 The next topic of this session is HR analytics. We need to understand that all HR activities whether it is recruitment, selection, training and development, performance management system and so on and so forth whatever all we have discussed in the last 19 sessions in all the processes large number of data is generated. If there are mechanisms, if the data quality is good, if we know the interconnections of the different factors and if we are able to connect the success factors with the appropriate data, we can get large number of insights. We can get many insights about HR function and about the business success. So, data is the raw and unorganized information that is keep developing, keep getting generated in all HR systems and processes. The HR data which is about the employee attendance, employee performance, compensation, engagement and so on and so forth, we can use those for the analysis. So, HR metrics is finding the key performance indicators because these are the metrics that indicate the ingredient of the HR practices outcome. So, HR analytics is a evidence based approach for making better decisions on people side of the business. HR analytics consist of an array of tools and technologies ranging from simple reporting of HR metrics up to the predictive modeling. So, when HR data is properly collected and consciously used for some specific insight or insight about some specific process, we call this process HR analytics. There can be various types of data and these are, these can be broadly divided into the lagging indicators and leading indicators, descriptive HR metrics and prescriptive HR metrics. Descriptive HR metrics are those which are based on the past data and prescriptive HR metrics are those which also takes into account of the future projections of the data. So, manpower planning related data or recruitment related data or training and development related data or performance management and productivity management related data, these all can be different types of data pertaining to human resources. They can be of non-financial in nature as well as financial in nature. HR expenses that is the very first basic manpower planning metric or analytical ratio. What it says? It says about total cost involved for HR expenses for a particular fiscal year. What all is being spent on the HR processes? So, our HR department salary, the software package they might have purchased for the recruitment or the expenses they might have incurred in taking help of the third party agencies or third parties for the training and development or for recruitment. These are all expenses counted and that is the total cost involved for the HR. HR expenses per employee, we can look at the ratio of HR expenses and divide that by per employee of the organization, divide by the number of employees of the organization and that will give us the HR expenses per employee. We calculate these data and then we also do the benchmarking. Benchmarking with the companies within the industry as well as outside of the industry. And that gives us idea how we are doing it. Are the most successful companies having very high of these metrics or they are operating at much lower level of those metrics? These are the starting points of reflection. Then next level of reflection is that we might be spending more. We might be having a metrics which is suggesting that our expenses are more, but it is required because nature of job being done in our organization is of very different kind etcetera. So, we look at the situations, but first benchmarking is done with the comparable business organizations, comparable organizations or institutions. That gives us fair idea where how that data can be managed and how that can be maintained. There are so many metrics. I am not going to read all these. All these are been described. The paper which is from where this list is drawn is also referred here. Pillai and Shevathhanu's paper both are the Pune based academicians and they have collected various types of the HR ratios and they have given the precise definition of these ratios which help us to analyze the HR based data. So, they have given the recruitment related data which is about non-financial like yield ratio meaning efficiency of the each stage in the recruitment process or number of employee who appeared for the interview and selected recruitment channel resource effectiveness, combination of different resources, which combination is working best. Then there are recruitment related financial data which is recruitment cost, cost per hire, cost per recruitment sources. All these are the data points which can give us the efficiency and effectiveness of the HR function. Training in development related data that can also be of various type. You might remember we discussed kick Patrick model or ROI of the training and development function, training outsourcing cost, training cost per employee. All these data points are there. All these ratios are there which can be calculated if company collects data of their HR system HR process implementation on their employees. And that is the beginning of having a sound HR analytics. Next stage is analyzing that data. So, there is another set of data about performance management or productivity management. How the performance of the employees is showing up in the organizational data? Employee performance indicators like number of unit produced, number of parcels delivered, if company if it is a delivery company or a career company, number of calls if it is a per day or per unit of time. If that if the organization is call center like that these performance and productivity management data is are collected. Employer branding that can also be assessed through number of followers and social media, employee engagement index or number of applicant per rule. If more number of people are applying for the job in my organization I am support that organization is supposed to have a strong employer branding. You might recall the employer branding we discussed in the previous class like these so many indicators are there which can be very useful and insightful to look at the efficiency and effectiveness of HR function. Employee relations and employee wellness that can also be very important points of HR analytics. Then there are whole set of predictive HR metrics. So, predicting the number of men power we can look at the projected sales growth, we can look at the projected production growth and based on that we can predict the number of men power, predicted talent turnover, how my industry is shaping up, who are the likely competitors, who can give equally challenging job with equally or with with comparable salary or much more salary where our our people our organizational members would like to join all this this can be looked at when organization is calculating the predicted talent turnover. Similarly, financial metrics are there which is about predicted men power cost, predicted cost per hire, estimated employer productivity, predicted employee performance so on and so forth list you can see is almost limitless. We can have multiple types and we can apart from this exhaustive list we can still find the indicators in some organization is specific to its need is specific to its functioning. So, knowing this is very very important, but that is only the first step to use HR analytics in the right sense after knowing different types of data available or different types of data to be collected and how the combination of the data or association of certain data points will give us insight, will give us the ratio which can be very indicative of organizational group, department or individual performance when all this is understood the next step is which one we would like to follow. There is no point in doing all the types of analysis possible without knowing how we are going to use that analysis.