DATA-BASED PERSONNEL WORK
People Analytics
How can HR benefit from this?
Why do people choose a job and decide to work for certain companies? What factors influence individual performance levels and career planning? How does the composition of teams change their efficiency and effectiveness? Why do they work better with some people than others? Why does my employee leave me?
People analytics can help to provide valid answers to these and many other questions. It serves as a tool to better understand the motives and behaviors of people when making decisions.
However, compared to other areas of data collection and analysis, people analytics is often used rather cautiously by companies.
By definition, people analytics is the sound scientific application of quantitative and qualitative analysis methods for the purpose of better decision-making. This does not mean the abolition of human decisions, but rather taking advantage of the interplay between technical intelligence and the human mind (e.g. the essence of the data can provide valid support for a termination decision).
What data types are there?
Structured data in HR
Classic examples are employee master data. This primarily includes demographic data, which is usually recorded manually in internal IT systems. In addition, information on the remuneration model of individual employees is available in a structured form, e.g. salaries, variable and monetary remuneration, special payments, allowances, benefits, etc: Salaries, variable and monetary remuneration, special payments, allowances, bonuses and premiums.
Unstructured data in HR
Unstructured data is widespread in many areas of HR and is not consciously recorded. The visualization of tasks, to-dos and activities in the form of Kanban boards (analogue or digital) is just one example here. Another good example here are skills and competencies that are acquired through a project, for example, and stored in employees' social media profiles.
In addition, data in the form of free texts or personal conversations is classic unstructured data. They are collected in connection with employee surveys or job interviews, for example. The analysis of non-standardized data sets is challenging, but can also offer great potential. If, for example, a need for further development is identified during the job interview, information can be transferred directly to personnel development.
The p78 People Analytics implementation model
The procedure
When companies decide to use existing data in HR or in other key success-relevant areas of the company or to collect additional data in order to systematically evaluate and analyze it and incorporate the findings into decision-making, fundamental prerequisites must be created in advance:
- Data governance
- Active change management
- Creation of a “learning company”
0. create basic conditions
Data Governance
- Data origin and availability
- Data quality
Active change management
Overall, a positive attitude towards working with data must be created. All employees should therefore be involved right from the development phase. Across all departments and hierarchical company levels, the topic of data use must be presented in a positive light.
Learning company
In the future, more complex data analysis requirements will require complex data analysis tools and software. However, it is not only on the analysis side that employees' skills need to develop further. In operations, employees are faced with the new challenge of making decisions based on more complex data analyses.
1. explorative analysis - identify use cases
Set up use case & hypothesis
Data and its systematic analysis provide answers to all kinds of business questions. It is precisely this versatility of people analytics that makes it even more difficult to get started in many cases. Put simply, the question “Where should we start?” often proves to be the first major challenge.
We always recommend the use of practical use cases. Ask your employees about current problems and open questions and then evaluate which of the questions could be answered by using people analytics and thus provide real added value.
2. identification data & analytics method
What is the source of our data?
Identifying relevant data
How is data quality guaranteed?
Data storage and access
What level of data analysis maturity do we use?
Identify analytics methods
3. Definition People Analytics Set-Up
Manpower, skillset & software
The sub-areas that must be available as a basis for the implementation and realization of people analytics include, on the one hand, capacities in terms of manpower and the corresponding skillset and, on the other hand, a suitable software solution
Business partnering model
This model ensures that the IT department continues to design and carry out the analyses. Communication with the HR department takes place via a business partner instance. This translates between the specialist department and the IT department.
Skills & competencies
Of course, the necessary skills and competencies are required. Here it is important to find a suitable mix of qualifications, further training and the acquisition of know-how
General basic understanding
Based on the established corporate culture, structures must be analyzed and, if necessary, optimized in terms of people analytics, for example to enable and promote cross-departmental collaboration.
Communication
All areas and phases of people analytics depend on communication between those involved. Accordingly, communication channels must be created and communication measures and activities must be defined in advance.
4. visualization of the results
How can the results be presented visually?
Dashboards - reduced to the essentials
How and to whom is it communicated / provided?
Complexity and number of findings adapted to the target group, simple and understandable recommendations for action
Your Contact Person
Christoph Grünberg
Division Lead HR Business Consulting
Phone +49 89 / 46 13 23-27
E-Mail hello@projekt0708.com
