Business

HR Analytics: a new priority for businesses

HR-Analytics-a-new-priority-for-businesses

It’s a fact: companies work for clients. For years, the emphasis has been on customer knowledge. Today they are interested in those with whom they work: employees. And this is where HR data analysis!

The HR data analysis (HR Analytics), also known as the People Analytics is an emerging field in recent years already gained the confidence of large corporations.

Centralize and analyze HR data

The first step of course is to centralize the HR data available within the company:

    • staff repository,
    • wages,
    • organizational structure,
    • diseases,
    • calendar of social events,
    • invoices,
    • bonus,
    • etc.

Ensure that all HR data is well structured and merge. Everything is ready for reporting. While it may seem basic, it has yet to deploy in many HR departments.

Reporting and gives a first “for employees” management: with what people do they work? What are they doing ? How much do they cost ? All this can be detailed according to any dimension (department, geography, time, gender, age, level, function …).

The second step is to deploy the HR Analytics. The goal: squeeze the data to collect nectar!

HR-Analytics

The HR Analytics to respond to sensitive HR issues

Preventing absenteeism

There are different types of absenteeism behavior that can not be addressed in the same way: lack of long-term, frequent absences of short duration, no no … In determining the subgroups and by profiling them, you’ll be able develop prevention campaigns or more efficient rewards.

To go further, you can help you with Big Data technologies to prevention. By capturing low and warning indicators no signals, it will be possible to proactively detect and prevent especially long-term absences such as those related to PHI (psycho-social risks, including the famous burnout).

Identifying and retaining talent

major challenge of our time: good employees are quickly bored and always want more, faster. This is particularly the case of the famous Generation Y. By identifying and analyzing their profiles, you’ll be able to develop effective retention programs.

Planned workforce

Who will you need in the coming years to meet your challenges and achieve your goals? To achieve your strategic projects, you must carefully monitor your momentum and make good preventive actions.

The Workforce Analytics, a sub-field of HR Analytics measures the performance of the teams. It can also highlight critical phenomena for the company as the attrition rate of the important roles and the loss of knowledge and expertise due to an aging population.

All these issues can be addressed and the risks avoided by setting effective actions, in line with your cost constraints.

Last but not least, a committed management is the key to making things happen. Thus, good communication and regular alignment between Analytics and Management are a stable basis for building a sustainable strategy.

Concrete results to prevent truancy

These trends easily find practical applications for the company. Thus, the human resources department of a large Belgian company with over 24,000 employees wanted to develop a Wellness project to improve their preventive action against absenteeism. Business & Decision has analyzed their needs, developed a DataMart gathering the data signage and lack of employees. Internal resources have provided the first management reporting, defining the average rate of absenteeism at ~ 6% (which is a relatively good rate compared to the market).

Several HR data analyzes were then conducted by Business & Decision: segmentation of the population based on the absence behavior, definition of frequent and extreme absences, profiles of each segment, identifying various combinations of criteria defining subpopulations high risk (especially with decision trees).

The company is poised to implement strategic actions based on the results of these various HR data analysis. By taking the right actions, the goal is to reduce the rate of absenteeism of ~ 3% for a specific population at high risk. The ROI was estimated at 1 million euros over 3 years.

Another project was carried out for a social secretary. Thanks to the implementation of tables, the secretariat of customers are now able to obtain a complete view of absenteeism within their society. This vision is also connected directly to labor costs and compared the Belgian market sector …

HR-Advance-Analytics

These two examples show the potential impact of the use of the Advanced Analytics and Data Science on the HR field. This is what creates value and brings the term HR Analytics. Deployed in human resources services, they constitute a strong potential for growth and performance for businesses.

 

About the author

Paul Morris

Paul Morris is an entrepreneur, consultant and author. He is an advisor at Xpert Automation, a tech-based business incubator focused on scalable startups, and founder of ContentFy.

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