HUMAN RESOURCE MANAGEMENT

TERM PRESENTATION
HR ANALYTICS IN WORKFORCE
MANAGEMENT
GROUP 5
ANKIT AGARWAL (2017SMF6685)
ADITYA VIKRAM VAID (2017SMF6565)
RAHUL KUMAR (2017SMF6610)
SAJIL SATYANATHAN (2017SMF6618)
SNEHEL MENDHE (2017SMF6624)
SUJOY SENGUPTA (2017SMF6609)
ZIYAUDDIN KHAN (2017SMF6556)
CONTENTS

WHY USE ANALYTICS?

ANALYTICS VALUE CHAIN

BENEFITS OF ANALYTICS

CHANGE IN PROCESS

PRACTICAL APPLICATIONS

ANALYTICAL EMPLOYEE CHURN MODEL

CHALLENGES

CHALLENGES

BEST PRACTICES HR ANALYTICS

18-03-2018
 WHY USE ANALYTICS?
By using analytics,
organizations can more
effectively manage and
HR analytics has evolved from an experimental improve performance
approach to manage human capital to a must
have set of strategic tools for improving:
HR analytics can help an
organization improve its
profitability through more
Employee satisfaction
effective workforce cost
control, balancing the lowest
Calculating compensation effective headcount and
ensuring satisfactory service
Boosting retention rates delivery
Forecasting workforce deficiencies

Flagging star performers for special attention

18-03-2018 3
 ANALYTICS VALUE CHAIN
Five ways to measure anything in business

Human
Cost Time Quantity Quality
Reaction

Five Steps of Analytics

18-03-2018 4
4
BENEFITS OF USING ANALYTICS

Minimized risk of QUALITY

losing key talent DATA

Better management
of hiring costs Managing internal RIGHT
through versus external
identification of the hiring costs
QUESTIONS
best hiring source

CAPABLE
Avoiding over- or
underpaying salaries
ANALYSTS
Reduced risk of
litigation due to non- and benefits
compliance

Avoid costly exodus

of baby boomers
18-03-2018 5
 CHANGE IN HR PROCESS

Collect Choose Report Analyse Assess

Data Metrics Metrics Findings Impacts

Determine Choose Collect Report Analyse

Impact Metrics Data Metrics Findings
18-03-2018 6
6
 CASE STUDY 1- PREDICTING SALARIES A pharmaceutical
company wants to
model the relationship
DATA View in SPSS for past records between the salaries of
research
scientists with their
gender, years of
experience, and an
index of publication
quality

Dependent Variable :
SALARY

Independent Variable :
GENDER,
PUBLIC. QUALITY INDEX,
EXPERIENCE YRS

18-03-2018 7
 CASE STUDY 1 - Contd.
VARIABLE View in SPSS for past records

18-03-2018 8
CASE STUDY 1 - Contd. SCATTER PLOT- Salary & Experience years

LINEAR REGRESSION MODEL OUTPUT in SPSS

SCATTER PLOT- Salary & Publication Quality Index

18-03-2018 9
9
 Potential BENEFITS of the
Analytics Approach
CASE STUDY 1 - Contd.
Gender discrimination
arguments in Salaries
LINEAR REGRESSION MODEL OUTPUT in SPSS being offered

Eliminating the
Biasness/ Subjectivity
from the process

Fairness in
remuneration entails
improvement in
Salary= 2.105 (Publication Quality Index) + 1.754 (Experience in yrs) +53.218
Employee Retention

Extrapolated to Salary Packages offered during Placements at DMS, IIT Delhi Packages offered could
 CGPA Weightage W1 commensurate with
 Work Experience in years Weightage W2 Skills of candidates &
 Certifications like APICS, CFA etc. Weightage W3 not College Brand
 Corporate/ College Competitions Won Weightage W4
 Co-curricular/Extra-curricular achievements Weightage W5 18-03-2018 10
 Internships/Live Projects undertaken Weightage W6 10
PREDICTING EMPLOYEE TURNOVER-FLOWCHART

Image Source :
https://www.inostix.
com/blog/wp-
content/uploads/20
14/02/Slide1.gif

18-03-2018 11
 ANALYTICAL EMPLOYEE CHURN MODEL
Predictor Variable : socio-demographic information (age, marital status ,etc.), income
related information, promotion related information, departmental information, career
development information etc.

Target Variable : Employee Churn

Techniques : linear/logistic regression, decision trees, neural networks, random forest,

random forests, etc.
Employee Churn Model

18-03-2018 12
Image Source : https://www.inostix.com/blog/wp-content/uploads/2014/01/Churn-model.png
CHALLENGES WITH PREDICTIVE TURNOVER ANALYTICS
METRICS

Data Quality
• Right data
• Data cleaning

Satisfying analytical performance criteria

• Accurate and should make statistical sense
• Easily understandable by HR
• Operationally efficient

Making the outcomes actionable

• Prioritization
• Retention campaign

Monitoring the Quality of the Predictive Model

• Dynamic phenomenon
• Continuous update
18-03-2018 13
CHALLENGES

lack of confidence in
Finding the right talent to
adopting HR Analytics
run HR analytics
Insights

Training & Mind-set Casual Benchmarking

Poor data set quality Data Deluge

Currying Executive
Support
18-03-2018 14
 HR ANALYTICS-BEST PRACTICES

Invest in data Help your end

cleansing to Focus data and users Plan for Use a data-
Start with the
correct or analysis on understand how incremental driven business
goal in mind
remove business results to use metrics deployment case
inaccurate data and dashboards

18-03-2018 15