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SAMPLE Glimpse Into the Future Using Predictive HR Analytics

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1 SAMPLE Glimpse Into the Future Using Predictive HR Analytics
Develop an analytical perspective in HR to support evidence-based decision making that drives organizational success. McLean & Company is a research and advisory firm providing practical solutions to human resources challenges via executable research, tools and advice that have a clear and measurable impact on your business. © McLean & Company. McLean & Company is a division of Info-Tech Research Group SAMPLE Learn about becoming a member

2 Our understanding of the problem
CHROs, VPs of HR, or Heads of HR who are looking to implement predictive analytics. Executive team members who are looking to generate more value from people data. Understand if the organization and department are ready for predictive analytics in HR. Identify competencies and capabilities required to successfully perform predictive analytics in HR. Assess the current analytics capability of the HR department. Isolate organizational goals HR can advance using predictive analytics. Develop customized next steps to implement the first predictive analytics initiative. SAMPLE

3 Executive summary SAMPLE
HR can overcome the challenges of predictive analytics as a team: one member of the team can “crunch the numbers” while the other interprets, analyzes, and applies HR acumen. If an organizational objective or goal has stagnated, then focus HR analytics on a component of the problem to maximize value-add. As the business environment increases in complexity, an improved ability to make rational decisions is an indisputable competitive advantage. Predictive analytics improve the relevance and accuracy of decisions by providing evidence-driven insight. HR departments currently track metrics and perform descriptive analytics, but very few leverage the power of predictive analytics. Some HR departments lack the analytics skill set necessary to track and interpret predictive analytics. Departments are often siloed, making it challenging to gather the data required to support predictive analytics. Data is often unstructured and stored in multiple formats and warehouses, making it challenging to assemble and analyze. To develop the necessary capabilities and competencies, HR should consider hiring for different skill sets: statistical knowledge paired with HR expertise and insight. Rather than scanning mass amounts of data for trends, HR should: Work with the organization to identify key organizational goals/objectives. Identify what insight will help the progression of key goals/objectives. SAMPLE

4 Guided Implementation
McLean & Company offers various levels of support to best suit your needs Guided Implementation “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.” DIY Toolkit “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.” Workshop “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.” Consulting “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.” Diagnostics and consistent frameworks used throughout all four options SAMPLE

5 Use McLean & Company’s process to apply predictive analytics to people data
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6 Sample Slides SAMPLE

7 The evolution of analytics in HR: from metrics to data analytics
Data Analysis Data Analytics Individual pieces of data that indicate an outcome. In isolation, they are meaningless. To accurately interpret metrics, it is critical to understand situational context. Occurs when a metric refers to a discrete activity. It investigates a specific issue, but does not review the problem in its entirety. Descriptive Analytics Predictive Analytics Investigates a problem from all perspectives. Multiple sources of descriptive data are reviewed in conjunction, looking for trends, patterns, and relationships and resulting in insights. Integrates several sources to create a prediction of the future state. This future state is a best estimation of what will unfold based on a combination of internal, external, and historical data. Data underlies all analytics. It is the source for all of these practices. SAMPLE

8 There are two paths HR can take to acquire the tools to perform predictive analytics
Regardless of the selected tool, HR has a critical role to play. Regardless of whether analysis is performed in house or if a vendor solution is purchased, HR has a role to play. If HR expertise is not applied to analysis, data could be misinterpreted, leading to poor decisions or missed opportunities. HR must take ownership as there is significant potential value in people data, and if HR fails to take control of this database, then it will be overtaken by another department. 1 Statistical Analytical Tool Capability Assessment: Hire or train so that the necessary statistical skill is present. 2 Outsourcing Capability Assessment: Ensure that the software can perform the appropriate level of analysis. Please note: We will be discussing both of these options in greater detail later in the blueprint. Head of HR’s Role: Leader of the development of HR’s analytical skill set. Spokesperson for the use of HR insight in the C-suite and in business units. Create support for predictive analytics on the executive team. Create alignment within the HR department to support this initiative. It’s not about software, it’s about using software to drive decisions. - John Pensom, CEO & Co-Founder, PeopleInsight Workforce Analytics SAMPLE

9 McLean & Company Helps HR Professionals To:
Empower management to apply HR best practices Develop effective talent acquisition & retention strategies Build a high performance culture Maintain a progressive set of HR policies & procedures Demonstrate the business impact of HR Stay abreast of HR trends & technologies Sign up to have access to our extensive selection of practical solutions for your HR challenges Learn About Becoming a Member "Now, more than ever, HR leaders need to help their organizations maximize the value of their people. McLean & Company offers the tools, diagnostics and programs to drive measurable results." – Jennifer Rozon, Vice President, McLean & Company Toll Free: hr.mcleanco.com SAMPLE


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