2. The Evolution of HR Analytics
1978, Jac Fitz-enz :“Human resources activities and their impact on the
bottom line could—and should—be Measured” .Reaction was
apathy, disagreement and disbelief.
1980s and 1990s : Refining and improving the benchmarking of HR
metrics. “If we can just look more like our competitors on some
standard HR metrics, then we have done our jobs.”
Past Decade : Worlds of HR metrics and software have converged, new
horizons for creating business intelligence on the people side of the
business are arising.
Easier to answer -> drivers of individual- level outcomes, less
progress in answering -> drivers of organization-level outcomes
4. The “What” Debate
“What is HR analytics, and what can and should it be used for?”
A process for systematically reporting on an array of HR
metrics—time to hire, turnover, compensation, employee
engagement
The only activities and/or processes that constitute HR
analytics are those that involve “high-end” predictive modeling
(e.g., “what-if” scenarios that forecast the consequences of
changing policies or conditions)
The application of a methodology and integrated process for
improving the quality of people-related decisions for the
purpose of improving individual and/or organizational
performance”
5. The range of applications that constitute “talent analytics,”
their phrase for HR analytics, from simplest “human-capital
facts” to most sophisticated analytics that help optimize the
“talent supply chain”
Evidence-based management is based on the belief that facing
the hard facts about what works and what doesn’t,
understanding the dangerous half-truths that constitute so
much conventional wisdom about management, and rejecting
the total nonsense that too often passes for sound advice will
help organizations perform better
Focus on employee engagement requires serious examination if
HR professionals are to become able and respected
practitioners of HR analytics
6. The “Why” Debate
“Why should we do HR analytics”
No need for HR analytics because senior executives don’t
require or expect it
Purpose of HR analytics is to improve individual and
organizational performance
Can help identify where not to be spending time, effort and
budget
Role of ROI analysis : Primarily used to demonstrate the value
of HR investments - creates the wrong focus
Reason for doing HR analytics to improve individual and
organizational performance—not to prove the worth of HR
7. The “Who” Debate
“ Who should or can do HR analytics?”
Who will be responsible for measuring the financial impact of
human capital—the HR function or the office of the CFO that
has the best handle on available measures of business results?
Who will drive the future of HR analytics—the HR function or
IT that typically owns the analytic software and tools
necessary for HR analytics?
HR—not IT or finance—needs to take the lead on HR analytics.
But doing so will require that HR develop new capabilities and
capacities
8. The “When” and “Where” Debate
“When should we use HR analytics?”
Whether it is possible to create good global analytics in a
world of various cultures, regulations and standards.
Potential abuses of HR analytics as it becomes more powerful
and widespread.
Establishing clearly written and widely circulated principles for
when HR analytics will and will not be used
“Let not the perfect become the enemy of the good.” As the
power of HR analytics advances, so too, will the ethical
dilemmas that it poses
9. The “How” of HR Analytics
“How to start with HR analytics?”
HR Analytics Handbook (Bassi et.al.) provides succinct “how to”
advice
Investing in People (Cascio and Boudreau) provides detailed
guidance for undertaking a wide variety of HR analytics
calculations.
Analytics at Work (Davenport et al.) provides broad-based
guidance on how to create a more analytically oriented culture
within an organization.
The New HR Analytics (Fitz-Enz) provides “how to” essays, case
studies and sample worksheets.
The Business of Learning (Vance) provides detailed guidance on
how to apply analytics and the logic of economics to all aspects
of the training and development function
10. The Future of HR Analytics
“Where do we expect to be with HR analytics?”
Enhance the credibility of the function and the profession by
improving the effectiveness of HR policies and practices and
contributing to the competitive advantage of organizations that
develop it as a core competency
Expose where effort, resource and budgets are not producing
their intended impacts, and in so doing reduce the workload
while improving the effectiveness of HR
HR professionals develop new skills and capabilities so that they
can effectively partner with and lead IT and finance on HR
analytics initiatives
Achieving this win-win will require that we move beyond the
confused debates and dangerous half-truths that currently
muddy the HR analytics waters
