HR Innovation: Make Fact-Based Talent Decisions with Workforce Analytics

HR Innovation:
Make Fact-based Talent Decisions
with Workforce Analytics
Human resources departments historically relied on intuition for much of their
decision-making. The tools now exist, and the time has come, for HR
to join the rest of the enterprise in applying scientific methods to their data.
To do that, they must develop a culture of inquiry.
An exclusive report from BusinessWeek Research Services
February 2008
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February 2008 2
Table of Contents
Executive Summary .......................................................................................................4
Methodology ................................................................................................................4
Introduction.................................................................................................................5
Statistical Methods and Tools .........................................................................................5
Beyond Just Gathering Data ...........................................................................................6
Starting with Baby Steps ...............................................................................................7
Calculating Return on Culture .........................................................................................8
Busting Long-held Myths................................................................................................9
Creating a Culture of Inquiry.........................................................................................10
Sponsor's Statement: Gain Insight into Your HR Data to Better Support the Business ............11
3 February 2008
Executive Summary
n The human resources (HR) function is the one domain in the enterprise that has not widelyapplied analytical methods to its data.n Using analytics to support fact-based decisions improves human capital management(HCM) practices, cuts costs and contributes to business performance.n Most organizations report several basic HR metrics, while others have acquired the analyticaltools to make fact-based decisions about recruitment, deployment and performance ofemployees. A few have progressed to the point of applying advanced statistical methods.n Data is the foundation, but true analytics means taking that data and using it for predictivemodeling and strategic, forward-thinking purposes. n An accurate headcount of full-time equivalents is the prerequisite of all HR analytics.n Not every HR professional needs to be a numbers guru. With proper leadership at the topand business executives who understand the value of analytics, an HR department candevelop the necessary capabilities.n There is wide agreement that doing analytics is nearly impossible without a single enter-prise HCM platform.
Methodology
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