HR personnel are the driving force behind the success of any given organisation as they unite employees in different departments together and ensure they are looked after. There’s a very thin line that separates successful HR practices and undue interference. HR managers know that for their employees to generate an excellent work output, they must be valued and appreciated for their efforts. The human resources department acts as the most quintessential facet of an organisation and has different mechanisms for facilitating corporational growth and success.
- What are the analytics utilised by HR professionals in workplaces?
- Does data form a vital part of the HR world?
- How are the various processes of HRM linked together?
The questions stated above are quite common amongst new HR managers who need to leverage technologies to perform their day-to-day tasks. HRM involves:
- Heavy utilisation of analytically driven conclusions for decision-making.
- Hiring and firing staff.
- Bringing new talent on board.
A professional certificate in analytics focusing on HR can offer resourceful knowledge of integrating logical-based technicalities in this domain. The HR analytics course from XLRI equips learners with the critical facets of this sector.
What Constitutes the HR Analytics Cycle?
The data science technologies provided to businesses today, such as machine learning and big data analytics, have found shelter in the HR world as well. Analytics in the HR landscape is concerned with solving problems and analysing the performances of employees. The management sectors take the help of analytics to drive their organisations forwards and take critical decisions that require comparisons of different metrics. HR analytics finds its application in optimising a firm’s operations, building a robust framework for hiring talented individuals and ensuring that organisational staff work as per corporational needs.
A professional certificate in analytics will enable aspiring HR managers to understand the dynamics of analytics in these HR scenarios. It’s done using a practical and planned out HR analytics cycle.
The HR analytics cycle includes the following steps:-
- Step 1 = Identification of Strategic HR Concerns
The step one involves the identification of the significant areas of concern in the company’s HR models. Understanding the role of different organisational metrics for optimising HR will help rectify and iron out the flaws.
The HR concerns could range from anything- a lack of quality applicants, changes in HR policy or maybe the need to adopt mitigators/pacifiers to solve employee’s fights.
- Step 2 = Implementation Of a Research Design
An implementation design refers to the set of theoretical guidelines for tackling HR challenges and concerns. This document involves heavy research of HR silos and existing practices to provide a flexible, measurable, and achievable research design to adjust the HR environment better.
The research design includes the independent and dependent variables for conducting the in-depth analytics of HR workings. The practical models of HR analytics derive their data sets from existing databases or via integrated platforms to understand their issues with tenacity and clarity.
- Step 3 = The Data Management Phase
HR analytics needs data from various sources to arrive at conclusions and require a well-planned database management system. The data science engineers check whether the data sets can be integrated with the same database or require other web-based data storage systems.
Once the data sets are aligned with their databases, engineers and HR managers need to sit together to figure out the open-source software that would be required. The incorporation of these open-source software helps in building long-term data warehouses and ecosystems.
- Step 4 = The Data Analysis Phase
The data analysis phase of the HR analytics cycle is concerned with the statistical and visual-based graphics of data accumulated. Engineers deploy the various statistical packages for covering the HR spectrum. The packages adhere to different platforms and complexities like Excel, SPSS, RapidMinder, Python and R.
The incorporation of different data analysis structures requires a variety of skill-sets for their utilisation.
- Step 5 = Data Interpretations and Communications
The last stage of the HR analytics life cycle generates results in reports for interpreting the data collected and analysed during earlier phases. The HR personnel cross-check the results to create and build an action plan along the same lines.
Once the action plan or a strategy has been set in place, it needs to be reviewed for understanding its impact on HR policies.
As seen from the life cycle described above, analytics in HR settings works on rectifying and addressing the minute details. Moreover, the statistical applications, tools and software offered by analytics models provide an excellent mechanism for overseeing the performances of HR employees and the department as a whole.
The HR analytics course from XLRI will enable learners to follow the life cycle with brilliant course modules and guidance for using the practical tool involved. Moreover, it teaches about the several metrics that HR analytics covers.
Metrics Tracked by HR Analytics
The various HR metrics contribute to increasing business growth and value.
Some of the metrics that are tracked under HR analytics include the following:-
- Per Employee Revenue
It’s used for calculating the revenue generated by each employee of the organisation. The per-employee revenue is computed by dividing the total revenue of the corporation by its total employees.
- Training Expenses for each Employee
This is a valuable metric for understanding the number of training employees as per the firm’s needs. It is calculated by dividing the entire sum of total training expenses with its total employees.
- Voluntary Turnover Rate
It’s the metric for assessing the employees who left a given organisation voluntarily. Voluntary turnover rate is obtained by dividing the total number of employees who left their firms with the total existing employees in the corporation.
The metrics mentioned above are the key indicators of organisational growth. A lower value of results indicates that the company is harnessing success, whereas a higher value indicates a need for a change of practices.
Summing it Up!
HR analytics is a great field for understanding the HR domain’s logical, analysis and reasoning facets. A professional certificate in analytics offers exciting data analytics project ideas that young HR managers in their corporations can utilise. Furthermore, the HR analytics course from XLRI exposes professionals to its different principles.