Human Resources Accounting And Analytics

Human Resource Accounting And Analytics

1. Human Resource Accounting And Analytics PRESENTED BY : GROUP – 2 PRESENTED TO : Prof. NEELU ROHMETRA

2. CONTENT INTRODUCTION MEETINGs Overview Akshat’s (HR ACCOUNTING) ADHYAN’S (HOW HR ACCOUNTING helps organization) ANISH’S (HR Analytics) AMIT’S (HOW HR ANALYTICS HELPS ORGANIZATION) ANMOL’S ( IS HR ACCOUNTING & ANALYISIS ARE LINKED to each other ? ) CONCLUSION 2

3. INTRODUCTION In this project we all studied about the human resource accounting and analytics by studying this we found out that it is such method which endeavors to measure both the cost and the value of people to an organization. In India, several companies in the 1970’s began to show the value of their Human resources in their annual reports – such as BHEL, Engineers India, Associated Cement Corporation of India, ONGC, etc. 3

4. MEETINGS THAT TOOK PLACE As we were guided, we conducted 3 meetings of half an hour each ( 2 in physical mode, 1 in online platform) to discuss about the topic in lengths, The details regarding the meetings are as follows : 1 st meeting – 12 th of April (1:30 to 2:00 pm) – open discussion 2 nd meeting (virtual) – 14 th of April (6:30 to 7:00 pm) – briefly discussed about project & gain some insights 3 rd meeting – 19 th of April (4:00 to 4:30 pm) – observation and study

5. HR ACCOUNTING

6. HR Accounting is the art of valuing, recording and presenting systematically the worth of human resources in the books of accounts of an organisation. This definition reveals the following important characteristics of human resource accounting : Valuing the human resource of a company in a systematic way. Recording the valuation in the books of account. Presenting the information in the financial statements of the business. 6

7. ADVANTAGES To provide cost value information about acquiring, developing, allocating and maintain human resource so as to meet organisational goals. To enable management to efficiently monitor the use of human resources. To find whether human assets are appreciating or depreciating over a period of time. To assist in the development of effective management practices by classifying the financial consequences of various practices. It throws light on the strengths & weakness of the existing workforce in an organisation. It provides value able feedback to managers regarding the effectiveness of HR policies and practices. It helps potential investors judge a company better on the strength of the human assets utilised therein. It helps management in taking appropriate decisions regarding the use of human assets in an organisation. 7 OBJECTIVES

8. It is not easy to value the human assets in an organization. Human resource accounting is full of measurement problem. Employees and unions may not like the idea There is no empirical evidence. 8 LIMITATIONS

9. BOOSTING PRODUCTIVITY THROUGH HR ACCOUNTING Unleash Talent Potential : identify and manage the true value of your employees, fostering a culture of retention & development. Control costs effectively : Track and analyse HR expenses, enabling informed decisions on resource allocation for maximum impact. Driving strategic decisions : Gain data – driven insights to optimize staffing, training, and development programs, propelling your organization forward. Enhance performance Evaluation : Accurately assess employee performance and productivity, leading to better talent utilization and maximized potential. 9

10. HR accounting empowers data-driven decisions for more productive and profitable organisation. By investing in your human capital , you invest in your future success HR accounting is a powerful tool that equips you with the knowledge to make informed decisions about your most value able asset – people. It empowers you to build a more productive, engaged, and ultimately, a more successful organization. 10

11. CASE STUDY 11 Tech Start Inc.: Implementing HR Accounting Talent management : HR accounting helped TechStart Inc. assess the value of their employees. Cost management : They identified areas for cost reduction in recruitment and training Decision making : Data – driven insights supported strategic staffing and development decisions. Performance Evaluation : A performance evaluation system based on HR data was implemented. Tech Start Inc.: The Results Improved Talent management : 20% reduction in turnover and increased employee satisfaction. Cost Saving : 15% reduction in recruitment and training costs. Informed decision making : Data – driven decisions led to a 10% increase in organisational performance. Enhanced Investor Relations : improved investor confidence with a clearer picture of human capital value.

12. HR ANALYTICS

13. INTRODUCTION HR analytics involves using data analysis techniques to improve HR management and decision-making. It includes collecting, analyzing, and interpreting HR-related data to gain insights into workforce trends and organizational effectiveness. 13

14. KEY ASPECTS OF HR ANALYTICS 1. Data Collection: Gather data from various HR sources. 2. Data Analysis: Use statistical tools and predictive modeling. 3. Employee Insights: Understand behavior, engagement, and retention. 4. Workforce Planning: Forecast future needs and plan recruitment. 5. Diversity and Inclusion: Analyze demographic data for inclusivity goals. 14

15. HR ANALYTICS FOR STRATEGIC HR PRACTICES 15 HR analytics helps create strategic and efficient HR practices, enhancing employee satisfaction, productivity, and retention. It requires a combination of HR expertise, data science skills, and business acumen to maximize its potential and align HR goals with business objectives. .

16. HOW HR ANALYTICS ENHANCES PRODUCTIVITY ? HR analytics enhances organizational productivity through data-driven insights. Key areas include Strategic Workforce Planning, Recruitment & Onboarding, Employee Performance, Turnover Reduction, and Compensation Optimization. 16

17. HR ANALYTICS APPLICATIONS Strategic Workforce Planning: Proactive talent acquisition and development based on skills gaps and future business needs. Recruitment & Onboarding: Streamlined recruitment processes, prediction of candidate performance, and effective onboarding for new hires. Employee Performance: Identification of individual strengths and weaknesses, leading to targeted training and development programs. 17

18. CASE STUDY : CREDIT SUISSE’S HR ANALYTICS SUCCESS Challenge: High turnover affecting productivity and costs. Solution: Leveraged HR analytics to predict flight risk and implement interventions. Results: Significant reduction in turnover, cost savings, and improved employee morale and engagement. Key Takeaway: HR analytics enables proactive measures to retain top talent, fostering a positive work environment. 18

19. HOW HR ACCOUNTING & ANALYTICS ARE LINKED WITH EACH OTHER

20. HR ACCOUNTING Hr Accounting Involve Quantifying The Cost Associated With Acquiring, Training And Retaining Employees, As Well As Assessing The Value They Bring To The Organisation. It Aims To Measure The Financial Impact Of Human Capital Investments And Activities. Hr Analytics Involve The Collection, Analysis And Interpretation Of Hr – Related Data To Improve Decision Making Related To The Hr Department With An Organisation. It Is Essentially Using Data To Gain Insights And Improve How We Manage Our Employees. 20 HR ANALYTICS These two aspects are interconnected, as HR Accounting provides the financial data which is necessary for analytics, while HR Analytics utilize this data to derive strategic decision.

21. IMPACT ON ORGANISATION STRATEGIC DECISSION MAKING COST – EFFECTIVE HIRING IMPROVING EMPLOYEE Performance ENHACE DIRECTING PLANNING FOR FUTURE WORKFORCE 21

22. CONCLUSION With this project , we get to know the importance of Human resource accounting and human resource Analytics as they both acts as a pillar for organizations in a way so that human resource can also be measured in financial terms. With help of Human Resource Accounting & Analytics Company can tries to place a value on organizational human resources by formulating a human resource in balance sheet. 22

23. REFERENCES van Vulpen , E. (2021, October 26). HR Analytics Case Studies. AIHR. https://www.aihr.com/blog/category/case-studies/ Decker, R. (2021). The Use of People Analytics in Human Resources. SHRM. https://www.shrm.org/topics-tools/research/the-use-of-people-analytics-in-hr V. S. P. Rao (2010).Human Resource Management.3rd edition 23

24. thank you GROUP – 2 Group members Entry no. Adhyan 07 Akshat 08 Amit 09 Anish 10 Anmol 11 24