Winning on hr analytics: leveraging data for competitive advantage
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.
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