Human Resource (HR) Analytics is the new technology-driven tool that drives excellence within the organization. Traditionally HR is not a numbers industry. It deals with people, relationships, operations, and company growth through personal interaction.
Over the years, however, HR has improved its analytics and now uses data to dive deeper into the numbers that define a healthy team. Technological advancements have created the era of big data that can be harnessed to accomplish HR goals more effectively and efficiently compared to traditional paper trails.
What is the current employee turnover? By how much can you expect to improve on it this year? How satisfied are employees? How effective are the current HR policies? How are team members performing? These are questions that can be explored and successfully answered with the help of data and analytics.
The use of predictive analytics in an HR department to obtain and improve employee performance for better planning, attracting, retaining, supporting, and engaging top talent is the cornerstone of HR analytics. It involves collecting relevant data on human capital. Analyze and interpret data to reveal trends and root causes.
Build a database business case for new HR initiatives. Make more strategic HR decisions and problem-solve. Lastly, demonstrate value based on the analytics.
The opportunity to make good use of large amounts of data can be a daunting task and the LAMP Framework is a method that helps HR professionals use, apply, and share human capital metrics with their organization in the best possible way. The framework is broken down as follows:
· Logic — Make the right connections between talent and strategic success and find the predictors of individual and organizational behavior.
· Analytics — Use the right tools and methods to transform data into practical insights that reveal causation, not just association
· Measures — Get the right data (accurate and system-generated) for analytics input to ensure your numbers, and resulting decisions have a solid foundation
· Process — Take the right communication approach in timing, channels, and tactics to share data with decision-makers and make an impact
The LAMP framework was developed by John Boudreau and his colleague Wayne F. Cascio who questioned the slow progress of analytics in HR despite the impressive tools and data available. Better talent management means better business performance and the following are ways in which the LAMP framework works in HR analytics.
- The LAMP Framework helps companies to know where to look for insight and connect data points to meaning to make better decisions. The connection between the numbers and effects and outcomes is vital in understanding the ‘why’.
Are there connections between employee health and wellness and employee turnover, for instance? Where are the connections between your business practices and your employee performance? The Lamp Framework can help you to understand these metrics.
2. The LAMP Framework also depicts the connections between HR and management practices, which affect employee attitudes, engagement, and turnover, which then affect the experiences of customers, which affect buying behavior, which affects sales, which affect profits.
Companies that can understand these underlying issues are most successful in implementing changes that matter. HR Analytics helps to highlight the connections.
3. A LAMP Framework helps to build a good analytics system based on a solid foundation that helps to ensure what you are measuring is meaningful to your organization and business needs. It also helps make sure that what is being measured is accurate and meaningful data.
It is important to know why you are measuring what you are measuring and understanding accurately how it affects your business.
4. You may have data available that suggests that your employees are engaged in their work based on employee feedback surveys. You may also have customer surveys indicating they are satisfied with their interactions with your brand.
All this may well be true, but HR analytics software and systems like the LAMP Framework will help you identify the relationship and allow you to draw more accurate insights.
5. An organization that uses HR analytics to support its employee management can also create changes based on that data. The LAMP Framework allows companies to go from data and information to meaning and then decisions.
The LAMP Framework approach to HR analytics is the key to solving people problems. It also helps to place meaningful data and analysis in front of business leaders who can affect and drive the changes that are needed. HR analytics course online are also available that are really helpful to understand analytics software better.