HR Analytics Essay
Assessment of Foundations
Several aspects exist that would best indicate the strength of Wincheap’s foundation to support people analytics. The first determinant of a robust HR data analytics is the people. Often implemented analytics tools are powerful. Even so, realizing the full value of these tools is pegged on people’s actions and their utilization of the collected data. In this regard, Wincheap needs to build a sustainable capacity within its workforce to collect and use HR data. Ideally, this can be achieved through proper organization of analytical professionals by recruiting the right people for the job and continually appraising their skills and reassessing them.
Another critical foundation that Wincheap Group needs in building a successful people analytics is proper governance. First, the company needs to identify the way analytical decisions will be made. What is more, the group needs to establish parties that are responsible for aiding the analysis and effectively utilizing its insights. Besides, data governance needs to be planned well so as to create consistency and agreements around data definitions. Failing to have a common understanding of the data more so in relation to context and origin, the analysis’ output may be biased.
Data is another critical foundational item that the Wincheap Group needs to have before implementing successful workforce analytics. The company needs to have means of collecting both internal and external data and establish useful sources for these categories of data. Upon identifying the various sources, the group needs to have reinforced processes that can help establish if the data is correct up-to-date and secure.
Wincheap Group would need to update its technology to accommodate workforce analytics. To facilitative the efficient collections and analysis of workforce data, the group would need to adopt a robust technology. In particular, the company would need to upgrade its IT and communication capacities. To be prepared, the company will need to establish what solution they need to be prepared, and when they will be needed. Besides, a state of the art human resource information system would be required to assist with efficient data collection. Implemented together, the above factors have the capacity to inform the blueprint that would elevate Wincheap towards a sustainable and expandable people analytics and a more active human resource function.
2 Aspirations to be Best in Class
Data analysis of HR is spreading fast. Statistics reveal that 80% of companies with over ten thousand employees have data analysis of HR roles. But what defines best-in-class practices for workforce analytics? The following are characteristics of best practice people analytics that explain how a company can create best in class practices. Organizations that want to adopt best in class practices in people analytics need first to concentrate on the business. Successful workforce analytics team concentrates on projects that count for the company. They never waste time on models that predict attrition when that is not the problem ailing the organization. The business needs to focus on areas that make them the most money and are thus able to leverage the power of workforce analytics.
Best in class practices organizations have a Chief Human Resource Officer who acts as a senior executive steering the people analytics adventure. The CHRO not only serves the purpose of sponsoring the analytics program but is also actively involved with the background work and survives on insights and outcomes of the workforce analysis. Often the CHRO has unique comprehension of the problems ailing the business and access to key leaders that can influence the insights gathered.
Having an inspirational leader is a prerequisite for any organization that wants to implement best in class people analytics. Due to the infant nature of the concept of people analytics, there are many misconceptions amongst the implementers. That mentioned, there is a need to have a leader playing the role of head of workforce analytics. The person holding this position needs to have the required set of skills incorporating business and HR experience to allow for organizing a winning strategy and managing stakeholders across the board. In short, an inspirational leader is required if a successful people analytics program is to be created.
At level one of analytical maturity, the CHRO needs to concentrate on operational reporting if the organization is to adopt best in class people analytics. The HR department needs to streamline HRIS metric reporting to ensure that they are timely and accurate. Reports on labor costs, attrition, headcount, and training cost need to be closely managed by the CHRO. Even so, focus needs to shift based on the need to avoid wasting time on areas that are not problematic. At level two, the CHRO needs to be involved in proactive reporting that aid in crucial decision making by the top management. Here benchmarking the insights generated by the workforce analytics is essential as it adds meaning to the reports. The CHRO needs to add extra metrics based on his expertise and submit these to the management in clear dashboards. At level three maturity, the CHRO needs to continually scan and identify issues in the analytic program and make recommendations on the actionable solutions. Lastly, at level four, The CHRO needs to be proactively involved in making strategic decisions for the company. At his level, the HR department has full awareness of the impacts certain policies, and predictive models would have on the organization’s success.
3 Importance of People Analytics
The recruiter’s responsibility in an organization has evolved over time. It began with menial roles such as filling up vacancies and firing employees. Today, HRM has a massive role to play in an organization, including contributing towards strategic decisions and driving the mission and vision of a company. It has thus become imperative that the HR department collects and analyze data to help steer the workforce towards the intended direction. People analytics is therefore essential to the organization in a number of ways.
For starters, it allows for better HR decisions within the organization. People analytics helps furnish the HRM with critical insights and data about the employees. These can be subjected to analysis and thus form a basis for strategic decision making, workforce analytics does not only alleviate the performance of the HR department but also help motivate the workforce to be productive and develop a positive organizational culture. Besides, workforce analytics has helped transform HR into a strategic partner in organizational performance. Now the HR can furnish the management with verifiable data to support their engagement, retention, and hiring policies.
People analytics are useful in predicting a company’s hiring needs. Workforce analytics can aid in making accurate predictions on the changes that may confront an organization. With data insights, one can predict the skills and positions required to boos the organization’s performance. The advent of the HR technology on a new scale has allowed the HR function to be a critical predictor of organizational performance and a tool that can be used to leverage continued performance improvement.
