Page 1: Predictive Analytics for HR

What is Predictive Analytics?

Predictive analytics uses historical data to make predictions about future outcomes. In HR, this
means using past data about employees, recruitment, performance, etc., to predict future events
like:

 Employee turnover: Which employees are most likely to leave?

 Recruitment success: Which candidate is most likely to succeed in a role?
 Workforce planning: How many employees will the company need in the future?

Application of Predictive Analytics in HR

The focus here is on HR analytics, which involves applying predictive models to HR data. Predictive
analytics can give insights into the future by analyzing patterns in past data.

Example:

Let’s say a company wants to reduce employee turnover. By analyzing historical data (like employee
satisfaction surveys, performance reviews, and salary information), predictive analytics can identify
employees who are most at risk of leaving. This way, the company can take steps (like offering
promotions or salary raises) to retain those employees before they resign.

Page 2: Developing HR Models for Your HR Analytics Project

What is an HR Model?

An HR model is a framework that helps organizations articulate HR’s role and positioning within the
business. It’s a blueprint for managing human resources that aligns with the company’s broader
strategic goals.

Example of an HR Model:

The HR Value Chain Model breaks down HR activities (like recruitment) into smaller components and
aligns these activities with business goals. For example, by improving the recruitment process, the
company can hire better candidates, which leads to better overall business performance.

Steps to Develop HR Models:

1. Define the HR Objectives:

The first step is to identify what the HR model is trying to achieve. For example, if the company wants
to reduce employee turnover, the HR model should be designed to focus on factors that contribute
to turnover, such as job satisfaction, salary, and work-life balance.

2. Identify the Data:

In HR analytics, data is key. We need to gather the right data, such as employee demographic
information, performance evaluations, and compensation details. For example, to predict turnover,
we need to know how long employees have been with the company, their job satisfaction scores,
and their salary history.
3. Build the Model:

Once the objectives are clear and the data is collected, we can start building the predictive model.
This might involve using statistical techniques like linear regression or decision trees. For example,
we could build a model that predicts employee turnover based on job satisfaction, salary, and years
of service.

4. Test the Model:

Before we can use the model, we need to test it to make sure it’s accurate. This involves comparing
the model’s predictions to actual outcomes. For example, if the model predicts that 20% of
employees will leave in the next year, we need to see if this prediction matches up with the actual
turnover rate.

5. Deploy and Monitor:

Finally, the model is deployed in the real world. But the work doesn’t stop there – we need to
continuously monitor the model to ensure it’s still providing accurate predictions. Over time, we
might need to adjust the model based on changing business needs.

Let’s visualize this with a flowchart:

Define HR Objectives → Identify the Data → Build the Model → Test the Model → Deploy & Monitor

Page 3: HR Conceptual Models and HR Data Models

What is a Conceptual HR Model?

A conceptual HR model provides a framework for how HR activities are carried out in an
organization. It guides HR decision-making and helps align HR activities with the company’s strategic
goals.

HR Strategy: This is the long-term vision for how HR will help the company succeed.

HR Model: This is the detailed plan that breaks down how HR will achieve the strategy. It defines the
key HR functions (like recruitment, training, and compensation) and the roles and responsibilities of
the HR team.

HR Data Model defines how HR data is collected, stored, and used. It ensures that the company’s HR
data is accurate, accessible, and reliable.

 Transition from Excel: In the past, many companies managed their HR data in Excel sheets,
which were often disorganized and error-prone. Today, most companies use HRIS (Human
Resource Information Systems) to manage data more efficiently.
 Single Source of Truth: A good HR data model ensures that the company has a single source
of truth for all HR data. This means that all HR data comes from one central system, which
reduces errors and ensures consistency.
Page 4: HR Value Chain

What is the HR Value Chain?

The HR Value Chain was created by Jaan Paauwe and Richardson in 1997. It focuses on the idea that
HR activities should lead to HR outcomes, which should, in turn, lead to business success.

HRM Activities: These are the day-to-day tasks carried out by HR, such as:

• Recruitment (measured by metrics like cost-per-hire)

• Training (measured by metrics like training cost per employee)

• Compensation (measured by metrics like wage bill)

Efficiency metrics are often used to measure these activities, but focusing solely on efficiency can be
a mistake. The key is to focus on HRM outcomes, like:

• Employee satisfaction

• Employee motivation

• Retention rates

Example:

Let’s say a company’s recruitment team is measured on time-to-hire (how quickly they can fill open
positions). If they rush the process to improve their time-to-hire score, they might end up hiring
someone who isn’t the best fit for the job. This would hurt the company in the long run because a
poor hire could lead to lower productivity and higher turnover.

Instead, the company should focus on quality of hire (an HRM outcome), even if it means taking a
little longer to fill the position.

The ultimate goal is to ensure that HR activities contribute to the company’s overall performance. For
example, hiring the right people, training them effectively, and keeping them motivated will lead to
better business results, such as higher revenue and profit.

 Impact on Revenue:
Poor HRM outcomes can lead to lost revenue. For example, high employee turnover can
disrupt operations and lead to lost productivity. This can also hurt the company’s
profitability.
 Disruption Costs:
Failing to hire the right employees in time can cause disruptions that hurt the company’s
bottom line. For example, if a key position remains unfilled for too long, it can lead to project
delays and lost revenue.

Page 5: Advanced HR Value Chain

Key Elements of the Advanced HR Value Chain:

1. HR Enablers: These are the tools and resources that HR needs to function effectively. They include:
• HR systems (like an HRIS)

• HR budget

• Capable professionals (HR experts who can implement the company’s HR strategy)

Without these enablers, HR activities will not be as effective, and the company will struggle to
achieve its desired outcomes.

2. Balanced Scorecard (BSC): The Balanced Scorecard measures the company’s performance across
four key areas:

• Financial: Metrics related to revenue and profit.

• Customer: Metrics related to customer satisfaction.

• Internal Processes: Metrics related to the efficiency of internal operations.

• Learning & Growth: Metrics related to employee development and innovation.

Example: A company might use a balanced scorecard to measure the impact of HR activities on
business performance. For example, if the company’s financial performance is strong, it might invest
more in HR activities, such as training programs and employee development.

Page 6: BSC for Recruitment Teams

In recruitment, the Balanced Scorecard (BSC) provides a way to measure the performance of the
recruitment process, focusing on several key metrics:

1. Time-to-Hire: This measures how quickly positions are filled. A shorter time-to-hire indicates
efficiency, but as noted earlier, quality should not be sacrificed for speed.

Example: If a company focuses only on minimizing time-to-hire, they might rush through interviews
and end up hiring someone who isn’t a good fit for the role. This would lead to higher turnover and
poor performance.

2. Quality of Hire: This measures the performance and success of new hires after they join the
company. It can be measured by metrics like:

• Performance appraisals during the first year.

• Retention rates of new hires after a set period (e.g., one year).

3. Cost-per-Hire: This is the total cost involved in hiring a new employee, including advertising costs,
agency fees, and the time spent by HR staff.

Example: A company that is too focused on reducing cost-per-hire might avoid using high-quality
recruitment agencies or might cut back on important candidate screening processes, which could
lead to hiring the wrong person.

By using these metrics in the Balanced Scorecard, HR teams can ensure that recruitment processes
are aligned with overall business goals, leading to better performance outcomes for the company.
Flowchart for BSC in Recruitment Teams:

HRM Activities (Recruitment, Training)

HRM Outcomes (Employee Retention, Quality of Hire)

Business Performance (Revenue Growth, Profit)

Page 7: Ulrich HR Business Partner Model

Key Roles in the Ulrich Model:

1. Administrative Expert:

This role focuses on internal operations and ensures that HR processes, like payroll and benefits
administration, are efficient and effective.

Example: An administrative expert ensures that the company’s payroll system is accurate and that
employees are paid on time. If payroll isn’t handled efficiently, it can lead to employee dissatisfaction
and turnover.

2. Employee Champion:

The employee champion is responsible for managing workforce competencies and engagement
levels. They focus on ensuring that employees are motivated, satisfied, and productive.

Example: This role would be responsible for employee surveys to measure job satisfaction and for
taking action to improve engagement where necessary (e.g., by improving work-life balance or
offering professional development opportunities).

3. Change Agent:

A change agent works with both managers and employees to drive initiatives that improve company
culture and support the company’s goals.

Example: A change agent might be responsible for implementing new diversity and inclusion
programs to foster a more inclusive company culture.

4. Strategic Partner:

The strategic partner works closely with the company’s leadership team to align HR strategies with
business goals. This role ensures that the workforce is managed in a way that supports the
company’s overall strategy.

Example: If the company’s goal is to expand into new markets, the strategic partner would work on
strategies to ensure the company has the right talent in place for the expansion.

Page 8: Ulrich’s Three-Legged Stool Model

1. Shared Services:
A centralized team handles routine administrative tasks such as payroll, benefits administration, and
employee records management.

Example: Shared services would be responsible for ensuring that all employees receive their benefits
on time and that administrative queries (like changes to personal information) are resolved quickly.

2. Centers of Excellence (CoEs):

These are specialized teams that handle more complex issues, such as compensation design, talent
management, and leadership development.

Example: A CoE focused on talent management would create and implement strategies for
developing high-potential employees and preparing them for leadership roles.

3. HR Business Partners:

These HR professionals work directly with business units to provide tactical guidance on HR-related
issues. They act as strategic advisors to managers on people-related issues.

Example: An HR business partner might work closely with the marketing department to address
issues related to employee performance, team dynamics, or workforce planning.

The Three-Legged Stool Model is still widely used in organizations today because it clearly delineates
responsibilities, allowing for more efficient and specialized HR functions.

Page 9: HR Models FAQs

Q: What are HR models?

HR models are frameworks that help explain the role of HR within the business. These models
provide a structured way to think about how HR functions contribute to the company’s success.

Q: What are the most common HR models?

Some of the most well-known HR models include:

1. HR Value Chain: Focuses on how HR activities (like recruitment) lead to HR outcomes (like
employee satisfaction), which in turn drive business success.

2. Harvard Model of HRM: Emphasizes a more strategic view of HR, considering factors like employee
well-being, long-term organizational success, and external influences like government regulations.

3. Ulrich Model: Focuses on four key HR roles (Administrative Expert, Employee Champion, Change
Agent, and Strategic Partner).

Q: What will HR models look like in the future?

As HR continues to evolve, these models will change as well. Technology plays an increasingly
important role in HR service delivery, and Agile HR is gaining popularity. Agile HR embraces a flexible,
iterative approach to managing human resources, similar to how Agile methods are used in software
development.

Agile HR Example: In a traditional HR model, employee performance reviews might be conducted

annually. However, in an Agile HR model, performance feedback might be given continuously
throughout the year, allowing for faster adjustments and improvements.
Page 10: A Final Note on Conceptual HR Models

1. Expanding Knowledge:

Familiarizing yourself with different HR models expands your understanding of HR’s role and helps
you build more effective HR initiatives. By understanding the theory behind HR models, HR
professionals can better align their activities with business goals.

2. Models Are Simplifications:

HR models are simplifications of reality. While they provide a helpful framework, they don’t capture
the full complexity of how HR functions in every organization. For example, a company with a highly
specialized workforce might need to adapt existing HR models to suit their specific needs.

3. No One Ideal HR Model:

There is no one-size-fits-all HR model. Each organization has different needs and goals, and it may
take time to experiment with different models to find the best fit.

Example: A startup might use an Agile HR model to adapt quickly to a fast-changing environment,
while a large multinational corporation might use a more structured approach like the Ulrich model
to manage its large, diverse workforce.

Page 11: HR Data Models in HRIS

What is an HR Data Model?

An HR data model describes how HR data is collected, processed, stored, and used. It provides the
foundation for making data-driven decisions in HR.

Data-Driven Decision Making:

In the past, many HR decisions were based on gut feelings or intuition. Today, decisions are
increasingly based on hard data and evidence. For example, instead of promoting someone based
solely on a manager’s recommendation, HR might look at performance data, engagement surveys,
and potential leadership skills.

Transition from Excel to HRIS:

Previously, companies used Excel sheets to store HR data, which was prone to errors and difficult to
manage. Now, HRIS provides a centralized system for managing HR data in a more structured and
reliable way.

Example: Instead of managing employee records manually in Excel, an HRIS automates the process,
ensuring accuracy and reducing administrative work.

Single Source of Truth:

An HR data model ensures that all HR data comes from a single, trusted source. This is important for
data integrity. When all data is stored in one place, it’s easier to ensure that the information is
consistent and accurate.
Example: If an employee’s salary information is stored in multiple systems (like payroll and a separate
benefits system), there might be discrepancies between them. By consolidating everything into one
HRIS, the company can avoid these discrepancies.

Page 12: HR Models in HRIS

Enhancing HR Productivity:

The goal of HR Data Models is to improve HR productivity by ensuring that HR data is managed
properly. For this to happen, HR must prioritize clarity and rigor in its data management practices.

A well-designed HR Data Model clearly specifies:

• Available Data: What data is being collected (e.g., employee demographics, salary, performance
scores)?

• Data Ownership: Who is responsible for managing and updating the data?

• Data Accuracy Rules: What rules are in place to ensure the data is accurate and up to date?

• Integration with HR Roles:

The HR Data Model should align with HR roles and responsibilities. For example, if a company has a
Center of Excellence (CoE) focused on compensation, that CoE should be responsible for managing
all compensation-related data. This ensures that data is managed properly and supports better
decision-making.

• Team Collaboration for Data Model Development:

Collaboration across different HR teams is essential for developing a strong HR Data Model. The
Center of Excellence Managers should work together to identify key data needed for their processes.

For example, the Recruitment CoE might need data on candidate experience and time-to-hire, while
the Learning and Development CoE would need data on employee training and certifications.

• Predictive Analytics:

An accurate HR Data Model is critical for supporting predictive analytics. Without a reliable data
model, the leadership team cannot trust the insights provided by predictive analytics tools.

Example: If the data on employee turnover is inaccurate, the company won’t be able to predict
turnover effectively, leading to poor retention strategies.

Page 13: HR Data Modeling in Analytics Tools

Predictive HR Modeling Use Cases:

1. Predicting Voluntary Employee Turnover:

Predictive models can analyze patterns in employee behavior to predict which employees are most
likely to leave the company. This helps HR take proactive measures to retain high-performing
employees.

2. Improving Recruitment Processes:

By analyzing past recruitment data, predictive models can identify the characteristics of successful
hires, helping HR focus on candidates who are more likely to succeed in the organization.

3. Predicting Revenue with Engagement Data:

Employee engagement has a direct impact on company performance. Predictive models can use
engagement data to predict future revenue. For example, if engagement scores drop, the model
might predict a decline in revenue due to lower productivity.

4. Improving Employee Performance:

Predictive models can identify the factors that contribute to high performance. For example, they
might find that employees who receive regular feedback perform better than those who don’t. This
insight can help HR develop strategies to improve overall performance.

Common Modeling Techniques:

1. Linear Regression / Time Series for Headcount Forecasting:

Linear regression can be used to predict future headcount needs based on historical data. For
example, if the company’s headcount has been growing at a steady rate over the past five years, a
regression model can predict how many employees the company will need in the next year.

2. Logistic Regression:

Logistic regression is used to predict binary outcomes, such as whether an employee will stay or
leave. By analyzing factors like job satisfaction and salary, the model can predict the likelihood that
an employee will resign in the next six months.

3. Decision Trees:

Decision trees are used for more complex decisions. For example, a decision tree could be used to
predict whether an employee is likely to receive a promotion based on factors like performance
reviews, tenure, and educational background.

4. Exponential Smoothing Forecast:

Exponential smoothing is a time series forecasting technique that gives more weight to recent data
points. This is useful for forecasting trends that are changing quickly, such as employee turnover
rates during a period of rapid company growth.

Page 14: Predictive HR Modeling – Logistic Regression Model

Logistic Regression Basics:

Logistic regression is used when the outcome we are predicting is binary (e.g., Yes/No, Stay/Leave,
Promote/Don’t Promote). Unlike linear regression, which predicts continuous outcomes, logistic
regression predicts probabilities.

Example:

Let’s say we want to predict whether an employee will leave the company within the next six
months. The model will look at factors like:
• Job satisfaction

• Salary

• Length of time with the company

The model will assign a probability to each employee. For example, it might predict that an employee
has a 70% chance of leaving. HR can then use this information to take steps to retain the employee,
such as offering a promotion or salary increase.

Logistic Regression Output:

The output of a logistic regression model is a probability score between 0 and 1. If the score is
greater than 0.5, the model predicts that the event will occur (e.g., the employee will leave). If the
score is less than 0.5, the model predicts that the event will not occur.

Page 15: Predictive HR Modeling – Decision Trees Model

What are Decision Trees?

A decision tree is a model that splits data into different branches based on decision rules. It’s often
visualized as a tree, with each branch representing a decision path.

Example:

Imagine we’re building a decision tree to predict whether an employee will receive a promotion. The
tree might first ask, “Has the employee been with the company for more than five years?” If the
answer is “yes,” the tree might next ask, “Has the employee received a performance score of 4 or
higher?” Based on these answers, the tree will make a prediction.

Advantages of Decision Trees:

1. Easy to Understand:

Decision trees are intuitive and easy to interpret. You can easily see the rules that the model is using
to make predictions.

2. Handles Complex Data:

Decision trees can handle both categorical and numerical data, making them versatile for HR
applications. For example, they can take into account both an employee’s tenure (numerical data)
and their job role (categorical data).

Overfitting:

One drawback of decision trees is that they can sometimes overfit the data, meaning they may
perform very well on the training data but not as well on new, unseen data. To avoid overfitting, it’s
important to prune the tree, which means removing branches that don’t provide significant value to
the model.
Page 16: Compa Ratio Numerical Example

Compa Ratio Formula:

Compa Ratio = Employee's Actual Salary/Midpoint of the Salary

• A Compa Ratio of 1.0 means the employee is paid exactly at the midpoint of the salary range.

• A Compa Ratio greater than 1.0 means the employee is paid more than the midpoint.

• A Compa Ratio less than 1.0 means the employee is paid less than the midpoint.

Example:

Let’s go through the example provided:

Salary Compa Ratio Interpretation

60,000 1.33 Employee is paid above
midpoint
40,000 0.89 Employee is paid below
midpoint
50,000 1.11 Employee is slightly above
midpoint

Using the Compa Ratio Formula:

For the employee with a salary of ₹60,000 and a Compa Ratio of 1.33, we can calculate the midpoint
salary as:

Midpoint = 60,000/1.33 ≈ 45,113

Similarly, for the employee with a salary of ₹40,000 and a Compa Ratio of 0.89:
Midpoint = 40,000/0.89 ≈ 44,944
This helps HR understand whether an employee’s salary is aligned with the market, and it can inform
decisions about salary adjustments.

Page 17: Applying HR Analytics to Absenteeism

Absenteeism:

Absenteeism refers to employees regularly missing work. It could be for reasons such as illness,
personal issues, or lack of motivation. High absenteeism rates have a significant impact on a
company’s productivity and bottom line.

How to Measure Absenteeism:

1. Absenteeism Rate: This is calculated by dividing the number of absent days by the total available
workdays. It provides a percentage that represents the portion of time that employees were absent.

Formula:

Absenteeism Rate = (Total Absent Days/Total Available Workdays)×100

Example: If an employee was absent for 5 days out of 200 available workdays, the absenteeism rate
would be:

Absenteeism Rate = (5/200)×100=2.5%

2. Cost Categories for Absenteeism:

 Wages Paid to Absent Employees: Even though an employee is absent, the company often
still pays their salary. This represents a direct cost to the business.
 Replacement Costs: When employees are absent, the company may need to hire temporary
workers or pay overtime to other employees. Overtime pay is often higher, especially on
holidays (e.g., 1.5X or 2X the normal rate).
 Productivity Costs: If fewer employees are available, less work gets done, which can lead to a
reduction in overall productivity. This could mean fewer products produced or services
delivered.
 Absenteeism Impact on Productivity:
 Absenteeism has both direct and indirect impacts on a company’s productivity and revenue.
For example:
 Direct Costs: Overtime pay and replacement workers.
 Indirect Costs: Decreased morale among employees who have to cover for absent colleagues
and potential declines in the quality of work due to fatigue or understaffing.

Page 18: Consequences of Absenteeism

Indirect Consequences:

1. Poor Quality of Goods/Services:

When employees are absent, other employees may need to work extra hours or cover multiple roles,
which can lead to fatigue and mistakes. This can result in poor-quality goods or services being
delivered to customers.

Example: In a manufacturing environment, employees working overtime might rush through tasks to
meet deadlines, leading to defects in products. In a customer service setting, employees handling
more customers than usual might provide lower-quality service.

2. Excess Managerial Time:

Managers often need to step in to cover for absent employees, which takes time away from their
other responsibilities. This represents an opportunity cost, as managers could have been using that
time to focus on more strategic tasks.

Example: A manager who spends several hours each week covering for absent employees might not
have enough time to focus on improving the team's overall performance or developing new
strategies.

3. Safety Issues:

Untrained or undertrained employees may be asked to cover for absent colleagues, which can lead
to accidents or injuries. In addition, employees may feel rushed when filling in for others, leading to
an increased risk of errors.
Example: In a warehouse, an employee who is not properly trained on machinery might be asked to
cover for an absent worker, increasing the risk of accidents.

4. Poor Morale:

When employees are frequently asked to cover for absent colleagues, it can lead to decreased
morale. Over time, this can result in higher turnover and increased absenteeism.

Example: If employees are regularly required to work overtime due to absenteeism, they may
become frustrated and start looking for jobs elsewhere, leading to even higher turnover.

Page 19: Applying the LAMP Model to Absenteeism

LAMP Model Breakdown:

1. Logic:

This is the foundation of the model. The logic refers to the reasoning and thought process behind any
analysis. In the case of absenteeism, the logic would focus on why absenteeism is happening and
what impact it has on the organization.

Example: The company might start by asking questions like: Are employees more likely to be absent
on certain days of the week? Are there patterns in absenteeism among certain departments?

2. Analytics:

Once the logic is clear, analytics can be applied to draw insights from the data. For absenteeism, this
might involve analyzing absentee data to identify patterns and trends.

Example: Using analytics, HR might discover that absenteeism spikes during certain months (e.g.,
around holidays) or that certain teams have higher absenteeism rates than others.

3. Measures:

Measures are the key metrics that will be tracked. These measures must be reliable, consistent, and
relevant to the issue being analyzed. In the case of absenteeism, measures might include
absenteeism rate, replacement costs, and lost productivity.

Example: The company might track the total number of absentee days each month and the cost of
hiring temporary workers to replace absent employees.

4. Process:

The process refers to the steps taken to address the issue. After identifying the logic, applying
analytics, and establishing measures, HR can develop a process for reducing absenteeism.

Example: The company might implement a policy where employees must provide a doctor’s note
after a certain number of sick days, or it might offer wellness programs to reduce absenteeism due to
illness.
Page 20: Absenteeism Cost Categories and Calculation Example

Steps to Calculate Absenteeism Cost:

The total cost of absenteeism includes multiple factors, as outlined below:

1. Wage Cost (Loaded): This refers to the total wages paid to absent employees. This is a direct cost,
as the company is paying employees who are not working.

2. Replacement Cost (Loaded): This includes the cost of hiring temporary workers or paying overtime
to other employees to cover the absence. These costs are often higher than regular wages, especially
if overtime is involved.

3. Productivity Loss: This is the value of the work that wasn’t done because of absenteeism. If an
absent employee was responsible for producing 10 units of work per day, the productivity loss would
be the value of those 10 units.

4. Manager Overhead: This is the cost of the manager’s time spent dealing with absenteeism. This
might include time spent finding replacement workers, covering for absent employees, or handling
complaints from other employees.

Numerical Example:

Category Cost
Total Wage Cost Loaded ₹19,767,598
Replacement Cost Loaded ₹18,527,883.18
Productivity Loss ₹4,028,850
Manager Overhead ₹402,885
Total Cost of Absenteeism ₹42,324,331.18

Additionally, the Total Attributable Cost of Absenteeism as a percentage of revenue is calculated:

Absenteeism Cost % of Revenue = (Total Cost of Absenteeism/Total Revenue) × 100

If the company’s total revenue is ₹567,000,000, the absenteeism cost percentage would be:

(42,324,331.18/567,000,000) × 100 ≈ 7.46%

This means absenteeism costs account for 7.46% of the company’s total revenue.

Page 21: Steps to Calculate Absenteeism - Applied Case Study

Key Steps:

1. Wage Costs: Calculate the total wages paid to absent employees.

2. Replacement Costs: Include overtime pay and the cost of hiring temporary workers.

3. Productivity Losses: Estimate the value of lost productivity due to absenteeism.

4. Managerial Time: Factor in the time managers spend handling absenteeism-related issues.
By following these steps, the company can determine the total cost of absenteeism and develop
strategies to reduce it, such as improving employee engagement or offering wellness programs to
reduce illness-related absences.

Page 22: Remedial Recommendations for Absenteeism

1. Physical Health:

Improving employees’ physical health is a major step in reducing absenteeism. Offering programs
that promote fitness and ergonomics can help prevent health issues that lead to absences.

Examples of Initiatives:

 Wellness Vendors: Companies can partner with wellness providers to offer fitness programs,
either in-person or online.
 Classes: On-site or virtual classes, such as yoga, pilates, and ergonomics workshops, can be
provided to employees to help them maintain physical health.
 Fitness Options: Companies can encourage physical activity by offering gym memberships or
organizing fitness challenges.

Impact: These programs can help reduce absenteeism by preventing health issues such as back pain,
stress, and obesity, which are common reasons for missing work.

2. Psychological Health:

Mental health is just as important as physical health in reducing absenteeism. Companies can offer
programs that address stress, anxiety, and other mental health issues.

Examples of Initiatives:

 Mental Health Workshops: Sessions focusing on topics like stress management, work-life
balance, and mental wellness can help employees better cope with the demands of their job.
 Parenting Workshops: Balancing work and family life is a common source of stress for many
employees. Offering parenting workshops can provide employees with the tools they need to
manage family responsibilities alongside their professional life.
 Hybrid Work: For employees who struggle with commuting or balancing home
responsibilities, offering hybrid working options (working both remotely and on-site) can
significantly improve mental health and reduce burnout.

Impact: By addressing mental health proactively, companies can reduce the likelihood of stress-
related absences and improve overall employee satisfaction.

3. Environmental Health:

The work environment itself plays a role in employee well-being. An environment that supports
health and comfort can reduce absenteeism.

Examples of Initiatives:

 Workplace Improvements: Improving the physical workspace, such as by ensuring good air
quality, lighting, temperature control, and ergonomically friendly furniture, can reduce
health issues like headaches, eye strain, and discomfort.
  Indoor Greenery: Adding plants or other elements of nature can improve the atmosphere
and reduce stress.
 Aesthetic Improvements: Bright, colorful decorations can make the workspace more inviting
and pleasant, improving mood and reducing absenteeism.

Impact: A healthier and more comfortable work environment reduces stress and fatigue, leading to
fewer absences.

4. Economic Health:

Helping employees manage their personal finances can reduce absenteeism caused by financial
stress.

Examples of Initiatives:

 Financial Workshops: Offering workshops on managing personal finances, tax-saving

strategies, and investing can empower employees to better handle their financial situation.
 Access to Financial Advisors: Providing access to expert financial advisors can give employees
personalized advice on how to make the most of their income and savings.

Impact: By reducing financial stress, companies can help employees feel more secure and focused at
work, leading to fewer absences.

Page 23: Using the Pyramid Principle in HR Analytics Storytelling

What is the Pyramid Principle?

The Pyramid Principle is a structured communication method that suggests starting with the
conclusion and working backward to explain the key points and supporting data. This way, the most
important information is presented upfront, with the details provided later.

Step-by-Step Breakdown:

1. Start with the Conclusion: Begin by stating the key insight or recommendation. This ensures that
the most important message is communicated first, capturing the audience’s attention.

2. Follow with Key Points: After presenting the conclusion, follow up with the main points that
support it. These points should be organized logically, usually from the most important to the least
important.

3. Provide Supporting Data: Finally, present the data and facts that support the key points.

Example in HR Analytics:

Let’s say you are presenting an analysis on employee turnover to the leadership team. Instead of
starting with a detailed explanation of your methodology, you would start with the conclusion:

Conclusion: "Our analysis shows that employees with less than two years of tenure are 60% more
likely to leave than those with longer tenure."

Key Points: Then you would present the main points, such as the departments with the highest
turnover rates and the factors contributing to turnover (e.g., lack of career growth, low engagement).
Supporting Data: Finally, you would provide the supporting data, such as turnover rates over time,
engagement survey results, and performance data.

Why Use the Pyramid Principle?

The Pyramid Principle is especially useful when presenting to senior leaders who may not have time
to go through all the details. By starting with the conclusion, you ensure that they hear the most
important information upfront.

Cultural Considerations: The principle works best in environments where direct communication is
valued. In cultures that prefer more indirect communication, this approach may come across as too
abrupt.

Page 24: Using the Narrative Arc in HR Analytics Storytelling

What is a Narrative Arc?

The narrative arc is a storytelling structure that follows a clear beginning, middle, and end. It is often
used in literature and drama but can be effectively applied to HR analytics storytelling as well.

Elements of a Narrative Arc:

1. Introduction: Set the stage by introducing the problem or question you are trying to address.

2. Rising Action: Build the story by presenting key insights and analyses that lead up to the main
conclusion.

3. Climax: Present the main conclusion or insight.

4. Falling Action: After the climax, explain the implications of your findings and what steps should be
taken next.

5. Resolution: Conclude the story by summarizing the main points and reinforcing the key message.

Example in HR Analytics:

Suppose you are presenting an analysis of employee engagement. You might start with the
introduction, explaining that engagement scores have dropped in recent surveys. Then, in the rising
action, you could explore the factors contributing to this decline, such as low recognition or limited
career advancement opportunities. The climax would be the key insight from the data, such as the
finding that recognition programs are directly correlated with higher engagement. In the falling
action, you would outline steps the company can take to improve recognition programs. Finally, the
resolution would be a summary of the key findings and recommendations.

Why Use a Narrative Arc?

The narrative arc helps create a compelling story that engages the audience and helps them
understand the full context of your analysis. It’s especially useful when presenting to audiences who
need to be convinced of the importance of the data or analysis.

Drawback: The downside of the narrative arc is that it can take longer to get to the point, which
might not work well for audiences who prefer direct communication.
Page 25: Using Pecha Kucha in HR Analytics Storytelling

What is Pecha Kucha?

Pecha Kucha is a presentation format in which the speaker shows 20 slides for 20 seconds each,
resulting in a total presentation time of 6 minutes and 40 seconds. The slides are typically visual, with
minimal text, and the speaker provides commentary.

Origin: Pecha Kucha was developed by architects in Tokyo in 2003 as a way to present design ideas in
a concise and engaging manner. Since then, it has been adopted by professionals in various fields,
including HR and analytics, as a way to deliver impactful presentations quickly.

How to Use Pecha Kucha in HR Analytics:

Visual Focus: Since each slide is only displayed for 20 seconds, the focus is on visuals rather than text.
For example, instead of showing a table of data, you might use a simple bar chart or infographic to
convey the key message.

Concise Commentary: The speaker must provide brief, to-the-point commentary on each slide. This
forces presenters to focus on the most important insights and avoid getting bogged down in details.

Example in HR Analytics:

Suppose you are presenting an analysis of employee retention. You might create a Pecha Kucha
presentation with 20 slides that show visual representations of key data points (e.g., turnover rates,
reasons for leaving, retention strategies). Each slide would be displayed for 20 seconds, and you
would provide a brief explanation of each data point as the slides advance automatically.

Page 26: Physical Health, Psychological Health, Environmental Health, and Economic Health

1. Physical Health:

Physical health directly impacts absenteeism, as poor physical health leads to more sick days and
lower productivity. To improve physical health, companies can implement a range of initiatives that
encourage wellness and fitness.

 Key Initiatives:
 On-site fitness facilities or gym memberships.
 Wellness challenges to encourage physical activity (e.g., step-count competitions).
 Ergonomics assessments to ensure that employees have a healthy workspace (e.g., proper
desk setup, seating posture).

Impact: These initiatives can help reduce health-related absences, improve productivity, and even
lower health insurance costs by promoting healthier lifestyles.

2. Psychological Health:

Mental health is equally important. Stress, anxiety, and depression are common reasons for
absenteeism, and addressing these issues is key to improving employee engagement and reducing
turnover.
Key Initiatives:

 Employee Assistance Programs (EAPs): These provide confidential counseling services to

employees dealing with personal or work-related stress.
 Mental Health Days: Offering designated mental health days can help employees take time
off to rest and recharge before burnout sets in.
 Hybrid and Flexible Work Arrangements: Providing flexible work options can help reduce
stress caused by balancing personal responsibilities with work.

Impact: By promoting mental health, companies can reduce absenteeism due to stress-related issues
and create a more supportive work environment.

3. Environmental Health:

The physical work environment plays a significant role in employee well-being. Poor air quality, lack
of natural light, and uncomfortable office setups can lead to fatigue, stress, and health issues.

Key Initiatives:

 Improving Air Quality: Ensuring proper ventilation and air filtration can reduce the spread of
illness and improve employee comfort.
 Natural Lighting: Access to natural light has been shown to boost mood and productivity.
 Indoor Plants: Adding greenery to the workspace can reduce stress and improve overall
employee satisfaction.

Impact: A healthy work environment contributes to better physical and mental health, leading to
reduced absenteeism and higher productivity.

4. Economic Health:

Financial stress can affect employees’ well-being and performance at work. Offering support to help
employees manage their finances can alleviate some of this stress.

Key Initiatives:

 Financial Wellness Programs: These can include workshops on budgeting, saving, and
investing.
 Access to Financial Advisors: Providing access to certified financial planners can help
employees make informed decisions about their finances.
 Retirement Planning: Offering support for retirement planning can help employees feel more
secure about their future.

Impact: By addressing financial stress, companies can help improve employee focus and reduce
absenteeism related to financial issues.

Page 27: Wellness Programs and Recommendations

1. Physical Wellness Programs:

Exercise Programs: Encourage employees to participate in regular physical activity by providing

access to gyms, organizing fitness classes, or offering incentives for maintaining a healthy lifestyle.
Examples:

 Organizing company-wide step challenges or fitness competitions.

 Providing on-site fitness classes like yoga or Zumba.
 Offering discounted gym memberships or subsidies for fitness apps.

2. Mental Health Support:

 Mental Health Days: Companies should allow employees to take mental health days when
needed, without stigma or the need for a detailed explanation.
Example: Implementing a policy that allows employees to take a limited number of mental
health days each year to rest and recharge.
 Access to Mental Health Professionals: Companies can provide free or discounted access to
therapists, counselors, or mental health professionals through Employee Assistance
Programs (EAPs).

3. Work Environment Improvements:

Healthy Workspaces: Encourage ergonomic workspaces with proper lighting, air quality, and seating
arrangements to reduce physical strain and discomfort.

Examples:

 Ensuring that every desk is ergonomically designed, with adjustable chairs and monitor
stands.
 Adding indoor plants and improving ventilation to create a more pleasant working
environment.

4. Financial Wellness Programs:

Financial Literacy Workshops: Provide workshops on topics such as budgeting, debt management,
and retirement planning.

Example: Offering quarterly workshops on tax planning, investment strategies, or saving for
retirement.

Overall Recommendation:

Implementing a combination of these wellness programs can help companies create a more
supportive work environment, which reduces absenteeism, improves employee engagement, and
increases overall productivity.

Page 28: Final Summary of Absenteeism and Wellness Initiatives

Absenteeism Reduction Strategy:

To effectively reduce absenteeism, companies should take a holistic approach that addresses both
the physical and mental health of employees. This involves implementing wellness programs,
creating a healthy work environment, and offering financial support programs.

Physical Wellness: Encourage employees to take care of their physical health by providing fitness
programs, ergonomic workstations, and regular health screenings.
Mental Wellness: Address stress and burnout by offering mental health support, such as counseling
services, flexible work arrangements, and mental health days.

Work Environment: Ensure the work environment supports employee well-being by improving air
quality, lighting, and providing access to nature (e.g., indoor plants).

Financial Wellness: Help employees manage financial stress by offering financial literacy programs,
retirement planning support, and access to financial advisors.

Key Metrics for Success:

 Absenteeism Rate: Track reductions in absenteeism as a result of implementing wellness

programs.
 Employee Engagement: Use engagement surveys to measure improvements in employee
satisfaction and motivation.
 Productivity: Monitor productivity levels to see if they improve as a result of reduced
absenteeism and increased well-being.

Page 29: Using Data to Drive Wellness Initiatives

Collecting Data:

To make data-driven decisions about wellness programs, companies should collect data on employee
health, engagement, and absenteeism. This data can be used to assess the effectiveness of current
initiatives and identify areas for improvement.

Key Data Points:

1. Absenteeism Rates: Track absenteeism rates over time to identify patterns and measure the
impact of wellness programs.

2. Employee Surveys: Use surveys to gather feedback on employee satisfaction with wellness
programs and to understand their specific health and well-being needs.

3. Health Metrics: Collect data on employee health (e.g., participation in fitness programs, frequency
of doctor visits) to assess the effectiveness of physical wellness initiatives.

Using Predictive Analytics:

Predictive analytics can be used to forecast absenteeism and identify employees who may be at risk
of health issues. By analyzing historical data, companies can predict future trends and take proactive
steps to address potential problems.

Example: A company might use predictive analytics to identify employees who are at a higher risk of
burnout based on factors such as long working hours, low engagement scores, and frequent sick
days. HR can then intervene by offering these employees additional support, such as flexible work
hours or counselling services.
Page 30: Using the Pyramid Principle for Leadership Communication

This page dives deeper into using the Pyramid Principle for communicating with leadership,
particularly when time is short, and clarity is critical. It reiterates that leaders often prefer concise,
direct communication that gets to the point quickly, followed by supporting details.

Why Use the Pyramid Principle?

 Time Efficiency: Leaders are busy and may not have time to go through a lengthy report. By
using the Pyramid Principle, the most important information (the conclusion) is presented
first, followed by a few key points and supporting data. This structure allows leaders to
quickly understand the main takeaway without getting bogged down in details.

 Clarity: By starting with the conclusion, the message is clear right from the beginning. This
avoids confusion or misinterpretation.

How to Structure Using the Pyramid Principle:

1. Conclusion: Present the main takeaway or recommendation.

2. Key Points: Highlight the 2-3 most important supporting points.

3. Supporting Data: Provide any additional data or details that reinforce the key points.

Example:

If you're presenting an analysis on absenteeism to the leadership team, you might structure it as
follows:

 Conclusion: "Absenteeism rates have increased by 15% this year, leading to an estimated
productivity loss of ₹5 crore."

 Key Points:

1. The highest absenteeism rates are among employees in customer service roles.

2. The main drivers of absenteeism are illness and work-related stress.

3. Introducing a wellness program focused on stress reduction could reduce

absenteeism by 10%.

 Supporting Data: Provide absenteeism trends, cost calculations, and survey data on
employee stress levels.

Page 31: Narrative Arc in HR Analytics Storytelling

This page revisits the narrative arc concept, emphasizing how it can be applied to tell compelling
stories in HR analytics presentations. The narrative arc follows a logical flow, starting with the
problem, building up the story with insights, leading to a climax (the key finding or
recommendation), and ending with action steps.

Why Use a Narrative Arc?

 The narrative arc helps build engagement with the audience by telling a compelling story,
especially when the audience may need to be convinced of the analysis's importance.
  Structure of the Narrative Arc:

1. Introduction: Present the problem or issue (e.g., rising absenteeism).

2. Rising Action: Describe the analysis and data that lead to the key insight.

3. Climax: Reveal the main insight or conclusion (e.g., absenteeism is driven primarily
by mental health issues).

4. Falling Action: Present the implications of this finding and what actions should be
taken.

5. Conclusion: End with a summary and call to action (e.g., implement wellness
programs).

Example in HR Analytics:

If you're presenting data on employee turnover, the narrative arc might look like this:

 Introduction: "Employee turnover has increased by 20% over the past year."

 Rising Action: "We analyzed turnover trends and conducted exit interviews to understand
the main reasons for leaving."

 Climax: "Our analysis shows that employees in roles with limited career advancement
opportunities are 50% more likely to leave."

 Falling Action: "To address this, we recommend implementing more robust career
development programs."

 Conclusion: "By improving career advancement opportunities, we expect to reduce turnover

by 15% next year."

Page 32: Pecha Kucha Storytelling in HR Analytics

This page continues the discussion on using Pecha Kucha as a storytelling method in HR analytics
presentations. The idea behind Pecha Kucha is to keep presentations concise and visually focused,
making it easier for the audience to follow along and absorb the key messages.

How to Use Pecha Kucha:

 20 Slides, 20 Seconds Each: Each slide is shown for just 20 seconds, forcing the presenter to
focus on key points and avoid unnecessary details.

 Minimal Text, Maximum Visuals: Each slide should have minimal text, with the focus on
visuals like charts, graphs, and images that help convey the message quickly.

When to Use Pecha Kucha:

Pecha Kucha is especially useful in situations where you need to convey a lot of information in a
short amount of time, or when you’re presenting to a visually oriented audience.

Example:

If you’re presenting data on absenteeism, your Pecha Kucha presentation might include the following
slides:
 1. Slide 1: A graph showing absenteeism rates over the past year.

2. Slide 2: A pie chart breaking down the reasons for absenteeism (e.g., illness, stress).

3. Slide 3: A comparison of absenteeism rates by department.

4. Slide 4: A chart showing the cost of absenteeism in lost productivity.

5. Slide 5: A recommendation to implement a wellness program.

Each slide would be shown for 20 seconds, with the presenter providing brief commentary on each
one.

Page 33: Storytelling for Different Audiences

This page emphasizes the importance of tailoring your HR analytics presentations to the audience.
Different audiences may have different preferences for how information is presented, and
understanding these preferences is key to delivering effective presentations.

Different Types of Audiences:

1. Top Leadership:

o Leadership often prefers direct, concise communication. The Pyramid Principle works
well here, as it provides the conclusion upfront, followed by supporting data.

o Key Focus: High-level insights, financial impact, strategic recommendations.

2. HR Teams:

o HR professionals may prefer a more detailed analysis, with an emphasis on the

methodology and the implications for HR policies and practices.

o Key Focus: Data analysis, trends, HR-specific metrics (e.g., absenteeism, turnover,
employee engagement).

3. Employees:

o When presenting to employees, it’s important to keep the presentation engaging

and relatable. The narrative arc or Pecha Kucha methods can be effective for
storytelling in this context.

o Key Focus: Practical takeaways, how the data impacts them directly.

Adapting Your Presentation:

 Leadership: Use concise summaries, focusing on the business impact (e.g., cost savings,
productivity gains).

 HR Teams: Include more detailed data and analysis, explaining how the findings can inform
HR strategy (e.g., improving retention or engagement).

 Employees: Focus on how the data affects them and what actions they can take (e.g.,
encouraging participation in wellness programs to reduce absenteeism).
Page 34: Conclusion and Future Trends in HR Analytics

The final page summarizes the key takeaways and looks forward to future trends in HR analytics.

Key Takeaways:

 Importance of Data-Driven Decisions: HR is no longer just about managing people; it’s about
using data to make informed decisions that drive business success.

 Predictive Analytics: Predictive models help HR teams anticipate problems like turnover,
absenteeism, and performance issues, allowing them to take proactive measures.

 Wellness Programs: Employee well-being is a key factor in reducing absenteeism and

improving engagement. Companies should focus on physical, mental, environmental, and
financial health to support their employees.

Future Trends in HR Analytics:

1. Artificial Intelligence (AI): AI will play an increasingly important role in HR analytics, helping
to analyze large datasets and identify patterns that might not be immediately obvious.

2. Real-Time Analytics: As HR systems become more sophisticated, there will be a shift toward
real-time analytics, allowing companies to respond more quickly to emerging issues.

3. Employee Experience: HR analytics will increasingly focus on the employee experience,

using data to understand what drives engagement and satisfaction, and how companies can
create a better work environment.