EdgeNetworksExpert Speak Part 1 | Don’t be Joey! Know these HR Analytics terms

Part 1 | Don’t be Joey! Know these HR Analytics terms

How many times have you found yourself just nodding away in a meeting, because you don’t really know what the others are talking about?

Don’t these situations remind you of that unforgettable scene from F.R.I.E.N.D.S. (Watch this video, it’s hilarious!) with Joey bravely pretending to be in the know!

We don’t want you to feel like Joey!

So we thought we’ll explain a few of the important HR Analytics terms this week, so you can contribute knowledgeably in your next meeting. And, we’ll be back with some more next week…

Predictive Analytics

What it is
Predictive analytics is making statistics-backed predictions for the future, by analyzing current or historical data. Predictive analytics are hugely popular in fields like genetics, economics etc. It can help HR leaders make better predictions on future hiring and recruitment needs by analysing data like current age and skill sets of employees; business growth and attrition rate.
What it does
Predictive Analytics plays a huge role in mitigation and having a plan B ready in case of an HR emergency. It can help predict probable scenarios when your company suddenly needs to hire a number of employees; or when people are most likely to leave.

Data Management

What it is
Data management refers to designing policies, practices and procedures to manage information. Data Management can be split into three stages:
1. Data design- it refers to the way data is structured and organised
2. Data storage- it refers to the different ways in which data can be stored- in hard drives, RAM storage or the cloud.
3. Data security- It refers to keeping data safe from thefts and having a back up ready in case of technical glitches.

What it does
For HR teams dealing with vast amounts of structured and unstructured data found in CVs and employee profiles, Data Management helps save a lot of time in extracting and analysing this data by structuring it well in advance. It also makes employee data easily accessible by storing it at a central place. Since HR teams usually work with very sensitive pieces of employee data, data management also plays the crucial role of keeping data safe.

Business Intelligence

What it is
The simplest way to explain business intelligence would be making the effective use of data and information to make well informed, sound and viable business decisions. In includes various elements like data quality and interpretation, data mining, data analysis and reporting.

What it does
Business intelligence in HR can help make the right hiring and letting go decisions which are backed by data and not pre- conceived notions. For example- A first look at the resume of a candidate may reflect instability and bad work ethics if he has changed jobs too frequently. However, in reality, it could have been external economic factors, personal family reasons or other reasons that may have influenced his/ her decision. The candidate could be a perfect fit for the current role. Here, Business Intelligence would play a major role in making an information backed decision.

Workforce Analytics

What it is
Workforce Analytics allows people to find meaningful trends and patterns in employee related data. The inferences could be based on basic information on, for instance, the skill set of employees, interests and hobbies, tenure served at previous jobs, amongst others. It’s an intricate process that involves compilation, manipulation and analysis of data.

What it does
Workforce Analytics help optimise Human Resource Management (HRM) by helping HR leaders develop new and efficient recruiting methods, making better HR decisions and retain the best talent in the organisation. Imagine giving Chandler, good at analytical skills and a spreadsheet ninja, a role that makes the best use of his skills.

Let’s explain it with another example- There are a lot of times when a number of vacancies in an organisation are filled by hiring new people. Workforce Analytics can help reduce external hiring by analysing the skill sets of existing employees. The employee who is very good at crunching numbers could also be very good at making presentations. A new job role which is of interest to an existing employee will add to his enthusiasm and also benefit the organisation by reducing external hiring.

Let us know what you think of this article. If you want us to explain some terms, leave a comment below…

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