Case Study 2.1 Pioneers in HR Analytics
1. What are some reasons that more organizations do not implement HR analytics? How would you make the case for adopting HR analytics?
HR has not been looked at as a business partner, but a separate part of an organization. One reason why more organizations do not implement HR analytics is that this is a resource not yet used by many organizations. A lot of organizations are not aware of the advantage of HR analytic. If human resources are going to have an important impact in staying on top of competition in the marketplace then different types of thinking must be applied. Another reason is that most business leaders and HR top-level management do not make decision with the same level of critical thinking activities and rationale as they do other business decisions. By utilizing HR analytics you want to make sure that you are keeping productivity in the workplace and with that means keeping morale up as well. I think this would help out in the area of training when new employees are hired, as well as the cost of training them up to standards. Some other reasons that organizations do not implement HR analytics are uncertainty as to how to collect and compile data, and what information to collect, that tailors specifically to that organization; possible misinterpretation of the data compiled; and the belief that instinct and intuition upon hiring and retention is more valuable than HR analytics. The case I would make would show the accuracy in the reporting from other companies and the effectiveness it has within the organization. I would show how other organizations have used it and the positive effects it has had. I would also show the potential for effectiveness within the HR department and the organization.
2. How can HR professionals develop the needed skills to analyze and interpret metrics? What resources could an HR professional consult to begin building expertise in this area?