Tag Archives: HR analytics

The Importance of Regretted Attrition in HR Analytics

When we regret something, then the first question that pops up in our mind is – what went wrong? The Regret Attrition metrics is all about understanding of what went wrong. In a layman’s term, a regretted attrition refers to the employees that the organization truly regrets upon losing. Actually, it refers to the voluntarily attrition by highly talented and key contributors impacting the business of the company. This excludes the employees who are asked to leave the organization due to poor performance, or some other reason.

Sometimes, employers get uneasy when asked to admit that things didn’t go right, which often lead them to measure all attrition together and not breaking the numbers into more specific categories, such as Regret Attrition and Unregretted Attrition.

Quite often the senior management gets to know about the key employees, when they are about to quit the organization. It is very important that the organization keeps a track of losing the valuable resources or high potential employees. Regret Attrition is one of the HR metrics that helps in tracking these details. But, companies are following a trend where they summarize the regret attrition of the entire company all-together, which is not a good idea. It will not benefit anyone, as it will not have any micro level details. Instead, there should be a detailed study to see how this attrition is affecting the company.

Let us throw some light on how to handle key resources and classify them as ‘Regret Attrition’ at the time of exit.

  • Always try to make Regretted exits a part of analytics dashboard.
  • There should be a way where managers are able to mark ‘really regretted’ for the employees for whom they actually feel regretted. There should be an option for them to provide a remark of why they have been marked as ‘really regretted’. Do not judge the reasons. Just note them for future purpose.
  • When you have got a good sum of ‘really regretted’ exits (try to come up with some number that you will consider), explore the reasons, and then generate a list containing top reasons classified as ‘really regretted’.
  • Once this exercise is done thoroughly, you will get a list containing major reasons. This list will help managers to select any one of the reasons in the future.
  • This exercise will help you in the long run. After sometime you will have a tangible list of the ‘really regretted’ reasons that should fall into the ‘really regretted’ section. It will also help you in getting data-points where you need to take actions.

Conclusion

This is an easy as well as simple technique that will definitely help you in a long run. It will help you to design some solution targeting retention techniques. This is the way that should help you to find out who is the crucial resource for the organization!

How to Reap “Business Benefits” from HR Analytics

HR Analytics has become one of the most in demand feature in current times. It is currently being implemented in businesses across the globe. If you intend to grow your business and want a good return on investment, then you should try to use and integrate HR analytics to your business. Let’s have a look at some examples to understand how HR analytics can improve your business and generate more revenues for your company.

Helps in improving hiring decisions within the company

Recruiting is a very challenging process and many employers believe in that. With HR analytics in place, you can easily enhance your hiring processes. You can achieve it by collecting data from previous employees hiring sessions.

Here is an example. Let’s say that you interviewed around 10 candidates in the past to fulfill certain requirements. You found that six out of 10 candidates share similar characters that don’t match your company’s workplace culture. You can utilize this information and update the hiring system to automatically eliminate applicants who describe those same traits for any future vacancy.

It will definitely help in speeding up the recruitment process and provides you quality time to focus on right candidate suiting the requirement.

Easily track training data

It is very important that you have a program to hone existing skills and build new ones for your employees. This is a critical aspect to attract as well as retain the best talent. If you offer very little in the form of trainings, then the attrition rate is going to increase. This will result in lowering down employee’s morale. HR analytics can help in improving employee retention as well as workplace productivity.

Organizing in-house training programs prove that you are interested in helping your employees to reach up to the expected level and perform at best. It also encourages the employees to develop new skill sets.

HR analytics helps identifying the appropriate professional courses for all employees and measuring their progress. It also helps you determining the expenses incurred during the training course.

Once the percentage is detected in terms of number of employees participating in the training session and the money invested, you can easily make out whether it is cost effective for your business.

Identify retention rate

If you have high employee turnover, you must take it as an alert. It is crucial to evaluate the reason behind it. For the proper evaluation, you must analyze various factors, such as company’s culture, structure, remuneration, etc. It will help you gain the internal details like why employees are leaving the company and take immediate actions to decline the attrition rate.

HR analytics is the best way to get the desired data and find out the reason why employees are loyal or why they choose go for another opportunity. There can be many parameters, such as unmatched skillsets, underperformance, compensation issues, etc.

If you conduct regular interview at the time of leaving or staying in the company, you will be able to find out issues within your company that may affect employee’s morale.

With the help of HR analytics, you can save the cost of hiring and training new employees.

Conclusion

You can easily gain lots of benefits from HR analytics. If you gather valuable data by properly using HR analytics, then you have the potential to improve on your company’s expenditures, operations and much more. Do you agree that you can get benefit from HR analytics? Can you think of more use cases, specific to your organization in which HR analytics would help address such issues? We would love to hear about them from you!

HR Analytics: Are you measuring these key HR metrics?

Identifying the relevant metrics from the HR analytics is critical to driving success from the analytic information! The metrics offer valuable input for strategic decision-making. While HR managers may attribute success or failure of their decision making directly to the HR analytics tool they utilize, it is also dependent on what metrics they choose to track.

So, how can the HR department contribute its two cents towards the success of the organization? Well, the answer is, by measuring the right pieces of information.

Following is a list of crucial metrics you should measure to help the business move forward in its strategic direction.

Recruitment:

  • Average time per hire shows the efficiency of the hiring process. It also provides an insight of the troubles to fill up certain types of job openings.
  • Cost incurred per hire that helps in measuring the cost that the company has incurred in hiring new employees.
  • Early turnover is considered as a very important metric that helps in determining hiring success in a company. It is an expensive metric that takes 6-12 months before employees have properly been settled and reach their optimum productivity level.
  • Time till promotion helps you determine why your high potential leaves the organization.

Revenue:

  • Revenue per employee helps in determining the efficiency of the organization. It helps to calculate the quality of hired employees.
  • Performance and potential metric determines the potential and performance of each employee.

Employee engagement:

  • Determine the number of employees who are keen to come to work.
  • Calculate the number of employees who are fully content with the management. It can be surveyed based on the following topics.
    1. Engagement and learning arranged by supervisors
    2. Recognition and rewards awarded by supervisors or senior management
    3. Knowing the fact that the work they are doing makes a lot of difference

Compensation and benefits:

  • Determine the effects of compensation on employee’s performance.
  • Calculate employee’s satisfaction from compensation. Thereafter, determine the percentage of employees who are satisfied with their compensation.
  • Calculate the association between satisfaction from compensation and job productivity.
  • Determine the percentage of top-performing employees who quit the organization because of compensation.

Conclusion

The above-mentioned metrics provide you a deeper picture on how productive is your organization and what are the factors that contribute towards the productivity. You can identify the factors that contribute to high productivity levels, adjust recruitment or employee engagement strategies to incorporate them and maximize the productivity of the organization. By determining all these metrics, the organization can move on the success path!

10 HR Analytics Reports every HR must ponder upon!

Human resources analytics or talent analytics uses sophisticated ways to mine the HR data. The main aim of HR analytics is to provide insights that measure progress towards business goals so that they can be achieved efficiently as well as swiftly. The key challenge of HR analytics is to verify the type of data to be captured and how to use it so that the organization gets an ideal return on investment (ROI) on its human capital.

There are multiple ways you can use to present the data in multiple formats. Now-a-days companies simply create a custom data warehouse for HR data and use business intelligence (BI) applications on top.

Let us have a look at the different formats in the form of reports that can benefit the HR department to fulfill its ambitions and achieve the desired goals.

Recruitment analytics is built on the competency acquisition analytics. This report mainly focuses on how to find the best talent for your organization.

Employee performance analytics might help you to monitor each person’s individual performance. This report will provide you an insight of employees performing well and vice-versa. For the ones who are not performing well, you can take corrective actions by identifying and providing trainings and other types of support. It is a more advanced way to take corrective measures than the conventional performance reviews.

Management analytics helps you analyze the various dimensions of the management team. For example, poor leadership that can cost time, money, and can even damage the rapport of your organization.

Corporate-culture analytics helps you identify the different culture that exists within your organization. It helps you promote a particular image for the betterment of the company. This is the best way to measure the behavior and hidden rules employees use within the organization. It helps you to detect the negative culture so that you can take corrective actions to eradicate it.

Employee-turnover analytics helps you predict future employee turnover rate. You can determine the primary reason behind employees’ decision to leave the organization.

Capacity analytics helps you identify the efficiency of employees when they are assigned a certain task and how motivated they are while performing it.

Competency acquisition analytics helps you measure your success rate of your organization by analyzing the skilled experts within the organization and the ways to hire more talented people for the success of the business.

Employee attendance analytics gives you a clear idea to measure the punctuality of employees. You can use this report to review the check-in and check-out time of all employees including the ones who are always few minutes late for work! This way you can define corrective measures to improve attendance at work.

Capability analytics allows you to determine the skills that the existing employees already have and secondly, the new expertise you require to grow your business.

Absence analytics allows you to handle on sickness patterns and also helps you to identify the number of works who are mostly absent from their work.

Conclusion

Embrace all the above-mentioned HR analytics techniques to improve your business operations, which will help you attain your business goals and simultaneously retain the talent!

Better HR analytics can keep your company on the path of growth

Human Resource (HR) analytics is growing at a very fast pace. Businesses are realizing the importance of big data and building HR analytics that can help organization to effectively measure employee performance. It also aids in setting up strategies for improving the hiring process, boosting employees’ satisfaction, identifying star performers, calculating compensations, as well as detecting deficiencies (if any) in the current system that can be improved for the betterment of the organization.

Benefits of better HR analytics

A good HR analytics will help the organization in:

  • recognizing strengths and weaknesses of the workforce.
  • predicting vacancies and leadership roles within the organization for the upcoming businesses.
  • tracking and analyzing critical skills.
  • measuring turnover in terms of number of successful deadlines met by the various teams.
  • integrating data from departments, such as HR and financial to study the factors impacting workforce and business performance.
  • understanding how to optimize staffing levels and comprehend the impact of hiring more employees.

It is vital to make decisions based on facts rather than your gut feelings. And to make decision based on facts, you need data.

Right HR analytics tools not only help managers to gain more knowledge about the current workforce performance, cost incurred or required to update them, and other services, but also think about other “what if” scenarios that might occur in the near future that can affect the business.

Let us see some examples on how different companies are performing with better HR analytics in different areas.

Recruitment

With the help of big data, big companies are able to identify employees that can be harmful for the companies, and try to reduce this population by scrutinizing them in the hiring process.

Productivity

Studies have shown that now-a-days the HR departments are looking at the metadata that employees use in the emails. It helps them understand the reason of why some people are more productive than others. This way they can focus on how to increase the productivity rather than coming up with some rules to decreasing the number of meetings held.

The big data also help sales companies, such as automobiles to study the pattern of unplanned leaves taken up by their employees and accordingly they can arrange for extra staff to make up the periods of absence.

Retention

Companies are collecting data from social websites to identify the employees that are of a high risk among their high-potential employees.

Conclusion

Each of the above-mentioned examples helps in understanding the opportunities the HR analytics can take to make decisions for the good of the company.

Five HR Analytics Terms Every HR Manager Must Know

Technology is no more the sole property of IT departments – the role of technology and data in HR is increasing from a steady pace. This has led to the rise of many fancy technical and analytical terms in HR departments as well. Therefore, in order to survive through this cycle of change every HR Manager must be aware of these technical terms. So here we’re going to define five such terms for you:

Data Mining

Looking for needles in the haystack – that’s the crux of Data Mining. In this age of big data, gigantic amount of data is created every day. It’s not possible to analyze all of it even if whole population of earth is engaged in the herculean task. So, Data Mining aims to look for data that has some meaning (aka patterns) in huge amount of raw data, and then present that data with its patterns in a meaningful manner.

Machine Learning (ML)

This branch of Artificial Intelligence helps in making use of data analyzed from Data Mining. It focuses on developing computer programs and systems that can learn from the data patterns that emerged from Data Mining. The programs learn themselves, grow continuously and adapt themselves according to situations and requirements when continuously exposed to new data patterns.

Cost Modeling

This is the art and science of understanding HR-driven costs. It helps in understanding many things, including:

  • Hiring costs
  • The time required for an employee to reach full productivity
  • The ratio of salaries and individual productivity
  • Overall employee productivity
  • Employee turnover costs
  • And other HR related costs.

These costs are estimated on the basis of data by computer algorithms, and then utilized in financial planning and business models by executives.

Hiring Channel Mix Modeling

Recruiting is no more limited to advertisements and career sites alone – in last few years many more channels have also come into play, which include references, social media, recruitment consultants etc. In such a situation, there must be some way of identifying which channels are working the best. Hiring channel mix modeling is that way – by analyzing data related to every channel for some time it can tell you which channels work the best for your business.

People Analytics

Data can also help you predict various workplace problems in your office they become worse. People Analytics is aimed at doing just that. By analyzing all data related to your employees it can predict serious problems related to productivity, engagement, attrition and customer satisfaction before they become serious.

Final Thoughts

So, this was our short list of top 5 HR analytics terms every HR manager must know to survive. If you know any other such terms, please feel free to describe them in comments.

Who is going to resign this month?

Wish HR could predict this and much more. Well, this seems to be a reality now with advanced HR analytics coming in. Analytics within HRMS tools are now enabling the HRs to take informed, definitive decisions and burst the workplace ambiguity.

How often have you faced scenario when a team member walked up to you with a complaint and you had no data to verify it? How many times have you felt that you could have done better justice to an employee if you had the right data?

Managing people is not an easy task. It comes with a big baggage of emotions, expectations and melodrama. And more often than not, it is the HR that gets caught in a tricky situation.

Now, with the work places becoming even more complex (remote employees, travel, global locations, flexibility, culture), it has become even more challenging for the HRs to take definitive decisions at workplace.

Thank God for the web based HRMS tools that did cut short the melodrama and has made the whole scenario factual and data driven! Now from utilization to deployment, the HR can take better decisions, based on real data and numbers.

HR analytics goes much beyond than just collating vast amount of data. It is more about processing this data into meaningful insights and use these insights to seek answers to some of the most daunting questions an organization faces.

Here are some samples of what type of information you can derive from HR analytics:

  • What’s causing attrition? Can there be any preventive HR intervention?
  • Would the new tax friendly salary structure help in increasing retention?
  • Are the most engaged employees also the most productive ones?
  • Can we predict who will resign in next 3,6,9 months?

HR as a function always runs the risk of being biased or judgmental when taking definite decisions. HR analytics provided by HRMS softwares reduce this risk and make the decision taking more factual.

Another important area, where HR analytics are useful is employee engagement. HR keeps doing a lot of activities to drive engagement. But are all these activities successful? Analytics help HR in determining what would people value more on basis of behavioral data and thus ensure that all engagement driven activities deliver expected results.

HR analytics is transforming people management. Along with clear stats on productivity and production, it also helps managers understand their team members better and leverage their strengths. Employees, in turn feel motivated and better connected with the organization when they are presented with opportunities that best suit them.

HR analytics provides by cloud based HRMS tools create a win-win situation across the board. While the HRs are happy with the data that enables smarter, accurate decisions, people are happy because their expectations are addressed at the right time. And, if these two are happy, the organization smiles too!