Lec10 Human resource analytics evidence based recruitment

Lec10 Human resource analytics evidence based recruitment

1. Human Resource Analytics (HRA) Lec-10 Evidence-Based Recruitment & Selection

2. What is evidence-based HR ? “It's the idea that HR should make decisions based on proven evidence, hard data, and experimental studies in order to eliminate subjectivity, uncertainty, and risk .” Evidence-based HR is the practice of making decisions supported by evidence from the following sources to help ensure the desired business outcomes are reached : Available internal data Research findings and empirical studies Expert judgment and real experience Values and concerns 2

3. What is evidence-based HR? This method shifts away from basing HR management on trends, biases, quick fixes, or word-of-mouth success stories. Instead , it progresses toward critical thinking about what works and doesn’t work for tactical decision-making. 3

4. Examples of evidence-based HR An organization’s leadership has asked HR to address the problem of high absence rates. Were any previous initiatives to manage absence rates, and were they impactful? It turns out that some managers had sporadically followed up with employees when they come back to work, but it wasn’t consistent enough to affect the absence rate. You find credible sources on how to conduct successful return-to-work interviews and take on the responsibility of a trial program, tracking the feedback. That data is compared to the previous absence rates, and a slight reduction in the absence rate surfaces. Managers are then trained to efficiently conduct return-to-work interviews themselves. HR continues to review that data for absence patterns and alerts managers to the trigger points that seem to precede employee absences . 4

5. Examples of evidence-based HR One real-world instance is that of PNC Bank. Its HR team employed tools and analytics to better understand the risk pertaining to their numerous incentive plans. Thinking through all stages of the talent cycle provided better knowledge of the nature of certain jobs. HR was then able to create a framework to mitigate risk instead of simply doing away with the bonus policies. 5

6. Benefits of evidence-based HR The many benefits of this include : 1. Aligning HR practices with strategic organizational goals An organization’s most important asset is its workforce, which can have a direct impact on the organization’s business performance and bottom line. Using an evidence-based approach, HR will be able to, for example, balance the amount of compensation offered with the existing resources of the organization, or decide on the number of new talents they need to hire to help the organization further expand. 6

7. Benefits of evidence-based HR Systematic and consistent decision-making that generates effective interventions  – Think of recruitment, for example. By utilizing hiring data, HR professionals can help their organizations increase recruiting efficiency by  80%  and decrease up to 50% of attrition rates.  Reducing speculation, uncertainty, and errors in judgment  – Every professional, no matter how senior or experienced they are, will always have their own biases. The presence of data and evidence in people management and HR decision-making will help reduce those biases and allow the team to make judgements based on a shared objective reality instead of just gut instinct. 7

8. Benefits of evidence-based HR Improve credibility and stature of the HR profession  – By utilizing a data-driven approach to an organization’s people issues and applying  HR best practices , HR can directly contribute to increasing the business’ bottom line and realizing business goals . Ensuring solid risk management  – With data, HR people can not only understand what has gone wrong in the past, but also have an insight into  what might happen in the future . This means that HR can make decisions and plan accordingly in order to effectively minimize the possibility of failure when implementing their future initiatives.  8

9. What is Evidence-Based Hiring ? A n evidence-based hiring process i ncorporates the factors that are the most predictive of job outcomes. We call it “evidence-based” because it is based on the evidence compiled from extensive research in organizational psychology. This evidence is used to determine scientifically which factors are more likely to predict job performance than others. By building a hiring process that incorporates more predictive factors and weights them more heavily, organizations can improve their hiring outcomes.” 9

10. Goal of EBH The goal of evidence-based hiring is to gather evidence of the short-term, medium-term, and long-term results of your hiring decisions based on numerous factors. These factors are most influential in the long-term success of employees and used to hire more employees with better-predicted outcomes . 10

11. Principles of evidence-based hiring The core principles of evidence-based hiring are: Use the best available evidence and data to support hiring decisions, and guide them in a more long-term profitable direction. Identify the personal attributes of an individual that are most predictive of long-term success, and look for more people who share those attributes to hire. Build an objective framework for hiring in the future, which can look for the attributes and evidence indicative of a promising candidate without causing  adverse impact or other discriminatory hiring decisions. Iterate upon data gathered over time to adjust decision-making for maximum positive outcomes . 11

12. Benefits of Evidence-Based Hiring 1. Quick Hiring A more extensive array of data points can be use to make a hiring decision. In normal hiring process we Match the list of skills, work history, accomplishments, and other personal details with their cover letter and what impression you get out of them during interviews to make a decision. This is biased and relies on gut impressions and feelings. With evidence-based hiring, you look beyond the surface and into metrics that might not be obvious at first glance or might not be something commonly found on a resume. (Latent model) These attributes strongly correlate with ongoing success within your organization, so they help you filter through your candidates more quickly. A faster hiring process results in a more robust workforce, established faster, and less time and money spent on the hiring process itself. 12

13. Benefits of Evidence-Based Hiring 2. Saving Resources T he faster you can make a decision for hiring, the faster you can fill vacancies and the less money you spend on filling open roles. Hiring process costs money in form of paying travel expenses for interviews, pay time for HR managers to conduct those interviews, pay for skills testing and hiring platforms and software, and more. Every candidate you interview and don’t hire costs your business money. By reducing the number of candidates you process, you reduce the expenses associated with filling an open role. 13

14. Benefits of Evidence-Based Hiring Reduced Turnover primary motivating factor with evidence-based hiring is long-term job performance and satisfaction . seek out the high-performing individuals build more institutional knowledge, more familiarity with your products and your customers, and a deeper understanding of your business 14

15. Benefits of Evidence-Based Hiring 4. Increased Productivity Satisfied employees are more productive and work as a team . Evidence-based hiring allows you to build high-performing teams, increasing productivity and the ability to navigate a changing business environment with ease . 15

16. Steps in EBH Step 1: Identify Metrics to Monitor Step 2: Set Up Tracking and Data Harvesting Step 3: Make Decisions Based on Evidence Step 4: Measure Outcomes of New Hiring Decisions Step 5: Repeat Until Satisfied 16

17. Step 1: Identify Metrics to Monitor Identify the key predictors of long-term success within your organization. these indicators will be relatively standard, if not across all workers, at least across the industry. Look for specific departments or specialties. For example, the indicators of success in a customer service representative and a marketer will be different. 17

18. Step 1: Identify Metrics to Monitor Consider indicators such as: Personality traits . Are they introverted or extroverted? Are they conflict-averse? Are they natural leaders? Creative thinking . Are they natural problem-solvers, or do they tend to wait for someone else to fix issues they encounter? Do they think outside the box to perform their tasks? Teamwork . How well do they work with a team, either as a leader or follower? Conflict resolution . How do they handle being challenged or challenging an idea they know from experience won’t work? 18

19. Step 2: Set Up Tracking and Data Harvesting Monitor the attributes you want to track, measure, and look for. Look for those attributes in new hires, long-time employees, and candidates . Use specially-designed questions and surveys to gather this kind of information. I ntegrate it as part of an annual performance review, send out random surveys to your employees, or keep managers in contact with employees and have them be the judge, you need consistency in data management. 19

20. Step 3: Make Decisions Based on Evidence It takes some time, but eventually, you will have a body of evidence and a method to analyze new candidates for the qualities you want to see in a new employee. Integrate searching for these qualities into your hiring process . For example, you might: Utilize a personality test to check for certain inherent attributes as part of the application process. Deliver a practical skills assessment that challenges problem-solving and creative thinking skills and judge results based on established criteria. During an interview, directly talk to the candidate about situations or factors relevant to your chosen qualities. 20

21. Step 4: Measure Outcomes of New Hiring Decisions Check in with your new hires at the three-month, six-month, and twelve-month points. Then, check in every six months or every year to monitor their performance. Sometimes, your decisions will be wrong. Sometimes, justifying circumstances (such as family illness) cause an otherwise promising employee to drop out. Sometimes , you’re right on target, and your employee settles in beautifully . Look for relevant and irrelevant factors. From there, you change what you look for and adjust your hiring process to optimize it further. 21

22. Step 5: Repeat Until Satisfied No process is perfect. Your leadership changes, your customers change, your products change, your industry changes. A growing labor movement might pressure you to increase salaries and benefits. For example: A global pandemic might push you to working from home, encouraging a different set of qualities in a successful employee. A high-level company deal might require internal restructuring . All of these changes will impact how your hiring process evolves . What you look for today might not be what you need in a year or five years. Iterating on your evidence is the key to long-term success. 22