PGDHRM

HR Analytics

Acquiring High-quality Talent

Course Tutor :Rifat Amin Ryhan
 Learning Outcome

Opportunity Validity of
cost of cycle hiring
time specifications

Traditional Importance of
measures of TA quality of hire

Measuring and
Overview of HR
improving process
analytics What we will
capability
learn in this
chapter

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 What is
HR or People Analytics ?

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 What is HR or People Analytics ?

HR or people management has been Recently data-based objectivity(scientific

traditionally seen as an ‘art’ relying on basis) in people decisions has given birth
the use of gut or intuition to a new field called HR analytics or people
analytics or work force analytics

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 What is HR or People Analytics ?

Data based analysis

Intuition

HR analytics uses a mix of

understanding patterns
typically, 80% data based
analysis and 20% intuition
seem to be the rule of
thumb.

Let’s watch a video for better understanding

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 Acquiring high-quality talent

When the economy or a Even during a relatively

sector is growing very steady growth ,TA is key to
fast ,Talent Acquisition (TA) bringing in people of the
becomes a differentiator to best quality at the right
business. cost.

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 Traditional Measures of Talent Acquisition
Indent Shortlist Selection BGV New hire
open ready Made Complete joins

Sourcing Interviewing Offering Converting

Number of Number of Number of

resumes /interview interviews /offer offers /join

Effort Measures

Position opening to Interview to Offer to join

interview selection

Speed Measures
Cost/Hire Channel Mix Campus rating Recruiter productivity

Effectiveness Measures
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 Speed Measures

Position Vacant Position Filled up

Cycle time

For the hiring It is his responsibility

manager, the clock
starts ticking from
the time a position
becomes vacant.
to get the work
going. So, for him the
cycle time is the
duration from the
time a slot is opened
to the time it is filled.

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 Effort Measures (Let’s analyse an example)
Process Company 1 Numbers Company 2 Numbers
(10% lower effort)
Final Selection 100 100
Offer Conversion 80% 126 70% 143

Interview 70% 180 60% 238

Conversion

No-show rate 20% 225 30% 340

Resume 60% 375 50% 680
Conversion

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 Effectiveness Measures

Cost per hire

=
Cost
(sourcing activity+technology+infrastructure+employee salaries)

÷
Number of new joins

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 Effectiveness Measures
Decision making matrix used in recruitment
Channel Set-up cost Recurring Turn-around Scalability Conversion
cost time
Referral Nil Medium Medium Moderate High

Job board High Nil Fast High Moderate

Walk-in Low Nil Fast Moderate Moderate

Search firm Medium Nil Medium Low High

In very large companies, employee referral schemes are

highly effective as they leverage the power of the network.

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 Opportunity cost of cycle time

Let’s analyse a hypothetical example

Month Cost (taka) Value (taka) Remarks

At the end of the April an old employee
April 50,000.00 50,000.00 resigned giving 2 months advance notice.
Old employee's work load were distributed
May 50,000.00 25,000.00 and his performance dropped to 50%
Old employee's performance dropped to
0 %. A new employee joined @ Tk.50,000.
June 100,000.00 - His initial performance was 0% too.
New employee's performance increased to
July 50,000.00 25,000.00 50%
New employee's performance increased to
August 50,000.00 50,000.00 100%

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 Opportunity cost of cycle time
Cost and value comparison
120,000.00

100,000.00

80,000.00

60,000.00 Cost (taka)

Taka

Value (taka)
40,000.00

20,000.00

-
April May June July August

Question : Does this mean that it is okay to let the job vacant, without incurring a
cost?
Answer: Not really; there is an opportunity cost of business not fulfilled or customers
not handled as well as they should.
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 Validity of hiring specifications

A company hiring for a certain number of engineers

then follows an algorithm that look like this:

Engineering graduate ? Yes No

Premier engineering college ? Yes No

Got first class ? Yes No

Consistent all through first class ? Yes No

Finally selected
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Validity of hiring specifications

More than one study has found that

there is little correlation between the
academic background of a person and
their on-the-job performance

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 Validity of hiring specifications

“ Google had determined that G.P.A’s are worthless as

a criterion for hiring, and test scores are
worthless….we found that they don’t predict anything”

“ Proportion of people without any

college education at Google has
increased over time”---now as high
as 14% on some teams.

Head of
People
Operations

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 Validity of hiring specifications

Google talks about humility,

Future performance is predicted by
competencies a prospective
employee possesses.
ownership,learnability,and
emergent leadership. These can be
assessed only through structured
assessment of competencies.
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 Importance of quality of hire
Some companies have tried to put a quality of hiring measure:

What % of new What % of new hires

hires has is from named What % of roles has competency-
a professional competitors? based selection tools ?
qualification?

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 Importance of quality of hire
Some companies have tried to put a quality of hiring measure:

What % of interviewers Percentage of new Percentage of new hires

has been trained in hires whose who were terminated in
competency-based confirmation is the 1st year on
selection? delayed. performance grounds.

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 Importance of quality of hire
Some companies have tried to put a quality of hiring measure:

What % of new hires having less What % of new hires having

than 6 months experience gets an less than 6 months experience
“ above average” rating ? gets an “ average” rating ?

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 Importance of quality of hire
Some companies have tried to put a quality of hiring measure:

What the performance New hire retention levels.

rating distribution is of new
hires versus the distribution
for existing employees?

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Measuring and improving Process Capability

There are two (2)

measures to evaluate
the performance of a
Process

1. Process control index 2. Process capability index

(Cp) (CPk)

It is the ‘voice of the It compares between ‘voice of

process’ the process’ and ‘voice of the
customer’

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Measuring and improving Process Capability

LSL USL
Centre

Voice of The Process

Voice of The Customer

Measuring and improving Process Capability

Let’s watch
a video carefully
and answer some questions.

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Measuring and improving Process Capability

USL-LSL
Process control index (Cp) = -------------
6 X SD

Process capability index (CPk) =

Minimum
of [ USL-Mean
----------------
3 X SD
,
Mean - LSL
-----------------
3 X SD ]
Process control index (Cp) value charts

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Process capability index (CPk) value charts

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Measuring and improving Process Capability
After watching the VIDEO
now answer the following question.

Can you now calculate Cp and CPk from the example below?

Company Actual SD Process Process

Mean control capability
index (Cp) index (CPk)
Company 1 93 22.41 ? ?
Company 2 96 6.36 ? ?
Remember USL=120,LSL= 80 for both companies

Which of the above companies is doing better?

For answers see the next slide
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Measuring and improving Process Capability

Company Actual SD Process Process

Mean control capability
index (Cp) index (CPk)
Company 1 93 22.41 0.3 0.2
Company 2 96 6.36 1.05 0.84
Remember USL=120,LSL= 80 for both companies

Clearly the value of Cp and Cpk is higher for company 2 in

comparison with company 1.
So company 2 is doing better.

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Thank you for
watching…..

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