HR Analytics- Analytics Based Retention Strategies
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The document analyzes current trends and future growth areas in analytics-based retention strategies within human resources. It highlights the importance of employee retention, emphasizing how organizations are now utilizing hr analytics to evolve from a support function to a core business strategy. Advanced analytics is suggested as a means to identify turnover risks and develop tailored retention programs that enhance employee engagement and organizational profitability.
HR Analytics- Analytics Based Retention Strategies
- 1. Human Resource An Analysis of Current Trends & Future Growth Areas for Analytics-based Retention Strategies Tejas Suresh Kumar SNAPID- 170117643
- 2. Contents • Overview • HR Business Analytics • Analytics-Based Retention Strategies • Current Trends • Future Growth Areas • Conclusion HR_TejasKumar_170117643 2
- 3. Overview • Business Intelligence It deals with the business & analytical competency needed to build relevant data models. • Big Data It covers the historical data captured during the entire tenure of the business. The more the quality and quantity of data the better. • Technology It covers the statistical tools and software that needs to be deployed to analyze data and create models. Business Analytics Make data-driven smart decisions Vast data is available with organizations. With the passage of time, making sense of this data is becoming crucial Drive Business efficiency Besides increasing revenue, businesses around the globe are also focusing on improving the process & resource efficiency. Optimize Cost Bottom line cost reduction by adopting technology and implementing automation is vastly gaining momentum Formulate Growth Strategy The next big Leap in terms of future growth areas are also being identified with the use of analytics HR_TejasKumar_170117643 3 Core Components Business Analytics is a mixture of 3 crucial components:
- 4. HR Business Analytics HR_TejasKumar_170117643 4 Relevance Model Workforce Size DataComplexity Solution Medium Large Small LowMediumHigh Attrition & Retention Management -Our Main Focus In this presentation, the focus is on this application area only. According to an article on employee retention by talent acquisition marketing expert Maren Hogen: •Nearly four out of five (78 percent) of business leaders rank employee retention as important or urgent. •One third of new hires quit their job after about six (6) months. •One third (33 percent) of employees knew whether they would stay with their company long-term after their first week. •Some 35 percent of employees will start looking for a job if they don’t receive a pay raise in the next 12 months. •One third (33 percent) of leaders at companies with 100 plus employees are currently looking for jobs. HR Analytics is primarily a solution to the double trouble of large workforce (>100) and high level employee data complexity. It is squarely due to HR Analytics that the role of HR has evolved from merely a support function to being involved in the core business strategy. 50 100
- 5. Analytics-Based Retention Strategies Current Trends & Future Growth Areas HR_TejasKumar_170117643 5
- 6. Current Trends HR_TejasKumar_170117643 6 Multi-national corporations today are incorporating the 4-step method to analyze their retention strategies. Adoption Rate of These methods are shown below Source- http://joshbersin.com/2016/07/people-analytics-market- growth-ten-things-you-need-to-know/
- 7. Future Growth Areas HR_TejasKumar_170117643 7 Strategy Support Predictive Analytics Designing Custom Retention Program Workforce Analytics In many companies today, turnover risk is still addressed only when leaders become aware of the risk – that is, when an employee resigns. That’s important, but it’s only part of the picture. What if you could identify who is more likely to leave? Or when they’re more likely to do so? Or even what could be done today to make them change their minds? These are some of the questions that the highly advanced analytics tools and strategies could seek to answer in the future Some of the Implications of this step could be : •Forecasting Recruitment Needs •Employee Bucketing and Profiling •Improved Resource Utilization Metric Analyze the HR impact on Organizational Profitability Predict the employee-organization fit in a dynamic business environment to raise the quality of Human Capital. Such a measure will have an dual impact : •Assist in Overall Organization Strategy Formation, and •Raise the standards of the Employee-Organization Engagement Model In Depth Understanding Employee behaviour through Sentimental Analysis “One size fits all” Strategy won’t work in the future With the use of advanced analytics, it is high-time that we design employee specific retention programs. Such an approach would further increase the involvement HR in the main stream business thereby increasing the value of Human Capitals by multiple fold. Impact of such an initiative: •Boost in Employee morale •Increased Job satisfaction
- 8. Conclusion Even before analytics came into the picture, companies had been tracking employee engagement. But where analytics scores over traditional tracking methods is in its use of action planning and linkage study. With analytics, you can effectively show that HR has a cause-effect relationship with regard to business development and calculate a true ROI. By accurately analyzing insights, companies can facilitate actions that integrate seamlessly with business strategies. There are many factors for the increased interest around HR analytics which have been divided into two categories. In industry parlance, these are known as: Pull Factors Push Factors • Lack of Skilled Talent • Need of insight-driven decision making • Need for better resource utilization • Digital Technology Advancement • Industry-specific progress in analytics science HR_TejasKumar_170117643 8 Today, Market Adoption of HR Analytics is emerging due to the availability of multifarious business models. Owing to such opportunities, the HR analytics today are being managed in the following ways: Internal Handling Outside Handling • Adoption of Software as a Service Products • Building an Internal Business Analytics Team • Partnership Model – Partnering with professionals • Outsourcing to third- party vendors
- 9. Thank You Please share your feedback at : [email protected] Mobile No : 9582184595 HR_TejasKumar_170117643 9
- 10. Thank You Please share your feedback at : [email protected] Mobile No : 9582184595 HR_TejasKumar_170117643 9