No manager wants to think about the moment a key employee decides it’s time to try something else and leave the company. However, these things happen since people are always pursuing the best version of themselves. And such a situation can create serious stress for an organization since several issues come up. First of all, you need to spread the tasks of the person that’s going to leave until you find a suitable replacement, then open up a position in the company, which means a lot of competition among employees, and so on. While implementing a people analytics system is a bit more complicated than enjoying a Novoline online game, it’s not as scary as it sounds.
And if this process wasn’t too often in the past, it’s going to occur more frequently because studies show millennials are less keen on keeping a job for a longer period of time if it isn’t exactly what they are looking for. Thus, companies should really invest in HR analytics and develop new ways of making sure the environment and culture within the company are aligned with the way things are going with the workforce.
What Are People and HR Analytics?
Well, just as the name suggests, when talking about people analysis, we’re referring to a set of data, tools, and metrics that are focused on employees. The main goal of HR data analytics is to understand, manage, quantify, and improve the role of talent and the right people in the strategy of any company. It also refers to collecting a wide set of data from external and internal sources, in the process of determining the right fit for a certain position.
People analytics help HR managers in the process of making better decisions regarding the entire employee lifecycle. From recruitment, training, evaluation, and program planning, all the aspects are improved by using predictive analytics.
Implementing HR Analytics in a Company
As you may have figured out already, predictive analytics techniques aren’t exactly easy to implement. They require a lot of resources and time to efficiently gather all the data for accurate research. However, this can significantly improve a company’s chances of making it across time, in this ever-changing environment. Here are some of the most important steps in implementing workforce analytics:
Choosing KPIs and Metrics to Monitor
The first step in implementing HR analytics is deciding what factors are to be included. You should be able to clearly define a custom KPI in order for it to be successful. There are various metrics you can consider, depending on what you want to measure. Some examples of metrics included even in Oracle HR analytics are:
- Social media posts
- Activity on internal messaging systems
- The period since the last promotion
- Last evaluation result
- Team size
- Overtime hours
- Commute time
- Vacation days
Defining the Data Sources
While there are various types of analytics when talking about HR, there’s one thing that never changes: where you take the data from. This is fixed, and you should always go for a trustworthy source. When it comes to internal information, you can use the HR module that the company uses. Here you will find clear data on vacation days, overtime, sick days, and a lot more. For other information like social media posts, you can turn to various crawlers or other data-mining systems as long as you don’t violate any GDPR rules.
Choose the Tool to Use
Now that you already established what the required KPIs are and how to get the data, you will need a tool that centralizes all the data and returns the analytics you’re going to use. You can either get an existing app such as Gust, Zoho People, or Cezanne HR and adapt it to your needs if possible. Or, you can put your IT department to work to develop a program from scratch. There are ups and downs for both approaches; however, it’s most of the time a lot more efficient to get an off-the-shelf app and then customize it a bit if the plan allows, rather than building a specific one for your organization.
Build the Team
Even though thinking about the team that will run the entire HR analytics process is step 1 in the whole initiative, it’s only after you made sure you have what’s needed that you actually put the crew together. Depending on how many employees you have and how wide the data collection goes, the team can vary in its structure. However, the ideal team for HR analytics should look like this:
- HR Manager
- Data Analyst
- Database Administrator
If the number of employees is rather small, the Data Analyst should be capable of also administering the database. However, that’s your choice in the end.
Build a Predictive Model
Since when working with descriptive analytics you can’t be sure you get everything right until you build a model and simulate various scenarios, you’ll need to get to work. It’s now when you do the model training and development, and you actually put all the things into place and see what kind of report the tool generates. Again, if you’re going for a means that’s already built and adapted to your organization, you should have less room for error.
Before the tool is ready and you can go live with it, you should train the people involved on how to use it. If it requires input from all your workers, you’re going to need a company-wide training schedule first.
It goes without saying that each company can approach implementing an HR analytics system differently. However, the end goal is always the same, to have a better overview of your employees and their potential. It can also help identify potential weak spots within the company and ways to overcome them with the available workforce or by bringing in reinforcements. If there are HR professionals or people that have previous experience in implementing an analytic solution among our readers, we encourage them to talk about their experience and share their tips and tricks.
Thomas Glare has a degree in Psychology and is passionate about everything related to HR. He started writing on the topic after several bad experiences with various employers in his home country. After seeing the success his blog scored, he decided to keep doing this and help employees find a better company, and vice versa.