People are the single most important asset which decides an organization’s future. They decide the success or failure of organization’s future strategy but at the same time the most unpredictable, asset category that the firm has within its business.
Therefore, this cannot be left to guess-work and it becomes pertinent to understand, monitor, and predict outcomes relating to this major area of investment, which can be done by analyzing the HR metrics. Not only this brings a source of real advantage but also is a pre-requisite to responsible delivery of effective HR program.
Apart from the strategic nature of the problem, there are social and technological disruptors which are making this area of study even more important:
Workforce in India and Globally is undergoing a huge demographic change. For example, India has more than 50% of its population below the age of 25 and more than 65% below the age of 35. It is expected that, in 2020, the average age of an Indian will be 29 years, compared to 37 for China and 48 for Japan; and, by 2030, India’s dependency ratio should be just over 0.4.Considering this information, almost half the population is made up of millennial giving rise to the breed of young leaders who are fiercely independent, changing societal norms and are growing and developing through the heavy usage of technology.
Rate of change or upgrade in technology and business scenarios has accelerated significantly. People as well as organizations need to be agile to keep up with this pace and be relevant in the longer run. Technology is changing the way work is being done and how employees connect within themselves and the organizations.
Predictive Analytics for Human Resources
Data Analytics in HR is constantly evolving and is a part of the HR program right from recruitment in finding the recruitment metrics, Workforce Analytics, to the exit of the employee and will help the organization have an advantage in managing the human resources.
Following are the strong use-cases which industry has starting to apply and reap benefits:
Workforce forecasting and scheduling:
Identify Sustained growth & margin improvisation areas by aligning schedules with supply forecast. Proactive planning for recruitment & training that can aid HR managers
2. Retention analytics:
Scoring individual employees by estimating attrition risk
Predictive risk models for Early Warning Signals
Prevention of attrition of high performers
Identification of loyal employees to ensure business continuity
3. Skill based sourcing and hiring framework:
Optimal sourcing model can aid in predicting demand/supply of manpower in accordance with work schedules
Identify the right sourcing channel for the employee by geography, season etc.
Employee segmentation & profiling by skills and contextual mapping
Attrition in critical roles lead to significant tangible and intangible losses for the organization. By analyzing the data for current employees, including performance and productivity indices, attrition details, HR can arrive at the right profile for quality hiring in future.
Conceptual Solution Framework by Polestar
We suggest a holistic framework to cater to the human resources function:
In conclusion,human resources has enormous potential for data analysis through analysis of HR metrics by using techniques like predictive analytics and reporting the data as hr metrics dashboard would help in visualizing the key areas and metrics. Contact Us if you wish to know more or have solutions designed for you.