W4: Human Capital Analytics Technology: Understanding Multiple Stakeholder Perspectives Edward Houghton Matthew Naudi CIPD’s Research Advisor for Human Capital Metrics Chief Group HR Manager Allied Group and Standards
Human Capital Analytics Technology Understanding Multiple Stakeholder Perspectives
Our purpose ...by improving practices in people and organisation Championing development... better work and working ...for the benefit of lives... individuals, businesses, economies and society. 3
Three new analytics reports The CIPD perspective • What is HR analytics? • What is does theory and practice evidence say? • What can be done to improve?
Section 1: What is HR analytics and how does it relate to evidence?
What is HR analytics? A group of 18 practices which are A number of analytics used by organisations to measure the processes for analysing HR workforce (Falletta, 2014) data (Harris et al, 2011) An evidence-based approach for A way to measure and monitor making better decisions on the people individual performance (Mondare side of business and consists of an et al, 2011) array of tools and technologies, ranging from simple reporting of HR metrics all Process using statistical techniques linking the way up to predictive modelling HR practices to organisational performance (Bassi, 2011) (Lawler et al, 2004)
A comprehensive definition… “HR analytics consists of a number of processes, What is enabled by technology, that use descriptive, visual and statistical methods to interpret people data HR and HR processes. These analytical processes analytics? are related to key ideas such as human capital, HR systems and processes, organisational performance, and also consider external benchmarking data” (Marler and Boudreau 2017). 7 Ref: Centre for Evidence Based Management: www.cebma.org
What is evidence? What is Why do evidence? we need it? Evidence in management comes 4 To make better decisions: “evidence- recognised forms: based decision making is the use of 1. Outcomes of scientific research critically appraised evidence from 2. Organizational data and analytics multiple sources to increase the 3. Professional judgement and experience likelihood of a favourable outcome .” 4. Stakeholders’ values and concerns 8 Ref: Centre for Evidence Based Management: www.cebma.org
Section 2: How does HR practice use analytics and evidence?
We use different types of evidence at work… • Advice from colleagues • Intuition • Management literature • Results from scientific research • Data, facts and figures • Judgement of other experienced people • Insights from external experts (consultants) • Values and concerns of people affected by the decision • Personal experience • Knowledge from formal education
How do YOU use evidence at work? • Turn to the person next to you and discuss which of these evidence types you use at work each day: Advice from colleagues Judgement of other experienced people Intuition Insights from external experts (consultants) Management literature Values and concerns of people affected by the decision Results from scientific research Personal experience Data, facts and figures Knowledge from formal education • Which are MORE frequently used by HR? • Which are LESS frequently used by HR?
HR using different types of evidence Reference: CIPD HR Outlook Winter 2017
Section 3: Understanding multiple perspectives
The HR profession needs to improve HR Non-HR How satisfied are your How satisfied are you internal stakeholders with the analytics HR with HR analytics? provides? Reference: CIPD HR Outlook Winter 2015
What business users need… Corporate Trust alignment Tech Agility mobility Reference: SAP Analytics 2017
Section 4: How to improve
Barriers for improved analytics practice
Recommendations for improving analytics practice 1. Articulate the importance of human capital, social capital and intellectual capital through analytics. 2. Invest in high quality benchmarking studies which follow robust academic methods 3. Improve empirical evidence of the impact and risks of people analytics 4. Build human capital into the future people profession’s body of knowledge
Thanks Any questions?
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