While there is no single, prescribed answer to HR analytics; let's learn the tools to apply them to our specific circumstances, and deliver the unique solution that will be best for our organisations. 

The following is an excerpt from the recently-published book, Fundamentals of HR analytics: A manual on becoming HR analytical, authored by Fermin Diez, Mark Bussin, and Venessa Lee.

HR metrics measure the effectiveness of the HR function in delivering value to enable the workforce. As such, they are fully owned by the HR department. The main concern here is to ascertain which HR activities would best support the strategies articulated in the people/talent strategy. In other words, if we are to build vs. buy talent, for example, which are the right HR programmes to do so and are they working? Are we recruiting from the right sources? Are we training people enough? And so on.

The HR metrics drive then the talent metrics. Talent metrics measure the state of workforce effectiveness in bringing about desired business outcomes. Usually, these are co-owned between HR and the business line. These are more outcome focused inasmuch as these should describe the workforce that results from a successfully executed people strategy. Are 80% of our job openings (above entry-level) filled with people promoted from within? Is our sales force at least as productive as that of our competitors? Along these lines.

Talent metrics, in turn, drive business outcomes. Business outcomes are measures of business success, fully owned by the business units. Metrics at this level are concerned with answering the question: “How do we know if we have been successful in executing the people strategy?” For instance:  Is the productivity of our sales force increasing? Would it be more profitable to add more part-time employees? Metrics at this level link HR policies with business outcomes.

Of course, business results will inform talent strategies, and these in turn will inform HR policies, thus closing the feedback loop. This feedback mechanism is extensive to two critical metrics in HR: Manpower costs (particularly between people strategy and business outcomes) and employee engagement results (specially between talent metrics and HR metrics).

This is an excerpt from the recently-published book, Fundamentals of HR analytics: A manual on becoming HR analytical, authored by Fermin Diez, Venessa Lee, and Mark Bussin (pictured above, from L-R) . 


Building on traditional HR skillsets, the book makes understanding and engaging with data analytics possible for professionals at all levels, by leveraging key statistical and financial concepts, including ROI and people productivity, and commonly available tools.

The authors explore key skills and tasks in an accessible way, including: data-analytic thinking, data management, data collection, clean-up and warehousing, building descriptive and predictive models, and applying HR analytics skills to workforce planning, recruitment, training, and turnover analysis.

Here's how you can grab your copy of the book on Amazon