What is People Analytics?
HR analytics, also referred to as people analytics, workforce analytics, or talent analytics, involves gathering together, analyzing, and reporting HR data. It enables your organization to measure the impact of a range of HR metrics on overall business performance and make decisions based on data. In other words, HR analytics is a data-driven approach toward Human Resources Management.
Workforce analytics is an advanced set of data analysis tools and metrics for comprehensive workforce performance measurement and improvement. It analyzes recruitment, staffing, training and development, personnel, and compensation and benefits, as well as standardratios that consist of time to fill, cost per hire, accession rate, retention rate, add rate, replacement rate, time to start and offer acceptance rate.
HR analytics is important for 84% of companies
84% ofrespondents in the 2018 Global Human Capital Trends survey (DeloitteInsights, 2018) reported PA as being important or very important,making it the second highest ranked HR trend
Ethical issues in PA still atan early stage
Although the grey literature contains a growing stream of publications aimed at helping People Analytics practitioners to “be ethical,” overall, research on ethical issues in People Analytics is still at an early stage.
What are the ethical issues in HR analytics?
In HR analytics we collect and process data about people's characteristics and their behaviours. This kind of analytics brings ethical challenges and risks for employees' privacy, autonomy, and future work opportunities. Hence, strong ethics is needed.
What are the gains and risks for employees?
When it comes to people function and insights, it’s vital to ensure that employees know which data is collected and how it’s being used, and to assure them that it is being gathered for positive purposes. The people team should be transparent about what they do with data, and guarantee that there are effective privacy policies to protect employee data.
It’s necessary for every business to put in place clear guidelines to explain what data can be collected and how it can be used, analyzed, and distributed.
We’ve put together a list of best practices and preemptive actions that will help you reduce the risk of privacy violations:
To understand your PA security levels, it’s worth starting with a question – is your data stored and protected in a database that can’t be easily found? Also, is it encrypted, hidden away behind complex password policies, or other securitymeasures?
Here are our top recommendations:
As mentioned in our previous piece, our systems can only become as biased as we allow them to. Josh Bersin points out that if our existing data is biased, so will our software’s actions and recommendations. Therefore, it’s always best to assume that our PA tools come with their set of prejudice.
So, how to ‘scan’ your system for traces of bias?
Here are a few best practices:
Your people analytics program should focus only on strategies that positively impact employees. For instance, if you’re tracking work productivity in the hopes of making the workplace better, then that’s perfectly OK. However, if you collect it to eliminate low performers, high chances are, you’re in violation of your company’s management principles.
Josh Bersin mentioned that some companies use data to predict retention. If they spot employees who are thinking of leaving they start to give them unfavorable treatment. For instance, managers stop talking to them and reduce their support since they think it’s a waste of time as they’re going to leave anyway.
Here are a few best practices that we recommend following to reduce the risk of imposing psychological harm on employees: