HR policies vs. profits: Determining the impact of HR policies on business results

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.

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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.

 

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.