HR Analytics Design, Implementation and Measurement of HR Strategy
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The document discusses HR analytics and the design, implementation, and measurement of HR strategy. It defines HR analytics as applying data mining and business analytics techniques to human resources data to provide insights for effectively managing employees. It also discusses defining a company vision, establishing the HR department's role, developing a company overview, investigating company needs, evaluating HR processes, implementing the plan, and measuring success as key parts of designing, implementing, and measuring an HR strategy. The goal of the strategy is to help achieve business goals and get an optimal return on investment from human capital.
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HR Analytics Design, Implementation and Measurement of HR Strategy
- 1. By Dr. Nilesh Thakre, Mumbai HR Analytics Design, Implementation and Measurement of HR Strategy
- 2. Contents / Objectives What is HR Analytics Design, Implementation and Measurement of HR Strategy
- 3. HR analytics is the application of data mining and business analytics techniques to human resources data. The goal of HR analytics is to provide insights to organizations for effectively managing employees to achieve business goals quickly and efficiently. The challenge of HR analytics is to identify what data should be captured and how to use the data to model and predict capabilities so the organization gets an optimal return on investment on its human capital.
- 4. Today many organizations are looking for metrics or analytics in HR which are not just related to people but also on processes such as recruitment, retention, compensation, succession planning, benefits, training & development, performance and appraisal and many others. In short Talent analytics is becoming more popular these days as companies are doing lot of efforts to cultivate and align talent with core business objectives in order to achieve a competitive fringe.
- 5. What is HR Analytics? Human Resource analytics is a data- driven approach to managing people at work. HR analytics, also known as people analytics, workforce analytics, or talent analytics, revolves around analyzing people problems using data to answer critical questions about organization.
- 6. HR analytics is the systematic identification and quantification of the people drivers of business outcomes (Heuvel & Bondarouk, 2016). “the traditional service-oriented HR focus must be extended to a ‘decision science’ that enhances decisions about human capital” (Boudreau & Ramstad, 2005: 129)
- 7. ‘HR analytics consists of a number of processes, enabled by technology, that use descriptive, visual and statistical methods to interpret people data and HR processes. These analytical processes are related to key ideas such as human capital, HR systems and processes, organisational performance, and also consider external benchmarking data.’ - Marler and Boudreau (2017),
- 9. The focus of HR Leaders on the highest impact HR programs Pick the top & bottom 3 HR programs based on their impact on revenue and profit 1. Managing flexibility and labor costs 2.Restructuring the organization 3.Managing work/life balance 4.Managing an aging workforce 5.Employee engagement 6.Managing change and cultural transformation 7.Recruiting 8.Retention 9.Managing talent for productivity and innovation 10.Employer branding
- 10. Human resource strategy HR strategy is an elaborate and systematic plan of action developed by a HR department. The HR strategy includes detailed pathways to implement HRM strategic plans and HR plans. The HRM strategic plan is the major objectives the organization wants to achieve, and the HR plan is the specific activities carried out to achieve the strategic plan. The strategic plan may include long-term goals, & the HR plan may include short-term objectives that are tied to the overall strategic plan.
- 11. HR Strategy
- 12. Parts of HRM Plan 1. Determine human resource needs. This part is heavily involved with the strategic plan. What growth or decline is expected in the organization? How will this impact your workforce? What is the economic situation? What are your forecasted sales for next year? 2. Determine recruiting strategy. Once you have a plan in place, it’s necessary to write down a strategy addressing how you will recruit the right people at the right time. 3. Select employees. The selection process consists of the interviewing and hiring process.
- 13. 4. Develop training. Based on the strategic plan, what training needs are arising? Is there new software that everyone must learn? Are there problems in handling conflict? Whatever the training topics are, the HR manager should address plans to offer training in the HRM plan. 5. Determine compensation. In this aspect of the HRM plan, the manager must determine pay scales and other compensation such as health care, bonuses, and other perks. 6. Appraise performance. Sets of standards need to be developed so you know how to rate the performance of your employees and continue with their development.
- 14. Design, Implementation and Measurement of HR Strategy 1) how to define a company vision, 2) establishing the HR department’s role, 3) developing a company overview, 4) investigating company needs, 5) evaluating HR processes, 6) implementing the plan, and 7) measuring success.
- 15. Define the company vision develop a concrete vision for the company. established a company mission statement, or a general idea of the direction the company is going. communicating those goals to the human resource department provides concrete methods that the HR strategy can use. the HR strategy can be tailored to best help meet short and long terms goals of company. The overall strategic plan should mandate the direction of the HR strategy. It should be fluid, based on the changing business needs of the company, but directed and always working towards the company’s goal.
- 16. Establish role of HR department -When designing a strategy for the HR department, understanding the specific tasks that HR will handle is essential. Will the HR department handle hiring/firing decisions? Will they develop a pool of potential candidates that will then be interviewed by company executives? Who will manage payroll and benefit concerns? Is this an area that will be outsourced to a payroll company or will it be handled in-house? - A concrete plan for handling these employee issues will eliminate confusion later.
- 17. Develop a company overview Once the role of the HR department is clearly outlined, a company evaluation must be completed. a total workplace plan to be established, Establishing a strategy that will work must include feedback from key employees in all departments to compile the characteristics of the best employees in each position. ‘Workforce Planning’, the process of identifying the competencies gives the HR strategy a framework for making decisions about the human capital needed. The total workplace plan consist of compensation & reward strategy. It allow standardized employee treatment across the company and help to eliminate inconsistency and maximize organizations payroll budget.
- 18. Investigate company needs includes not only hiring a talented workforce, but determining the methods of attracting that workforce. This may require an evaluation of the demographics of the existing labor force. a plan to bridge the gap between current skills and future needs will help the HR strategy succeed the HR strategy encompass the use of new technologies and business practices such as work-from-home plans, remote access and virtual workspaces.
- 19. Evaluate HR processes Consistent redesign and tweaking allows the company’s employees to adhere to the policies and procedures of the HR department Implementing measurement tools to evaluate employee job performance The results of employee evaluations can help the strategy realign with company goals, install new training mandates to communicate job responsibilities and goal
- 20. Implement the plan If the company executives embrace the new plan and demonstrate a willingness to utilize the new HR strategy, it is more than likely that the rest of the company will follow suit. If the company executives embrace the new plan and demonstrate a willingness to utilize the new HR strategy, it is more than likely that the rest of the company will follow suit.
- 21. Measure success Effective HR strategy must be measurable. Determining specific and measurable objectives are necessary to ensure that the strategy is working, and that it is beneficial. Constant evaluation of success is imperative to a comprehensive HR strategy. With that regular need for evaluation, you must also consider the potential need for change. Designing and implementing a responsive HR strategy requires diligence and work.
- 22. Recap