Data Analytics in Human Resources

Data analytics applications in human resources (HR) cover the whole employee life cycle, ranging from recruitment through managing performance and engagement to the last touch of offboarding. This chapter demonstrates HR applications using the data in our hypothetical Best Toy Company. It starts with different metrics which are popularly used in HR analytics, followed by a demonstration of how to do a dashboard of employee turnover in Excel. A series of real-world case studies and HR business scenarios in Best Toy Company, with hands-on statistical test demonstrations by SPSS and Excel , follow. A real-world case study from Nielsen shows how they have found solutions to employee turnover. The text then demonstrates using the hypothetical data with logistic regression and multiple linear regression to identify the factors and solutions to turnover. Independent-samples t test is used to compare if different groups have significant differences in a variable. Another real-world case study from Google shows that they have found support for the importance of managers’ quality to employee productivity and happiness, as well as the results of their trainings. The text also demonstrates how this scenario can be replicated using our hypothetical data with multiple linear regression . Results of their different trainings are also compared using paired-samples t test and One-way ANOVA . A graphical presentation of the comparison results is demonstrated. Amazon’s discovery that their machine learning mechanism was gender biased is another case study. A demonstration using chi-square test to determine if the hypothetical data have gender bias in the recruitment process follows. The chapter ends with a brief discussion on the trend of organizational network analysis applied to business problems from an organization relationship perspective.