HR Analytics & Reporting

Trendwise Analytics

Trendwise Analytics

Contents
About Trendwise analytics Background and objectives
Need of HR analytics & reporting

Trendwise Analytics HR analytics capabilities

HR Reporting & Analytics Level-1 Dashboards & Descriptive analysis How to use Level -1 analysis for making business decisions HR Reporting & Analytics Level-2 Derived Metrics & Ratios How to use Level -2 analysis for making business decisions HR Reporting & Analytics Level-3 Attrition forecasting

Attrition segmentation & Hotspot identification

Top performer segmentation Compensation analysis & Fair compensation tool Voice of employee analysis & drivers of employee satisfaction
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About Trendwise analytics

Overview
Trendwise is formed by a group of technocrats whose experiences from the industry forms a strong foundation of the company. The founder members of Trendwise had been a part of early CRM evolution and hence establishes an authority over CRM analytics. Our focus would be set on the newer aspects of analytics which is yet to come of age. While Hadoop, Cloud Computing, BigData analytics for the technological basis for us, our domain focus is on predictive aspect of analytics which would create insights for our customers like never before.

Vision
To be one of the most valuable companies in the area of advanced analytics with a strong global presence with a wide client base for our products and solutions.

Mission
To develop analytics tools and solutions for handling big, unstructured data for creating business insights. The offerings would be targeted to specific business areas and industry streams. Also to provide support and services to our customers on our products and solutions.
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Services and Technology

Services
CRM Analytics HR Analytics Big Data Analysis (leveraging Hadoop) Social Media Analytics Verbatim Analysis/Text analyzer Advanced Analytics and Predictive modeling Mobility and Mobile Analytics

Technology and Tools

SAS R Tableau Jasper soft Mysql PHP Hadoop

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Background and objectives

Need of HR analytics & reporting
Many organizations have high quality HR data (residing with a multitude of systems, such as the HRMS, performance management, learning, compensation, survey, etc.) but still struggle to use it effectively to predict workforce trends, minimize risks and maximize returns. The costs of attrition, poor hiring, sub-optimal compensation, keeping below par employees, bad training & learning strategies are just too high Data-driven insights to make decisions are always better than judgmental (subjective) HR practices in terms of how to recruit whom to hire how to onboard and train employees how they keep employees informed and engaged through their tenure with the organization Hence regular tracking and prediction of crucial HR metrics is indispensable

Objectives
Predict attrition especially amongst high performers. Forecast the right fitment for aspiring employee Predict how compensation values will pan out. Establish linkages between Employee engagement score and C-Sat scores(Work in progress)

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Trendwise Analytics HR analytics capabilities

Three levels of HR analytics and reporting

Level-1 Descriptive analysis

Reporting of basic metrics, their frequencies & percentages by various cuts followed by key highlights. These can be monthly, quarterly, half yearly tracking reports Tool: SAS/REPORT Techniques: frequencies , means, percentages etc.,

Level-2 Operational metrics

Derivation of some HR operational metrics which will help us in tracking the efficiency of HR functions Tool: SAS Techniques: means, variance, control limits, ratios, percentages etc.,

Level-3 Predictive analysis

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Predictive analysis based on historical HR data. Attrition forecasting, performance management, compensation analysis, survey analytics, new hire strategies etc., Tool: SAS BASE, SAS E-miner, Excel Techniques: Regression analysis, Time series analysis, cluster analysis, CHAID etc.,

HR Reporting and Analytics: Level-1

HR Dashboards & Descriptive analysis Basic frequencies & percentages of some HR related
variables Head count and Attrition numbers by Region ,Country, Business, Process, Service centers, Grade of service ,Age ,Gender , Ethnicity, Tenure and Special segment (e.g.

Ratings/Talents)
Training and learning dashboards, Program Enrollment / Registration & Completion Performance tracking reports , Absences ,Event Grievances / Disciplinary Actions Employee Appraisal / Review / Accomplishments Requisition tracking, Vacancy / skills matching / competencies Payroll related reports, Injury illness, Time and labor
All the above reports will generated using SAS procedures like PROC FREQ, UNIVARAITE, MEANS etc.,. Automation of all these reports using SAS/REPORT to generate monthly dashboards in desired format
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How to use Level-1 analysis?

Retirement Shifting location

Reports

Company HR policies Unsatisfactory performance Higher Education 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 Better Compensation Voluntary Turnover Involuntary Turnover

Involuntary Turnover

Voluntary Turnover

Insights

Turnover rates are above acceptable levels in last two quarters Compensation and location shift are two main reasons

Action points
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Revise compensation strategies, time to concentrate on incentives and employee retention strategies

HR Reporting and Analytics: Level-2

HR metrics and ratiosHR operational metrics will help us tracking the efficiency of various functions in HR department. We can define control limits to each of these metrics and track them on regular basis
Turnover ratio (Number of attritions in a year)/ (Average head count in a year) Joiners rate(Accession ratio) (Number of joiners in a year)/ (Average head count in a year) Stability index (Number of FTE with >3 years tenure in current organization)/ (Current head count) Low performer management Denominator : Employees with low performance rating in last year Numerator: Distribution of above employees across Improved performance rating in current year Same performance rating in current year Leavers in current year Promotion ratio (Number of promotions in a period of time)/ (Average head count over same period)

How to use Level-2 analysis?

Metric
Joiners Rate: The ratio of new and replacement hires as the percentage of total employment
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Insights
A high number indicates hidden costs and delays, which damage productivity

Action points
Focus on new hire and employee retention strategies

HR Reporting and Analytics: Level-3

Availability historical HR data gives us lot of scope to analyze past patterns and predict future behaviors

Attrition forecasting : Given historical attrition trends, we can estimate future attrition
percentages up to a certain confidence level Attrition Segmentation : Segmentation will be done based on employee profiles & attrition rates. Most impacting employee characteristics on attrition will be identified Top performer segmentation: Segmentation of employees based on their profile data and performance indices. This will help us to identify top performing employees and their characteristics Compensation Analysis and compensation tool: A tool that predicts optimal compensation for a given employee based on his capabilities, company policies, market conditions. New hire strategies: New hire strategies will be build by performing attrition segmentation in combination with top performer analysis

Voice of employee analysis & drivers of employee satisfaction

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HR Reporting and Analytics: Level-3

Attrition forecasting
Predicting/forecasting near future attrition numbers by identifying patterns in historical attrition data

Attrition%
6.0% 4.8% 4.9%5.1%

4.0%

4.3% 3.5% 2.5%

4.5%

4.1%

4.3%

4.4%

4.6%

2.0%

0.0%

illustration

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HR Reporting and Analytics: Level-3

Attrition segmentation
Identifying segments with high/low attrition rates and employee characteristics in each segment
Tier-1 FTE Segment with University/college( highest Attrition % 35%)

Tenure with the company <1.5 years(30%) Tenure with company 1.5-3 years(20%) Tenure with company >3 years(10%) Tenure with company < 3 years(14%) Tenure with company >3 years(6%)

Other than tier1(28%)

Age <28(Attrition20%)

Over all Head count (Attrition 15%)

illustration

Age >28(Attrition9%)

Tier-1 University/College( 10%)

Other than tier-1 college(5%)

FTE Segment with least Attrition %

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HR Reporting and Analytics: Level-3

Top performer segmentation
Identifying High /Low performing employee segments and their characteristics (subjected to availability of necessary performance measures)
Tier-1 FTE Segment with University/college( High % of top performers 55%)

Tenure with the company >3 years(40%) Tenure with company 1.5-3 years(30%) Tenure with company < 1.5 years(20%) Tenure with company > 3 years(22%)

Other than tier1(25%)

Age <28(30% high performers)

Over all FTE population (20% high performers)

illustration

Age >28(18% high performers)

Tenure with company < 3 years(14%)

Tier-1 University/College( 18%)

Other than tier-1 college(10%)

FTE Segment with least % top performers

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HR Reporting and Analytics: Level-3

Fair compensation tool
Approach List main drivers of compensation, find the impact of each of these on compensation using historical data, use these models and build a tool that predicts compensation Project Stage
Stage-1

Description
Divide overall compensation into four major components; Company, Employee, Market and general followed by identification of top drivers in each quadrant
Study historical data to find the relation between compensation and attributes in each quadrant , using SAS Use predictive analysis in SAS(multiple linear regression) to quantify the relation between compensation and attributes Using above models, build a fair compensation prediction tool that covers all the relevant attributes from each quadrant Use the results obtained from predictive analysis to estimate the optimal compensation for a given employee

Stage-2 Stage-3 Stage-4

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Stage-5

HR Reporting and Analytics: Level-3

Fair compensation tool & algorithm
gap between Maximum and minimum salary
Divided into four quadrants based on weights

Identifying top attributes in each quadrants

Company 30% Employee 35% Market 25% Others 10%

Budget Urgency Impact

Assign weights to each of these components based on statistical analysis of historical data

Company component in final compensation

Do the same excessive for four quadrants

Final Compensation
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HR Reporting and Analytics: Level-3

Voice of employee survey analysis & drivers of satisfaction
Reporting: Descriptive statistics like overall satisfaction, satisfaction by various cuts(regions, processes etc.,) Driver Analysis (part-1): Identification of main drivers of employee satisfaction based on survey data
E.g: If we have five sub questions in survey, we try to identify the top two factors which are impacting overall employee satisfaction. We find out these by using multivariate logistics regression

Driver Analysis (part-2): Merging of survey responders data with employee profile and performance data. Identification of main drivers of satisfaction from non surveyed variables
E.g ; We consider variables like employee tenure with the company, employee performance, skill sets & some other demographic variables to see weather one or more of these are impacting on overall employee satisfaction

Analysis of verbatim comments:

Descriptive analysis of positive , negative and neutral comments Identification of frequently mentioned topics and their positive negative frequencies

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Appendix

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Predictive Analysis using SAS- Examples with dummy data

Attrition forecasting using SAS

Attrition segmentation using SAS

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