HR Analytics 1

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  • Definition of HR Analytics.
  • Concept of HR Analytics.
  • Study of HR Analytics.

Introduction:

HR Analytics (here after HRA) which is fundamentally necessity for the HR professionals to help them to detect and combat friction, hiring the right people, problem solving, predict the risks and issues that may occur in early future to make the right decision. When a HR department strategically develops its strategies for training, recruitment, and compensation based on the objective of the organization, it is sustaining an excellent chance to improve and achieve the business objectives (Importance of Strategic HRM). The processes of decision making and problem solving which involve HR practitioners, largely depend on analysis, logical reasoning and critical thinking. These processes are the first steps for evidence-based management.

Definition of HR Analytics

No definition or granted definition is given by many to HRA. HRA also known as PA and Workforce Analytics is to use people information in analytical processes to sort out business issues (CIPD, 2018, cited Marler and Boudreau, 2017). HRA is several processes which is accessed by technology to apply anatomical, objective and statistical techniques to translate people information. These anatomical procedures are linked to human resource, human resource systems processes and performance which assist to evaluate external data by comparison with HR standards (CIPD, 2018). 

Concept of HR Analytics

HR Analytics are those processes that enable HR professionals make more effective decisions based on the data which is a source of true and honest information and accessed by technology. Information technology with descriptive, visual, and statistical analyses features enable HR practice to connect with HR processes, organizational performance, external economic benchmark, and human capital to enable decision-making driven by data (CIPD, 2017, cited Marler and Boudreau, 2017). 

Study of HR Analytics

Human capital is one area that HRA is defined to and HRA is about human analysis and using HR analytical process within the organization to improve employee performance and employee maintenance. Baker (1975) and Schultz (1961) realized knowledge, 

skills and abilities are vital to national economic growth. The theory shows, HR competed the concept of physical source as the superior driving force for economical success instead disputing that a human value is related to organizational financial performance (CIPD, 2017, cited Becker, 1975 and Schultz 1961). Table 1 illustrates the definition of human capital and perspectives (CIPD, 2017).

Table 1

According to CIPD (2017), the scope of using HR Analytics by HR professionals shows differences according to the size of the organizations. According to CIPD HR results survey, the use of HR Analytics operation varies depending on the number of employees. Smaller businesses have less ability compared to larger organizations. The survey showed only five per cent of respondents were applying and practising HR analytics also it showed it was more common in organizations with large HR departments, 13 per cent of those with more than 100 employees see figure 1 (CIPD, 2017).

                  

   Figure 1

As per Marler and Boudreau (2017) no definition or granted definition is given by many to HR Analytics (CIPD, 2018, cited Marler and Boudreau, 2017) see table 2 (CIPD, 2018). And the observation of those where included in the study and provided a statement as follows (CIPD, 2018):

• Company-level analysis prevail the definitions, as a tool to understand the aspects of performance, mainly at group level. Only few considered the individual level of analytics at the matter of definition.

 • HRA as references in order to demonstrate evidence are thin: only one definition is given that includes reference to supplying evidence. 

• Definitions in terms of measurement of the workforce, technology Features, and the tools that are involved in HR analytics are included; HR analytics is driven by technology parts.

• Some stated HR analytics as a series of practices and processes which perceived as analytics; Hence HR Analytics is combined of a chain of activities and need attention, management and investment. 

  To be continued…         

Published by JanE

Hello, and welcome to my page. My name is Jane, an MBA student and ambitious to betterment and increase her understanding, knowledge, skills, and adaptability within the Global Business WonderLand context. And been wonder how to change the world since I was five years old. I enjoy helping people no matter of what nationality, belief and ethnicity. I believe the life journey is not solely about eating, loving, making children etc. I see it as a journey that comes with man consciously or unconsciously with different scenarios and strategies. I interpret and link the life journey and business based on the value which lives in the strategies. I have ten years of work experience in management. I opened a retail shop and sold it in London between 2007 and 2017. within real estate in North West of London. And the co-founder of the PBMerchantile export/import company in Dubai. The PBM is on standby due to macro external factors and forces.

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