ILRHR555: HR Analytics for Business Decisions...Watch: Ask the Expert: Joshua Pascoe on Human Resource Metrics Joshua Pascoe is HR Director of Data and Analytics for the Honeywell

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ILRHR555: HR Analytics for Business Decisions


This course includes

• Two self-check quizzes

• Two discussions

• Five tools to download and

use on the job

• One scored project in multiple

parts

Completing all of the coursework should take

about five to seven hours.

What you'll learn

Explain how and why an organization

uses metrics and analytics

Assess measurement requirements

tied to the organization's needs

Describe the difference between the

strategic and tactical mindsets of

people resources

Assess the maturity of a measurement

system

Describe next steps to improve a

measurement system

Course Description

HR leaders can drive business performance by defining, designing, developing, and delivering initiatives that lead to

competitive advantage through the effective use of people. To succeed, however, they need a solid understanding of the

organization's business drivers and strategic initiatives. This understanding is the foundation of effective HR leadership.


This course focuses on new approaches in "people analytics" for HR professionals, including designing and using an HR

metrics model. You explore differences between tactical and strategic business methods, looking at best practices to

mature a measurement system. You examine frameworks for categorizing and evaluating metrics, and learn to build an

analytical model appropriate to your organizational goals and priorities. With these skills, you can use strategic analytics

both to measure HR's impact and to communicate that impact to other leaders in the organization.

John Hausknecht Associate Professor, School of Industrial and Labor Relations, Cornell University

is an associate professor of human resource studies at Cornell University. He earned his Ph.D. in 2003John Hausknecht

from Penn State University with a major in industrial/organizational psychology and minor in management. He received

the 2004 S. Rains Wallace Award for the best dissertation in the field of industrial/organizational psychology. Professor

Hausknecht's research primarily falls within the domain of staffing and has appeared in the Academy of Management

, and .Journal, Journal of Applied Psychology Personnel Psychology

Start Your Course


Module Introduction: Align HR Analytics with Organizational Needs

A key skill for HR leaders is the ability to align HR analytics to support larger organizational needs. The traditional, tactical

measures used by HR practitioners are changing, so HR leaders must be able to show how people contribute to strategic

goals.

In this module, you cover the first part of strategic HR analytics: assessing and defining measurement needs.

How do you measure the performance of your HR function? If you're like many HR professionals, you measure and

communicate performance using a set of metrics that is significantly different from that used by your colleagues in other

areas of the organization. So although you may be meeting your challenges and goals, colleagues outside of HR may find

it difficult to see how your accomplishments are important or relevant to them. Aligning the "people metrics" with the

organization's strategies clarifies the value HR can provide at a strategic level.

In this module, you look at how and why organizations use metrics, and consider a shift that is occurring in the types of

measures now being adopted. Consider the relationship or lack of relationship between key business metrics and

common HR metrics.

Once you have identified the measures needed, define them with enough information so that they can be used

consistently across the organization.


Watch: Define HR Analytics

our biggest asset have on an-Analytics are changing the way HR professionals quantify the value that people -

organization's ability to compete. In practice, this includes a variety of metrics that cover key HR areas such as

performance management, talent management, compensation, diversity, and learning and development.


Watch: Recognize Changes in HR Measurement

If you've worked in HR for a while, you may wonder if how you measure different dimensions of the HR function has really

evolved. Like other functions, HR is experiencing significant changes due to technological advances and the increased

availability of data. These changes have implications for how HR functions processes are being simplified, some skills are-

no longer needed and new skills are now required, the turnaround time for acquiring data to make decisions is shorter,

and more complex analysis is both possible and expected.


Watch: Apply the LAMP Model

Cascio and Boudreau provide a framework to conceptualize HR measurement: the LAMP model.


Watch: LAMP Model Example


Tool: Assess Measurement Needs

Download the Tool

Measurement Planning Worksheet

The first step in establishing a measurement system, is to assess the needs of the organization. It is most productive to

assess measurement needs with stakeholders who are familiar with the organization's problem or opportunity. To form a

stakeholder team, consider who has the key skills, influence, resources, or other vested-interest in the measurement

system.

The Measurement Planning Worksheet can be helpful when determining measurement needs.

https://s3.amazonaws.com/ecornell/content/ILRHR/ILRHR5552/ilrhr5552_measurement-planning-worksheet_01-01_en-us.pdf


Tool: Map Measurement Needs with Stakeholders

Download the Tool

Measurement Mapping Guide

An organization needs to establish measures in two situations: if they need a measurement system to address broad

organizational needs, or if there is a specific problem or opportunity that requires custom data and analysis.

Broad Measurement Example

Custom Measurement Example

Both situations essentially present a question that needs to be answered using data. When assessing a measurement, it

is helpful to use a measurement mapping guide, available in the link at the top of the page. For either type, writing a

quantified problem or opportunity statement helps to prioritize use of resources and evaluate if interventions have been

successful. A problem statement might include:

Current level of performance

Desired level of performance

Cost or value of closing the gap

Repeat repairs are at 8%, compared to the best regional rate of 3%. Closing this gap through additionalFor example:

training would save $250,000 annually and improve customer loyalty.

https://s3.amazonaws.com/ecornell/content/ILRHR/ILRHR5552/ilrhr555_measurement-mapping-guide_01-02_en-us.docx


Activity: People Metrics Poll

Each organization uses different metrics based on their specific needs. Take a moment now to share the key "people"

metrics your organization uses. Complete the . When you are done, click "see previous responses" toPeople Metrics Poll

review responses from your fellow students.


Watch: Use Standard Metrics

Now you have a better idea of the broad range of HR and "people" metrics that organizations are using. For more metrics

and definitions, check out the glossary on the .SHRM website

It is not a surprise that students in the course defined "headcount" differently. It's also very common for employees in the

same organization to define company metrics differently. To effectively analyze and act upon the data, you need to ensure

that people in your organization share the same standard definitions.

Consider the key points in a process where employees interact with the data: data collection and analysis. The "data

users" may be employees from HR or outside of HR. As you saw from measurement mapping, data are integrated across

an enterprise. If HR's headcount data are unreliable, for example, then a related metric downstream will also be impaired.

Using standard metrics helps the entire system.

Take some time now to explore the different kinds of metrics an organization uses, both inside and outside of the

company. Identify examples that make sense for your measurement map.

http://www.shrm.org/templatestools/samples/metrics/Pages/default.aspx


Watch: Select the Metric Class

With so many different metrics, how do you know which ones to use? Let's look now at different types of metrics and how

they vary. For example, if you have 200 or more metrics available, how do you categorize them in a way that makes

sense? What categorization strategies make it easier to choose and implement metrics effectively? Here are some

approaches that you may find useful.

See below for more examples of common HR metrics.

Compensation Metrics

Organization and Employee Development Metrics

Staffing Metrics


Watch: Get Specific About HR Metrics

When we say "define metrics," we mean more than the dictionary definition, more than just the words describing the

metric. To operationalize the metric, you need enough information about it that qualified employees could collect, record,

and report the data so that you could answer the required questions. Another good test of a "good definition" is this: if

colleagues from another company gave you their definition of a metric for example, "turnover" could you confidently- -

compare your turnover rates to theirs? Or do differences exist that would prevent a valid comparison?

Watch the video to learn more about the attributes you need to define for each metric.


Watch: Use Data and Metrics

Before collecting any data, consider how stakeholders will later use it. Think into the future, when the data is available -

what form should the output data be in to make decision-making easy? Think of graphs, pictures, or tables you could use.

Before someone collects the data and brings it back for analysis, it's good to verify how you want it to look. You might

even review a rough sketch with the stakeholders to confirm that they are getting what they need. Checking early helps

ensure that the resulting data are useful in answering the target questions.

View the video to learn several common uses of data.


Watch: Measurement Map Example

Let's pull it all together now and see how these first steps look, from mapping the needs through defining the metrics.

Listen to the video and review the provided, this time paying attention to page 2 where theMeasurement Mapping Guide

metrics are added. These should help you prepare for the next exercise.

https://s3.amazonaws.com/ecornell/content/ILRHR/ILRHR5552/ilrhr555_measurement-mapping-guide_01-02_en-us.docx

Watch: Ask the Expert: Joshua Pascoe on Human Resource Metrics

Joshua Pascoe is HR Director of Data and Analytics for the

Honeywell corporation. Pascoe previously held positions for Honeywell as Human

Resources Director, HR Director over Global Manufacturing Facilities, and HR Director with

HR Shared Services. Honeywell is a Fortune 100 company that invents and manufactures

technologies to address tough challenges linked to global macrotrends such as safety,

security, and energy. It is headquartered in Morristown, New Jersey, and employs 132,000 people worldwide.

Question Please describe the most common HR metrics tracked by your organization? (E.g., turnover, compensation,

diversity, other.)


Module Introduction: Work with Data

Once you have identified and defined the metrics, it's time to start working with the data. In this module you will learn skills

HR leaders require to work with data, including collecting and analyzing it.

This module covers data collection. You look at characteristics of high-quality data and investigate where you might find it

either inside or outside the organization.-

This module covers analyzing data. Entire courses are devoted to this subject; in this course we stay fairly high-level,

learning some common analysis techniques and some mistakes to avoid when interpreting data.

The data collected are ultimately used to make a decision to spend money, invest, make a change, etc. To make good-

decisions, you must accurately interpret the data.


Watch: Distinguish Good-Quality Data

To have confidence in your analysis and the decisions that will be based on it, good-quality data are critical. Good data

have five characteristics that ensure a measurement system is effective. These characteristics also help you as a leader

as you review analyses from colleagues and decide whether the data do, or do not, justify actions you are considering.

View examples of good- and bad-quality data.


Watch: Determine Data Sources

The next step is to determine where to get the data you need. Before you run off to invest in a new system, assign new

responsibilities to a colleague, or setup a spreadsheet to tally data--consider first that it may not be necessary to establish

a new sources for data. What existing data sources are available that could be leveraged? Talk with stakeholders invested

in the measurement to see what they are aware of. Assess the data quality the source provides and if it would adequately

meet your requirements. Are the processes, systems and people capable or at least good enough to start? View the video

to learn more about data sources and how to overcome barriers to obtaining good quality data.


1.

2.

3.

4.

Activity: Interpreting Data Poll

Test your analytic skills by interpreting the following data.

To complete this activity:

Review the graph located below titled Absenteeism Rate.

Take the following Poll: Interpreting Data.

Click to post your responses.submit

Click the link to Review the interpretations by other students.see previous responses.


Tool: The Purpose of Analysis

Download the Tool

Six Common Mistakes to Avoid When Interpreting Data

Did everyone interpret the data the same way? Ideally, there is little variation in the interpretation of analysis. We find,

however, that all too often people make some assumptions rather than let the data speak for itself.

Refer to the Six Common Mistakes to Avoid When Interpreting Data, available in the link above.

https://s3.amazonaws.com/ecornell/content/ILRHR/ILRHR5552/ilrhr555_6-common-mistakes-to-avoid-when-interpreting-data_01-02_en-us.pdf


Watch: Revisit the Five Uses of Data

Let's revisit the five uses of data provided earlier in the course. This time you will see the supporting graphs and hear the

interpretation. Consider how you might apply these examples to an organization.


Watch: Faulty Analysis Traps Three Examples-

People make some common mistakes when interpreting data. View the videos to learn more.

Example 1: Correlation vs. Cause

Example 2: Interpreting Change

Example 3: Explaining Differences


Watch: Know When to Get Help

Watch: Ask the Expert: Joshua Pascoe on Integrating Data into HR Practices







Question What obstacles have you had to overcome in your journey toward becoming more data driven in HR?


Module Introduction: Strategic Analytics

This module will take a strategic view of HR analytics. You will take the work done in collection and analysis and think

about how you might report and communicate those findings across the organization so that change follows. You will also

look at how to position HR analytics in a more strategic way in the organization.

This module covers reporting findings, including some best practices, tips, and methods for communicating the results of

analytics work.

It is important to collect the data, analyze it, and report it, but you also need to get the attention of those who can drive

change. Call these skills the "table stakes" of the job. One step you can take to capture and keep the attention of your

senior leadership team is to think about people analytics strategically.


Watch: Identify Methods of Reporting

There are several options for communicating findings. Completing an Analytics Communication Plan can be useful as you

determine the methods most effective for the audience and situation.


Watch: Reporting Best Practices


Watch: Presenting Analytics

You can use several models to structure content for a presentation: telling, selling, etc. But if you put yourself in the

position of the listening audience, there's really one best approach.


Watch: Evidence-Based Management

You've seen how seemingly single metrics actually relate to other metrics in a chain. Thinking broadly across a system is

important as you develop a data-driven mindset for an organization. Evidence-based management is one approach that

helps you look at work as a system. In doing this, you may consider more than just one perspective. In the video we

describe four components of an evidence-based approach.


Watch: Think Strategically: Shift from Liability to Asset

You can make tangible changes to be more strategic. Consider this example: if you were to secretly listen to a

conversation of your executive leadership team, would you be more likely to hear comments such as, "HR will have to cut

their budget more," or would you hear comments such as, "Who in the organization has the skill set to do . . . ?" These

comments indicate the mindset of leaders and suggest how they value people resources. This is where you can step up to

help HR make a shift as a strategic partner.

As a champion of the effective use of people resources, one of your responsibilities is to help shift the conversations from

those that regard people as liabilities to those that value people as assets. Tactical metrics such as productivity, cost, and

cycle time have a place in any business, but strategic use of people resources gives a different feel to the metrics used.

What type of metrics does your organization use?

People are a liability if. . .

you hear questions such as. . . and use metrics such as. . .

How effective is the

department?healthcare cost per FTE

How much does the

function cost?ratio of HR to employees

How much has the

department cut costs?cost of HR per employee

What is the target for

productivity savings?training cost per employee

How much is healthcare

cost increasing?cost per hire

How many diverse

candidates are there?

productivity (for example, contacts per employee, cycle

time, volume, defects, etc.)

People are an asset if. . .

you hear questions such as. . . and use metrics such as. . .

Do we have succession plans? time to fill key roles

Where are our best new hires coming from? attrition rates

Why are high performers leaving the organization? revenue factor

How are we rewarding our "best" employees? human capital ROI

Are we retaining the top performers? training ROI


Watch: Create a Vision for Strategic HR Measurement


Watch: Apply the DELTA Model

There are a few models that may be helpful as you begin to think more strategically. View this video for one such example

and to hear how one current, high performing organization, has applied this model to their work.


Tool: Assess Measurement System Maturity

Download the Tool

Measurement Maturity Checklist

Another useful model is one leveraged from the software development field: the capability maturity model. We can apply

the same concept to any process, or in this case to a measurement system, as a way to identify where to focus

improvements to the system. The Measurement Maturity Checklist can help you assess your measurement system.

https://s3.amazonaws.com/ecornell/content/ILRHR/ILRHR5552/ilrhr555_measurement-maturity-checklist_01-04_en-us.doc


Watch: Predictions for Future Trends in People Analytics

Take a few minutes to consider what the future may hold for the practice of collecting and using HR analytics.

Watch: Ask the Expert: Joshua Pascoe on Predictive Analytics







Question Companies are trying to supplement (backward-looking) metrics with (future-oriented) predictive analytics. Can you provide an example of a situation where you benefited from taking this longer-term view?


Watch: Course Wrap-Up

The following additional resources may be helpful as you work with data and analysis:

, Stephen Few, 2008, ISBN-10: 0596100167, O'Reilly Media Inc.Information Dashboard Design

, Ron Person, 2013, ISBN-10: 1118519655,Balanced Scorecards & Operational Dashboards with Microsoft Excel

John Wiley & Sons Inc.

, Edward R. Tufte, 2001, ISBN-10: 0961392142, Graphics Press.The Visual Display of Quantitative Information


Stay Connected

John Hausknecht

Associate Professor

Cornell University, ILR School

Center for Advanced Human Resource Studies (CAHRS)

Email: [email protected]

Web: http://www.ilr.cornell.edu/directory/jph42/

Continue the conversation with us: The HR Blog at eCornell.

http://www.ilr.cornell.edu/

http://cahrs.ilr.cornell.edu/

http://www.ilr.cornell.edu/directory/jph42/

http://thehrblog.ecornell.com/

Documents

ILRHR555: HR Analytics for Business Decisions...Watch: Ask the Expert: Joshua Pascoe on Human Resource Metrics Joshua Pascoe is HR Director of Data and Analytics for the Honeywell