Information innovations never stop, and this year’s red-hot trend is HR Analytics, or Human Capital Analytics, a form of data leveraging that focuses on a company’s human capital. In this RPOA Weekly, we take a look at what HR analytics are, how they work, and how to learn more to help you get the most from your workforce with HR analytics.
Used by Google, lauded by Deloitte, HR analytics seem to be the wave of the future. But is this rosy picture everything that it seems? This article investigates whether HR analytics will live up to their promise, with varying results. It uses the HR analytics program at Zappos as an example of how analytics can be used, but cites the Editor-in-Chief of the HR Examiner as saying that there is a definite danger in over-relying on data analytics to make major personnel decisions. It concludes with the determination that HR analytics are probably here to stay, but that HR should continue to let their judgment and experience inform critical decisions.
HR analytics are a big trend, with the number of people who have “HR Analytics” in their title rising sharply. But once you have an HR analytics program, what exactly do you want it to do? The trouble, according to this article, is that a lot of people don’t really know. The article explores the difficulty in nailing down precisely how companies can use HR analytics, beyond a vague mandate of “being more rigorous.” It also suggests solving the issue by having HR analytics managers clarify what question they are trying to answer or decision they are trying to make.
If you want a more in-depth look at data analytics than you’ll get through articles or online resources, one of the best places to go is an analytics conference, where you’ll be surrounded by people in the industry and privy to presentations and keynotes that take a deep dive into the red-hot HR trend. This article lists HR and Recruiting conferences in 2016, and includes several analytics conferences in the mix. Examples include IQPC’s HR Metrics & Analytics Summit, which is being held from late February to early March, and SHRM’s Talent Management Conference, which will be held in mid-April.
When implementing a Human Capital Analytics program, the first thing you need to know is how to get started. This article points out the basic elements of HCA – identifying data points, collecting data, and performing analytics on the data – and then suggests a high-level, step-by-step process that companies can use to implement their Human Capital Analytics programs. This includes carrying out an HCA assessment, creating an HCA policy, assembling and then equipping an analytics team, and starting the program with the data you already have.
Human Capital Analytics have the power to boost employee productivity, reduce turnover, and bolster company performance – so why aren’t more companies using it? This article poses that question, citing a 2013 Deloitte study to showcase how few companies are using Human Capital Analytics or believe that they have HCA capabilities. The article suggests some potential answers, including that human resource departments think that Human Capital Analytics are too expensive or complex, and wraps up by pointing out the benefits of leveraging HCA, including making evidence-based decisions, strategic planning, and creating a culture of performance.