Maybe you are a bit ‘HR analytics-tired’, because you see the term a lot. But don’t click away yet, because then you will miss valuable and useful tips! HR has changed from a supporting function to a strategic pivot within organizations. In an era where data rules, HR analytics is the indispensable advisor.
In recent years, HR analytics has emerged as the new superpower in the world of human resources. All the new insights have led to a growing awareness within organizations that it is becoming increasingly important to make data-driven decisions. Where HR departments used to rely mainly on experience and gut feeling, they now have access to a goldmine of data. This data provides insights into the well-being, performance and needs of employees.
In this article you will learn step by step how to use HR analytics effectively.
Do you dare to dream?
There you are: ready to dive into the HR data. When working with HR analytics within an organization, as an HR professional you often dive straight into the figures. But strangely enough, that is exactly what you should not do. What is the best and first step you should take? Dare to dream! About the insights and benefits your HR plan will provide. And how they will ensure that the organization becomes stronger and stays ahead of the competition.
Defining the business case
In practice, many organizations are working with HR data. There are nice dashboards, but they are often underused. Unfortunately, there is little evidence of enthusiasm in HR among management and employees. This is usually not intentional. Due to the lack of a good business case, there is uncertainty about the use of the data. The result is a lack of involvement. In the book Impactvolle HR-analytics (affiliate), an action plan is described that consists of 6 steps.
The first step is to create a business case. You can recognize an excellent business case by:
- A clear focus: give a clear answer to the challenge within your organization. Focus on one challenge at a time.
- Focus on the importance for the organization: the HR plan must support the organization, not just HR.
- Substantiate ROI with data: what will be the added value of this project for the organization?
In the book you will find a link to a handy template for a rock-solid business case.
Evaluating data sources
Data sources are the backbone of HR analytics. Make sure you have a good idea of which data can be found where. The most obvious information can be found in the HRIS (Human Resources Information System) or the ATS (Applicant Tracking Systems) system. It is also common for data to be managed and stored by external partners. The authors of the book give a golden tip for this: explicitly state in the agreement that you can access your data at any time.
You can assess the quality of data by looking at:
- Accuracy
- Accessibility
- Usability
- Reliability
Collecting data
It may seem obvious, but a lot can go wrong when collecting data. As a result, the data is incomplete, unusable or even incorrect. Based on their years of experience and research, the authors of the book have an excellent tip for this: write a codebook. This is the key to understanding the collected data. A codebook is important because it ensures accuracy, efficiency and transparency. The authors mention a number of best practices, including these:
- Define each variable: Describe in concrete terms what exactly a year of service or FTE entails, for example.
- Specify categories and values: for example full-time or part-time.
- Update the codebook: make sure it is stored in a central location that is accessible to the people involved. So not on your personal Drive on your laptop.
Analyze data
Finally, the real work can begin. It is time to get to work with the collected data. Raw data is transformed into valuable insights through analysis.
One thing you should pay attention to before you start: think carefully in advance about what type of analysis you are going to use the data for:
- Descriptief: what happened? – Understanding historical trends: for example, the number of applicants and the most important sources.
- Diagnostic: why did it happen? – Understanding causes and relationships: for example, the performance of recruitment channels per function.
- Predictive: what will happen? – Predicting future events: for example, predicting the number of applicants expected.
- Prescriptive: how do we make sure it will happen? – Recommendations for optimal results: for example, optimizing the recruitment process.
And then the time has come. You have worked hard on the project and are extremely proud of the result. You have shared the results in a presentation with your colleagues and management and you expect an enthusiastic reception. But you notice that there is little support in the organization. In the weeks that follow, attention for your project wanes and within no time is everything back to how it was. A recognizable problem, but it is a waste of all the time and effort you have put into it. How do you ensure that everyone is just as enthusiastic as you are about a data-driven culture?
The first steps are to create awareness, followed by encouraging leaders. Then it is important to integrate the strategic value of a data-driven culture into the core values. This sounds more complicated than it is, but it is not rocket science. Include data analysis skills in job descriptions, organize trainings and workshops, and recognize and reward employees who contribute to data-driven initiatives. Finally, measuring effectiveness and progress is the last step. This ensures growth and improvement.
Translate to impact
Reporting data and insights in a good way to the right person is without a doubt the most important step to make an impact on your organization. The book gives 3 valuable tips to make your data visualization a success:
- Consider what the reader’s goal is. This sounds obvious, but it is often forgotten. We tend to show the data we have. But that is not always the data a user really needs. Keep in mind who is viewing your visual. And most importantly: what decision does that person need to make?
- Take a critical look at how you can make the visual even simplerSurprisingly often backgrounds, labels or lines can be omitted.
- Ask yourself if a graph is really necessary. A graph summarizes a lot of information in a small space. But sometimes a user only needs one powerful figure. Or maybe a bit more detail, in which case a short table is more effective.
To ensure maximum impact, an action plan should not be forgotten. In this plan, you describe the concrete insights, link the HR analysis to the organizational objectives and draw up a timeline. Use storytelling when presenting the action plan. This makes the data more appealing. It also makes the information clearer and therefore more understandable.
Evaluation and feedback
One of the most influential leadership thinkers of all time, Ken Blanchard, said it:
Feedback is the breakfast of champions.
By evaluating the project and asking for honest feedback, you gain insight into what can be improved. In my opinion, the success of a project stands or falls on this. It is very valuable to know how others view your project. This prevents tunnel vision and you learn how colleagues think about certain things. And that is exactly what you want to know as an HR professional.
The book contains an example of a scorecard that you can use to evaluate an HR analytics project. Based on feedback from various relevant stakeholders, concrete action points emerge. The scorecard contains a number of questions about the progress of the project (what went well, what are the points of attention?). And it gives a score in the area of, among other things, data, impact and scalability. By evaluating your project using the scorecard, you can increase its impact.
To dot the proverbial ‘i’, finish with a lessons learned-document. This is like a short summary of the project, with the most important lessons learned and the action points you can start working on. It is a valuable overview and conclusion of your project.
HR-analytics voor professionals
The book ‘Impactful HR Analytics’ offers a clear and practical guide for HR professionals who want to strengthen their data-driven approach. With clear step-by-step plans, useful tips and handy templates, you will learn how to make a real impact with HR analytics. The book is especially suitable for HR professionals who want to delve deeper into data analysis. Whether you are just starting out or have already taken a step further in the implementation of HR analytics, this book will help you to build a data-driven culture within your organization.
And now?
Give yourself a pat on the back, because you made it to the end of this article. Some steps may seem unachievable now, but don’t be put off. By taking the first step, you will see that HR analytics will really add value to your organization. Are you curious about this book? Simply order it via Managementboek.nl (affiliate).
As Confucius said almost 500 years before Christ:
The man who moves a mountain begins by carrying away small stones.
Which stone will you pick up first?
Source: www.frankwatching.com
