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The Decision Factor offers insightful comments and observations on analytics—from views on new technology approaches and market dynamics to the latest industry trends driving demand for faster, smarter information analysis. This blog contains personal views, thoughts, and opinions from SAP employees, mentors, and friends working in the area of analytics. It’s not endorsed by SAP nor does it constitute an official communication of SAP.


Predefined Content Is What Drives HR Analytics

Predefined Content Is What Drives HR AnalyticsBy now, most HR organizations underline the importance of HR analytics. They understand that it helps them retain their employees, which saves money in recruitment. And they’re aware that insight into training effectiveness improves the training offering and results in better performing employees.

Nevertheless, most HR departments I talk to struggle.

What Do HR Departments Need from HR Analytics?

These are the concerns I hear most frequently:

  • HR software implementation is dropped from the budget when a project goes overtime and over budget.
  • Appropriate business intelligence tools aren’t used for HR purposes because its needs are lower in priority than others (usually finance and sales reports).
  • HR has a hard time defining what metrics to measure, and how to measure them. For example, within one company there may be different definitions of a single metric, or even worse, no definition at all.

What Do Customers Really Need?

Customers I speak to say they’re truly helped with predefined content to help shape their processes. Starters might leverage this out of the box and advanced organizations will use this as a discussion piece or a foundation. On the technical side, the crucial component is that all HR data must exist in one database to understand correlations, and must be trustworthy to avoid discussions on data quality.

Usually there are high expectations to user experience. HR Analytics content should be role specific and flexible enough to define and push the right information per business role. Next to content, there should be a clear scope on what is delivered within the implementation and how long that will take. This helps organizations to free up resources and budget.

How Should HR Analytics Be Deployed?

Lately, I hear lots of discussion around cloud versus on-premises analytics solutions. Frankly, my opinion is that it doesn’t matter. This is just a deployment option. It’s more important to ensure that the HR department is helped with easy to consume predefined content (best practice metric definitions, dashboards, deep-dive functionality, etc.) from one source of truth, with a quick time to value.

In this way, human resources can focus on serving the business by providing:

  • Clear insight
  • A strong explanation
  • A strategy to move the organization in the right direction

I’m interested to learn your vision for improving HR analytics.