Chapter 1. Understanding HR analytics (Edwards & Edwards)
Predictive HR analytics → the systematic application of predictive modelling using
inferential statistics to existing HR people-related data in order to inform judgements about
possible causal factors driving key HR-related performance indicators.
- Prediction= the idea of identifying predictors, potential causal factors that help
explain why a particular feature or measure shows variation
- Predictive modelling= take features and dinsings of the analysis, apply it to our
model to help demonstrate or predict what would happen to our key outcome variable
if we could do something to change or adjust the key drivers that are identified
- Predictive HR analysis= predictors of variation, the resulting model to predict how
current or future employees may behave in the future
Chapter 1. Redefining HR (Khan & Millner)
1. The overwhelmed workforce= Expectations of employees increase all the time. At
the same time, managers have to manage across more complex relationships. Through
increasing automation and ongoing changes, the key challenges revolve around
a. Execution: achieve more with less
b. Employee expectations: there is an increasing need to learn new processes,
skills, and practices as automation increases.
c. Manager priorities: challenge to find the right balance between operational task
and the desire for the ‘human touch’.
d. Leader ‘bandwidth’: beyond their responsibility to execute the demands of
stakeholders, issues are becoming increasingly complex (e.g. different
cultures)
e. Wellbeing: operational challenges versus wellbeing
2. Constant change is the new normal= resistance to change is always there but change
will come anyways so resilience is needed
, 3. Employee experience: the perceptions and feelings of the employees towards their job
experience at work and captures the following key elements:
a. Belonging: feeling part of a team, group or organization
b. Purpose: understanding why one’s work matters
c. Achievement: a sense of accomplishment in the work
d. Happiness: the pleasant feeling arising in and around work
e. Vigour: the presence of energy, enthusiasm and excitement at work.
4. Reshaping jobs: even if jobs will be redesigned, changed, or disappear, the three major
dimensions of work will remain in place, as they have done for many years.
a. The work: what work is being completed?
b. The workplace: where is the work being completed?
c. The workforce: who does the work?
5. New business models and structures: Organizational structure issues revolve around
the fact that the structures in place today were originally designed for an environment
of stability, predictability, and control. However, the demands of today’s
organizational structure revolve around the need for fluidity, speed, and
responsiveness. The structures of organizations must focus on tomorrow’s demands as
much as today’s, otherwise competitive advantage could be lost.
6. Data and analytics driving new decision-making: Using data and analytics adds value
in the HR function. The power of data is that it can provide insights that will make the
customer or employee experience better than ever before. It’s a culture change
process, not only the development of capabilities to undertake data-based analysis.
7. Constant new digital technology: The digital transformation is about the integration of
digital technology into all areas of an organization that results in fundamental changes
to how that organization operates, and how it delivers value to its customers.
The HR function can be split into two:
1. HR-function = supporting the workforce
with day-today administrative tasks such as
recruitment, onboarding, compensation and
benefits.
2. Strategic hr function = looks at how people-
based insights can improve organizational
performance.
The chief people officer (CPO):
- Being a business partner to the executive
team who truly owns the critical people
asset.
- Embedding people analytics into day-to-
day processes to drive better decision-making and improve organizational
performance
- Predicting the fit between workforce capability and future jobs.
- Forecasting and diagnosing issues relevant for cultural alignment, engagement and
people development
- Owning a people-centric culture that is underpinned by data.
The key tasks of the people function include:
, - Measurement, reporting and analyzing of the intangible value of the business
- Development of a people/workforce strategy
- Alignment of the workforce strategy to the business strategy, underpinned by a data-
driven people-centric culture.
They need to combine three focus areas
1. A commercial focus (cost, efficiency, productivity)
2. Data focus (how to be of added value)
3. Growth focus (increasing income and growth)
Chapter 2. The age of data and people analytics (Khan & Millner)
VUCAR= volatile, uncertain, complex, ambiguous and responsive
The 80/20 Switch
First, 80% of the measures were tangible, now 80% of the measures are intangible.
Intangibles are:
Types of people data= levels of sophistication
1. Basic level= the use of existing data to communicate essential information such as
absence, accident, turnover
a. Hard measures= number of training days etc
b. Soft measures= employee satisfaction
2. Intermediate level= involves designing data collection for specific workforce needs.
a. Performance data
b. Demographic data
c. Recruitment and retention data
d. Training and development data
, e. Opinion data
3. Higher level= Includes the collection of both quantitative (financial) data and
qualitative (motivations, feelings and opinions research) data by identifying KPI’s in
relation to the business strategy and integrating all people data back into the business
model.
From reporting to analytics
- Reporting is about highlighting the current workforce and past trend of key HR
metrics through dashboards.
- Analytics aims to examine the root cause of a workforce issue, and provides
knowledge to mitigate any possible associated risks. Analytics focuses on the future
with insights for decision-making.
True people analytics encompasses: HR, the entire workforce data, and operational and
customer-based insights.
There are four Vs of Big Data:
1. Volume (massive amounts)
2. Velocity (speed)
3. Variety (range)
4. Veracity (accuracy)
HR technology is the key enabler for new process design that will bring a whole new
experience to the workforce across the whole employee lifecycle.
Technology drives the Three Es across HR in the people function:
1. Efficiency
2. Effectiveness
3. Engagement
