
Set of Instructions designed to perform a specific task.

Data integration
Involves combining data residing in different sources & providing sources & users with unified views.

Data mining
Process of sorting through large data in a particular way so as to identify patterns & establish
relationships to solve problems through data analysis.

Big Data
The use of advanced analytics tools and programs beyond the ability of commonly used software
tools to look at immense amounts of data across numerous systems within a defined time. Example:
human capital, workforce capacity, risk, business performance etc.

Evidence-based HR
Evidence-based HR is the systematic practice of making decisions about HR and human capital
management based on subjective and objective information.

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Sentiment analysis
Employee sentiment analysis involves using statistical methods to analyze unstructured textual data
created by employees. Text may be retrieved from employee communications via company email
and enterprise social networks as well as from external social networks. The text analysis aims to
determine how employees feel about a concept example: an organization or policy or other hygiene
factors, etc. Collecting data regarding the various aspects to provide a view into Employee
experience, engagement, etc.

Decision tree / Experimental analytics


A decision tree is a model that looks like a tree and consists of decisions and their possible
consequences. This is a useful tool to make predictions about the (near) future. A decision tree
allows you to predict what might happen by learning from existing data.

Trend Analytics/ Clustering


It is the widespread practice of collecting information and attempting to spot a pattern. It is based
on the idea that what has happened in the past will show an indication towards what can happen in
the future as well.

Social Media Analytics


Social media analytics is the use of advanced statistical methods on data gathered from social media
for the purposes of analyzing participants’ past behavior and possibly predicting their future
behavior.

Hiring channel mix


Modeling that draws data from all hiring channels used in the past (social media, advertising,
recruitment consultants etc.) and determines which parts are useful in order to streamline the hiring
process and improve hiring costs. Hiring is a big cost for organizations and therefore anything
making it effective is considered as important for the organization. Another example would be of
Yield Ratio that is the ratio between the number of good resumes to the total number of applicants.

Cost modeling
Cost modeling allows executives to understand HR expenditure. In this sense, it can render the
yearly monetary value of hiring and retention costs while it may also help calculate the costs of
other HR activities and processes such as voluntary turnover. They tend to map the expenditures
upon various HR activities to figure out where the money is flowing so as to reduce the overall cost.

Storytelling
People tend to relate to and remember stories better. Data storytelling is a structured approach for
communicating data insights, and it involves a combination of three key elements: data, visuals, and
narrative. When visuals are applied to data, they can enlighten the audience to insights that they
wouldn't see without charts or graphs. It can also enable the emotional basis of a decision.

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Dashboard
Dashboards are a collection of widgets that give you an overview of the reports and metrics you care
about most. Dashboards let you monitor many metrics at once, so you can quickly check the health
of your accounts or see correlations between different reports.

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Analytics Maturity Model

Statistics is about collecting and reading through the existing data while analytics is about making
sense of that data. So the four phases of maturity model are:

Descriptive statistics:
It is the first step that describes something. The key here is to cover as many aspects of the data as
possible. If not quantitatively, also qualitatively, but we collect and capture as much information as we
can.

Diagnostic statistics:
It is about listing all possible reasons regarding why something has happened. All guesses have to be
listed here in this stage of the model.

Predictive analytics:
Understanding the possible outcomes that might be the result is indicated by predictive analytics.

Prescriptive analytics:
This stage states what should be done to get a desired outcome, either towards something to happen or
towards something not to happen.
From information to insight, and further to foresight is the journey of analytics!

The difficulty of applying each of these forms of analytics increases from Descriptive to Diagnostic,
through towards Predictive and then to Prescriptive Analytics. Similarly, the value towards the
organization’s profit for each of these stages too is different with the maximum value being contributed
by the Prescriptive analytics and least by the Descriptive.

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Capability Evolution Model
Organizations may choose different approaches towards accomplishing the purpose of analytics. Another
well-known model used in analytics is the Capability Evolution Model. It discusses four stages as given
below:

Operational Reporting:
Similar to descriptive statistics, it is the stage where the current measures and situation is reported.
In other words, this is when mostly the historical data regarding HR activities is brought together.
Few typical examples are employee turnover data, salary data, or costs on training or recruitment,
etc.

Advance Reporting:
Advanced reporting is more detailed descriptive reporting that often uses the same data as
operational reporting but with the addition of tracking trends or the progress towards goals.
It might provide insights useful for benchmarking and decision-making and be delivered in static or
interactive digital dashboards. This reporting usually also reflects only the current or historical
situation for various HR measures of interest.

Strategic Analytics
Advanced analytics is when data is interpreted to solve problems and make complex decisions.
Using the data from levels 1 and 2 plus more besides, statistical analysis can identify patterns,
trends, successes, and failures that can inform solutions to business problems. Basically, one is able
to make evidence-based suggestions for what can be done to solve any kind of problem.
It adds tangible value to the organization by proactively identifying HR issues and suggesting
evidence-based solutions.

Predictive Analytics
Similar to the prescriptive analytics of the maturity model where solutioning happens, this is the
stage of the Capability Evolution Model where Multiple data sources from HR and the business are
used at this maturity level and the aim of predictive HR is to anticipate and satisfy strategic business
needs with data-driven decisions.
Leaders and managers can clearly be aware of all possible scenarios and potential risks when
planning for the business or workforce.

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Gartner Analytics Model

Having three stages, Gartner Analytics too is a similar model as any of the previous models. Here again,
the journey moves from information to insight, further to foresight.

Deloitte Analytics Model

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Similarly again we have the Deloitte Analytics Model where Deloitte, in order to solve a business
problem, looks at the issue in the organization. Then it collects all possible data around that issue.
After that it focuses on insights and finally move to taking action based on the insights derived.

The SAP model too walks along the same path and begins from ‘sense and respond’ that is very
much about reporting the past data. Then, moves on to the ‘predict and act’ stage where it is about
answering the question “what might happen?” and “when will it happen? what is the best that could
happen?”

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The end result of all the above models is the same - to move from hindsight to foresight. That is,
collect, read and understand past data in hindsight, and then move to predict and prescribe results
and solutions based on that past data.

Five steps to use Analytics to solve a business problem

Step 1: Start with a business problem


Identify the business challenge to be solved. Organizations have challenges that need to be resolved
through analytics. So, as the first step you have to point out the problem you would like to solve so that
the next steps are more aligned to solving the specific problem.
Step 2: Identify and select data
Next, depending on the problem identified, you have to identify the right sets of data to read through.
There are huge sets of data an HR deals with, and the right set of data needs to be used for the specific
problem.
Multiple data sources could be used here for collecting data:

1. Employee surveys 11. Recruitment process data

2. Telemetric data 12. Data from employee databases

3. Attendance records 13. Training data

4. Multi-rater reviews 14. Employee turnover data

5. Salary and promotion history 15. Workplace accident data

6. Employee work history 16. Employee engagement data

7. Demographic data 17. Financial data

8. Personality/temperament data 18. Age and gender data

9. Talent scarcity data 19. Diversity data

10. Policy implementation data 20.

These data cannot be chosen randomly on an ad-hoc basis. Choice of data also has to be done only after
a good brainstorming on why you are using that specific data and not the other data.

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Data collection methods
For step 2, multiple data collection methods are there. Choice of one or more of these methods again
needs a good amount of reflection.
1. Survey Questionnaire
2. In-depth Interviews
3. Focus group discussions
4. Forums & communities
5. Emails
6. Logs and diaries
7. Observations
8. Assessments
Triangulation: Triangulation can be used while collecting data to ensure their reliability. It is a process
where a minimum of three methods of data collection is used and only then is the conclusion derived.

Refining data
The data collected is not always in a proper structure and there might be duplicates or erroneous data.

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Analysis Steps
Step 1. Identify what is meaningful data
Step 2: Apply metrics
Step 3: Extract data
Step 4: Use statistical tools to structure data

Suggest Action [insights & foresights]


Predict: Use decision tree or experimental analytics to predict and prescribe outcomes.
Visualise: Use data visualisation for storytelling and dashboarding
Present: Present the suggestions and solutions to management and decision makers.

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Examples
Decision tree

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Ripples learning are a learning company with a vision to redefine personal and professional
development. We aim to achieve this through knowledge creation and inspiring action. We work with
the corporate world, NGOs, government and individuals.

Our learning academies are based in Bangalore, Chennai and Hyderabad, India. We provide facilitator
driven learning interventions in 11 cities in India. We also deliver programs in Singapore and Malaysia.

L&D Solutions: We use our proprietary competency framework to create and deliver training
programs on behavioral competencies. Our popular programs include First Time Leaders, Business
Communication, Emotional Management, Behavioral Interviewing, Personal Effectiveness etc.
(www.rippleslearning.com)

Certification Programs in HR and L&D: We offer certification programs in HR (Certified Human


Resource Management Professional) and L&D (Certified Learning and Development Professional)
through our training centers in three cities in India and Singapore and KL. (www.chrmp.com)

Cloud Solution for L&D effectiveness: Our innovative online solution Resultslab, helps organizations
optimize their training strategy and spend. It ensures transfer of learning to the workplace and
measure real impact of training and other change interventions (like coaching or feedback sessions).
(www.resultlab.in)

LIVE E-Learning: We cater to organizations and individuals in smaller cities in India and other part of
the world through our L.I.V.E (Live Interactive Virtual Education) sessions. All our programs are
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A partial client list includes Aditya Birla Minacs (Transworks), Aricent, Carl Zeiss, CSC, Curam Software,
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Ripples of Change…

Our competency development programs help individuals and organizations align their knowledge,
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Competency Development Series

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