HR ANALYTICS

BIG DATA
• A large collection of data sets that needs to
be analysed computationally to reveal
insightful information on employee,
customer or transactional data.
• Help in making good business decisions.
• These sets of data are so large and complex
that it becomes quite impossible to process
them using traditional data-processing
methods.
 HR Analytics
• Analytics is the process that relies on simultaneous
application of statistics, computer programming
and operations research to discover and reveal
such valuable information from these big data.
• HR analytics, refers to applying analytic processes
in the HR department, namely its people data.
• HR analytics enables HR professionals to gain a
deeper understanding into their workforce and use
this knowledge to provide the best solutions to
business issues.
why analytics - necessity and opportunity.
• Necessity arises from the growing centrality of human capital
management as an essential organizational core competence.
Whereas 35 years ago “intangible assets” accounted for only
9 percent of value creation, today intangibles account for 65
percent of value. Those intangibles? They’re created by
people. 
• Opportunity arises from the growing availability of readily
accessible data on virtually every aspect of the management
and development of people. This is data that, with some
analytic ingenuity and the assistance of increasingly powerful
and accessible software applications, can be transformed into
valuable, actionable insights and intelligence. 
• Descriptive HR data is typically put into
context by using external benchmarking
data.
• Predictive HR analytics, on the other hand,
identifies the unique aspects of an
organization’s work, learning and leadership
environments that drive business outcomes
 Benefits of HR Analytics
• Better insights

• Better hires & retention

• Better prepared

• Better influence
When to Use HR Analytics 

• Recruiting
• On boarding
• Training & development
• Succession planning
• Retention
• Engagement
• Compensation and benefits. 
CHALLENGES
• DATA DELUGE: unnecessary data flood
• DATA QUALITY:
• LOW ANALYTICAL SKILLS IN HR DEPT
• NO SUPPORT
• HIGH COST
5 STEPS IN ANALYTICS
• DEFINE THE BUSINESS NEEDS
• IDENTIFY THE DATA
• IMPLEMENT ETL: EXTRACTION,
TRANSFORMATION & LOADING
• INCORPORATE THE FINDINGS TO BUSINESS
OPERATIONS
• PERFORM REGULAR ANALYSIS
HR Metrics
• HR metrics are indicators that enable HR to
track and measure performance on different
aspects and ultimately predict the future.
History:
1. Early 20th century
2. 1940’s
3. 1980’s
4. Present day..
HR metrics examples in recruitment

• 1. Time to hire (avg time per hire)

• 2. Cost per hire (total cost of hiring/the
number of new hires)
• 3. Early turnover (percentage of recruits
leaving in the first year)
• 4. Time till promotion (avg time in months
until internal promotion)
• Cost of HR per employee
• Ratio of HR professionals to employees
• Turnover (number of leavers/total
population in the organization)
• Effectiveness of HR software
• Absenteeism (absence percentage)
Key HR metrics

– Organizational performance
• Turnover percentages
• % of regretted loss
• Statistics on why personnel is leaving
• Absence percentages and behavior
• Recruitment (time to fill, number of
applicants, recruitment cost)
– HR operations
• HR efficiency (e.g. time to resolving HR self-
service tickets)
• HR effectiveness (e.g. perception of HR
service quality)