People Analytics - Financial Impact of HRM Activities

Improving talent-related decisions using HR metrics.
Calculating the financial impact of employee turnover.
Relationship between employee attitudes, engagement, customer satisfaction, and retention.
Business case for implementing work-life programs.

Talent: Defined as the potential and realized capacities of individuals and groups within and outside an organization.
- HR Talent Management Model:
- Acquisition: Attracting talent (e.g., employer branding).
- Retention: Keeping talent engaged and satisfied.
- Activation: Adding value to talent through candidate experience and onboarding.
- Revenue: Maximizing the value from talent through learning and performance management.
- Referral: Using existing talent to attract new candidates.

Big Data: Involves the collection and analysis of extensive data on behaviors, aptitudes, and competencies.
- Characteristics: Volume, velocity, and variety.
- Insights derived from big data provide competitive advantages.
- Types of Data:
- Unstructured: Text documents, images, with no specific format.
- Semi-Structured: Clickstream data, textual data with some patterns.
- Structured: Data with defined formats like databases.

Aptitude: Innate potential and ability in specific skills, influenced by genetics and environment.
- Examples include mathematical and musical aptitude.
Four Work Behaviors:
- Job performance: Speed and accuracy of task completion.
- Organizational Citizenship: Going beyond job roles to help teammates.
- Absenteeism: Unscheduled absences impacting productivity.
- Turnover: Permanent departure of employees, with controllable and uncontrollable types.

Turnover: Rate determined by number of departure incidents divided by average workforce size.
- Cost Components:
1. Separation Costs: Exit interviews, administrative tasks, and severance pay.
2. Replacement Costs: Job availability communication, onboarding, and training expenses.
3. Costs of Lost Productivity: Overtime, temporary help, and impacts on remaining employee morale.
Turnover-Reduction Strategies:
- Anticipate departures, provide job previews, and conduct employee surveys to improve retention.

Work-life Program: Employer-sponsored benefits aimed at helping employees manage work-life balance.
- Includes flexible work arrangements, dependent-care assistance, and paid leave policies.
Impact: Implementation linked to enhanced perceptions of organizational support, improved job attitudes, and performance.

Attitudes: Internal states directed towards particular objects, influencing behaviors and productivity.
Job Satisfaction: Results from fulfilling personal job values; connected to elements like pay, promotions, coworkers, supervisory relationships, and job roles.
Employee Engagement: Describes a fulfilling state characterized by enthusiasm and commitment to the organization’s success.

Behavior Costing: Measures how attitudes predict employee behaviors and resultant economic impacts on organizations.
Statistics: High engagement is linked to increased performance, while disengagement results in significant productivity losses and higher absenteeism costs.

Sysco’s 5-STAR Model: HR practices shaping positive employee experiences and organizational outcomes.
Addressing Absenteeism: Understanding costs associated with employee absence and developing reduction strategies is crucial for maintaining productivity.

Talent, Big Data, Competitive Strategy, HR Strategy, LAMP Model, People Analytics, Organizational Commitment, Turnover, Work-Life Program, ROI, among others.