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Module 1

The document outlines the significance of HR decision-making and HR analytics in organizations, emphasizing their role in improving business performance, employee satisfaction, and competitive advantage. It details the steps to implement HR analytics, including defining objectives, securing leadership support, and utilizing data-driven insights for strategic workforce planning. Additionally, it highlights the importance of ethical considerations and continuous improvement in HR practices.

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Abra Ameer
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0% found this document useful (0 votes)
3 views

Module 1

The document outlines the significance of HR decision-making and HR analytics in organizations, emphasizing their role in improving business performance, employee satisfaction, and competitive advantage. It details the steps to implement HR analytics, including defining objectives, securing leadership support, and utilizing data-driven insights for strategic workforce planning. Additionally, it highlights the importance of ethical considerations and continuous improvement in HR practices.

Uploaded by

Abra Ameer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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310 DE4d.6 Human
Module No. 1: HR Decision-making and HR Analytics 10

Resource Analytics
Introduction – HR decision making – importance and significance of HR
analytics – benefits of HR analytics – Steps to implement HR analytics –
HR analytics and changing role of HR managers
– aligning human resources to business through HR analytics – HR
analytics framework and
models – LAMP Framework.
What is HR Decision Making?

 HR decision-making is the process of making


informed choices about human resources within an
organization. It involves a systematic approach to
evaluating options and selecting the best course of
action to achieve specific HR objectives.
 These objectives can range from attracting and
retaining top talent to improving employee
engagement and fostering a positive work
environment.
Key Aspects of HR Decision Making:

Strategic
Alignment
Data-Driven
Approach
Continuous
Improvement
Ethical
Considerations
Key Aspects of HR Decision Making:

Strategic HR decisions should be closely aligned


Alignment with the overall business strategy. This
means that HR initiatives and programs
should support the organization's goals
and objectives
Effective HR decision-making relies heavily
Data-Driven on data analysis. HR professionals should use
Approach data to understand workforce trends, identify
areas for improvement, and evaluate the
effectiveness of HR programs
Key Aspects of HR Decision Making:

HR decision-making is an ongoing process.


Continuous HR professionals should regularly review and
Improvement
refine their decisions based on feedback, new
information, and changing business needs

Ethical Ethical considerations are crucial in HR


Consideration decision-making. Decisions should be
s fair, equitable, and compliant with all
relevant laws and regulations.
Importance of Effective HR Decision Making

Improved Business
Performance
Enhanced Employee
Satisfaction

Competitive Advantage

Reduced Costs
Importance of Effective HR Decision Making

Improved Business
Performance
Well-informed HR decisions can significantly impact
an organization's bottom line. By attracting and
retaining top talent, improving employee engagement,
and optimizing HR processes, organizations can
enhance productivity, innovation, and overall business
performance
Importance of Effective HR Decision Making
Enhanced Employee
Satisfaction
 Effective HR decision-making can lead to increased
employee satisfaction and engagement. When
employees feel valued, supported, and empowered,
they are more likely to be productive and committed
to their work.
Importance of Effective HR Decision Making

Competitive Advantage

 In today's competitive business environment,


organizations that effectively manage their human
capital have a significant advantage. By making
data-driven decisions about their workforce,
organizations can gain a competitive edge in the
marketplace.
Importance of Effective HR Decision Making

Reduced Costs

 Effective HR decision-making can help


organizations reduce costs associated with
recruitment, training, turnover, and other HR-related
expenses. For example, by investing in employee
development programs, organizations can reduce
turnover and improve employee retention.
Introduction to HR Analytics

 HR Analytics is the process of collecting,


analyzing, and interpreting HR data to
improve workforce decision-making and
organizational performance. It is also known
as People Analytics or Talent Analytics. HR
Analytics involves leveraging statistical
tools, machine learning, and data
visualization to uncover insights about
employees and organizational trends.
How HR Analytics Works?

Data Collection

Decision Data
-Making: Analysis:

Insight
Generation:
How HR Analytics Works?
Gathering data from HR
systems, surveys,
Data Collection performance metrics,
attendance logs, and
payroll systems.
How HR Analytics Works?
Gathering data from HR
systems, surveys,
Data
performance metrics,
Analysis: attendance logs, and
payroll systems.
How HR Analytics Works?
Deriving actionable
insights from analyzed
data (e.g., identifying
Insight
attrition risks or skill
Generation: gaps).
How HR Analytics Works?
Deriving actionable
insights from analyzed
Decisio
n- data (e.g., identifying
Making
:
attrition risks or skill
gaps).
Importance of HR Analytics

Enhanced
Improved Decision-
Cost Optimization Recruitment and
Making
Talent Acquisition

Improved
Employee Performance
Employee
Retention Management
Engagement

Enhancing
. Strategic Diversity and Learning and
Workforce Planning Inclusion (D&I) Development
(L&D)

Measuring ROI on
HR Initiatives
Importance of HR Analytics

Improved Decision-Making

Cost Optimization
HR Analytics eliminates reliance on
Enhanced
Recruitment and
Talent Acquisition
Employee
Retention
intuition by providing data-driven insights.
Improved
Decisions regarding hiring, promotions, or
Performance
Management
Employee
Engagement training are backed by factual data.
. Strategic
Workforce
Diversity and
Inclusion (D&I)
For example, companies like Google use
Planning

Enhancing analytics to assess what makes a good


Learning and Measuring ROI on
Development
(L&D)
HR Initiatives manager (Project Oxygen).
Importance of HR Analytics

Cost Optimization

Enhanced
HR Analytics identifies areas of inefficiencies,
Employee
Recruitment and
Talent Acquisition
Retention such as high turnover, excessive overtime, or
Performance
Improved underutilized training budgets.
Employee
Management
Engagement By analyzing this data, companies reduce costs
. Strategic
Workforce
Diversity and and optimize resource allocation.
Inclusion (D&I)
Planning
Example: IBM Watson predicts employee attrition,
Enhancing
Learning and
Development
Measuring ROI on
HR Initiatives
allowing the company to implement retention
(L&D)
strategies and save turnover costs.
Importance of HR Analytics
Enhanced Recruitment and Talent
Acquisition

HR Analytics improves hiring processes by


Employee
analyzing:
Retention
The best-performing recruitment channels.
Performance
Improved
Employee
The success rates of past hires based on job
Management
Engagement
performance.
. Strategic
Workforce
Diversity and
Inclusion (D&I)
Predictive tools help forecast a candidate’s
Planning

Enhancing
suitability for a role by analyzing attributes like
Learning and
Development
Measuring ROI on
HR Initiatives skills, personality traits, and experience.
(L&D)
Example: Unilever uses AI-driven analytics to
streamline candidate assessment, improving both
speed and quality in recruitment
Importance of HR Analytics

Employee Retention
HR Analytics helps understand why employees
leave (attrition) and predicts who is likely to
leave.
Improved
Organizations can address these issues
Performance
Management
Employee
Engagement proactively through better engagement, career
. Strategic
Diversity and
development, and compensation strategies.
Workforce
Planning
Inclusion (D&I)
Example: IBM uses predictive analytics to identify
Enhancing
Learning and Measuring ROI on employees at risk of leaving, saving costs and
Development HR Initiatives
(L&D) reducing turnover rates.
Importance of HR Analytics
Performance
Management
HR Analytics helps track employee performance
using Key Performance Indicators (KPIs).
It identifies top performers, enables timely
recognition, and highlights employees needing
Improved
Employee
Engagement
additional support.
. Strategic
Example: Analytics tools analyze team
Diversity and
Workforce
Planning
Inclusion (D&I) productivity to recognize employees who deliver
Enhancing
Learning and Measuring ROI on
consistent results.
Development HR Initiatives
(L&D)
Importance of HR Analytics
Improved Employee
Engagement

By analyzing employee feedback, engagement


surveys, and sentiment analysis, HR Analytics
helps identify areas that impact morale.
It helps organizations design initiatives that
improve employee satisfaction and work culture.
Example: Microsoft conducted sentiment analysis
. Strategic
Workforce
Diversity and to address work-life balance issues, leading to
Inclusion (D&I)
increased employee satisfaction.
Planning

Enhancing
Learning and Measuring ROI on
Development HR Initiatives
(L&D)
Importance of HR Analytics

Strategic Workforce Planning

HR Analytics forecasts future workforce needs


based on:
Business goals (e.g., expansion or cost-cutting).
Emerging skill requirements (e.g., demand for
Diversity and data scientists or AI specialists).
Inclusion (D&I)
Example: Deloitte uses analytics to map
Enhancing
Learning and
Development
Measuring ROI on
HR Initiatives
workforce skills against future needs and identify
(L&D)
gaps.
Importance of HR Analytics

Diversity and Inclusion (D&I)

HR Analytics tracks diversity metrics across job


roles, departments, and hierarchies.
It helps identify bias in recruitment or promotions
and ensures fair representation.
Example: PepsiCo used HR Analytics to track
diversity statistics and implement leadership
Enhancing
Learning and
Development
Measuring ROI on
HR Initiatives
programs for women.
(L&D)
.
Importance of HR Analytics
Enhancing Learning and Development
(L&D)

HR Analytics evaluates the effectiveness of


training programs by measuring improvements in
employee performance and ROI.
Example: Analyzing pre- and post-training
productivity scores to gauge program success.

Measuring ROI on
HR Initiatives
Importance of HR Analytics
Measuring ROI on HR
Initiatives

HR Analytics quantifies the success of HR


practices like wellness programs, flexible work
policies, and upskilling initiatives.
Helps justify investments in HR activities to
organizational leadership.
Steps to Implement HR
Define Objectives and Goals
Analytics
Secure Leadership Support
Build a Skilled HR Analytics
Team
Gather and Consolidate Data
Select the Right Tools and
Technology
Define Key Metrics and KPIs
Develop Analytical Models
Interpret and Visualize Data
Implement Actionable Insights
Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals Identify Business Problems: Start by
understanding the organization's goals and
Secure Leadership Support identifying the specific HR challenges that
Build a Skilled HR Analytics analytics can address, such as turnover,
Team recruitment efficiency, or employee
Gather and Consolidate Data engagement.
Select the Right Tools and Set Measurable Objectives: Establish
Technology clear, measurable goals to ensure
Define Key Metrics and KPIs alignment with organizational
priorities. For example, reducing turnover
Develop Analytical Models by 10% or improving time-to-hire by 15%.

Interpret and Visualize Data


Implement Actionable Insights
Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals
Secure Leadership Support
Build a Skilled HR Analytics
Team
Gather and Consolidate Data Communicate Value: Demonstrate how HR
Select the Right Tools and analytics will contribute to the
organization's success, using examples
Technology or case studies.
Define Key Metrics and KPIs Allocate Resources: Ensure management
provides the necessary budget,
Develop Analytical Models
technology, and personnel to support
Interpret and Visualize Data analytics initiatives.

Implement Actionable Insights


Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals
Secure Leadership Support
Build a Skilled HR Analytics
Team
Gather and Consolidate Data Assemble Experts: Create a team with
Select the Right Tools and expertise in HR, data analytics,
Technology statistics, and business strategy.
Define Key Metrics and KPIs Upskill HR Staff: Provide training to HR
professionals on data interpretation,
Develop Analytical Models statistical tools, and visualization
techniques.
Interpret and Visualize Data
Implement Actionable Insights
Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals
Secure Leadership Support
Build a Skilled HR Analytics Identify Data Sources: Determine where HR
Team data resides, such as HRIS (Human
Gather and Consolidate Data Resource Information System), payroll
Select the Right Tools and systems, and employee feedback
tools.
Technology Data Integration: Integrate data from
Define Key Metrics and KPIs various sources into a centralized system
to ensure consistency and accessibility.
Develop Analytical Models
Interpret and Visualize Data Data Cleaning: Ensure the data is
accurate, complete, and free of
Implement Actionable Insights duplicates or inconsistencies.
Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals
Secure Leadership Support
Build a Skilled HR Analytics
Team HR Analytics Software: Choose tools that
Gather and Consolidate Data fit the organization's needs, such as
Select the Right Tools and predictive analytics software,
dashboards, or visualization tools
Technology (e.g., Tableau, Power BI, or SAP
Define Key Metrics and KPIs SuccessFactors).
Scalability: Ensure the tools can handle
Develop Analytical Models
growing data needs as the organization
Interpret and Visualize Data expands.

Implement Actionable Insights


Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals
Secure Leadership Support
Build a Skilled HR Analytics
Team
Gather and Consolidate Data Align with Goals: Identify key
Select the Right Tools and performance indicators (KPIs) that
align with organizational objectives,
Technology such as turnover rate, employee
Define Key Metrics and KPIs satisfaction, or cost-per-hire.
Benchmarking: Use industry
Develop Analytical Models
benchmarks to compare performance
Interpret and Visualize Data and identify gaps

Implement Actionable Insights


Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals
Secure Leadership Support
Build a Skilled HR Analytics
Team
Gather and Consolidate Data Descriptive Analytics: Analyze historical
Select the Right Tools and data to understand past trends.
Predictive Analytics: Use statistical models
Technology to predict future outcomes, such as
Define Key Metrics and KPIs attrition risks or training needs.
Develop Analytical Models Prescriptive Analytics: Provide
recommendations based on data insights
Interpret and Visualize Data to optimize HR processes.

Implement Actionable Insights


Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals
Secure Leadership Support
Build a Skilled HR Analytics
Team
Gather and Consolidate Data Dashboards: Create interactive
Select the Right Tools and dashboards for real-time data monitoring.
Visualization: Use charts, graphs, and
Technology other visual aids to make complex data
Define Key Metrics and KPIs understandable.
Develop Analytical Models Storytelling: Present data insights in a
compelling narrative that highlights their
Interpret and Visualize Data implications for HR and business strategies

Implement Actionable Insights


Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals
Secure Leadership Support
Build a Skilled HR Analytics
Team
Gather and Consolidate Data Develop Strategies: Use insights to create
Select the Right Tools and targeted HR strategies, such as retention
Technology plans or recruitment campaigns.
Define Key Metrics and KPIs Collaborate Across Teams: Work with other
departments to implement initiatives
Develop Analytical Models and measure their impact.
Interpret and Visualize Data
Implement Actionable Insights
Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals
Secure Leadership Support
Build a Skilled HR Analytics
Team
Gather and Consolidate Data
Select the Right Tools and Track Progress: Continuously monitor KPIs
and assess the effectiveness of
Technology implemented strategies.
Define Key Metrics and KPIs Iterative Improvements: Adjust strategies
based on feedback and evolving business
Develop Analytical Models
needs.
Interpret and Visualize Data
Implement Actionable Insights
Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals
Secure Leadership Support
Build a Skilled HR Analytics
Team
Gather and Consolidate Data
Select the Right Tools and Data Security: Implement robust security
Technology measures to protect employee data.
Regulatory Compliance: Adhere to legal
Define Key Metrics and KPIs
requirements, such as GDPR or CCPA, to
Develop Analytical Models avoid penalties and maintain trust.

Interpret and Visualize Data


Implement Actionable Insights
Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Steps to Implement HR
Analytics
Define Objectives and Goals
Secure Leadership Support
Build a Skilled HR Analytics
Team Promote Awareness: Encourage
Gather and Consolidate Data employees and managers to embrace
Select the Right Tools and data-driven decision-making.
Technology Continuous Learning: Provide ongoing
Define Key Metrics and KPIs training and updates on analytics tools
and techniques.
Develop Analytical Models Celebrate Successes: Share success
stories to build confidence and reinforce
Interpret and Visualize Data the value of HR analytics.
Implement Actionable Insights
Monitor and Evaluate Outcomes
Ensure Data Privacy and
Compliance
Foster a Data-Driven Culture
Changing Role of the HR Manager

Traditional Modern HR Manager Role:


HR Manager
Role:
Data-Driven Decision
Maker:
Administr
ative Strategic Business
Focus: Partner:

Employee Experience
Reactive Designer:
Approach
Change Management
Leader
Operation
Compliance and Risk
al Role Manager:
Changing Role of the HR Manager

Traditional
HR Manager
Role:

Administr
ative
Focus: HR managers traditionally focused on administrative tasks such
as payroll processing, compliance management, and basic
Reactive employee relations
Approach

Operation
al Role
Changing Role of the HR Manager

Traditional
HR Manager
Role:

Administr
ative
Focus: Problem-solving was largely reactive, addressing issues as they
occurred rather than anticipating them.
Reactive
Approach

Operation
al Role
Changing Role of the HR Manager

Traditional
HR Manager
Role:

Administr
ative
Focus: The scope was confined to executing predefined processes, with
limited involvement in strategic planning.
Reactive
Approach

Operation
al Role
Changing Role of the HR Manager

Modern HR Manager Role:

Data-Driven Decision
Maker:
Modern HR managers rely on analytics to guide decisions.
Strategic Business
Partner: For instance, analyzing recruitment metrics can reveal which
channels provide the best candidates, reducing hiring costs
Employee Experience
Designer: and improving quality.
Change Management Predictive analytics helps anticipate challenges like potential
Leader
talent shortages, enabling proactive solutions.
Compliance and Risk
Manager:
Changing Role of the HR Manager

Modern HR Manager Role:

HR managers collaborate with leadership teams to ensure HR


Data-Driven Decision
Maker: strategies align with the organization’s goals. For example, if
Strategic Business
a company aims to expand globally, HR can identify talent
Partner: pools in target markets.
Employee Experience
Designer:
Linking workforce metrics to financial outcomes allows HR
Change Management
Leader to justify investments in initiatives like employee wellness
Compliance and Risk
programs.
Manager:
Changing Role of the HR Manager

Modern HR Manager Role:

Data-Driven Decision
Maker: Analytics helps HR tailor experiences to individual needs,
Strategic Business
such as customizing career development plans based on skill
Partner: assessments.
Employee Experience
Designer:
By monitoring engagement metrics, HR managers can
Change Management
Leader identify and address pain points in the employee journey.
Compliance and Risk
Manager:
Changing Role of the HR Manager

Modern HR Manager Role:

Data-Driven Decision
Maker: HR managers play a critical role in navigating digital
Strategic Business
transformations, ensuring employees adapt to new tools and
Partner: processes.
Employee Experience
Designer:
Analytics measures the success of change initiatives by
Change Management
Leader tracking adoption rates and employee feedback.
Compliance and Risk
Manager:
Changing Role of the HR Manager

Modern HR Manager Role:

Data-Driven Decision
Maker: HR managers leverage analytics to ensure adherence to labor
Strategic Business laws and minimize risks, such as monitoring data for patterns
Partner:
indicating potential workplace discrimination.
Employee Experience
Designer:

Change Management
Predictive models can help identify and mitigate risks before
Leader they escalate, protecting the organization’s reputation and
Compliance and Risk
resources
Manager:
aligning human resources to business Goals through
HR analytics
 HR Analytics serves as a bridge between HR practices and broader business objectives,
ensuring human capital strategies directly contribute to organizational success. This
alignment is achieved through the following key areas:
Workforce Planning and Business Forecasting

Enhancing Organizational Performance

Data-Driven Decision Making:

Cost Optimization:

Agility in Responding to Market Changes:

Strengthening Employee Engagement and Retention

Driving Diversity, Equity, and Inclusion (DEI) Goals:


aligning human resources to business Goals through
HR analytics
Workforce Planning and Business Forecasting
HR Analytics helps align talent supply with business demands by forecasting hiring needs
based on market trends and organizational growth plans.

For example, predictive analytics can identify future skill requirements, enabling proactive
upskilling or hiring.

Enhancing Organizational Performance


By linking employee performance metrics to business outcomes, HR Analytics
identifies high-impact areas for improvement.

Insights into team dynamics and individual contributions help optimize


resource allocation and drive productivity.
aligning human resources to business through HR
analytics
Data-Driven Decision Making:
Analytics provides actionable insights that guide leadership decisions, such as identifying roles critical
to achieving strategic goals.
Workforce Planning and Business Forecasting
For instance, turnover analytics can inform retention strategies that preserve institutional knowledge
and reduce hiring costs.

Cost Optimization:
HR Analytics tracks the ROI of HR initiatives, ensuring investments align with business priorities.
Enhancing Organizational Performance
For example, analyzing training program effectiveness ensures budget allocations maximize skill
development and performance improvement.
aligning human resources to business through HR
analytics
Agility in Responding to Market Changes:
With real-time data, organizations can quickly adapt to market disruptions, such as shifting focus to
remote work policies during unforeseen events.
Workforce Planning and
Data-Driven Business
Decision Forecasting
Making:
Scenario modeling enables HR to prepare for various business conditions, ensuring resilience and
continuity.

Strengthening Employee Engagement and Retention


Employee satisfaction and retention are directly tied to business outcomes. Analytics identifies
engagement drivers, allowing HR to implement targeted interventions.
EnhancingCost
Organizational Performance
Optimization:
For example, pulse surveys and sentiment analysis provide insights into employee morale, enabling
timely actions.
aligning human resources to business through HR
analytics

WorkforceinPlanning
AgilityData-Driven and Business
Decision
Responding to Forecasting
Making:
Market Changes:

Driving Diversity, Equity, and Inclusion (DEI) Goals:


Aligning DEI initiatives with business strategies fosters innovation and enhances organizational
reputation.

Analytics helps measure the effectiveness of DEI programs and identify areas needing improvement

Enhancing
Strengthening Organizational
Cost Performance
Optimization:
Employee Engagement and Retention
HR analytics framework and
models.
In the realm of modern Human Resources (HR), data
is the new currency. Recruiters and hirers have
transitioned from making decisions based on gut
feelings to harnessing the power of data-driven
insights.
 There are 3 types in the models namely – a.
Provided by the technology vendors, b.
Normative ( Professional models of the
organization), c. Empirical ( Designed based
on the research)
 the LAMP framework in HR analytics stands tall as a
guiding light. In this comprehensive guide, we will
be exploring what it is, why it matters, and how
recruiters and hirers can leverage it to
transform HR processes.
LAMP Framework
Developed by John W. Boudreau and his
colleagues Ramstad (2004), the LAMP framework
provides a roadmap for leveraging data analytics to
connect HR practices with business outcomes.
The LAMP framework stands for:
 Logic
 Analytics
 Measures
 Process
It emphasizes the integration of these four
components to create a coherent and effective
approach to HR analytics.
1. Logic
 Definition: The foundational component of the LAMP
framework, logic refers to the theoretical understanding
of how HR practices influence organizational
performance.
 Purpose: It involves creating a clear line of reasoning
that links HR activities to key business outcomes such
as productivity, profitability, and customer satisfaction.
 Example: Establishing how employee engagement impacts
customer service quality and, subsequently, customer
retention.
Key Elements of Logic:
 Identifying cause-and-effect relationships in HR
practices.
 Articulating the importance of specific HR metrics.
 Using frameworks like the resource-based view (RBV) to
highlight the strategic value of human capital.
2. Analytics
 Definition: Analytics involves applying statistical and
mathematical tools to HR data to uncover patterns,
trends, and insights.
 Purpose: It enables organizations to move beyond
descriptive metrics to predictive and prescriptive analytics,
providing actionable insights.
 Example: Using regression analysis to predict turnover
rates based on employee satisfaction scores and
demographic factors.
Levels of Analytics:
 Descriptive Analytics: What happened? (e.g., historical
turnover rates).
 Predictive Analytics: What is likely to happen? (e.g.,
identifying employees at risk of leaving).
 Prescriptive Analytics: What should be done? (e.g.,
recommending interventions to improve retention).
3. Measures
 Definition: Measures focus on the metrics used to
assess HR processes and outcomes.
 Purpose: Effective measures are accurate, relevant, and
aligned with organizational objectives.
 Example: Metrics such as time-to-hire, employee
turnover, engagement scores, and return on
investment (ROI) of training programs.
Characteristics of Good Measures:
 Validity: Metrics should measure what they are intended to
measure.
 Reliability: Metrics should provide consistent results over
time.
 Relevance: Metrics should align with business goals and
strategies.
4. Process
 Definition: Process refers to the way analytics are
communicated and acted upon within the
organization.
 Purpose: It ensures that the insights derived from
analytics are effectively integrated into decision-
making processes and lead to tangible improvements.
 Example: Presenting analytical findings in a visual
dashboard to help managers make informed decisions
about workforce planning.
Steps in the Process:
 Data collection and preparation.
 Analysis and interpretation.
 Communication of insights to stakeholders.
 Implementation of recommendations.
 Continuous feedback and improvement.
Application of the LAMP
Framework in HR Analytics
The LAMP framework can be applied to various HR functions, such as:
 Talent Acquisition: Identifying the most effective recruitment channels
using analytics and measures.
 Employee Retention: Using predictive analytics to forecast turnover
and implementing interventions based on insights.
 Performance Management: Linking employee performance metrics to
business outcomes using logical reasoning.
 Training and Development: Measuring the ROI of training programs
and aligning them with organizational needs.

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