AI IN HUMAN RESOURCE MANAGEMENT
Module 4
AI in HR analytics, People analytics, SMART HRM (Part-2)
Lecture 1
HR Analytics
Dr . Abraham Cyril Issac
Assistant Professor
School of Business
Indian Institute of Technology Guwahati
Prof. Jac Fitz-enz
➢ Known as the father of HR Analytics
➢ He pioneered initiatives like developing
HR metrics to evaluate HR activities in
1978 and introducing HR benchmarking
in 1985
➢ focused on setting the standard for best
HR practices.
What is HR Analytics?
➢ A blend of art and science.
➢ Combines different sources, such as surveys,
records, and operations, to create an actionable
view of current situations and potential futures.
➢ An evidence-based approach leads to more
informed decision-making.
Example: Upgrading the criteria for a job
recruitment based on the insights from analysis.
Differences…..
Size and shape of the
Workplace workforce
Analytics
How HR performs
HR People
Analytics Analytics
How people impact the
business
Talent Analytics
Finding, developing, and
nurturing talented people
Types of HR Analytics
Prescriptive (What should you do about it?)
Offers actionable recommendations and strategies
Predictive (What will happen and why?)
Utilizes current and past data to forecast future outcomes
Diagnostic ( What is happening now and why?)
Investigate patterns and determine underlying causes
Descriptive (What happened?)
Identifies and explains patterns in current and historical data
Data Analysis Levels
Display Model
Use statistical
Create or other
Present data Identify
predictive analytical
Gather data by category significant
models to link methods to
in a database to identify external and
individuals, assess the
and ensure visible internal factors
policies, accuracy and
its accuracy patterns and influencing the
processes, and effectiveness of
relationships organization.
outcomes. the predictive
model.
Organize Relate Evaluate
Descriptive Predictive Prescriptive
Job Design ( Tailor job roles)
Training Compensation
(Adaptive and (Decisions about salaries and
customized pay equity)
learning) Applications
Performance
Recruitment management
(To attract qualified (Set realistic goals, track
candidates) progress, and provide
feedback)
Talent Acquisition
(Best fit for the job)
Advantages of HR Analytics
Data-driven decisions enhance accuracy and lessen reliance on intuition.
A deeper understanding of employee behavior can lead to better strategies for
retention and engagement.
Recruitment and hiring can be customized to meet organizational needs by
analyzing current and potential employee data.
Advantages of HR Analytics Cont.…
HR analytics can streamline processes, resulting in cost savings in
recruitment, training, and turnover.
Measuring HR initiative effectiveness allows professionals to show the return
on investment (ROI) and justify their value to leadership.
Predictive analytics can forecast HR trends and patterns, enabling proactive
actions.
Disadvantages of HR Analytics
Limited statistical and analytical skills within HR departments can impede
the analysis of large datasets.
Varied management and reporting systems can complicate data comparison.
Restricted access to high-quality data and analytical tools may pose challenges,
and increased data collection can raise ethical concerns.
Inaccurate or incomplete data can result in misleading outcomes, making it
essential to ensure data accuracy across HR systems.
Metrics measured by HR Analytics
• Percentage of employees who leave the organization
Turnover • (Number of terminations during period / Number of
employees at beginning of period) X 100
• Cost to recruit an employee.
Cost per hire • (Internal costs + External costs) / Total No.of hires
• Regularly not showing up at work without a valid
Absenteeism reason or notice.
• (Number of absent days / Total working days) X 100
Metrics measured by HR Analytics Cont.
Revenue per • Average revenue generated per employee
employee • Total revenue / total No.of employees
• Percentage of employees stayed in organization.
Retention rate • (No.of employees who stayed / Total No.of
employees) X 100
Offer • Rate of offer acceptance in organizations
acceptance • (No.of offers accepted / No.of offer made) X 100
rate
LAMP Framework
1 Logic (What are the vital connections?)
❖To find valuable insights by linking data points and make better decisions
2 Measures (Getting the numbers right)
❖Good analytics systems ensure that measurements align with your
organization's specific needs and provide accurate data
3 Analytics (Finding answers in the data)
❖Allows to explore the connections between data points and get meaningful insights
4 Process (Making insights motivating and actionable)
❖Change management involves using HR analytics to guide decisions and
improvements within an organization
Case Study
Coca-Cola Enterprises (CCE) and HR Analytics
Background
➢ In 2010, Coca-Cola Enterprises (CCE) initiated an HR analytics journey to
centralize HR reporting across global operations.
➢ The goal was to establish a robust data analytics program to enhance decision-
making and provide sophisticated insights beyond basic reporting.
Key Steps
Foundation Building
➢ Automated basic descriptive reports, reducing manual tasks by 70%
➢ Allowed the team to focus on more valuable analytics
Case Study
Coca-Cola Enterprises (CCE) and HR Analytics
Key Steps Cont.
Advanced Reporting
➢ Introduced an “Out-of-the-box” system for standard metrics and descriptive
analytics
Consultative Approach
➢ Partnered closely with HR to uncover insights and identified correlations between
managerial communication and business outcomes.
Capability Development
➢ Focused on building internal analytics capabilities with HR and ensured
continued delivery of high-quality insights
Case Study
Coca-Cola Enterprises (CCE) and HR Analytics
Outcomes
❖Successfully transitioned from basic reporting to advanced analytics
❖Enabled data-driven HR practices, improving employee engagement,
retention, and overall business performance
❖Overcame obstacles like resource constraints and traditional views of
HR as non-analytics
❖Established HR analytics as a critical component of CCE’s business
strategy
Email: issacac@iitg.ac.in|yourcyril@gmail.com
Website: www.abrahamcyrilissac.com
