MOD 4 SLP Assignment

Module 4 - Background

PEOPLE/PREDICTIVE ANALYTICS

Required Materials

Morgan, J. (2016). People analytics: A new way to make decisions in the workplace. Retrieved from  https://www.youtube.com/watch?v=EZqKsOoA8tw.  Standard YouTube license.

KnowledgeAtWharton. (2015). What’s behind the surge of interest in people analytics? Retrieved from  https://www.youtube.com/watch?v=9Xyd2gnQaP8

HR Metrics

More and more organizations are collecting data about employees and analyzing the data in an effort to make better employee-related decisions.

HR metrics and the use of balanced scorecards and other performance measurement systems provide the decision-making capacity to influence business strategy, which in turn transforms HR into strategic partners with the business.

The Society for Human Resource Management (SHRM) has identified key human capital measurements that are critical to evaluating HR performance:

Revenue Factor:

Revenue/Total Full-Time Employees

Human Capital Value Added:

(Revenue – Operating Expense – Compensation & Benefit Cost)/Compensation & Benefit Cost

Total Compensation Revenue Ratio:

Compensation & Benefit Cost/Revenue

Labor Cost Revenue Ratio:

(Compensation & Benefit Cost + Other Personnel Cost)/Revenue

Training Investment Factor:

Total Training Cost/Headcount

Cost per Hire:

(Advertising + Agency Fees + Recruiter’s Salary/Benefits + Relocation + Other Expenses)/ Operating Expenses

Health Care Costs per Employee:

Total Health Care Costs/Total Employees

Turnover Costs:

Termination Costs + Hiring Costs + Training Costs + Other Costs

These measurements then can be compared to the same organization’s past performance as well as to the performance of other companies.

HR professionals sometimes also track:

· How satisfied are employees with their jobs?

· How satisfied are employees with their supervisors?

· What is the time to fill job openings (the period from job requisition approval to new-hire start date)?

· What is the length of employment (by job title, department; from employment start date to employment end date)?

· What is the number of days the positions were vacant (vacant period)?

· What is the new-hire performance level (average performance appraisal of new hires, compared to previous period)?

· What is the manager satisfaction level (survey of hiring managers, compared to previous period)?

· What is the turnover rate of new hires (during a specified period)?

· What is the financial impact of bad hires (comparing turnover cost and cost per hire)?

· What is the preventable turnover (the reasons the employee left and what measures may be taken to prevent it)?

· What Is the diversity turnover (turnover rate in professional, managerial, and technical positions)?

· Learning and Growing Opportunities (percentage of employees who are satisfied with the learning and growth opportunities in the organization).

· On-the job learning (percentage of employees who are satisfied with on-the-job learning, projects assignments for growth, and development and job rotation).

The above metrics will help managers make better decisions concerning:

· Types of training, for which segments of the workforce will yield the best results.

· Actions to take to help reduce absenteeism.

· Actions to take to reduce turnover and what retention efforts to implement.

· Optimal mix of reward programs to boost employee engagement to help drive stronger financial performance.

· Opportunities for New Hires (percentage of employees who report training opportunities among the top three reasons they accepted the job).

Source for the above: Suman, B. Metrics for human resource management. (2011). Education, Business, Technology. Slideshare.net presentation.

PeopleMatttersOnline. (2016). Top trends in HR analytics. Retrieved from  https://www.youtube.com/watch?v=NV9GIB5JwDM.

Firing Line with Bill Kutik. (2016). Top analyst Holger Mueller predicts the future of predictive analytics for HR. Retrieved from  https://www.insidehr.com.au/what-percentage-people-create-most-value/

Required Reading

Brockbank, W. (2017). What percentage of your people create 90 percent of the value? Inside HR. Retrieved from  https://www.insidehr.com.au/what-percentage-people-create-most-value/

Lawler, E. E. (2017). Reinventing talent management: principles and practices for the new world of work. Retrieved from ProQuest, Ebook Central in the Trident Online Library.

Ward, D. (2017). Big data helps workers thrive: A Q & A with Jenny Dearborn. HR Magazine. Retrieved from  https://www.shrm.org/hr-today/news/hr-magazine/1117/Pages/big-data-helps-workers-thrive-jenny-dearborn.aspx

Optional Reading

Albrecht, C., Gardner, T., Allred, S., Winn, B., & Condie, A. (2016). To sit at the table, you have to know the language: Important financial metrics for HR directors. Strategic HR Review, 15(3), 123-128. Retrieved from ProQuest in the Trident online library.

Du Plessis, A.,J., & Fourie, L. D. W. (2016). Big data and HRIS used by HR practitioners: empirical evidence from a longitudinal study. Journal of Global Business and Technology, 12(2), 44-55. Retrieved from ProQuest in the Trident Online Library.

Feffer, M. (2014). HR moves toward wider use of predictive analytics. Retrieved from  https://www.shrm.org/ResourcesAndTools/hr-topics/technology/Pages/More-HR-Pros-Using-Predictive-Analytics.aspx

hiQ People Analytics Podcast (2016). Retrieved from  https://player.fm/series/hiq-people-analytics-podcast

HR Happy Hour (2017). We’re Only Human 13--Calculating the ROI of Human Resources. Podcast retrieved from  https://player.fm/series/hr-happy-hour/were-only-human-13-calculating-the-roi-of-human-resources  (also visit  https://www.h3hrhappyhour.net/  and/or  https://player.fm/podcasts/Human-Resources  for other topics related to HR)

Note:

If you have an interest in learning more about Human Resource Information Systems (HRIS) please review the following optional materials:

Anitha, J., & Aruna, M. (2013). Adoption of Human Resource Information System in Organizations. SDMIMD Journal Of Management, 4(2), 5-15. Retrieved from EBSCO in the Trident online library.

Gregg Learning. (2016). Introduction to HRIS. Retrieved from  https://www.youtube.com/watch?v=GP9DKNtcDOs. 

PcC. (2017). What’s now and what’s next in human resources technology? Download from  https://www.pwc.com/us/en/hr-management/technology/global-hr-technology-survey.html.

Sabrina Jahan, S. (2014) Human Resources Information System (HRIS): A Theoretical Perspective. Journal of Human Resource and Sustainability Studies, 2, 33-39. Retrieved from the Trident online library.

Sadiq, U., Khan, A. F., Ikhlaq, K., & Mujtaba, B. G. (2012). The impact of information systems on the performance of human resources department. Journal of Business Studies Quarterly, 3(4), 77-91. Retrieved from ProQuest in the Trident Online Library.

WorldatWorkTV. (2015). Implementing a New HRIS System: Challenges and Benefits Retrieved from  https://www.youtube.com/watch?v=RxoUj6HiNbY.  Standard YouTube license.