- Product
-
- Why PeopleInsight
-
- Use Cases
-
-
HCM/HRIS
-
-
-
- Resources
-
- About
-
In this blog we look at an 8-step plan for getting started with an HR Analytics project. Diving into an HR analytics project is an ideal way to showcase the impact analytics can have on your business. And like any project, the best way to tackle it is to first break it down into manageable chunks.
Follow these steps to deliver business value through your analytics and reporting.
First of all, read your most up-to-date business plan or objectives. Sometimes businesses refer to these as OKRs. If you don’t have access to this information, there are other ways to find out. For example, interview members of your executive team? Alternatively, your department leader? They typically understand the overall direction and align efforts accordingly.
People are key to success with any of these things. A data-driven human resources focus better balances qualitative and quantitative data (i.e. gut feel and hard facts). Apply this balanced approach within the context of something relevant, juicy and purposeful for the organization, whether a specific Line of Business (LoB) that you serve, or a larger corporate objective.
Understand the Corporate and Business Unit Plans. Also understand what it means in terms of people programs and capabilities, and identify, scope, and deliver Data-Driven HR analytics projects. This drives achievement to these business plan outcomes.
Scope out your project with these activities in mind:
This is great! Firstly, you’ve set boundaries around your HR analytcis project. Secondly, you understood it in greater detail. Thirdly, other people in your organization understand and are on board with your project. Now, define the project in more detail. And execute! There are several steps to this, and these steps that dig into the data and metrics you’re going to capture.
Next, define what we call a Primary Metric. It captures the essence of what your hr analytics project seeks to accomplish. Define the Primary Metric speciifcally and as detailed as possible. After all, this is the foundation for all subsequent steps.
Opt to keep this directional in nature (i.e. decrease or increase) and not get into specific targets for now if you want. This is all good. Set targets in a subsequent stage, after you have access to hard data.
For example:
Ensure you define the nuances of your Metric such as… Do you mean First Year in the company, or First Year in Sales? Do you count a top performing employee who spent 3 years in Marketing, then transferred to Sales and then left the company 9 months into their Sales role?
Quantify (state the current facts regarding) your Primary Metric in terms of both rate and magnitude:
For comprehensive understanding, consider your Primary Metric from many lenses. This means slicing and dicing your data across the data dimensions available to you. Fortunate to have powerful people analytics or BI tools? Great! That simplifies things considerably. Calculating in a spreadsheet? Well then, that’s more challenging. Prepare to dig in and spend some serious time on this.
Secondary or Supporting Metrics offer data dimensions and segmentation that refine analysis. The extent of these Secondary Metrics and segmentation is really up to you. But consider, they yield the most insightful observations and story lines.
For example: segment and slice your data so you can understand if there are any anomalies based on demographics, location, manager, manager’s attendance at a People Manager training course, recruitment channel, onboarding survey results and engagement, among other things.
You’re only limited by the data you have access to and your ability to connect it. Again, if you’re working with a people analytics partner or use a powerful BI tool, then easy. If you don’t and you’re dealing with spreadsheets and disparate systems, roll up your sleeves and tuck in… you’ll need time and some analytics expertise on your side.
Continue segmenting and analyzing your data with Secondary Metrics. Make observations focused on anomalies. In other words, outliers, hot spots exceeding acceptable thresholds, or where the sheer mass/magnitude of an issue represents an opportunity. These are critical pieces of your HR analytics project.
At this point, you’ve got a collection of facts compiled about Top Performer Turnover in Sales, for employees in their First Year of Tenure.
Armed with this analysis, dig deeper into the story lines. Understand the context in which they occurred. And ask “why” to those best positioned to offer logical reasons and hypotheses. You’ve now got qualitative understanding.
How? Through a variety of techniques. For example, run some focus groups with other Top Performers in Sales. Talk to those in their second year of tenure, they’re equipped to shed some light on the experience. Include data from your Onboarding Experience Survey. Or host small group conference calls, 1 on 1’s or water cooler/off the record conversations with Managers, etc. Whatever the approach, focus on the lived experiences of those involved. This brings the numbers to life and provides context.
The objective here is to dig deep so you can balance your facts with context. And subsequently, tell the story in a more complete fashion, with as much texture as possible.
The point of your HR analytics project is to understand, drive a decision, and implement change. Therefore, decision making must be done in collaboration, consultation and with the support of your LoB client. Engage with your LoB clients throughout the prior steps. And share access to the facts, context and opinion.
Decision making for the Line of Business is all about Return on Investment (ROI). This requires the development of a Case for Change. Some might call this a Pitch Deck, others a Business Case. Regardless, the Case for Change is a 10-15 slide summary and recommendation that often includes the following:
The goal is to convince your stakeholders and impacted partners that change is needed and helps them accomplish their goals.
Remarkably, “Business Case Realization” is incredibly easy to ignore. Moreover, it is common to move onto the next activity before capturing results, and metaphorically “banked the winnings. ” Avoid this pitfall at all costs:
Given that this is a largely untapped area, the benefits are significant. Consider this example from a technology client of ours at HireRoad:
In conclusion, once you’ve realized the value, you must communicate it and celebrate it. Then learn from it and build on it. Keep the momentum up with your next HR Analytics project. Want to see how we can help?
