PEOPLE ANALYTICS: NOVEL APPROACH TO MODERN HUMAN RESOURCE MANAGEMENT PRACTICE

This research review papers shows how HR departments need to optimize the way their organizations use human resources, and to be as efficient as possible themselves. They need to make better and faster decisions, to match people better to requirements, and at the same time to reduce costs. As an HR director, you’re probably aware that you could achieve your aims more effectively through better use of data. For example, when a business need arises, you need to be able to see at a glance whether you have the right person available internally or need to look outside. In the latter case, you then typically face the additional challenge of scanning large volumes of applications or CVs/résumés. Fortunately, with today’s technology, it’s possible to automate much of the work of matching people to requirements. You can also bring together structured and unstructured data to learn more about the potential of your own staff, and take advantage of information available in social networks to find out about potential recruits. With recent advances, all this can be achieved without major investment in technology and related skills. Applying advanced analytics effectively to HR challenges is the aim of our new offer, People Analytics.


People Analytics: Emergence and Evolution
Although PEOPLE ANALYTICS only recently has become a big buzzword, PEOPLE ANALYTICS builds heavily on ideas and practices that have existed in the HR field for a long time. As noted by Bassi (2011), metrics and measurements were discussed as far back as the late 1970s. More than 30 years ago, HR researchers grappled with issues related to the measurement of human resource management (Fitz-Enz, 1984). Although the origins of the field of HRM can be traced back to Peter Drucker's writings from the 1950s, HRM got its big breakthrough during the mid-1980s (Beer, 2015;Kaufman, 2015;Marciano, 1995).
During the 1990s, the focus shifted to viewing people as a valuable organizational resource and capability that can create competitive advantage (Barney & Wright, 1998;Huselid, 1995;Pfeffer, 1994;Ulrich, 1997;Ulrich & Lake, 1990;Wright, Dunford, & Snell, 2001). As a result, human and intellectual capital became key buzzwords in both academic research and in the management community at large (Edvinsson, 1997;Stewart, 1997;Ulrich, 1998 In the last few years, PEOPLE ANALYTICS has received considerable attention in influential practitioner-oriented management outlets such as Harvard Business Review, and in a string of reports written by global consulting and technology giants. The use of data and analytic tools to identify insights on people that enable faster, more accurate, and more confident business decision-making Data is the modern currency, with value that extends far beyond the organisation that collects and owns it. The challenge for businesses is to make the best use of the huge volume of people data that's available, in order to compete and thrive in the ever evolving digital economy. People analytics allows organisations to understand what's working and what isn't. It allows for the better matching of people to jobs and for more efficient and cost-effective recruitment and talent management.
HR sits on the biggest set of untapped data in the organisation. In a world exploding with potential, the power of data-led insight is revolutionizing business decisions. The way you embrace people analytics, and the huge opportunities it captures, will greatly affect your business. advanced or predictive analytics todaythe other 86% are still focused on creating basic reports and dashboards of talent metrics.
According to research by MIT and IBM, top-performing companies are three times more likely than lower performers to be sophisticated users of analytics. These early adopters of people analytics simply outperform. Organizations at the highest levels of talent analytics practice, including the adoption of people analytics, have 8% higher sales growth, 24% higher net operating income growth, and 58% higher sales per employee. How can you achieve similar business results? Oracle's Enterprise Analytics for HCM Cloud has been built from the ground up to help HR executives answer the tough questions they face every day, questions that require a combination of HR, recruiting, and additional data sources to drive effective business strategy.

Usefulness
• While 71 percent of companies see people analytics as a high priority: In their organisations (31 percent rate it very important), progress has been slow. The percentage of companies correlating HR data to business outcomes, performing predictive analytics, and deploying enterprise scorecards barely changed from last year.
• Analytics is being applied to a wide range of business challenges: Recruiting remains the No. 1 area of focus, followed by performance measurement, compensation, people planning, and retention. We see an explosive growth in the use of organizational network analysis (ONA) and the use of "interaction analytics" (studying employee behaviour) to better understand opportunities for business improvement.
• Readiness remains a serious issue: After years of discussing this issue, only 8 percent report they have usable data; only 9 percent believe they have a good understanding of which talent dimensions drive performance in their organizations; and only 15 percent have broadly deployed HR and talent scorecards for line managers.

How It Works
Techniques we use include: • Contextualized text analytics: analyzing text (without any need to assign keywords) and contextualizing the data in the sense that candidates and requirements are matched, in terms of geography and travel time, as well as their area of specialization and professional skills • Machine learning: improving matching algorithms by observing user behavior and processing feedback (with artificial neural networks and so on) • Predictive analysis: forecasting how staffing plans need to change when the company faces organizational change or restructuring; anticipating market trends and developing employee skills accordingly • Visualization: gaining a 360o view of skills in the company. Data we can process to gain insights includes CVs/résumés, job descriptions, training and education descriptions, profiles of past assignments, career paths in the company, business repositories, and annual appraisal/interview notes. The data can be both unstructured and structured, and both quantitative and qualitative.
Technologies used include Big R text analytics, Big SQL, and IBM's Hadoop for Enterprise, Big-Insights, which provides storage and processing engines. Data visualization and extended text analytics are handled by IBM Watson Explorer.

Conclusion
People analytics is a data-driven approach to improving people-related decisions for the purpose of advancing both individual and organizational success. While people have always been critical to the success of organizations, many business leaders still make key decisions about their workforce based on intuition, experience, advice, and guesswork. However, today leaders can improve their people decision-making based on the collection and systematic analysis of data.