Analytical report:
The Value of HR analytics in HR development
Introduction
The following report will begin by analysing the role that Human Resource (HR) analytics and Human Resource Management Systems (HRIMS) must have in order to assist HR in the shift from being an administrative and compliance based focus to becoming a much more strategically focussed and valued business resource. Towards doing this, we will first take a look at the purpose and benefits of HR metrics and then continue to discuss some common issues associated with using this data to effectively convey HR’s contribution in achieving organisational goals. Details on how HRIMS can support measures will be provided and the impact analytics and metrics have on HR
…show more content…
Often organisations attempt to use too many measures, or utilise metrics that are too broad, making it hard to demonstrate the actual contributions made by HR. According to Sullivan (2004) an organisation should aim to have between 8-12 measures that reflect the business and can be regularly measured and reported on to effectively link to the organisations strategic goals. John Boudreau (2011 , pp. 14-20) has found that to improve metrics companies need to: * Really work to identify the measures that the organisation uses to make decisions * Ensure those metrics are embedded in the decision making process
In achieving the above points, HR would then be able to establish strong links between its measures and outcomes and the organisations success. Without the use of HRIMS however, the substantial amount of time and effort that would be required to calculate the relevant metrics would be unlikely to justify the process or results/outcomes (AHRI, p.5.6)
Supporting HR’s shift to a strategically valued resource
Utilising a HRIMS can free up time spent on traditional administrative tasks, such as updating employees’ contact information, and allow HR to spend more time on activities that add value to an organisation at a strategic level (De Cieri et al. 2008, p. 235).
Noe et al. (2008) express that Human Resource Management has the opportunity and ability to greatly influence the way an organisation gains a competitive advantage
In searching for data, HR can develop and use internal KPI’s to create statistics to provide quantitative internal data. This type of data is relatively easy for HR to access as it can come from their own records, however can take time to develop at the early stages for a department which has no previous statistics. They can also use external secondary data such as professional reports, many of which are also easy to access, however the relevance of such data must always be considered before putting too much weight behind the information and allowing it to influence decisions. It is also important the HR ensure that the data they are gathering is up-to-date and reliable; the CIPD is the first port of call for HR practitioners when looking at HR trends.
HR Function has evolved from a traditional people management foyer to a value added consulting service provider that accelerates improvement and development in all facets of operations. In order to fully capsize functionality of HR in organizational structure, HR capabilities should be aligned with organizational strategies designed to achieve set targets. This requires introducing meticulous changes in current HR Policies and revamping the structure and procedures to reinstate the roles and responsibilities of HR function to emerge from being compliance and administrative focussed to a decisive role that fosters partnership with Management team/Executive council. Once HR Policies are established it will be critical to measure, monitor
In every business or corporations, the human resource department has a minimum 3 step course requirement to fulfil; planning of staffing needs, recruitment and evaluation, and balance in training, performance and demand (Lorrette, 2015). The goal of the HR management is to achieve the highest level of job satisfaction and dedication among employees which helps retain the employees who can perform the job (Louis E. Boone, 2013). Thanks to technology
Human Resource information system helped this company when they had the issue of dealing with a reduction in force. The HRIS included a comprehensive database and measurement tools to identify how the redirections would impact the company. With the HRIS, Rio Tinto was able to retain their highly skilled employees. The HRIS helped the company perform an efficient reduction in force. The role of HRIS in an organization is to make organizing and planning easier for management (Mathis et al., 2014, p. 23). The database that the HRIS provides, allows managers to see where they can eliminate employees that are not providing productivity to the organization. A HRIS can help an organization to plan their HR cost more effectively. This is because this system can have information about management, accounting, and payroll. According to Mathis et al. (2014) “The first purpose of HR technology is to improve the efficiency with which data on employees and HR activities are compiled” (p. 23). Making decisions in HR should become for efficient while using an
know how to deliver timely and effective HR services to meet users ' needs and;
In terms of the organization, the main challenge is going to lie in the incorporation of the HRIS at an organization wide level. The system must be standardized and applicable so employees in all locations are more willing to shift from predecessor systems with less resistance. This shift also presents a different strain on HR staff as the system redefines their functional roles which will need to be addressed and planned for during system implementation.
Pressures to meet customer and stakeholder requirements have made accurate measurement a necessity in order to demonstrate value. HRIS can do the basics brilliantly in terms of improving the efficiency of HR processes. But well implemented systems have the potential to drive business performance, as well as providing effective
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
As the HR world changes, so too does the needs of understanding the complexity of our HR measurements and analytical systems. Consequently the more that I researched articles on the viewpoints of HR professionals strategic measurements, the more awareness was created on how much the traditional measurement models are not significantly related to HR’s strategic roles, though they do relate to an organization 's strategic activities. The future framework of measurable strategies will need to be logical, reliable, consistent and flexible. There are no perfect models however the research journey provided me with lessons, organizational highlights of significant accomplishments, and each article offered recommendations for improvements which
HRIM databases can be beneficial for top management development of business strategies. He gives an overview of database entries of an HRIM system. Items range from “address specifications” over “educational degree” and “pay change reason” to “performance increase in %” and specific skill functions. As an advantage entries can be used to forecast average labor costs and supply of internal human resources. But an integrated and intranet based HRIM system has advantages for almost every section of employee in an organization. HRIM systems can give rights to specific user groups with a certain job position. As a health and safety manager for instance you can access and analyses with the help of statistics an increase or decrease in injuries. Tasks can be more accurately assigned to people with the right skills which in turn improves the efficiency of workflow and the job satisfaction since employees do not have to work in a field they are not specialists in (Stone, 2008).
An effective HRIS system fosters engagement, empowerment and enough flexibility to deal with wide-ranging and continuously evolving situations and third-party recruiting associates. The traditional functions of HR software - recruiting, managing payroll and records, onboarding, skills gap analysis, performance evaluations, remuneration and succession - should be fully integrated into the company 's digital platform. Establishing a robust API layer in your company 's operating software makes it easier to upgrade the software, add new modules as needed, connect and third-party associates for BI, recruitment and other company objectives. Some of today 's best practices for HRM include the following software capabilities:
Accurate, timely, and actionable Human Resource (HR) metrics are key’s to assessing HR’s contribution to organizational effectiveness. Despite the capabilities available in today’s Human Resource information System (HRIS), organizations often still use simple, cost-oriented metrics based upon the most conveniently retrieved data, rather than determining the most appropriate metrics for a given setting. With better analytics and metric skills, HR professionals can more effectively communicate the key human capital drivers of success to managers, and work with them to develop metrics that focus on business value, organizational effectiveness and return on investment (ROI) (Johnson, Gueutal, & Marler, 2012, p. 15).
Providing the tools and systems required for leading a measurement managed HR architecture, this important book heralds the emergence of human resources as a strategic powerhouse in todays organizations. Three experts in the field outline a powerful measurement system that highlights the indisputable role HR can play as both a prime source of sustainable competitive advantage and a key driver of value creation. They draw from an ongoing study of nearly 3,000 firms to outline a seven-step process they call an HR Scorecard, specifically designed to embed human resources systems within a firms
r. Becoming educated with BSC as a management strategy encourages higher engagement and enthusiasm for goal setting, monitoring and achievement.