hi welcome to this session overview to HR analytic as professionals you have signed up for this program however I have come across different HR professionals who have some of these questions in their mind first they say hey Chad is all about feelings and emotion what has numbers got to do with that can you even measure feelings then we are taught that each employee is unique he or she has their own choices but analytics tells us that we would be able to quantify build a model of their behavior and then predict when they will leave when they will stay with us is that even possible if you are like me having spent a few years in the function you have developed your original insight in terms of how things happen how people behave and what actions can be taken now somebody tells us that an algorithm can actually do as good a job as how we are doing with our ingrained wisdom how is that possible and even if we agree to all the three we still think that analytics is something that is being done in companies and Technology who have access to the tool but can it be done by anybody working in an average organization or if analytics meant for HR at all especially when we hear these words yes visualization is something that we understand he has even come across once in a while the word called algorithm but not in a feature sphere we get predictive analytics the word you know something which you are able to use analytics to predict the future and then we are faced with big data now we know that is data there may be a small excel sheet or a big SAT file but what is small data and what is Big Data we know scientists what is the data scientists what kind of research does somebody do with data analytics people you meet keep talking about are now or is just one as for bet out of 26 so why is it so significant in the world of analytics and more dangerously there is a talk of pikas no pythons are very dangerous people why should HR professionals adapt Python to serve people better this and more Christians come to our mind in this section what we will do is to talk through the evaluation of HR analytics as it has been happening for more than 40 years now the technology trends that have accelerated the adoption of HR analytics in the form of the analytics wave then we will spend a little time on how different businesses are leveraging and benefiting from the power of analytics take a strategic view of HR and see what the business is expecting from nature and finally how some companies are using analytics to meet these expectations successfully first let me talk about the evolution of nature analytics the Hawthorne study which connected the changes in the work environment with employee motivation is one of the earliest examples of behavioral research we use instruments like Phi Rho Bell beam teen profiling or Big Five personality test all these are statistically validated so the outcome is reliable Geert Hofstede a set up a personal research department in IBM as far back as the 1960 he used this to research how employees from different cultures operate in an organization and came out with the cultural dimensions theory we typically use processes for setting goals rewarding and recognizing employees and identify the unique knowledge and skills required for high performance all these in turn can be traced back to pioneering research which set up a model which in turn got converted into processes which are widely used by companies in other words HR is based on wealth research principles each profession leaves its pioneers HR analytics may be a word which is more common today when it started it was HR measurement integer metrics dr. sidman’s published the measurement imperative in 1978 he also set up the Saratoga Institute in 1980 to develop a benchmark metrics in nature he also pioneered a list of 30 metrics that can be used by any company to measure its effectiveness and efficiency he has remained active and pioneer HCM 21 for the 21st century which is a predictive strategic human

capital system dr. John Sullivan is another pioneer in each our metrics he is a prolific author and speaker he specializes more in talent acquisition he also teaches in the San Francisco State University on HR measurement talent acquisition in related subject in 1995 mark Hewlett published his research on the strategic impact of high performance work systems this research found that there is a tangible impact on business performance from HR policies and practices and this also the tune of one sigma now what is one Sigma Sigma standard deviation and we will spend a little more time on that in the next few sessions interestingly they also found that this is not like a panacea that they use one set of practices and the business performance improves they found actually it is more unique to an organization depending on their culture and the business environment a lot of us are aware of gallops q12 a set of 12 questions that predict employee engagement now gallops q12 is not again common sense but actually they researched more than 30 years of data hundreds of thousands of data elements to identify the top 12 which actually have an impact on employee engagement in 1998 Sears the retail firm published its models called as employee customer profit chain which essentially Sears looked at what impact will creating a compelling place to work ham and they found that an employee behavior is influenced by what he or she thinks about the job as well as what they think about the company the employee behavior is positive it translates into being helpful to the customers and also improve their ability to sell high-value merchandise to the customers when the employee is helpful the customer is happy so he or she keeps coming back to thiers and they also make recommendations to their friends and others which in turn should lead to revenue growth and improvement in operating margin this case sound empirical but the magic was CS were able to trace it back and say a 5% increase in employee attitude delivers a 1.3 percent increase in customer satisfaction which in turn can get converted into 0.5 percent increase in revenue growth next we’re a couple of important books which came up in this century the first was a HR scorecard in the 1990s the balanced scorecard concept was created which essentially said it is not enough just you measure the outcomes like revenues perform revenue profitability but you also need to look at indicators which are leading and lagging which will again spend some time later to understand and they neatly a structured way of looking at the business performance the HR scorecard derives from that and it is structured into learning HR process internal customers and financial measures put together represents the strategic view of the HR and organization and how it is contributing to business sports in a lot of ways is similar to HR you get a set of people and you leverage their talent the more you are able to leverage their talent the more successful your team is Moneyball written by Michael Lewis helped create the analytics wave he found out how Oakland Athletics baseball team which was having a very low budget outperformed much better funded teams by focusing on unconventional analytics called as sabermetrics this has strong implications for hajar because not every organization has the resources required to hire and retain the best however if you are able to use analytics we should be able to deliver the potential of all the employees and be equally successful finally we are reaching about this wicked Google actually had conducted a multi-year research on what good managers – in fact in its growing stages the companies thought you need program managers and you need individual contributors so they are not sure what the role of managers was would actually did call their managers then they got them back but they said you know not every manager is equal so we need to research what good managers do so they do multi-year research and arrived at eight key behaviors and three pitfalls of managers this was widely shared in 2011 and has been used as a reference subsequently and some of the key behaviors we identified where good

managers have technical skills to help advise the team they have a clear vision and strategy for the team they are good communicators but listen to the team as well and are very productive and result-oriented their pit falls would be lack of consistent approach to performance management and career development sounds commonplace to us but this is actually statistically validated using analytics so this is the evolution of HR analytics all the way from 1960s to the current decade VR in how the analytics wave is taking the momentum forward is something that we will see next