People Analytics for Human Resources

HR analytics, also known as people analytics, workforce analytics and talent analytics is transforming HR departments.

What is HR Analytics?

HR analytics refers to a specific area of analytics where data analysis is used to help managers, leaders and executives make logical decisions about their workforce. As the cost of the workforce increases and becomes a larger percentage of revenue, CFOs and CEOs are looking to create an increased return on their investment in people. It has become crucial that HR departments move away from the old approach of gut feel decision-making.

What are the Benefits of HR Analytics?

HR analytics enables leaders and professionals to make data-driven decisions to improve the performance of HR processes such as talent acquisition, employee retention, workforce management and strategic workforce planning. Additionally, data analysis helps leaders make decisions to improve the work environment and increase employee productivity. It can improve the bottom-line when applied to key business problems.

HR leaders must align HR data and initiatives to the company’s strategic objectives. For example, a company may want to improve its success rate in recruiting technical professionals or decrease the number of safety incidents each year. To determine how to improve these activities, HR analytics can be used to examine correlations (numerical relationships) between activities and the factors thought to drive them.

For example, a company with a goal to decrease the number of accidents in the factory, will gather data on employees, factory conditions, training records, employee schedules and other factors that are thought o impact safety. Once data is gathered, analysts can create data models, algorithms, and tools to test the hypothesized factors that may be impacting safety. These analyses can produce actionable insights to reduce the number of safety incidents, to reduce the cost of safety accidents and improve employee well-being.

These tools provide insights in the form of customized dashboards, data visualizations, and reports. An ongoing KPI measurement system can be developed to measure the success of the continuous improvement actions.

Analytics to Prove the Fairness of HR Processes

While many companies have good intentions when it comes to increasing diversity, most have struggled to make a difference over the past few years. The key to meeting your diversity targets is to understand the underlying patterns in your organization.

We use analytics to understand these patterns. We then educate you on where you can make the fastest difference in the composition of your workforce. We work with you to set realistic diversity goals and action plans. 

Learn how to calculate fairness.

We use statistical methods to test for fairness in the hiring process, promotions, performance reviews and salary bands. We also examine the differences in how different employee groups answer feedback surveys.

Ms. Smith has also assisted companies with the calculations associated with adverse impact analysis. In large companies especially, the rapid change of needed skill sets sometimes makes a job role or area of the company redundant. We help companies conduct an impact analysis to determine whether any specific employee group will be adversely affected.

Case Studies