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The HR Analytics Roadmap

HR analytics can help organizations make better hiring, development, and workforce expansion decisions by discovering meaningful patterns and predictions in employee behavior. The stages of developing HR analytics capabilities are: 1) data collection and reporting to provide basic metrics and KPIs, 2) descriptive analytics to understand current performance, 3) predictive analytics to forecast how decisions may impact outcomes, and 4) prescriptive analytics to determine optimal actions. Reaching the prescriptive stage allows HR to strategically advise the organization.

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Kza Ramganesh
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377 views

The HR Analytics Roadmap

HR analytics can help organizations make better hiring, development, and workforce expansion decisions by discovering meaningful patterns and predictions in employee behavior. The stages of developing HR analytics capabilities are: 1) data collection and reporting to provide basic metrics and KPIs, 2) descriptive analytics to understand current performance, 3) predictive analytics to forecast how decisions may impact outcomes, and 4) prescriptive analytics to determine optimal actions. Reaching the prescriptive stage allows HR to strategically advise the organization.

Uploaded by

Kza Ramganesh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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The HR Analytics Roadmap: Shifting from Data to Impact

HR must be the change agents for the organization, constantly identifying where the best
human-capital value is and creating the right organisational systems that facilitate it. HR
Analytics can be viewed as the discovery and interpretation of meaningful patterns and
predictions in employee, and in turn, organisational behavior. By leveraging such
analytics, HR Practitioners can make better decisions on hiring, developing and expanding
their workforce.

So, what are the various stages of this HR Analytics Journey?

1. Data Collection and Reporting: This stage involves collecting the right data and
generating appropriate reports. Being able to deliver this information is at the
foundation of daily business operations and is often the data source for more
advanced analysis.
2. Descriptive Analytics: It is at this reactive level we ascertain HR Metrics and KPIs
based on benchmarks, such as Turnover Rate and acceptable Employee
Engagement Levels. Knowing the current state of various facets will provide a solid
foundation for HR to dig deeper. Diagnostic Analytics is also applied at this stage
which can help HR practitioners identify current problems through surveys and
feedback, but these forms of analyses don't necessarily help prevent or solve those
problems.
Most organizations level off at this stage with the implementation of HR
Dashboards within an HRIS, but research has shown evidence that companies
realize a 30% improvement in operational performance once Predictive and
Prescriptive Analytics techniques are applied.
3. Predictive Analytics: At this point we look at the correlations among our defined
metrics and seek proactively to forecast and test "what-if" analyses to understand
the impact of decisions before implementing them. For example, an organization
might explore the query, "If we increase compensation, how would that impact
employee turnover?".
4. Prescriptive Analytics: While predictive analytics provides forecasts for what could
happen, prescriptive analytics forecasts what actions or solutions should be taken
to address those trends. At this level such analytics will allow HR to quantify the
projected investment as well as the benefits of such decisions.

Once the HR function acquires this state of maturity with its analytics capabilities, HR can
now make a significant impact on the business as a Strategic Business Partner.

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