Developing HR Analytics Units: Essential Steps for Effective Data-Driven Decision Making

[Music] [Music] dear participants till now we have

learned the basic concepts of the data analytics as well as how to manage the data in this session we will learn how

to develop the HR analytics unit in the organization what should be the parameter what we should consider how we

should develop what are the things that we should think of before developing during the development developing the HR

unit and how we should promote the analytical culture within the organization how we should promote the

database decision making or data driven decision making within the organization so that is what we will learn in today's

session so let us start with the content of the day so this is the content for the day so first aspect that is what we

will cover that is the need for the HR analytics in the organization right so what is the need

what is the need for this HR analytics in the organization ation right or unit right next thing who are the stakeholder

of this HR analytics right who are the stakeholder that is what we will understand next one metrix that is what

we will understand that is the complexity and impact metrix right how complex it is to implement or to develop

the HR analytics unit and what are the impacts of that HR analytics unit and then we will discuss how to assess the

complexity and how to assess the impact right that is what we will understand and third next building the capabilities

the moment we have taken a decision we have to develop the HR analytics unit in our organization then how we can develop

the capabilities what we should do right next that the moment you have decided to develop the capabilities now you need to

develop the team which will work on this analytical projects in the organization so what should be the role of each team

member right within the organization and then partner for the skills right some of the skills that you

may not be having within your organization for that you have to partner with some other organization

right and then you have to develop the operating model of of your organization for the use of HR analytics right so

this is the content for the day that is what we will discuss in this particular session so let us start with one by one

so first need for HR analytics in the organization so uh most of the organizations they have agreed uh if we

are making the database decision then our decisions are likely to be more accurate as per the need of of the

organization so that gives us the competitive Advantage right so when we are making because in organization it is

all about making the good decision so uh what this analytics says if we are making the decision on the basis of data

then our decisions are likely to be good so probability of making good decision increases so when you are making the

good decisions which are resulting into the development of the business within your organization ation so that will

give you the competitive exam Advantage second reason that is what you can see the top management believe top

management believe that we should make uh this data driven decision right they believe in the importance of making the

decision through the data right so they are if they believe firmly yes we should go ahead and make the decision on the

basis of this data within the organization related to the HR to manage the people in the the HR if they are

having the strong belief then they will force to develop the HR analytics unit within the

organization right next reasion that could be operational efficiency so if we need to increase the operational

efficiency of all six functions of the management right all six functions of the HR department so all recruitments

recruitments selection training development performance and

compensation right so these all six functions if we need to increase the operational efficiency and if we are

making the decision on the basis of data related to these functions then our decisions uh then operational efficiency

likely to increase among these all functions in any organization so that could be the one of the reason why we

should de the HR analytics unit within the organization so sometime to take the competitive Advantage sometime because

of the top management believe into it right sometime you see uh the clear impact on the

operational efficiency so that operations that you are doing related to the recruitment selection performance

compensation learning development so related to that you can increase the operational efficiency because of that

you want to develop the HR analytics unit right so this operational efficiency may

lead to reduce the cost right may lead to reduction in the cost of the operations right and you may save some

of the amount and you can manage the people better and you can reduce atre you can increase the number of

application you can use the technology right you can use the technology to select the people right by Framing The

Benchmark you can use uh the math me for the training uh you can apply this analytics and training so that you can

get the better outcome of the training so that is how you can reduce the cost by the application of HR analytics

directly or indirectly right so that might be pushing the pressure on the top management yes we should adopt the HR

analytics unit or we should develop the HR analytics unit in our organization right so these are the some of the

reasons why organization want to develop the HR analytics unit within the organization so it could be one of the

thing competitive Advantage they want to take a competitive Advantage there because of the top management they

believe the top management wants to develop and next they see the operational efficiency can be brought

through the recruitment selection training development performance and compensation and they are putting

pressure to reduce the cost right so these could be the reasons to develop the HR analytics unit within the

organization next step is when you are thinking to develop the HR analytics unit these are the reasons because of

these reasons you have decided you want to develop uh the HR analytics unit so my suggestion is always think about the

stakeholder who are the stakeholder so business leader so how this HR analytics is going to serve the business leaders

HR leaders and board of directors so specifically I'm talking about the top management if you are going to develop

the HR analytics unit within your organization then how it is going to impact the Business Leaders HR leaders

and board of directors within the organization that is what you need to think second category of the

stakeholders comes dependent so who are the dependent the is HR analytics is dependent on what

that second category that is what you can see so here you can see served HR analytics is serving these people

business leader HR leaders and board of directors and stakeholders who are dependent on this HR right HR unit is

dependent on stakeholders so one stakeholder could be the data owners right you need to take the data from the

multiple sources so HR analytics unit is dependent on the data owners second one is the technology owners so some of the

technology that you are using like Tableau powerbi right so owner of these HR analytics is dependent on then third

is subject matter expert so these are the three key

stakeholders which will ensure that this HR analytics unit will run smoothly within the organization so HR analytic

unit clearly dependent on these three stakeholders right and third type of stakeholders that you can see the

employees what is the category impacted so first so how I have divided these stakeholder one is served how this HR

analytics unit will serve the stakeholder to whom it will serve so top management so Business Leaders leaders

board of directors second one is HR analytics unit is dependent on whom it is dependent on data owners technology

and subject matter expert and third category of the stakeholder comes the impacted so directly impact it has on

whom this directly impact because here decision that we are going to make related to the employee so direct impact

that you can see that HR analytics unit will have that is on employees because all HR department you why that HR

department is there in the any organization to manage the HR right employees of the organization so when

the decisions are taken based on the DAT data so these decisions will impact to whom they will impact the employees

within the organization so these are the three stakeholders right of the HR three types

of the stakeholders of HR R analytics unit so whenever you are planning to develop the HR analytics unit within

your organization please think about these stakeholders how it is going to serve how it is going to be dependent to

what extent it is going to be dependent and how much impact it is going to have on the employees right do the assessment

of these all stakeholders and then think how it is impacting how much dependency is there and how it is going to serve

that will help you to develop the mission and vision or simply I can say that it can help you to develop the

rational to implement or to develop the HR analytics unit within your organization because without rational

there is no need to develop the HR analytics unit there has to be a rational there has to be a logic there

has to be a importance right to develop the HR analytics unit with within the organization so how you will be able to

understand the importance by analyzing by assessing these all stakeholder within the organization so I hope you

would have understood how to analyze the various types of stakeholder which are associated with the HR analytics unit

right within the organization so let's move to the next so next thing that I can ask you to assess your organization

where your organization stands right so how you can assess two things that you can see on this 2x two

Matrix so you can develop this 2x two Matrix to see first is complexity

complexity to implement the HR analytics unit or to develop the HR analytics unit so in

simple way just I ask you how hard it it is to develop the HR analytics unit in your

organization right then you see the complexity how complex it is how to measure the complexity that is what I

will explain to you so you can see how to measure the complexity so you can measure the

politics whether such kind of initiatives will be appreciated within the organization or not not right if

people are appreciating they are acknowledging supporting backing right so this these

things are happening in rationals logics are appreciated then you can see uh that that shows the how strong politics is

there right if people are not appreciating or acknowledging the right kind of Logics that you are giving to

develop this analytical unit in your department then you can say that high level of

politics is there in the organization second thing that you can see based on available skills so in your department

whoever is there like five employees are there six employees are there what is their skills set right what kind of

skills that currently they are having third is availability of data the data how much data is available and what is

the authenticity of that data how pure that data is how much you can press to that particular data right so that is

what you can check and fourth thing that you should have about the technology so how much technology is there because you

can see that data warehouse that HS human resource information system so if your organization is not developed

then you may not be having this developed hris right it is quite possible so if that HS

is not developed then you may face difficulty to even collect the raw data also right you may not be able to

collect the raw data it may be very very difficult so if politics is high skill level is

low availability of data is low and technology is low when that use of Technology within the organization is

low then you can say it is complex task right if I reverse it complex

politics is low skill is high availability of data is available and use of technology is by high then you

can say complexity is low right in first case complexity was high because politics was high skill

level was low data was uh availability of data was low and Tech use of Technology also very low within the

organization so then you can say that the to implement to develop the HR analytics unit is very difficult right

but in the case of if we reverse the situation politics is politics is low skill is high data set is high

technology is high then we can say that the complex lexity level is low so this is the one dimension of this 2x2 matrix

so that is how you can measure the complexity next thing it comes impact impact means how beneficial this HR

analytics unit would be for your organization so how much useful it is so how we will measure this so for this we

are having the three parameter all right so first parameter is return on investment whatever amount that we

are going to invest whether we will be able to recover that amount or not right so if

you see the recovery of that amount then you can say yes it is a it is having the high impact second that you can see the

timing so whatever time that you can save by applying these HR analytics tools and techniqu in taking the

decisions right so that is the timing that you can say and then opportunity cost so based on these three parameter

you can decide the impact of this HR analytics unit within your organization so the moment you have completed the

assessment of impact and complexity of developing the HR analytics unit and then you see on a 2x2 matrix

in which quadrant you are whether it is a quick win it means quick win means impact is high and complexity is low

right so it is a very good situation for the organization they should go ahead and implement the H or they should

develop the HR analytics unit because complexity level is low it means effort required to develop the HR anal itic

unit is going to be very less right it is going to be less because complexity level is low but impact is very high so

it is in favor of the organization second is complexity is low impact also low right so just you can

put it into the future plan right in future you may think about it if next situation

is complexity is very high and impact also very high so this is the big bad right so here again you can see

whether Readiness to take risk Readiness to take a risk if organization is ready to take a risk

here like impact is high and complexity is high so sometime what happens in this situation when complexity is too high so

entire focus of the department goes in that direction so if you feel it is the topmost job to develop the HR analytics

unit in your organization that is the first priority then you can go ahead otherwise if your department is having

some other priorities so just prioritize the work so if if some other priorities are there then you can think about the

some other priorities and then you can plan for this particular thing so that is what you need to check but last case

that is what you can see here P pet project if complexity is very high and impact is very low so no need to develop

in the right situation you can again you can put it for the future because complexity is very high it means it will

require the huge resources but impact is not that high so impact is not that high but resources are

huge right so resources are huge so in that case you can think you may postpone it right so in these two situation when

quick win and big bat is there in these two situation you can develop the HR analytics unit after assessing the

complexity level and impact of that HR analytics unit within the organization right so that is how you

can assess the situation of your organization within the uh your organization right and then you can take

a decision whether you should develop the HR analytics unit now or after some time right so building the capabilities

the moment you have taken a decision you have to develop the HR analytics unit within the organization right so now you

have to build the capabilities of your unit so how you can develop so few things that you need to remember first

thing that you need to remember that is the know your data so whatever data sources are there you need to see that

the data is available in the form of text or it is available in the form of net number right only two type of data

generally that you will see either in the form of text or in the form of number so text could be one paragraph

right appreciation somebody has written the appreciation for one employee so that is the textual data number that is

what you can say that age performance rating right so basically you can understand the numbers 0 to

1 2 3 4 5 6 7 right so that the whether data is available in that form or it is available in the form of text where

whether it is the structured data or unstructured data like data is ready for analysis or not ready if data is

unstructured then you have to transform that particular data so how much time it will take do you have capabilities or

not that is what you need to think so first you need to understand what type of

data that you are going to use know your technology so use of technology that HS statistical method visual visualization

technology so know your about your technology availability of your technology build the

analytical team after so these are the data technology and then team that is what you need to building a team so what

you need to understand that for successful team you need to have a six characteristics so one is business

Acumen so whoever is working with the analytical team that person should that team members should have the financial

literacy political utess internal awareness and external awareness so basically I would say the basic basics

of business that person should understand because if that person is not able to understand the business then he

will not be able to link the the HR unit decision with the organization level decisions right so that that

understanding is must for a team so first thing that that is a second aspect the team must

be must have the knowledge uh skill of Consulting right so how to develop the pro problem definition hypothesis

development project management solution development change management stakeholder management so that that

Consulting skills should be there within the organization right next building the

capabilities continued so human resource the knowledge of this human resource functions like that should be there and

basic ethical standard people should follow because that HR data is you is uh critical right so lot of information is

private invol information is available related to the employees so that ethical standard should be there

when you will assess that data analyze this data so you may get lot of information

that only that you should not reveal it to the others so that that people will so B basic level of Ethics that should

be there within the team member next one is the work psychology like so people should have

the basic knowledge about the work organizational psychology right so leadership motivation

learning pattern right so these are the things they should be able to understand and the basics of This research design

and research methodology they should understand next is the basic concept related to the data science like data

awareness qualitative and quantitative methods right and next one is the communication so these are the six

skills that a team should have I'm not saying one individual should have these all skills one team team should have

good HR analytical team should have these six skills right so what do you have to do the moment you have

identified these six skill now you need to hire the people in such a way so that they are having the six skill set right

so now you need to identify First what type of project that has to be delivered what are the skills that is required

among these six skills how many people you have what are the skills they have and now what kind of people that you

need to higher so the moment so after understanding these six skill you need to check with your team what are the

skills which are already available and for which skill you need to hire some of the people so the moment you have

decided to hire the people then you can hire the people and you can give the responsibilities whatever skill that is

not that was not available within the team right so that is how what you have to do you have to identify the team

member and to each team member you have to give some specific responsibility which will fulfill uh the one of the

skills right one of the skills that you can assess and then you can give a responsibility to the each uh team

member right so that is how you can develop a team related to it and after doing the recruitment also you found

some some of the skills which is you can for some of the skills you cannot hire the people uh that skill those skills

are very rare you did not find the people within the organization right then what you can do

you can partner with some of the organization who have those skills like technology related

tblo uh powerbi or somebody who has the excellent knowledge of excel it right for such kind of things if you believe

your organization is not having the skill then you can partner with some of the uh organization and then you can

Outsource uh the work related to those skills right that is what you can do so that is how you can design and finally

you have to develop one operating model so after developing the team you need to develop a operating model so you need to

link this uh business anal uh HR analytics unit with the strategy of the

organization you need to develop the governance how it is going to work and then you have to implement and finally

you have to fix the responsibility for the each task right so I hope that is how you would have learned how to

develop the HR analytics unit and culture within the organization thank you

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