What is Analytics?

Analytics is defined as the science of analysis, including the principles of mathematical analysis. It is derived from the
Greek word analutika. It is the process of dismantling or separating into constituents to study.
The scope for analytics is very large in HR because the human resources function does not have a management model
or operating system with predictive capability and that is where analytics can help, i.e. in predicting the future.
Analysis of human capital can be divided into four phases:
1.
Scanning: All the external market forces and internal organizational factors are listed in terms of how
they might affect the organizations human, structural and relational capital. Additionally, the
interdependencies and interactions across these three forms of capital are recognized and accounted
for.
2.
Planning: Workforce planning is reconstituted as capability development, building sustainable human
capability rather than filling positions.
3.
Producing: HR processes are studied as processes with inputs, throughputs and outputs. Statistical
analysis is applied to uncover the most cost-effective and efficient combination of inputs and
throughputs to drive desired outputs.
4.
Predicting: A measurement system is designed to include strategic, operational and leading
indicators. The causal and co-relational aspects are used to tell a comprehensive story.
There are five ways to measure anything in business: cost, time, quality, quantity and human reaction. The most
important thing in business is to understand what matters at what point of time and for what organizational purpose.
This takes us to 5 steps of analytics:
Step1: Recording our work (i.e. hiring, paying, training, supporting and retaining).
Step2: Relating to organizational goals (i.e. quality, innovation, productivity and service [QIPS]).
Step3: Comparing our results to others (i.e. benchmarking).
Step4: Understanding past behaviour and outcomes (i.e. descriptive analytics).
Step5: Predicting the future likelihood (i.e. prescriptive analysis).
ROI
It is becoming more important these days for the HR to demonstrate the value addition that it does to the business. The
Top Management more than ever is asking questions about the impacts and the value addition done by various
initiatives of HR and whether the resources that are actually being used by the HRD are justified. But, the problem lies
in the fact that unlike finance, operations, sales & marketing it becomes difficult to calculate the value addition or the
ROI because in HR we deal with human factors, which makes it very difficult to quantify and calculate.
It may be common knowledge among human resource professionals that human capital- the traits (intelligence and
energy) that people bring to a job, their ability to learn (aptitude, creativity, and so on), and their motivation to share
information and knowledge (team spirit and goal orientation) - is any organizations most important asset. The ROI of
Human Capital arguably offers the greatest long term value in an organization.
To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment. The result is expressed
as a percentage or ratio.
The ROI of HR programs answers the question: Is there a financial return for investing in a program, process, initiative,
corporate event or performance improvement activity?
As defined by Jack J. Phillips, PhD, and Jon Wollenhaupt the ROI of HR must involve comprehensive measurement and
evaluation of five key processes:
1. Reaction and Planned Action : Measures participant reaction to the program and captures planned actions
2. Learning and Confidence : Measures changes in knowledge, skills, and attitudes
3. Application and Implementation : Measures changes in on-the-job behaviour or actions
4. Business Impact : Captures changes in business impact measures
5. Return on Investment: Compares program benefits with the cost.

Data from the reaction, learning, application and impact levels must be collected in order to calculate the financial HRROI for meetings, events or training, etc. All five levels provide important, stand-alone data. Reported together, the
five-level ROI framework represents data that tells the complete story of meeting success or failure.
ROI = (Gain from Investment Cost of Investment) / Cost of Investment
HR ROI =

Results (actual performance or expectations)

Salary + Human Resources Department investment

Measuring ROI: First, calculate the cost of initiatives (input). Second, determine the variables that will be impacted by
the initiative (influencer/ impact variable). Third, calculate the return for that impact/ change initiative (return on
investment).
The following dimensions can be used for assessing the worth of an HR process, program or activity. HR should ask how
its work impacts the business in terms of one or a multiple of the following:
Increased productivity
Improved customer satisfaction and loyalty
Safety
Quality
Profitability

Companies that are successfully using HR analytics to gain competitive advantage are Capital One, New England
Patriots (NFL) and Sprint (Fortune 50 wireless telecommunications company).
Some of the basic questions to be probed to develop a deeper understanding and generate various metrics for the
analysis are given below:
How do employees learn about the Organization?
How do we make sure we find and hire the most qualified candidates?
How are we going to get the employees up and running and get them productive?
How are we going to get them their first pay-check and make sure they are happy with that?
How are we going to intervene when the employee is unhappy?
How are we going to get the employee recommitted year after year to the business?

Components to Calculate ROI of HR Initiatives

I.

Recruiting
Inputs:

Recruiting costs
Advertising costs
Resume management
Branding
Organizational Influencers/ Impact Variables:
Higher retention (lower attrition rates)
Reduce turnover, etc.
Return:
Cost per hire per level
Revenue per employee

II.

III.

IV.

Selection
Inputs:
Sourcing costs
Hiring costs
Person-job fit
Time and productivity / Time of selectors
Organizational Influencers/ Impact Variables:
Orientation process
Assimilation
Management
Return:
PBT (profit before taxes) per employee
Productivity: individual, team, and organizational levels
Productivity over time
Training
Inputs:
Needs assessments
Cost of training and development per employee
Cost of lost opportunities/ work
Cost of lost sales (for sales staff training)
Project management costs
Organizational Influencers/ Impact Variables:
Retention
Technical competence
Organizational commitment
Return:
PBT per employee with training vs. no training
Productivity per employee
Prevented cost of lost opportunities
Prevented cost of future mistakes
Performance Management
Inputs:
Hourly cost of implementation (employee hours)
Cost of design
Cost of performance management software
Cost of training
Cost to warehouse data
Organizational Influencers/ Impact Variables:
Feedback to employees
Employee-manager relationship
Return:
Productivity: individual, team, and organizational levels
Revenue per employee

V.

Coaching
Inputs:
Costs of assessments
Costs to do coaching
Time away from daily work
Organizational Influencers/ Impact Variables:
Financial impact/ benefit because of behavioural changes in the coaches
Improved business performance, communication, and leadership skills
Motivation, employee morale, employee commitment
Return:
Cost of turnover
Employee productivity
Satisfaction and commitment of direct and non-direct reports
Succession Management
Inputs:
Cost to design program and software
Cost of assessments
Organizational Influencers/ Impact Variables:
Successful incumbent
Meets financial projections
Satisfies stakeholders
Return:
Prevented cost of lost time
Employee productivity
Cost to hire from outside vs. promote internally

VI.

Some of the Human Capital Success Metrics

Average change in performance-appraisal rating overtime

Climate surveys
Customer complaints/ praise
Customer satisfaction/ loyalty
Employee commitment survey scores
Employee competency growth
Employee development/ advancement opportunities
Employee job involvement survey scores
Employee satisfaction with advancement
Employee turnover by performance level and by controllability
Extent of cross-functional teamwork
Extent of organizational learning
Extent of understanding of the firms competitive strategy and operational goals
Extent to which employees have ready access to the information and knowledge that they need
Extent to which employees are clear about the firms goals and objectives
Extent to which hiring, evaluation, and compensation practice seek out and reward knowledge creation and
sharing
Percentage of employees making suggestions
Percentage of female and minority promotions
Percentage of intern conversion to hires
Percentage of workforce that is promotable
Percentage of employees with experience outside their current job responsibility or function

Percentage of retention of high-performing key employees

Perception of consistent and equitable treatment of all employees
Performance of newly hired applicants
Planned development opportunities accomplished
The ratio of HR employees to total employment
Requests for transfer per supervisor
Retention rates of critical human capital
Success rates of external hires
Survey results on becoming the Employer of Choice in selected, critical position.

How to manage Human Capital?

Human capital management model is used to transform HR into strategic functions. It is not only a human resource
program but a management model and an operating system.
Following are the steps essential to this model:
A. The Strategic Scan
B. Capability Planning
C. Process Optimization
D. Integrated Delivery
E. Predictive Measurement
F. Analytics

A. Strategic Scan
Human capital management typically starts with workforce planning, which compares business plan staffing
requirements with internal and external labour pools. From there a strategy is developed for filling gaps in workforce.
Before planning for the future we need to understand all aspects of the market like competition, technology
advancements, regulations etc. A strategic scan of external forces and internal factors is essential that might affect the
human, structural and relational capital. Some of these forces and factors are given below, but this is not the
exhaustive list.

Organizational Capital
External Forces
Labour supply
Economy
Globalization
Regulations
New Technology
Competitors
Internal factors
CEOs vision
Culture
Brand
Capabilities
Leadership
Finances

Human

Structural

Relational

Acquire and retain

Incent Service
Find new people
Modify benefits
Train staff
Research new knowledge

Remodel workspace
Sell off real estate
Reorganize
Go green
Invest in equipment
Design new products

Find new contacts

Retain customers
Expand suppliers
Lobby Government
Update customers
Speed to market

Translate for employees

Employee branding
Describe to employees
Facilitate/Support
Survey employees
Control new hires

Make new signs/forms

Protocol review
Design facilities
Upgrade processes
Review span of control
Manage expenses

Advertise in market
Talk to customers
Marketing materials
Self competence
Visit customers
Curtail travel

Human capital is your employees and active contingent workers. Structural capital is essentially things that you own,
ranging from facilities and equipment to intellectual materials, codified processes, patents and copyrights, and IT
software. Relational capital is working knowledge of and relationships with outsiders including customers, suppliers,
competitors, regulators, and communities in which you do business.

Steps to follow: First, identify issues that will arise as a result of External Forces. Describe them in a few key words or
phrases and enter onto the spreadsheet templates provided here. All key issues should be clearly identified, but not all
impact cells have to be filled in. Consider primarily those significant issues or forces that will demand attention across
the entire organization.
Second, to give the scan consistent structure, link the issues to your organizations three forms of capital given above.
This corporate-level scan is a general starter set of forces; you may delete some of these and/or add others as fits your
situation. When this strategic scan is completed at the corporate level, it can be recreated at the divisional or
department level as appropriate. Do this for both the External forces and internal forces separately.
Organization Analysis and response: Copy the entries in the Change in and the Issue columns from the Strategic
Scan to the Change in and Issues columns on the A-3 template. This ensures consistent consideration of all uses
when multiple sheets are used by different functions or departments. Then, decide which functions or departments are
primarily affected by these issues. You need to supply a Needed Response for each Issue. The Response to Excel
column is for listing stretch factors that are designed to achieve true excellence
Obtain current or revised corporate statements from the Vision, Mission, and Values sheet (Form A-5) and insert in
Form A-4, as done for the external forces.
Corporate Vision, Mission and Values: Form A-5 should be completed by the chief executive officer or senior leadership
team. Review these current vision, mission, and values statements and amend or modify as needed. Determine what
current or future actions may be taken at corporate level to better commit to, communicate, and implant these
positions in the corporate culture. When completed, provide copies to the functions or departments for their individual
organizational analyses and responses.
Corporate Objectives and Initiatives: Form A-6 should be completed by the officer or senior leadership team. These are
key initiatives described at the corporate level. More detailed goals and objectives are covered in the function- or
department level form. See B-1. Review current corporate objectives and initiatives, and amend or modify as needed. It
is recommended that you limit this to five key strategic objectives. After the form is completed, provide this review of
corporate objectives to the function/department groups to obtain information that will be used in the delivery planner.

B. Capability Planning
Once the scan is completed, you have the foundation for an advanced workforce-planning process. The strategic scan
told you who and what you have to compete with and where your internal process and structures might need
recalibration.
Workforce analysis process (B-1): The first step is to divide the workforce into four categories in terms of their valued
capabilities:
1. Mission criticalessential to survival
2. Uniquemarket differentiators
3. Importantoperational necessities
4. Movableout-source or eliminate
After reviewing the Change in entries on the Strategic Scanner sheets and the Needed Response listings on the
Organizational Analysis and Response sheets, list the key Capabilities required for organizational success. Designate
the Primary Function(s) needing those skills, abilities, or expertise; or indicate the Organizational Responses to
meet such needs. Then outline the responses that may be immediately taken (tactical measures) and those longerrange responses to be considered (strategic initiatives).
Once the capability planning is completed, follow with the succession planning system built around five principles:
1. Assigning a senior line executive the primary responsibility of managing the system
2. Identifying high potential (Hi-Po) personnel as far down the organization as possible
3. Designing personal growth programs and reviewing and updating the Hi-Po list at least annually
4. Monitoring advancements and their effect on mission accomplishment and revenue growth
5. Ensuring the development plans are aligned with strategic business plan and corporate KPIs

C. Process Optimization
In any process there are inputs, throughputs, and outputs. In staffing, the inputs are job applicants who come through a
variety of sources, such as advertising, job boards, agencies, and employee referrals; throughputs are the selection and
orientation methods you use, such as individual and group interviews, testing, assessment, or on-boarding; and outputs
are new hires who can be evaluated in terms of performance (B), salary progression (C), growth potential (P), tenure
(T), or other outcomes. In the figure below, it is shown which combination of source and method yielded the best
results. From this it is possible to see which sources produced the high performers, as well as which attracted people
who stayed. This can be applied to the current process or can be modified to include more number of variables as per
the organization.

Staffing Process Analysis: Form C-1 helps you consider what may be the most effective recruiting methods you are
currently using to source those key jobs or competencies identified by this survey. Under Key Job, list each person
hired during the relevant period. (Coded names and ID numbers may be used for privacy purposes.) For each individual,
consider his or her primary recruiting source and on-boarding methods. The methods listed are suggestive and others
may be added to better reflect your organizations programs.
Then evaluate each persons performance, potential, progress, and tenure to date. For a job group, look for patterns
that are most effective, cost-efficient, and performance consistent in finding suitable candidates and in retaining higher
potential employees.
Training Process Analysis: Form C-2 helps you consider what may be the most effective training methods you are
currently using to develop employees in those key jobs or competencies identified by this survey. Under Key Skill, list
each person trained in the relevant period. For each individual, consider whether internal or external training is used or
programs are attended. The methods listed are suggestions; others may be added to better reflect your organizations
programs. Then evaluate each persons performance prior to and after the training, and the impact of that training on
the individuals potential and continued tenure. As a skill group, look for patterns that show effective, efficient, and
consistent improvement in performance and potential of employees trained by different methods.
Loss and Turnover Analysis: Form C-3 helps you consider what may be the common causes of controllable and noncontrollable turnover and its impact on the performance of the organization or the key competencies identified by this
survey. Under Key Job, list each person who left the company during the survey period. For each individual, consider
his or her primary reason for employment termination. The reasons listed here are common and are used to
differentiate between controllable and non-controllable terminations. Then evaluate each persons performance,
potential, ease of replacement, and tenure. As a skill group, look for patterns that may be effectively addressed,
especially those considered controllable.

D. Integrated Delivery
Corporate Objectives, by Function or Department (D-1): This should be sent for separate completion by each major
function or department in the organization. The corporate objectives have been developed by the officer or senior staff
during the Corporate Objectives and Initiatives phase of this process. They should be copied directly from Form A-6
onto this form.
Key Goals for Function or Department (D-2): The functions or departments key goals are listed here and crossreferenced to the corporate goal number that they support.
Related Department Goals (D-3): Key related or support goals from other functions are listed here and cross-referenced
to the corporate goal number.

E. Predictive Measurement
The latest and most exciting measurements are the leading indicators and intangible metrics. These predict what is
most likely to happen in important future events. High degrees of success yesterday do not guarantee similar returns
tomorrow.
Lagging and Leading Indicators: To manage for tomorrow you need new metrics that are inherently predictive i.e.
leading indicators. A number of factors can be turned into leading indicators: Readiness, Capabilities, L&D Return on
Investment, Loyalty, Culture, Leadership, Absenteeism, Innovation, Brand, Retention, Engagement, and Reputation.
Note that most of these indicators are intangible. With experience, you learn to see patterns in data that are predictive
of the future. Measures of management bench strength, or readiness, are certainly indications of the organizations
ability to transition smoothly to new leadership tomorrow.
Metrics Evaluation should be made against SMART targets that clearly define proactive and positive movement from
current status toward the corporate future state outlined via this survey process. SMART targets are marked as
S=Specific, M=Measurable, A=Actionable, R=Realistic, and T=Time-bounded.

Continually working on process improvements and making additional investments in disconnected software can only
keep you far back in the pack. The only way to break out, take the lead, and drive top line growth is to come up with an
entirely new way of managing human capital.

Human Capital performance Metrics

Each employee requires pay, benefits, training, and human resources administration to keep the organization
operational. Unlike physical assets, however, the value of human capital will increase over time. As each employee
gains experience in managing and operating the management center, his or her talent and expertise grow. If training
and management efforts are successful, people-driven processes will become more efficient and quality will improve. In
the end, individuals will increase their ability to add value to the organization while the predetermined investment in
salary, benefits, administration, and training will remain relatively constant.
The learning-value curve introduces the possibility of measuring ROI in human capital with a new set of performancebased metrics. Each of these metrics considers individual and environmental factors that impact the creation of value in
human capital over time.
Finally, given the fact that over 500 human capital and HR metrics have been identified, the four metrics listed here
represent a short list based on leverage to support evaluation and continuous improvement of human capital
systems.
1. Time to full productivity (TFP): learning-value curve will continue to increase over time and reach some level of
sustained value. A particular point in this value appreciation path will be objectively defined in terms of
productivity, skills, and knowledge achieved. This point is labelled time to full productivity. TFP is a critical
metric of human capital appreciation, as it has the potential to focus and direct investment strategies.
Employees orientation to their position will depend on the training, support, and their own motivation to
reach goals. Quality and productivity measures are lagging indicators of ROI. Technical and leadership
competencies, as well as quality of relationships with the boss and peers, predict employees future
performance and their contribution to the overall performance of the center.
Strategies for decreasing TFP include:
* Integrated talent development systems
* Selection for competencies and adaptive learning skills
* Competency-based training
* An aggressive on-boarding process
* Early identification of development needs
* Candid and frequent performance feedback
* Incentive-based pay
Also, looking at environmental issues such as work process flow, equipment, and resources necessary to
support work performance will contribute to productivity. Many performance management systems do this by
asking employees to create personal SMART (S=specific, M=measurable, A=attainable, R=realistic, T=timely)
goals aligned with company strategy.

2.

Quality of Hire: Individual employees will reach full productivity at different rates. Each individual hire will
have a different starting point, shape, and trajectory of the value-learning curve in TFP. Quality of hire includes
the degree of employee fit with the organizational culture and the readiness to assume job accountabilities.
Quality of hire is typically determined by several variables:
1. Key experiences related to the job responsibilities
2. Evidence of past performance
3. Competency assessment of both baseline and differentiating competencies
4. Adaptive learning skills
5. Personality variables measured by validated assessments
Quality of hire may vary greatly based on the sourcing of candidates. A proactive assessment of quality of hire
will yield information to guide development strategies aimed at increasing value of human capital. Quality of
hire also creates a compelling financial case for differentiation of compensation based on capability relative to
TFP.

3.

Quality of Promotion: When we think of an employees return on investment, a system upgrade is analogous
to a promotion. As a human system, employee increases their capacity to produce value to a point where it
makes financial sense for them to manage the action and priorities of others. By providing feedback and
support, delegating tasks, and improving processes in ways that impact many others, an employee has the
opportunity to have an exponentially greater impact on ROI. The process of developing management
competencies can be enhanced by training, coaching, and consistent feedback. Quality of promotion depends
on new investments in human capital. Before exponential ROI can be realized, a promotion typically results in
a dip in the learning-value curve. Cost of salary and benefits also increases with promotion. With increased
potential for ROI of a promotion, there is also increased risk for loss. All of the characteristics of increased
influence on people and processes also increase the opportunity for compounded losses.

4.

Quality of Separation: If an employee was to leave their job for any reason, there would be an immediate
economic impact for the organization. Eventually other members of the team would compensate for the
absence. Because the economic impact of departure would be less immediate and systemic Organizations
response to the loss of this asset may be less focused and intentional. This is a profound oversight, in that loss
of human capital can have an immense impact on economic return. Because this return is not managed and
measured actively, the extent of the economic impact is not known. When an employee leaves an
organization, ROI in human capital is potentially decreased in at least five ways:
1. All potential for that employee to add economic value from his or her direct action ceases
immediately.
2. All investment in training, on-the-job experience, and internal network creation is lost.
3. A new investment will be made in replacing the employee if the organization is to sustain
productivity or grow.
4. There is risk to profitability through breaks in customer relations and loss of potential revenue
streams.
5. The employee may go to a competitor, taking valuable intellectual capital and client relations with
him or her.
Intangible costs of separation include the impact on other employees morale and productivity.
All organizations have some degree of turnover. Analysis of separation from a quality perspective is critically
important. Voluntary separation is the highest leverage point for loss of ROI on human capital. Individual
separation cases may have a large impact even when overall retention rates are high. Failure to systematically
track the frequency, quality, and drivers for separation can lead to significant mismanagement of human
capital.

The Three Levels of Metrics

The following are some common metrics for each of the three levels.
Strategic Level
Revenue per FTE
Total labour cost (payroll, contingent and contract worker pay, benefits excluding consultants) as
percentage of revenue
Total labour cost as a percentage of operating expense
Benefits to revenue expense percentage (total benefits cost as a percentage of revenue)
Benefits to operating expense percentage (total benefits cost as a percentage of operating cost)
Mission-critical turnover rates: manager and professional (can be broken out, voluntary and involuntary)
Diversity representation at executive, manager, exempt, and non-exempt levels (percentage of executives,
managers, exempt, and non-exempt employees by diversity group)
Diversity turnover at executive, manager, exempt, and non-exempt levels (turnover among diverse groups
by executive, manager, exempt, and non-exempt levels)
HR Operations

HR operating expense percentage (HR expense as a percentage of operating expense)

Human resources expense per employee
HR employee ratio (HR headcount divided by total headcount)
Total training and development investment
Training and development cost as percentage of payroll
Time to fill non-exempt positions
Time to fill exempt positions
New hire quality (performance rating by supervisor ninety days after hire)
Any other HR process metrics

Leading Indicators

Leadership survey score

Engagement survey score
Readiness rate (percentage of mission-critical positions with at least one Hi-Po person ready to step in)
(executive, managerial, key professional)
Learning and development investment per employee
Learning and development investment as a percentage of payroll or revenue
Commitment level (percentage of employees reporting intent to stay at least three years via survey)
General turnover rate (exempt and non-exempt; can be broken out, voluntary and involuntary)
Great place to work (percentage of employees rating company as good or great place to work)

Some of the statistical techniques that can be used are:

Factor and cluster analysis: To find out interdependencies.

Multiple regression, Discriminate function analysis and MANOVA (Multiple Analysis of Variance): To find out
dependencies.
Decision Trees: To find out relation between predictor variable and outcomes. Examples techniques include
CHAID (Chi-square Automatic Interaction Detector), Classification and Regression Trees (CART).

Caveats for Variables and Data

Here are some important precautions to keep in mind when you look at your variables and the data they contain. First,
make sure your variables are relevant to your hypothesis. Dont collect extra data to fill out an unclear objective. Keep
the project simple, relevant, and focused. Also, missing data can be a pain and potentially weakens your end product.
Try your best to collect complete data from each case (person). Dont have too many, rather than too few, levels in your
categorical variables. If you are extremely specific, or granular, you might end up with very few people in a category.
However, you can always collapse the category with another one later (e.g., take junior manager and senior
manager and collapse them into manager). You cannot, however, break apart a previously identified variable.
Continuous variables provide more opportunity to find differences than do categorical variables. Statistics are driven by
variance (variability in cases). Continuous variables provide a more granular rating and, therefore, more opportunity
to spot differences. That being said, it is often impractical to collect continuous (numeric) data; the desire for
continuous data needs to be balanced with practicalities of measurement.

Checklist for Using Predictive Analytics

Start with your objective(s): What do you want to find out in a strategic sense? What is your hypothesis? Keep
it as simple, specific, and actionable as possible.
Operationalize your hypothesis: How will you act on the information that you pull in? Translate the
theoretical/strategic words into variables. Determine whether you have the data or need to get them. Are
those variables you just operationalized available?
Understand your variables: Which are continuous and which are categorical? What are the levels of the
categorical (classes) variables and the scales of the continuous variables?
Determine the technique that fits your hypothesis: Call in your local statistician for help (if needed). Explain
your goal and let the statistician find the best way to obtain a valid and actionable result.
Collect your data and run your stats.
Balance statistical with practical significance: Especially with large sample sizes, statistical significance may
appear. Always ask yourself if the difference is large enough to matter.
Tie the findings back to your original questions: Okaywhat now? Given that each question was a practical
one in the first place, now is the time to take some action based on the findings.

Identifying Human Capital Processes

There are six core processes that need to be measured and they are recruiting, learning and development,
performance, talent, leadership, and engagement. Each has sub-processes that allow for more micro measurement.
They are as follows:
Recruiting
o Forecasting workforce requirements
o Recruitment, selection, and hiring
o International assignment
o Mobile workforce
o Employee turnover

Learning and Development

o On-boarding
o L&D
o Coaching
o Knowledge management

Performance Management
o Performance appraisal

Talent
o Competencies assessment

Leadership
o Succession planning
o Leadership development

Engagement
o Compensation and benefits
o Employee satisfaction
o Employee engagement
o Work-life balance
o Workforce diversity
o Measuring

A Human Capital analyst needs to do the following with the data to make them a performance management process
that informs and supports decision making.

Trend it (Trend line analysis): Trended metrics can include productivity (revenue per employee), employee
contribution margin (revenue-labour/revenue), general financial trends (revenue, profit, stock performance),
realized value from training programs, quality of hire, competency gaps, voluntary turnover, performance
review scores, and leadership ratings.
Benchmark it (Both internal and external benchmarks).
Set goals against it: Use historic trends and benchmarks to baseline the data when setting goals.
Dashboard it: Dashboards with 4 to 6 indicators for each of the six human capital processes should be
sufficient.
Compare it to the actual results.