DIFFERENE BETWEEN HR ANALYTICS AND HR METRICS

HR ANALYTICS HR METRICS

HR Analytics is the process of collecting HR metrics are specific indicators that allow
and analyzing HR data in order to businesses to measure performance,
improve workforce performance, HR efficiency, and the impact of business
Analytics – also known as people processes and changes. HR Metrics are
analytics, talent analytics, or workforce measurements used to determine the
analytics – provides organizations with effectiveness and efficiency of HR policies.
continuous feedback on how HR
initiatives are contributing to their
operational goals and strategies.

There are five-phase process of HR There are five types of HR Metrics. First is
analytics. First is the justification of the cost per hire i.e. the total cost of hiring or
fundamental human capital investments. the number of new hires. The second is the
Second is measurement like with turnover metrics is used to determine the
leadership accountability. The third hiring success in a company. Third is absence
phase is the effectiveness of key or absenteeism , like turnover absenteeism is
performance indicators. The fourth also strong indicator of dissatisfaction and
phase is value creation with genuine predictor of turnover. The fourth is job
insights. The final phase is impact and satisfaction and/or engagement and the fifth
the positive changes the analytics help is performance.
create
HR Analytic methodology used for HR Metrics help quantify the cost and impact of
developing innovative predictive insights. management programs and HR processes..
It involves linking HR data, survey data It shows whether HR practices have a positive
and business or organization data. effect on the employees or the applicant pool.
(Financial, client, operational)
It implemented by applying statistical It demonstrates the connection between HR
techniques. (correlations regression practices and the tangible effects on
modelling) organization’s abilities to gain and sustain their
competitive advantages.
NEXT SLIDE PLEASE
WHAT DATA DOES AN HR ANLYTICS TOOL NEEDS?
The data required by an HR analytics tool is classified into internal and external data
INTERNAL DATA
Internal data specifically refers to data obtained from the HR department of an
organization. The core HR system contains several data points that can be used for an
HR analytics tool. Some of the metrics that an HRIS system contains includes:
1. Employee tenure
A tenured employee is someone who has worked for a company or organization for a
number of years. Employees that have worked for a company for more than five years
are considered long-tenured employees, while those that have worked for a company
for less than five years are considered short-tenured employees
2. Employee compensation
Compensation of employees has two components: gross wages and salaries payable in
cash or in kind, and the value of social contributions payable by employers’
compensation includes promotions, additional benefits and reimbursements, and even
starting salaries for your new hires
3. Employee training records
4. Performance appraisal data
A performance appraisal (also known as a performance review) is an evaluation of an
employee's performance at work. The appraisal may contain observations from peers or
supervisors, as well as hard data from trackable metrics.
5. Reporting structure
6. Details on high-value, high-potential employees
The only challenge here is that sometimes, this data is disconnected and so may not
serve as a reliable measure. This is where the data scientist can play a meaningful role.
They can organize this scattered data and create buckets of relevant data points, which
can then be used for the analytics tool.
II. External data
External data is obtained by establishing working relationships with other departments
of the organization. Data from outside the organization is also essential, as it offers a
global perspective that working with data from within the organization.
 1. Financial data: Organization-wide financial data is key in any HR analysis to
calculate, for instance, the revenue per employee or the cost of hire.
 2. Organization-specific data: Depending on the type of organization and its core
offering (product or service), the type of data that HR needs to supplement analytics will
vary.
 3. Passive data from employees: Employees continually provide data that is stored in
the HRIS from the moment they are approached for a job. Additionally, data from their
social media posts and shares and from feedback surveys can be used to guide HR
data analysis.
4. Historical data: Several global economic, political, or environmental events
determine patterns in employee behavior. Such data can offer insights that limited
internal data cannot.
  Data from such a critical historical event can help predict how the workforce may react
to similar shifts in the future. Then this type of data can be used to identify trends in the
current workforce and predict voluntary and involuntary turnover.
HOW DOES HR ANALYTICS SHAPE THE BUSINESS ?
HR Analytics helps the organization become more strategic, data helps you tackle
current issues and also plan better for future activities. HR analytics help HR teams set
goals, measure success, and optimize processes so the company can focus on driving
revenue. When used responsibly and effectively,
HR analytics help HR teams set goals, measure success, and optimize processes so
the company can focus on driving revenue. When used responsibly and effectively, HR
analytics provide the insights companies need to tackle difficult challenges like lack of
diversity or a high turnover rate.
HR analytics provide the insights companies need to tackle difficult challenges like lack
of diversity or a high turnover rate The impact of HR policies will also help HR to
become a strategic partner and get rid of its ‘soft’ image. It helps HR to align its strategy
with business goals and to quantify the value it adds to the business.
§Improve hiring process
HR analytics helps HR professionals make better choices based on historical data.
Through HR analytics, the recruiter and hiring team can make data-driven hiring
decisions rather than "trusting their intuition" or "gut" and hoping for the best.
An effective HR analytics tool can enable HR professionals to easily determine the best
candidates and hire them.
§Reduce attrition
HR analytics can easily help identify and demystify the causes and patterns of attrition
among employees. It tells you the reason why employees leave and why they stay.
The reasons could range from under-performance, lack of skills, overworking, to low
compensation, management issue, unsuitable work environment, and more.
HR analytics helps in finding the gap areas where employees are finding difficulty in
meeting goals and targets. HR professionals can use various methods like employee
surveys, team assessments, exit and stay interviews to find out the reason for attrition
and map out strategies to retain them.
§Improve employee experience
Recruitment analytics help companies understand exactly what kind of talent they are
looking to hire. Since this understanding is backed with credible data, this puts those
organizations way ahead in the game to narrow down and attract the right talent in a
shorter span of time.
A shorter hiring process automatically gives a good impression to candidates and gives
them a better hiring experience. Simultaneously, this helps improve your brand image,
giving your enterprise an edge over competitors.
§Make your workforce productive
Since enterprises have a grip on the kind of people to hire for a job, it becomes easier to
expect and better predict performance and productivity from employees.
With analytics, you get an understanding of the workforce and, hence, know what kind
of environment, policies, and teams will make them work hard and optimize company
performance.
§Improve talent processes
§Gain employee trust
Trust is good for morale and motivation. Trust builds teamwork and collaboration. ...
Trust increases loyalty and the willingness to stay with a company. Trust decreases
stress levels and hostility in the work environment.
Trust is essential to an effective team, because it provides a sense of safety. When your
team members feel safe with each other, they feel comfortable to open up, take
appropriate risks, and expose vulnerabilities. ... Trust is also essential for knowledge
sharing.
This enables managers to measure the financial impact of Human Resource practices.
Knowing the impact of HR policies will also help HR to become a strategic partner and
get rid of its ‘soft’ image. It helps HR to align its strategy with business goals and to
quantify the value it adds to the business. It takes the guess-work out of HR

I will now handover the ppt to Miss Zalak she will explain the next point .