HR Analytics: What it is and How to Apply it in Your Company

The function of HR Analytics is to apply analysis techniques in Human Resources. But what is your ultimate goal? The answer is to be able to transform information into knowledge.

Many companies still hear about HR Analytics and associate it with reporting systems or Business Intelligence systems. In order to differentiate it properly, we must focus on the HR Analytics system’s approach when dealing with a problem and how it can help us in human resource management.

What is HR Analytics?

HR Analytics, or People Analytics or Human Resources Analytics, is a discipline that uses data and analysis techniques to understand and improve organizational performance and talent management.

It is about applying the analytical and data scientific approach to the processes and decisions related to a company’s human capital.

This analysis system provides us with the necessary tools to streamline decision-making. HR Analytics allows us to act on the cause and anticipate generating more effective management variables.

It is not enough to carry out metrics to obtain data on how many people leave a company or the low percentage of productivity. Once we have this data, it is important to have an analysis system that takes us to the root of the problem and allows us to implement a solution as quickly as possible.

The idea is to anticipate the company’s needs in terms of hiring, staff management, leadership, feeling of belonging, etc.

How to Apply HR Analytics to My Company?

Applying HR Analytics in your company can provide valuable information to improve talent management, increase operational efficiency and make informed strategic decisions about human resources.

  • Define Clear Goals: Before you begin, identify the specific goals you want to achieve with HR Analytics. They can reduce employee turnover, improve recruitment and selection, optimize training and development, or increase employee productivity.
  • Collect and Organize Data: Ensure your company has access to relevant and accurate employee data, such as demographics, job performance, attendance, job satisfaction, career development, etc. Organize this data in a structured way to facilitate its analysis.
  • Use Analysis Tools: Implement human resources analysis tools to process and analyze data efficiently. These tools can include human resource management software (HRMS), data analysis software, and visualization tools.
  • Identify Patterns and Trends: Use HR Analytics to identify patterns and trends in data. For example, look for relationships between employee performance and educational background or identify factors influencing job satisfaction.
  • Perform Predictive Analytics: Use predictive analytics techniques to anticipate future events, such as the probability that an employee will quit or the possibility that a candidate will be a good fit for a position.
  • Create Reports and Visualizations: Generate clear and understandable reports and visualizations summarising the analysis results so leaders and HR managers can make informed decisions.
  • Involve HR Leaders and Teams: Make sure that company leaders and HR teams understand the importance of HR Analytics and are involved in its implementation. HR analytics can improve decision-making at all levels of the company.
  • Use the Findings for Decision Making: Apply the results of HR Analytics to improve human resources processes, such as recruitment strategies, training programs, compensation and benefits policies, and employee retention programs.
  • Continually Evaluate and Adjust: HR analytics is an ongoing process. Regularly evaluate the results of your actions and make adjustments based on the findings to constantly improve HR practices.

Case Study Project Oxygen

Oxygen is a Google program focused on improving the leadership area of companies. It consists of an 8-point plan to help presidents and CEOs improve.

The project was designed to measure the impact of a good boss and help companies apply it.

The study concluded that a boss’s technical skills, while still considered important, were valued less by employees than personal skills.

The question that was raised was why employees leave their companies. The project was based on the belief that people typically leave their jobs for three reasons.

  • Because they do not feel connected to the company’s mission or do not feel that their work is valued.
  • They don’t get along with their coworkers.
  • They have a bad boss (they considered this the most likely variable)

They evaluated their results through an annual survey conducted by Googlegeist, employee ratings of their superiors, and other information to identify good and bad bosses. The study began in 2009, and the application of results in 2010.

They came to collect information from work reports, surveys to analyze feedback, nominations for best boss awards and all kinds of information available on the subject, including employee opinions and complaints.

Nothing is surprising about the 8-point plan, but it bases its effectiveness on the voluntary commitment of companies, especially bosses, to implement it.

No one is forced to change because, unlike a change in office furniture, a person’s personality and way of doing things must change voluntarily. It is about educating these leaders to be better employee role models.

The 8-point plan to help bosses improve their leadership is as follows:

  • Be a good teacher for your employees.
  • Delegate tasks and give decision-making power to your team; do not micromanage the tasks of your subordinates.
  • Show your interest in the successes of your team and show interest in their well-being.
  • Be determined: Be productive and focus on achieving the results you set for yourself.
  • Be a good communicator and learn to listen to your team.
  • Help your employees in the development of their professional careers.
  • Have a clear and strategic vision for your team.
  • Make sure you have the necessary technical skills to be able to advise your team.

At the end of the study, they identified three pitfalls managers fail most frequently.

  • They have problems as leaders coordinating their teams and making the transition difficult.
  • Lack of consistency in his approach in the role of boss and a lack of help in developing his team’s professional career.
  • They spend little time managing and communicating.

Remember that although this list is easily implementable in any company, its success or failure depends on a previous analysis like Google did. Your company may not have the same business culture or the same values. You have to consider this before embarking on a project in this area.

This is where the importance of applying your HR Analytics tools with an appropriate and professional work team lies.

If you are interested in digital talent management and the most advanced HR techniques, don’t forget to look at our Executive Master in Digital Talent.

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