HR departments are generating data like never before but at the same time, there is a constant struggle to interpret this data into something meaningful and useful.
The big data revolution has given birth to different kinds, types and stages of data analysis. The 3 key HR analytics managers can use to better understand the people-related side of the business are –
Descriptive Analytics – “What Happened”
Descriptive analytics which answers the ‘what happened’ part of the equation, is one of the most fundamental types of analytics that takes historical data into account and summarizes into understandable information or patterns. 90% of organizations today use descriptive analytics.
For example, an attrition report from quarters within the organization is a form of descriptive analytics. It could further be broken down to understand what kind of employees leave, when and why.
Predictive Analytics – “What Could Happen”
Where descriptive analytics look into the past, predictive analytics work to look towards the future. Predictive analytics helps predict the likelihood of a future outcome by using various statistical and machine learning algorithms but the accuracy of predictions is not 100%, as it is based on probabilities. The goal is to proactively find the needs of the organization. Many organizations use it as part of their goal-setting process.
Prescriptive Analytics – “What can be done”
Once the future is predicted, the next question is what can we do about it. Organizations can use the data-backed and data-found factors to recommend prescriptions for business problems. It provides recommendations on what to do based on predictions and what has occurred in the past.
Prescriptive analytics could help in various HR processes like determining how to properly onboard a new hire base on their skills and strengths.
HR analytics has a wide scope and is an ever-evolving area. Addressing the wider spectrum of organizational needs, some of the other need-based analytics include-
Leadership analytics, helps in analyzing the effectiveness of the leadership in the organization.
Recruitment channel analytics, to collate the data on where employees come from and which are the most effective recruitment channels.
Capability analytics, to identify the capabilities of a prospective employee.
Competency acquisition analytics, to find out the core competencies your business needs to succeed.
Capacity analytics, this helps in determining capacity utilization and thereby, streamlining processes.
Employee churn analytics, to help determine the attrition rate and reduce employee turnover.
Corporate culture analytics, helps assess current cultural ethos and find solutions to better it.
Employee performance analytics, to simply evaluate the performance of the employees.
- Posted Date: 24-MAR-2020