📊

Understanding HR Analytics and Its Importance

Oct 19, 2024

Notes on HR Analytics Lecture

Introduction to HR Analytics

  • Definition: HR Analytics, Human Resource Analytics, People Analytics, Workforce Analytics. All terms have similar meanings.
  • Importance: Helps HR managers in decision-making within various functions of HR.

Key Functions of HR Managers

  1. Recruitment
  2. Selection
  3. Learning (Training)
  4. Development
  5. Performance Management
  6. Compensation
  • Understanding metrics related to these functions is essential for effective HR management.

Questions HR Analytics Can Answer

  • What are the basic questions in day-to-day HR operations?
    • Recruitment: How many candidates to attract for vacancies?
    • Learning & Development: What skill levels are needed?
    • Performance: Who are the best performers? How should salaries be determined?

Types of Analytics

  1. Descriptive Analytics

    • Answers: What has happened?
    • Tools: Averages, standard deviation, mode, counts, percentages, ratios.
    • Visualization: Histograms, pie charts, bar graphs using tools like Tableau, Power BI, Excel.
  2. Diagnostic Analytics

    • Answers: Why did it happen?
    • Tools: Correlation, regression, ANOVA, t-tests.
    • Visualization: Scatter plots, regression plots, box plots.
  3. Predictive Analytics

    • Answers: What will happen in the future?
    • Tools: Regression analysis, decision trees, random forests.
    • Visualization: Line charts, scattergrams.
  4. Prescriptive Analytics

    • Answers: What should be done?
    • Tools: Requires advanced statistical and operational research knowledge.

Differences Between HR MIS and HR Analytics

  • HR Management Information System (HR MIS): Raw data source.
  • HR Analytics: Processes raw data using metrics to make informed decisions.

LAMP Model of HR Analytics

  • L: Logic
  • A: Analysis
  • M: Measurement
  • P: Processing
  • Importance of logic in application of HR analytics tools.

Implementing HR Analytics

Required Skills and Tools

  • Analytical skills of HR professionals.
  • Information technology (HRIMS).
  • Basic knowledge of data analytical tools and techniques.

Outcomes of HR Analytics

  • Understanding relationships between HR processes and business outcomes, such as employee engagement and performance.

Conclusion

  • The course aims to provide foundational knowledge of HR analytics.
  • Encouragement to apply learned concepts in real-world HR functions.