Win­ning on hr an­a­lyt­ics: lever­ag­ing data for com­pet­i­tive ad­van­tage

The Smart Manager - - Reading Room - By ramesh soundarara­jan and kuldeep singh

Com­pe­ten­cies are the con­nect­ing blocks of ma­ture HR prac­tices. Peo­ple ca­pa­bil­ity ma­tu­rity model de­signed by the Soft­ware En­gi­neer­ing In­sti­tute pro­vides for five lev­els of ma­tu­rity in HR prac­tices. Prac­tices such as re­cruit­ment, train­ing, and com­pen­sa­tion oc­cur at Level 2.

As the schematic shows, busi­ness and HR are linked us­ing com­pe­ten­cies as de­fined in Level 3. The busi­ness ex­pec­ta­tions are con­verted into com­pe­ten­cies needed from the work­force. Then the com­pe­ten­cies are em­bed­ded into work­force plan­ning, ca­reer devel­op­ment as well as into

re­cruit­ment, train­ing, pro­mo­tions, etc. At a higher level of ma­tu­rity, the pro­cesses are made pre­dictable by baselin­ing process per­for­mance and then pre­dict­ing based on the trends.

Emerg­ing prac­tices in HR rely on com­pe­tency-based as­sess-ments to not only ar­rive at the best in­di­vid­ual de­ci­sions but also:

■ De­cide on the fo­cus ar­eas for L&D,

■ Hire ef­fec­tively based on com­pe­ten­cies that drive re­ten­tion and per­for­mance.

com­pe­tency baselin­ing

Most com­pa­nies have iden­ti­fied a set of com­pe­ten­cies that are mapped onto the roles. A ta­ble could look like this. Next step is an as­sess­ment of all role-hold­ers. This could be done us­ing a self and man­ager feed­back, 360° sur­vey, or a proper for­mal as­sess­ment. In gen­eral, at the end of the as­sess­ment, an em­ployee gets The com­pany can then con­sol­i­date the score from all such as­sess­ments and ar­rive at a base­line score for com­pe­ten­cies as fol­lows.

This can then be used to share with the in­di­vid­ual em­ployee where he/she stands with re­spect to the mean score of all role-hold­ers.

Such a com­par­i­son will still need to be po­si­tioned ap­pro­pri­ately, as the av­er­ages can be in frac­tions and the em­ployee can only score in dis­creet numbers. As it is done else­where, per­centile scores can also be used to share the find­ings. This is as far as the in­di­vid­ual is con­cerned.

The or­ga­ni­za­tion can then per­form a re­gres­sion of the com­pe­tency data with per­for­mance data. How is the com­pe­tency pro­file of the top 10% per­form­ers dif­fer­ent from that of the oth­ers?

Are the dif­fer­ences across all com­pe­ten­cies or only one or two com­pe­ten­cies ac­count for the per­for­mance vari­a­tion?

Re­search shows that a dif­fer­ent level of pro­fi­ciency in just three com­pe­ten­cies out of a larger bas­ket can influence per­for­mance by more than 75%. An­a­lyt­ics helps us to find what these com­pe­ten­cies are. Us­ing the sim­pli­fied ta­ble above, as­sume we get the fol­low­ing data. This data clearly shows that on col­lab­o­ra­tion and on an­a­lyt­i­cal abil­ity, the scores do not dif­fer much. Top per­form­ers are as­sessed at a higher level on com­mu­ni­ca­tions and test­ing. It is pos­si­ble that pro­fi­ciency in these has a greater im­pact on per­for­mance.

The com­pany needs to val­i­date this af­ter con­sid­er­ing other vari­ables such as na­ture of work and qual­ity of su­per­vi­sion, etc. Let us as­sume that even af­ter that, test­ing and com­mu­ni­ca­tions emerge as dif­fer­en­tia­tors. ■

Ex­cerpted with the per­mis­sion of SAGE Re­sponse from Win­ning On HR An­a­lyt­ics: Lever­ag­ing Data For Com­pet­i­tive Ad­van­tage. Copy­right 2016. Ramesh Soundarara­jan and Kuldeep Singh. All rights re­served.

Ramesh Soundarara­jan and Kuldeep Singh Sage Re­sponse

2016, R395, 268 pgs, Paper­back

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