{"id":16494,"date":"2014-09-10T04:20:51","date_gmt":"2014-09-10T04:20:51","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=16494"},"modified":"2024-04-03T13:20:34","modified_gmt":"2024-04-03T07:50:34","slug":"human-capital-analytics","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/human-capital-analytics\/","title":{"rendered":"Human Capital Analytics"},"content":{"rendered":"<p><a ref=\"magnificPopup\" href=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2014\/09\/human-capital-analytics.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-16517 aligncenter\" alt=\"human-capital-analytics\" src=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2014\/09\/human-capital-analytics-300x195.jpg\" width=\"300\" height=\"195\" srcset=\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2014\/09\/human-capital-analytics-300x195.jpg 300w, https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2014\/09\/human-capital-analytics.jpg 340w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Human resources analytics, also called talent analytics, is the application of sophisticated\u00a0<a href=\"http:\/\/searchsqlserver.techtarget.com\/definition\/data-mining\">data mining<\/a>\u00a0and business analytics (<a href=\"http:\/\/searchbusinessanalytics.techtarget.com\/definition\/business-analytics-BA\">BA<\/a>) techniques to human resources (HR) data. The goal of human resources analytics is to provide an organization with insights for effectively managing employees so that its business goals can be reached quickly and efficiently. The challenge of human resources analytics is to identify what data should be captured and how to use the data to model and predict capabilities so that the organization gets an optimal return on investment (<a href=\"http:\/\/searchcio.techtarget.com\/definition\/ROI\">ROI<\/a>) on its human capital.<\/p>\n<p>Today the momentum for human analytics is growing but its potential is unrealized.\u00a0 While many HR Departments use metrics today, their use and application are:<\/p>\n<ul>\n<li>\u0083 Often inconsistent; different companies employ different kinds of metrics in different ways<\/li>\n<li>\u0083 Data is collected for the sake of collection or to justify some activity<\/li>\n<li>\u0083 Metrics are out there by themselves, and are not tied to business performance or adequately aligned\u00a0\u00a0 with organizational strategies<\/li>\n<\/ul>\n<p>The reasons why analytics are not being more widely used are many, including gaps in stakeholder perspectives. Barriers to fully realizing analytics are:<\/p>\n<p>\u2022 Investors pressure companies to meet short-term earnings rather than long-term milestones. Human<\/p>\n<p>capital analytics and its predictive business value is not one of their traditional tools.<\/p>\n<p>\u2022 HR has not yet reached the level where it can consistently and quantitatively demonstrate linkage to<\/p>\n<p>value creation, causing many CEOs and CFO\u2019s to view HR skeptically as a simply a cost-centre.<\/p>\n<p>\u2022 This barrier is enhanced through differences between industry and organizational size.<\/p>\n<p>The knowledge and experience is often lacking to turn metrics into analytics and analytics into strategies.<\/p>\n<p>\u2022 Organizational cultures that foster silos inhibit using human capital analytics. Often data related to<\/p>\n<p>human capital is disconnected from business operations, so the data is not integrated, and relationships<\/p>\n<p>between people and business measures are not connected. Silos create gaps because managers focus on<\/p>\n<p>their own area of control. Manufacturing departments report production output; HR reports people data.<\/p>\n<p>\u2022 Lack of standardization of definitions, terminologies, and formulaic elements make metrics different<\/p>\n<p>from one organization to other, and makes it difficult to build on generalizable knowledge beyond one\u2019s<\/p>\n<p>Organization.<\/p>\n<p>\u2022Regulatory and Financial requirements for valuing human capital do not currently exist.<\/p>\n<p>\u2022Whether standards should be pushed upon business and HR by regulators or pulled by demand is a key<\/p>\n<p>question. (FASB, etc) Many believe regulation would be a good thing for HR because if human capital<\/p>\n<p>investments such as training were treated as line-item investments, instead of costs, then investor<\/p>\n<p>communities would see HC as the value driver it is.<\/p>\n<p>\u2022Metrics are often non-linear. Metrics are messy and sometimes composed of soft elements (Shared<\/p>\n<p>valued, skills, style, staff) and can be ambiguous and hard to quantify.<\/p>\n<p>&nbsp;<\/p>\n<p>While there are challenges to be met, much can be done to operationalize human capital data.<\/p>\n<p>\u2013Conceptualize metrics in three ways:<\/p>\n<ul>\n<li>\u0083 Efficiency Metrics<\/li>\n<li>\u0083 Effectiveness Metrics<\/li>\n<li>\u0083 Predictive Metrics<\/li>\n<\/ul>\n<p>\u2013 HR facilitates the process to involve managers about what metrics are relevant. These are metrics the<\/p>\n<p>organization and managers own; not HR.<\/p>\n<p>\u2013 Fewer metrics are better than more metrics<\/p>\n<p>\u2013 Simpler is better than complicated<\/p>\n<p>\u2013 Usually better to pilot a project with a smaller, human capital supportive\/friendly department in your<\/p>\n<p>Organization.<\/p>\n<p>\u2022<b>Efficiency Measures<\/b><\/p>\n<p>\u2013 Often we over-report efficiency measures because it\u2019s easy<\/p>\n<p>\u2013 Cost-per-hire, time-to-fill, number of training hours, HR Costs<\/p>\n<p>\u2022 <b>Effectiveness Measures<\/b><\/p>\n<p>\u2013 Demonstrates how HR practices\/measures relate to firm performance<\/p>\n<p>\u2013 For example, increased productivity by RsX by lowering time-to-fill, lowered legal fees by RsX for<\/p>\n<p>sexual harassment complaints through mandatory harassment training.<\/p>\n<p>\u2013 Increase productivity by lowering voluntary turnover through key HR initiatives:<\/p>\n<ul>\n<li>\u0083 Management training class.<\/li>\n<li>\u0083 Team-building for areas where turnover was higher.<\/li>\n<li>\u0083 Improved communication about how to utilize HR Services.<\/li>\n<\/ul>\n<p><b>\u2022 Predictive Measures<\/b><\/p>\n<p>\u2013 Reliably forecasts how HR practices\/investments will improve organizational performance.<\/p>\n<p><b><span style=\"text-decoration: underline\">To Facilitate this process it is important to remember not to isolate the HR:-<\/span><\/b><\/p>\n<p>\u2013 Build bridges with colleagues in other departments; seek to create consensus.<\/p>\n<p>\u2013 Finance and Accounting are allies in this effort.<\/p>\n<p>\u2013 Discuss with department heads about business metrics for which they are accountable.<\/p>\n<p>\u2013 Ask them how employees contribute in achieving those metrics.<\/p>\n<p>\u2013 Eventually pick 3-4 effectiveness metrics that you will focus on to report out.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Human resources analytics, also called talent analytics, is the application of sophisticated\u00a0data mining\u00a0and business analytics (BA) techniques to human resources (HR) data. The goal of human resources analytics is to provide an organization with insights for effectively managing employees so that its business goals can be reached quickly and efficiently. The challenge of human resources&#8230;<\/p>\n","protected":false},"author":18,"featured_media":16517,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[863,1529],"tags":[758,775,800,801],"class_list":["post-16494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-big-data","category-human-resources-2","tag-analytics","tag-hr-analytics","tag-human-capital-analytics","tag-human-resources-analytics"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Human Capital Analytics - Vskills Blog<\/title>\n<meta name=\"description\" content=\"Analytics on Human Capital or Human Resource\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/blog\/human-capital-analytics\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Human Capital Analytics - 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