In recent years, you have probably heard about this new methodology called People Analytics, that promises to be the new Holy Grail of the Human Resources Practices & Processes. But… is this hype for real? Is there water under that bridge? First, let’s clarify why do we mean when we talk about People & HR Analytics:
People & HR Analytics are profoundly rooted in the Business Intelligence processes. Add a bit of Data Science, forecasting and predictive analysis, and voilá: you have a new HR Process that helps HR Managers in decision taking with a data driven approach. Data becomes information, and information becomes insight.
The tools are numerous and vary between People Analytics Experts. Most common are MS Excel, SAS (for predictive analysis such as ANOVA, Regression, Logistic Regression, etc), R, Tableu, MS Power BI, etc.
Size, in this case, doesn’t matter.
Doesn’t matter if you have 25 or 25K employees. I’m sure you have some kind of reporting/dashboarding system to measure your HR performance. The question is…what kind is it? What is your current state of analytics? Let’s revisit them:
- Level 1 – Operational Reporting reporting consists in traditional metrics such as headcount, attrition, labor cost and training cost. These operational reports are usually generated with the use of a HRIS.
- Level 2 – Advanced Reporting At this stage, your organization is able to report proactively. This proactive reporting provides multiple perspectives and is sufficiently advanced to influence (strategic) decision-making. HR reports are descriptive and efficiency-focused. In this case, reporting is part of day-today business.
- Level 3 – Advanced Analytics If you are at this stage, congratulations. You are in the top 14% of companies that uses statistical modeling to solve business problems and, based on the data, is even able to predict the future!
- Level 4 – Predictive Analytics At this level, you know all that there is to know about HR Analytics and nothing can surprise you.
Now, take a few minutes to answer the question asked before: Where are you? Where do you want your company to be in the near future? We at HR Global Partners can help you achieve any of these four levels.