HR WhatNow: How to use HR analytics to drive Company performance July 20, 2021

Back in the early 2000s, using statistical insights from employee data to make HR management was a provocative idea that many feared might lead  to companies minimizing individuals to just a number in the spreadsheet.

Fast-forward to today, more than 70% of MNC say they consider people analytics to be a high priority in their work. But other than some case studies, the notion of using statistics to improve workplace has shown little results.

One of the key reasons- we believe is the narrow approach that practioners adopt towards data analysis: the data analysed has predominantly been centered around around individual people, when it is the inter-relation data between people that is more important.

This article included some of the best and creative ideas about how to use human analytics.

Turnover & Retention

Utilizing data enables HR teams to predict the risk of turnover by function, location, and position.

Typically around an organisation there is a disparate set of databases containing salary, employee address, onboarding and recruitment records, etc. maintained by different departments.

The first step will be to standardize and unify the information for every, current and past, employees. So that there is a basis to compare like-for-like, apple-to-apple when using the data.

Next is to create a single table representing every employee present in the organisation at the beginning of the 2019, with columns for values such as the time they have spent in the organisation, and a final column set to LEFT or PRESENT (a Boolean value), indicating whether they left the organisation at the end of the month. This can be the training data of the algorithm.

Next you can use the tested algorithm to predict the employees using 2020 data and compare the results to the actual. If the accuracy is high, then your model would be robust enough, otherwise you can retrain the model with data from subsequent months from 2019 & 2020.

Talent Recruitment

At Enable, we help many local SMEs with their HR recruitment and from our experience, we noticed that while many companies are concerned about the quality of the candidates they hire, they do not have a process in place to identify if a candidate is suitable. The recruitment process is a challenging task for employers who needs to manage hundreds of employees in different departments with different requirements. With HR analytics, you can improve your hiring process by collecting data from previous hire sessions of the employees.

Example: For an interview of 10 candidates for a position in your company, you find that 6 candidates share the same features of past employees that were not suitable for your company. Using this information, you can automatically remove applicants with these features and improve the selection process .

Likewise, information of current candidates that end up being hired, will be fed as a loop back into the data analytics for future predictions.

Relational Analytics

To date, most HR analytics has focused on individual employees’ attribute data, of which there are two kinds:

Characteristics: facts about individuals that don’t change, such as ethnicity, gender, and work history.

Conditions: things about individuals that do change, such as age, education, company tenure, value of received bonuses, commute distance, and days absent.

These two category of data are often aggregated to identify group characteristics, such as ethnic makeup, gender diversity, and average compensation.

Attribute data alone is not sufficient because relational data captures synergies between two people in the organization. Simply put, relational analytics is the analysis of human networks.

Research has convincingly show that relationships among employees— alongside their individual attributes—can explain their workplace performance.

The key behind relational analytics is to find “structural behaviors”: patterns in the data that correlate to some form of good (or bad) performance. Just as medical specialist uses structural signatures in neural networks to predict bipolar disorder or schizophrenia.

Organizational leaders can look at structural behaviors in their companies’ social networks and predict how a creative or effective organization will look like with the individual employees acting as the fundamental organism and the teams as a nucleus.

ABOUT ENABLE CONSULTING

Established in 2013, enable Consulting is a specialised hr consulting firm.

We believe that having a strong and robust HR function is a key driver for continuous growth in any successful business. It is on this belief that we have built many successful partnerships with clients across different industries.

We are a people business and it is our talent pool that defines us. Each and every one of our consultants is highly professional with many years of experience in HR management consulting and services.

Our Consultants are PMC certified to further be able to help local SMEs improve and optimise their HR operational efficiency through Singapore Grants. enable is about offering affordable, high value adding solutions to improve business performance; while at the same time nurturing and inspiring a fair and respectful working environment. But above all, enable is about enabling you.

Contact us for a non-obligatory Q&A consultation today