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Data analytics is making the future of HR uncertain, says KPMG HR director - HR Magazine

Data analytics is making the future of HR uncertain, says KPMG HR director - HR Magazine | HR Analytics and Big Data @ Work | Scoop.it

"Experience of life on the client side has enabled Tim Payne (pictured) to bring innovation and energy to his role at KPMG. He explains why his past lends him a unique level of respect when advising, and how data is making the future of HR uncertain."

Tony Brugman (Bright & Company)'s insight:

Nice interview in HR Magazine with KPMG's European HR director, discussing the way the HR function has and will change(d) within KPMG and in general. With a emphasis on the use of analytics: "Harnessing data and analytics is vital but urges caution. Data analytics is where HR will go, I have no doubt."

 

He describes his caution as follows: "We are woefully underprepared to take advantage of it. The basic maths and statistical skills just aren't there in HR functions." "For HR to fully take advantage of analytics, Payne believes it needs three things: the ability to crunch numbers, get data and think like a scientist."

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HR Analytics and Big Data @ Work
Articles, research and reports on HR Analytics, Big Data and related topics
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Compensation still to embrace People Analytics: a matter of skills or behaviors?

Compensation still to embrace People Analytics: a matter of skills or behaviors? | HR Analytics and Big Data @ Work | Scoop.it
A winning employee value proposition cannot be solely centered on the competitiveness of pay. Gauging the overall competitiveness of rewards requires to assess a number of factors related to career,
Tony Brugman (Bright & Company)'s insight:

Good and critical article on using (HR) analytics in the field of compensation. The author argues that compensation can benefit from analytics in at least four ways:


1. Identify the “right” compensation program mix

2. Improve talent attraction and retention

3. Create a clear line-of-sight to influence behaviors

4. Improve performance assessments


Yet, to become more successful he presses that "a fundamental behavioral change is requested"! Requiring a new attitude, which is "more than quantitative skills, (starting with) asking the right question!"

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What to Do Before You Fire a Pivotal Employee - HBR

What to Do Before You Fire a Pivotal Employee - HBR | HR Analytics and Big Data @ Work | Scoop.it
Map the impact on your company’s network.
Tony Brugman (Bright & Company)'s insight:

Very interesting article by Belgian HR and Analytics researchers Bart Baesens, Luc Sels and Sophie De Winne, combining social network analysis and analytics.

 

For example to assess the impact of firing a certain employee. "(It) could reveal new serendipitous insights into the relationship between employee and customer drain, which would allow a company to create an unprecedented competitive advantage."

 

In the HBR article they briefly describe

1. how to model an employee/social network through analysis

2. how to further mapping out the employee network

3. how to analyse the employee network using descriptive metrics

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How to Fail at HR Analytics in 7 Easy Steps

How to Fail at HR Analytics in 7 Easy Steps | HR Analytics and Big Data @ Work | Scoop.it
A ‘leading loser’ shares what he learned the hard way—so you won’t have to.
Tony Brugman (Bright & Company)'s insight:

Nice insights by Mark Berry (experienced HR analytics practitioner). He spoke to SHRM HR Magazine about his lessons learned on HR Analytics.

 

He mentions his pitfalls as seven key actions as a "recipe for failure":


1. Position your program as strategic even if you’ve done nothing that qualifies it as such
2. Focus on the solution before defining the problem
3. Invest most of your resources in technology rather than partnering with the right vendor
4. Hire experts before they demonstrate any expertise
5. Accept a role and reporting relationship that compromises your impact and integrity
6. Delude yourself into believing that others value what you are doing as much as you do
7. Believe your own press

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For Entrepreneur360 'Data Champions,' Success Is Steady, Plotted and Planned

For Entrepreneur360 'Data Champions,' Success Is Steady, Plotted and Planned | HR Analytics and Big Data @ Work | Scoop.it
These companies push forward with proven strategies to drive results.
Tony Brugman (Bright & Company)'s insight:

What does set the best data-driven entrepreneurial companies apart from its less performing peers? According to thorough analysis by Entrepreneur Magazine the characteristics of these 'Data Champions' are:

 

>> They often emphasize a reliance on performance data, sharing it across the company to help employees at all levels make decisions.


>> They are much more likely than their peers to offer employees higher pay and a share of profit.

 

>> They pay close attention to planning and managing growth, looking to build a sustainable functioning business.

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Top 18 HR Analytics Articles (first half year 2015)

Top 18 HR Analytics Articles (first half year 2015) | HR Analytics and Big Data @ Work | Scoop.it
Once again we are bringing you a selection of our favorite articles on HR analytics by some of the most recognised HR Analytics experts and thought leaders.

Via David Green
Tony Brugman (Bright & Company)'s insight:

Nïce need-to-read collection of HR Analytics articles by colleagues of iNostix!

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Mike Warren's curator insight, October 20, 2015 6:59 AM

The largest shift in the history of HR is underway and you simply cannot afford to be left behind. This shift is from historical reliance on intuitive or “off the top of my head” decision-making among HR professionals and supervisors/managers to a more businesslike data-driven approach.  

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It’s Embarrassing: Every Business Function Measures Quality, Except Recruiting

It’s Embarrassing: Every Business Function Measures Quality, Except Recruiting | HR Analytics and Big Data @ Work | Scoop.it
Recruiting Is Literally the Last Function to Measure It’s Output Quality Quality is such an easy-to-understand thing. It is an improvement in performance a

Via Andrée Laforge
Tony Brugman (Bright & Company)'s insight:

Whoops! (Great analysis as always by ERE's John Sullivan!)

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Andrée Laforge's curator insight, July 28, 2015 8:00 AM

Super article de John Sullivan sur la qualité de l'embauche!

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HR: Life After HR Analytics - HR As A Profit Centre!

HR: Life After HR Analytics - HR As A Profit Centre! | HR Analytics and Big Data @ Work | Scoop.it
With the global economic challenges that HR have faced over the past five years or so it’s not surprising that HR has tended to focus on process efficiency which has meant ongoing trade-offs between quality and cost. Finance and budgeting challenges will always drive such an approach but this is where data based business cases (based on business assumptions and data trends) has never been more important to HR. Without it the focus is on solely reducing cost whereas the focus should also be upon

Via Hendrik Feddersen
Tony Brugman (Bright & Company)'s insight:

Good Linkedin post in favor of more business-driven/minded HR through the use of HR Analytics.

 

The author foresees a bright future for HR when fully embracing HR Analytics:

"Analytics is shifting the expectations of HR and their internal clients, (..) the ultimate outcome of an analytics approach to HR is not that we are more numerate but that we become a profit centre in our own right not just a cost centre."

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Talent Analytics: Old Wine In New Bottles?

Talent Analytics: Old Wine In New Bottles? | HR Analytics and Big Data @ Work | Scoop.it
A day does not pass without my receiving multiple emails announcing webinars, publications, and workshops focused on talent analytics. Talent analytics has become an important area in both consulting firms and corporations. Most of the discussion of analytics emphasizes how much can be gained by better talent utilization and the ability [...]
Tony Brugman (Bright & Company)'s insight:

Great perspectives given by HR and Management guru Edward Lawler on the importance and rise of Talent Analytics.

 

"Without the right kind of culture, leaders who demand data-based talent decisions, and good storytelling, the availability of data is not likely to make a great difference in how organizations manage their talent. For example, they will still make most hiring decisions based on interviews, which have little to no predictive validity!"

 

Creating new wine is not enough, we definitely need new bottles too!

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How HR Analytics Can Help You Predict Work Accidents - Case Study

How HR Analytics Can Help You Predict Work Accidents - Case Study | HR Analytics and Big Data @ Work | Scoop.it
Read about this amazing HR Analytics project demonstrating the power of combining previously isolated data sources such as manufacturing and workforce data.
Tony Brugman (Bright & Company)'s insight:

Good Case Study article by iNostix on the importance of HR Analytics in another field of work: work place safety and prevention of accidents.

 

"HR Analytics crucial to future safety approach."

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Can an Algorithm Hire Better Than a Human?

Can an Algorithm Hire Better Than a Human? | HR Analytics and Big Data @ Work | Scoop.it
Start-ups say they can eliminate biases and create more skilled and diverse workplaces, but data science will probably need human supervision.
Tony Brugman (Bright & Company)'s insight:

Read a similar story in NYT a while ago. As Luk Smeyers from @inostix mentioned: "Same story, new players". 

 

Automated job search and hiring, "a new wave of start-ups — including Gild, Entelo, Textio, Doxa and GapJumpers" are jumping on the bandwagon.

 

Doomsayers can take a breath of relief, since the article also notes the importance of people in the hiring process: "Human expertise is still necessary. And data is creating a need for new roles, like diversity consultants who analyze where the data shows a company is lacking and figure out how to fix it."

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When Health Care Gets a Healthy Dose of Data | MIT Sloan Management Review

When Health Care Gets a Healthy Dose of Data | MIT Sloan Management Review | HR Analytics and Big Data @ Work | Scoop.it
American health care is undergoing a data-driven transformation — and Utah’s Intermountain Healthcare is leading the way.
Tony Brugman (Bright & Company)'s insight:

Extensive MIT Sloan Management Review case study article of a major healthcare organisation that worked on building a data and analytics culture throughout the organisation. Not without results: "Data-driven decision making has improved patient outcomes in (its') cardiovascular medicine, endocrinology, surgery, obstetrics and care processes — while saving millions of dollars in procurement and in its the supply chain."

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Debunking Five Predictive HR Analytics Myths

Debunking Five Predictive HR Analytics Myths | HR Analytics and Big Data @ Work | Scoop.it
What prevents companies from using predictive analytics for purposes of managing human capital? The big hang-ups are around five interrelated myths.
Tony Brugman (Bright & Company)'s insight:

Good reflection from HR Analytics practitioners on suggested HR Analytics myths in an article at CFO.com. 

 

In reply to the CFO.com article, HR Analytics experts iNostix asked two HR Analytics practitioners (Patrick Coolen from ABN-Amro, Esther Bongenaar from Shell) their opinion on the proposed ‘Five Myths about Predicting Workforce Behaviours’ (http://ww2.cfo.com/people/2013/03/five-myths-about-predicting-workforce-behaviors/)

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Real examples of HR analytics in action - and data scientists in HR

Real examples of HR analytics in action - and data scientists in HR | HR Analytics and Big Data @ Work | Scoop.it

"Can you give us some concrete examples of how companies can make better decisions by manipulating and using data and insight? What metrics are they using?"


Via David Green
Tony Brugman (Bright & Company)'s insight:

Brought to you by Workforce Analytics vendor Visier, some 'real examples' of HR Analytics. In his examples, the author (Visier's director) mentions several success factors when performing HR Analytics:

 

1) "It is not the standalone metrics that brings the insight, but the ability to quickly build comparisons, identify trends and find outliers that makes the difference."


2) "Turning critical questions into a single number allows for powerful insight (and comparison) across the organization."


3) "The opportunities to add value through HR practices come more from stopping the wrong outcome from happening, than from reporting on what has happened."


4 "Instead of using the old indicators (/ usual suspects) to estimate behavior modern analytics technology applies algorithms that take into account many additional factors to refine the prediction of expected behavior."

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8 Things Mark Berry Can Teach You About HR Analytics

8 Things Mark Berry Can Teach You About HR Analytics | HR Analytics and Big Data @ Work | Scoop.it
If one person in the HR analytics world has been in the press all the time in the past years, it's for sure Mark Berry. Enjoy reading his great learnings.
Tony Brugman (Bright & Company)'s insight:

Great interview! Colleagues of iNostix spoke with HR Analytics veteran Mark Berry (former VP HR at ConAgra Foods  now VP HR/CHRO at CGB Enterprise).

 

Luk Smeyers (iNostix) and Mark Berry discussed 8 aspects for successful HR Analytics:

1. Reporting directly to the CHRO
2. Inside or outside HR?
3. The CHRO and his/her analytical acumen
4. Gathering data outside of HR?
5. Building analytical credibility
6. Build or buy?
7. Skills for doing HR analytics
8. Analytical acumen for HR business partners

 

(See also http://sco.lt/5RPbjl for Mark Berry's article about 7 ways to fail with HR Analytics)

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Critical Evaluation: Put Your Analytics into Action (by Jeanne Harris) - SHRM

Critical Evaluation: Put Your Analytics into Action (by Jeanne Harris) - SHRM | HR Analytics and Big Data @ Work | Scoop.it
Jeanne G. Harris, author and HR thought leader, on how to go beyond quick fixes to building real analytic capability.
Tony Brugman (Bright & Company)'s insight:

Nice tips from Jeanne Harris (co-author of analytics must-reads 'Analytics at Work' and 'Competing on Analytics') on getting more out of your HR analytics this year.

 

"Here’s what HR should do in 2016 to help their organizations get real value from HR analytics:"
1. Develop your company’s analytical literacy
2. Use diverse teams to solve major talent challenges
3. Focus on big results, not analysis

 

"Buying a new software solution is easy, but it is time for HR to forget about quick fixes. Only by building a real analytic capability can HR professionals become the proactive, data-driven critical thinkers and business leaders that their organizations need." - Agree!

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How Machines Learn (And You Win)

How Machines Learn (And You Win) | HR Analytics and Big Data @ Work | Scoop.it
Making smart predictions with statistical models
Tony Brugman (Bright & Company)'s insight:

Nice insight into how data scientists work with machine learning applications. In this HBR article an example of a Machine Learning process is visualized via a decision tree.

 

1. Process: Decide What You Want to Know

2. Build a Model

3. Accumulate Answers

4. Make a Decision

5. Iterate

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Why Good Spreadsheets Make Bad Strategies

Why Good Spreadsheets Make Bad Strategies | HR Analytics and Big Data @ Work | Scoop.it
We live in a world obsessed with science, preoccupied with predictability and control, and enraptured with quantitative analysis. Economic forecasters crank out precision predictions of economic growth with their massive econometric models. CEOs give to-the-penny guidance to capital markets on next quarter’s predicted earnings. We live by adages like: “Show me the numbers” and truisms […]
Tony Brugman (Bright & Company)'s insight:

Reality-check HBR article by Leadership and Strategy expert Roger Martin on 'our' preoccupation with predictability and focus on numbers in decision-making. The blog article has been published in 2010, but is still actual and relevant now. Especially in the world of analytics and Big Data.

 

"We must stop obsessing about measurement so much that we exclude essential but un-measurable qualities from our understanding of any given situation. We must also consider the possibility that if we can’t measure something, it might be the very most important aspect of the problem on which we’re working."

 

Martin wrote a more extensive piece in Rotman Management with the title 'Beyond the Numbers', in which he gave three pieces of advice "regarding the qualitative paradigm":

 

1) Decision making is not only about equations and symbols. We must use all of our senses as we form opinions and make decisions. Numbers can help to describe sensory experience, but they cannot serve as a substitute for it.

 

2) Never dismiss strong feelings that you have but cannot explain. (Sometimes) your feelings will run ahead of your ability to explain them to another person. But that doesn’t mean that they are wrong.

Rather than dismissing these feelings, integrate them into your quantitative analysis.

 

3) Cultivate surprise and learn to embrace it. If the course of action you have chosen — i.e. your model — produces an outcome

that you didn’t expect, don’t get upset and throw out the experiment. Instead, learn from it and adjust your model.

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Dave Ulrich: Don't blow up HR, appreciate and evolve it

Dave Ulrich: Don't blow up HR, appreciate and evolve it | HR Analytics and Big Data @ Work | Scoop.it

"In an exclusive article Dave Ulrich hits back at HR-bashing articles in the popular business press. Rather than ‘blow up HR’, as suggested on the cover of the latest Harvard Business Review, we should appreciate it and evolve it, Ulrich argues."


Via Andrée Laforge
Tony Brugman (Bright & Company)'s insight:

Enough with the mud throwing party! The maestro himself, Dave Ulrich, personally adds his contribution to the "HR? Yes/No/Yes/No"-debate.

 

With a positive note he argues that "much is going well for innovative HR. (..) The dated strawman of HR is out of date. Innovative HR exists." According to Ulrich, rather than seeing obstacles, in order to move forward we need to learn to appreciate HR and focus more on the (future) possibilities of HR.

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Andrée Laforge's curator insight, July 24, 2015 9:22 AM

Voici ce que Dave Ulrich a à dire sur le dernier numéro du Harvard Business Review : It's time to blow-up HR.

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4 Approaches Everyone In HR Analytics Should Be Using

4 Approaches Everyone In HR Analytics Should Be Using | HR Analytics and Big Data @ Work | Scoop.it
Here's a short overview of the 4 most common predictive HR analytics approaches or methodologies that everyone in HR should be using over and over again.
Tony Brugman (Bright & Company)'s insight:

No-nonsense, clear-cut stuff by iNostix: 4 HR Analytics approaches and examples (Clustering, Driver Analysis, Risk Scoring and Forecasting).

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What People Analytics Can’t Capture

What People Analytics Can’t Capture | HR Analytics and Big Data @ Work | Scoop.it
Old-school tools still matter.
Tony Brugman (Bright & Company)'s insight:

Good critical piece by Leadership expert Daniel Goleman. He points out the possible weakness of using analytics in assessing people and management performance.

 

For example, "using an outcome metric like an executive’s earnings performance, while ignoring his role as a boss and his impact on the morale, loyalty, focus, and stress levels of his direct reports, may result in a false indication of who’s really the best boss."


Lots of 'soft' aspects are not easily captured with analytics. "Character traits like integrity and compassion (which) are surprisingly strong drivers of business success."


"The biggest objection comes from the fact that the strongest predictor of a person’s future behavior is their past performance itself. And that performance gets evaluated best by people who know that person well."

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Earning Consumer Trust in Big Data: A European Perspective on Regulatory Issues and Legal Risks | BCG

Earning Consumer Trust in Big Data: A European Perspective on Regulatory Issues and Legal Risks | BCG | HR Analytics and Big Data @ Work | Scoop.it
As BCG research has shown, consumer trust is the key to unlocking big data’s full value potential; without such confidence, billions of euros in future economic and social value might be lost.

Earning Consumer Trust in Big Data: A European Perspective, a new report by The Boston Consulting Group and global law firm DLA Piper, addresses the competing interests of businesses, consumers, and governments. Specifically, the report examines the unique legal approach to data protection and privacy that the European Union (EU) is taking.
Tony Brugman (Bright & Company)'s insight:

Interesting report by BCG and DLA Piper addressing legal, security and privacy issues of consumer Big Data use by companies and governments in Europe.

 

According to the report earning consumer trust in Big Data is key! "It takes time to gain it, but an instance to lose it". The report gives insights, case examples and tips for mitigating potential issues and risks.

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HR is being left behind! Data analytics are fundamental to everyone else…not HR?

HR is being left behind! Data analytics are fundamental to everyone else…not HR? | HR Analytics and Big Data @ Work | Scoop.it
HR and Resourcing often talk about utilising data analytics, but are we really using them? Predictive analytics is paramount to the success of other departments such as Supply Chain and Logistics… so why not in HR? HR and Resourcing is unique because we get to work with and have an in-depth insight into every other department. We see how accurate and efficient they are, the systems they use and their automated processes. These systems and processes allow other departments to make decisions based
Tony Brugman (Bright & Company)'s insight:

"Other functions are racing ahead and optimising efficiency by using data analytics. However, HR has been rogue for too long."


How many of these articles we will have to read until the big shift?

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Shane Badeloe's curator insight, July 30, 2015 2:58 AM

Even though you manage different things - people vs goods - it still needs to be monitored closely. #HR #analytics should get more attention!  

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Organisations failing to prioritise workforce analytics - HR Magazine UK

Organisations failing to prioritise workforce analytics - HR Magazine UK | HR Analytics and Big Data @ Work | Scoop.it
Almost four in 10 (38%) senior business and HR leaders have little, basic or no knowledge of workforce analytics, according to research from HR management software company Fairsail.
Tony Brugman (Bright & Company)'s insight:

New survey on usage of HR Analytics, shows the 'usual' overview: only a small group (14% of the respondents) does benefit from the use of HR Analytics, while a much larger group of 69% is limited to basic data surveys and reporting.

 

“Despite the focus and discussions around intelligent data and analytics there is a worrying gap between the possible and the actual.”

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HR Analytics - 10 years behind

HR Analytics - 10 years behind | HR Analytics and Big Data @ Work | Scoop.it
HR analytics are 10 years behind - how did we let the situation come this far?

Via David Green
Tony Brugman (Bright & Company)'s insight:

Nothing new here, but a wake-up call nevertheless for HR: "As an industry, HR is Analytically speaking… about ten years behind. (We have) been applying the analytical models ten years ago that most HR departments only now seem to have started working with.”


Interesting blog by HR Analytics guru Luk Smeyers (iNostix): "Oops"

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Steven Marshall geeft implementatietips HR Analytics

Steven Marshall geeft implementatietips HR Analytics | HR Analytics and Big Data @ Work | Scoop.it

HR Analytics is de laatste jaren een toverwoord geworden binnen het HR landschap. Ondanks de vele voordelen worstelen veel HR-managers om HR Analytics goed onder de knie te krijgen. Op Consultancy.nl doet Steven Marshall van Bright & Company uit de doeken hoe (HR) managers direct aan de slag kunnen gaan met HR Analytics.

Tony Brugman (Bright & Company)'s insight:

(In Dutch) Bijdrage op Consultancy.nl met colleqa Steven Marshall over praktische aanwijzingen om aan de slag te gaan met HR Analytics.

 

1. Link met de business2. Vervang intuïtie niet door cijfers, maar laat ze elkaar aanvullen!3. Vertaal resultaten naar concrete acties!4. Begin klein!5. Learning by doing6. Integreer in je HR-processen
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