What exactly are the fundamentals of human

resource management?

Human resource management refers to the management

of a company or organization’s employees and
operations. This involves the recruitment and hiring of
employees, their management and the direction
provided to these employees. There are many key
functions and fundamentals in regard to human resource
management. They are as follows:

 Recruiting and staffing

 Training and development
 Performance management and evaluations
 Payroll and benefits
 Succession planning

Recruiting and staffing

One of the fundamentals of human resource

management is the recruitment and staffing of new
employees. Human resources managers are responsible
for advertising open positions for their companies.
Based on the applications they receive, they choose the
individuals they want to interview, conduct interviews
and select the right candidates to hire. In some cases,
they may have candidates perform various assessments
to test their abilities related to the job, and they may
also complete reference checks themselves to verify
certain information. Essentially, they are responsible for
filling open positions with qualified candidates.

Training and development

Another main function of human resource management

is the training and development of all company
employees. Human resources managers help employees
perform at the best of their abilities by offering
programs that allow them to grow and maintain their
skills and expertise. This allows them to improve their
performance and efficiency in the workplace.

Performance management and evaluations

Human resource management also involves the

evaluation of an employee’s performance. This is often
done multiple times throughout the year and is used to
help foster communication between a supervisor and an
employee. Human resources employees help define
company goals and objectives, help employees utilize
performance management software and set meetings to
foster these discussions. This is important because
performance management allows supervisors to
determine an employee’s abilities and their potential for
future growth and development. Based on the
evaluation, supervisors can help create a plan for future
goals in order to improve an employee’s performance.
Payroll and benefits

Another fundamental area of human resource

management is payroll and benefits. Human resources
managers are tasked with creating strategic
compensation plans and negotiating health care
benefits for employees. The latter involves making sure
the company adheres to various policies. A competitive
compensation plan and benefits package can be
attractive to prospective employees, so it is important
for human resources managers to put together strategic
offers to attract and retain employees for the future.

Succession planning

Lastly, succession planning is a fundamental area of

human resource management as well. Succession
planning involves the identification and development of
employees who can step in and replace certain leaders
when they step down or leave their positions. For
example, in the event that a leader retires, human
resources managers should have a succession plan in
place that details who will take their place or succeed
them. This is an important role in human resource
management because it ensures that a business will
continue to operate smoothly as leadership changes.

Related:Onboarding Guide

Three crucial points

In order to better understand the role of human resource
management, you need to familiarize yourself with the
three crucial points or areas that make up this position:

Recruitment

Human resource management involves the recruitment

of new employees. This is done by posting
advertisements about open positions on job boards,
social media and other mediums. Recruiters do this in
the hopes of hiring new employees, but the
responsibilities may fall on the hiring manager,
depending on the company. Recruitment also involves
staffing. Therefore, not only does human resource
management entail interviewing candidates, but it also
involves the management and onboarding of new hires.

Management

A large part of a human resources manager’s role

involves managing a company or organization and its
employees. They do this by overseeing daily operations
such as the supervision of team building. They also
manage the downline of employees along with general
employee relations. In regard to the latter, human
resources managers aim to mediate any disagreements
to avoid legal action, help interpret harassment laws
and more. Overall, they help employers manage their
employees and provide guidelines for what is expected
in each team member’s role.

Direction

Along with the recruitment and hiring of new employees,

the human resources department provides direction and
guidance to a company and its employees. This includes
providing employees with any necessary knowledge,
offering training and coaching to develop their skills and
giving them advice regarding work or legal matters.

Essentially, human resources managers help shape the

culture of an organization by inspiring employees,
among their other duties. They ensure that a company’s
mission, values and goals are upheld by guiding how the
organization operates. Overall, human resources
managers provide direction in order to maintain
orderliness in their company and ensure employees
understand their roles.

Strategic human resource management

Strategic human resource management (strategic HRM) provides a

framework linking people management and development practices to long-
term business goals and outcomes. It focuses on longer-term resourcing
issues and other HR strategies, such as reward or performance, determining
how they are integrated into the overall business strategy.
What is strategic HRM?
Strategic HRM, or ‘people strategy’, is about creating a coherent framework
for employees to be hired, managed and developed to support an
organisation’s long-term goals. It helps ensure that the various aspects of
people management work together to drive the behaviour and climate to meet
performance targets. It focuses on longer-term people issues, matching
resources to future needs, and large-scale concerns about structure, quality,
culture, values and commitment. It must also be a response to the evolving
nature of work itself.

There’s no single HRM strategy that will deliver success in all cases.
Organisations must define their own unique strategy according to their specific
context, culture and objectives. People professionals are instrumental in
applying their expertise to understanding organisational circumstances and
designing workforce pipelines that reflect stakeholder demands.

Strategic HRM: the key to improved business performance explains the

various definitions and approaches to strategic HRM. They state that strategic
HRM is a complex process that’s constantly evolving and a topic of ongoing
debate.

The idea of strategic HRM started around the early 1990s, when academics
developed definitions such as:

 The undertaking of all those activities affecting the behaviour of

individuals in their efforts to formulate and implement the strategic
needs of business (Schuler).
 The pattern of planned human resource deployments and activities
intended to enable the organisation to achieve its goals (Wright and
McMahan).

Boxall and Purcell describe strategic HRM as explaining how HRM

influences organisational performance. They argue that strategy is not the
same as strategic planning:

 Strategic planning is a formal process, usually in larger organisations,

defining how things will be done.
 Strategy, by contrast, exists in all organisations (even if it’s not written
down and articulated) and defines the organisation’s behaviour and how
it attempts to cope with its environment.

Strategic HRM can include a number of individual HR strategies, for example:

  To deliver fair and equitable reward.
 To improve employee performance.
 To streamline organisational structure.

These strategies are not ‘strategic HRM’ alone. Strategic HRM is the
framework that determines the delivery of individual strategies, by
systematically linking people with organisations by integrating HRM strategies
into organisational strategies to deliver organisational success.

People analytics (HR analytics)

What is people analytics (HR analytics)?
People analytics, also known as human resources (HR) analytics and talent
analytics, is the use of data analysis on candidate and employee issues to
understand their effect on business goals and evaluate the effectiveness of
HR initiatives. Ideally, people analytics leads to better data-driven decision-
making.

People analytics focuses on the people, challenges, functions, processes and

opportunities at a workplace. The analysis process applies math, statistics
and modeling to candidate- and worker-related data to see and predict
patterns in all aspects of acquiring and managing employees.

Using people analytics, HR departments can work alone or with data scientists to gain
insights into areas such as talent pipeline issues, the effectiveness of retention efforts,
employee performance and workforce productivity, and assess which wellness and
learning programs are working.

Why is people analytics important?

Implementing people analytics can help business leaders and HR departments make
data-driven decisions that can improve employee potential and work results.
People analytics can help organizations in their recruiting, performance management,
compensation, succession planning and retention efforts. They can help organizations
understand which candidates to hire, which employees are the highest performers,
who's receiving adequate compensation and how employee retention can be improved.
People analytics can also support gut instinct, for example, by providing evidence that
a person with a community college certificate sometimes makes a better employee
than someone with a four-year degree.

Having an analytics process in HR can also help organizations identify less productive
tasks that could be automated, giving employees time to work on more valuable tasks.

People analytics can also help reduce employee turnover and improve the employee
experience. People analytics identifies metrics that affect employee performance and
productivity, enabling the organization to make changes to the workplace that help
employees.

How is people analytics used?

The use of predictive analytics in people analytics is an important trend. It can help
predict skill gaps, spot candidates who are high performers and identify employees
who may be at risk of leaving. Sales organizations use people analytics to predict and
address poor performance in salespeople, and hospitals use it to understand how
patient outcomes are affected by employees. Organizations can create new
opportunities for revenue by examining customer and labor data as well as enable
profit growth by analyzing workforce spending.

Vendors are developing tools to expand the use of analytics. Companies might look to
vendors rather than build their own tools because analytics models now use
sophisticated technologies such as artificial intelligence (AI).

People analytics is also increasingly expected to analyze teamwork and organizational

relationships, which could take on heightened importance as companies replace
hierarchical models with more collaborative ones.
The process of people analytics
The process of implementing people analytics should address the following steps:

 Step 1: Create a simple, well-defined plan. People analytics processes should be

straightforward and relevant to business goals. For example, the process of data
analysis and interpretation should be understandable and easy to update. Data
gathered should represent metrics that provide insight into business goals.

 Step 2: Choose a people analytics tool. People analytics platforms typically come
with data-centric features such as data mining, data transformation and data
visualization.

 Step 3: Collect the right data. Collected data should be relevant to achieving
business goals. For example, if the goal is to increase employee competency, then
metrics such as training expenses and effectiveness should be gathered. Collecting
the right data should enable an organization to save resources by analyzing only
the necessary areas.

 Step 4: Adhere to legal policies. Employees should still maintain their privacy.
Have an internal legal team validate any data collection processes. In addition, any
metrics should be measured for transparency.
Important HR metrics to measure
HR metrics help to track the effectiveness of HR initiatives and the effects of talent
management trends on business strategies and financial results. Some examples
include the following:

 Absence rate or absence rate per manager.

 Average cost per hire, including training costs.

 Benefits participation rate.

 Cost of HR personnel per employee.

 Diversity.
 Compensation.

 Employee engagement.

 Overtime expenses.

 Retention rate per manager.

 Revenue per employee.

 Training effectiveness.

 Turnover rate.

One point of confusion could be the difference between HR metrics and HR analytics.
In essence, metrics describe concrete measures of past performance, while analytics
use those measurements to gain insights or predict future patterns. Metrics typically
describe concrete data points, such as how many candidates applied or how many
employees left the company, while analytics answers questions such as what
educational background best helps indicate future high performers or why top
performers are leaving.

Benefits of people analytics

HR departments are expected to incorporate employee data analysis into their daily
routines because of its potential to improve HR effectiveness and business outcomes.
The possible benefits of using people analytics are indeed significant and include the
following:

 Saves time. Sourcing, hiring, training and nurturing employees can be time-
consuming and doesn't always directly support strategic objectives. People
analytics enables HR team members to focus on the people and programs that will
be most beneficial, allowing the HR department to spend more time on actions that
will drive bigger results for the company at large.

 Improves productivity. Particularly as more employees work from home, people

analytics can be applied to data from employee engagement surveys to help
 companies understand what keeps workers engaged or what gets in their way. HR
analytics can also be used to understand health trends and absenteeism issues.

 Improves employee experience. An employee's feeling of belonging within the

company is often correlated to their morale and productivity. People analytics can
enable HR -- and data scientists working with HR -- to determine what employees
want and need, thus creating a better social and work environment.

 Improves retention. The potential of people analytics to improve employee

experience can, in turn, improve retention. Analytics can inform recruiters on the
HR team of the reasons for employees' negative feelings while also revealing why
employees stay with the company. These analytics can help organizations identify
skills gaps within the team and work to fill them in an effort to make the team
members happy and keep them at the company.

 Creates actionable insights. Using data visualization with people analytics helps
provide employees with results they can understand. Because employees can see
and comprehend their performance data within the greater context of strategic
business objectives, they know where to adjust their performance, and a stronger
sense of ownership provides the incentive to do so.

 Strengthens decision-making. Data analytics provides facts that organizations

can use to inform and empower their decision-making process. Using employee
data, people analytics enables HR departments to make decisions that are less
subjective and emotion-based and, instead, are more reliant on the statistical
likelihood of success.
Potential pitfalls of people analytics
HR data management is still a major concern because HR data is often siloed,
incorrect, out of date or inconsistent, but there are other significant pitfalls, such as the
following:

 Technology-first focus. People analytics initiatives frequently fail because

business leaders and organizational stakeholders take a technology-first approach
 instead of focusing first on the business or people issue to be solved and how it
relates to improving business outcomes.

 Data quality issues. People analytics often relies on data in different HR systems
to uncover insights. Small variations in the way data is rendered or incorrect inputs
can cause incorrect analyses. The larger the organization is and the more systems it
uses, the more profound this issue becomes.

 Internal resistance and distrust. Helping HR staff and other business users
understand how to work with and accept analytics can be problematic. Workers
might distrust why data is being collected and fear it's being used against them.
The issue could worsen in times of crisis or as more tools are used to monitor
employees' performance.

 Bias. The ability of AI to notice a pattern to determine future actions means it can
be used to continue biased behaviors, such as hiring or promoting only one race or
gender. Another example of bias is the potential negative influence of predictors
that suggest someone is likely to leave the company, and managers mistreating the
employee based on that. HR departments must understand the basis and underlying
assumptions of people analytics to prevent such biases from happening.

 Legal and compliance issues. Because behavioral, health data and other sensitive
information can easily be used to discriminate against employees, HR analytics
opens up major areas for potential abuse. HR and legal must work together to
ensure compliance, and executives, managers and HR must understand which
behaviors are illegal.
Top people analytics trends
Current trends in people analytics include the following:

 A focus on employee engagement. Organizations can use analytics tools to gain

further insights into what motivates employees as well as factors that further
engage or disengage them. Focusing on employee engagement can improve
employee morale by identifying where employee engagement is lacking and trying
to improve it. This can also lead to improved employee retention and productivity.
 Improved data visualization and predictive analytics. With an increase in data
visualization and predictive analytics, HR teams can identify trends in data easier,
making insights less challenging to gather.

 The use of AI. AI enables organizations to analyze much more data within a
smaller amount of time while maintaining a high level of accuracy.

 The use of real-time data. Using data gathered in real time provides the most up-
to-date data and metrics, which enables more informed decision-making.

 The use of sentiment analysis. Sentiment analysis helps identify employee

opinions toward their organization or job.
The evolution of people analytics
HR analytics was the initial term used to describe the measurement of human resource
programs and their effectiveness. It was performed in HR data warehouses. HR
analytics has its origins in industrial psychology studies to optimize production and in
thought leadership, such as that represented in the 1984 book How to Measure Human
Resources Management, written by Jac Fitz-enz. The term HR analytics came into
wider use as software providers increasingly offered what they called HR analytics
tools.

Prior to the 1990s, HR was mostly reactive in its workflow, as it could only give
advice based on past experience or working knowledge. As time went on, methods for
HR to be proactive, such as by analyzing employee behaviors and productivity, were
developed. Other terms also came into use -- such as people analytics, talent
analytics and workforce analytics -- that are often used synonymously today.

However, workforce analytics tends to be somewhat distinguished from the others,

referring to both the macro elements of HR strategy -- for example, the effect of
changing demographics or issues surrounding skill gaps -- and more narrowly
focused workforce planning issues, such as the staffing needed for a particular region
or labor costs and productivity.
In recent years, the people analytics market has experienced rapid growth in vendors,
users and revenue, reflecting its importance to HR departments and the organizations
they serve. This predicted continued growth also reflects the focus on employee
experience as organizations struggle to better satisfy workers.

Learn more about the benefits and use of real-time data in HR and people analytics.

This was last updated in September 2023

What are the applications of data

analytics in HR?
HR data analytics can be used to make improvements in nearly every area
of human capital management. Ahead, we’ve included examples of five
applications for HR data analytics to illustrate how this practice can be
used to finetune different HR processes.

1. Recruitment
If you haven’t heard, it’s a tough time for recruiters. We’re in the midst
of an ongoing talent shortage , which means that sourcing and recruiting
quality talent is more competitive than ever. Data analytics can help by
revealing where your recruiting process can be improved.

For example, you can set hiring goals and see how you’re progressing
toward them, compare your time-to-fill and cost-per-hire metrics with
other industry standards or organizations through benchmarking , and
track how your results ebb and flow after making adjustments to different
aspects of your recruiting strategy.
Tool tip

Track the recruiting data that’s a priority for your organization. Many recruiting
software platforms offer features such as customizable dashboards as a part of
their analytics functionality to help you do this.

A dashboard in Lever turns valuable recruiting data into easy-to-understand

visualizations (Source)
Ready to hire a recruiting agency for your business needs? Browse our list of
companies in the following areas:

 Recruiting agencies in New York City

 Recruiting agencies in Houston

 Recruiting agencies in Atlanta

 Recruiting agencies in Denver

 Recruiting agencies in Austin

2. Training and development

Are your training and development programs effective? That’s an
important question for HR professionals to answer, but without a method
for measuring results, there’s no way of knowing if your teams’ resources
and efforts were wasted on a training initiative.

An effective approach to gauging the impact of training and development

programs involves asking employees for feedback through a survey or
manager one-on-ones, as well as collecting and analyzing data related to
the completion and comprehension of programs.

In some cases, predictive analytics can also be used to create personalized

learning paths for employees and even tailor training content to meet
different learning styles.

Tool tip

Measure your employees’ engagement with and comprehension of training

programs. Learning management systems (LMS) , which are used to deliver
training programs to employees, are often built to track learners’ completion rates,
time spent training, individual assessment scores, and more.
 A dashboard in Absorb LMS shows learner logins, enrollments, and course
completions (Source)

3. Attrition and retention

In Capterra’s Recruiting Strategy Survey** from July 2021, 51% of
employees with recruiting responsibilities revealed that the number of job
openings that they’re actively recruiting for is higher than average. The
talent shortage is partially to blame, but ongoing, record-high levels of
turnover is another major factor contributing to the surplus of open
positions.

Knowing that, uncovering sources of turnover is a priority for HR leaders.

And predictably, data is one of the best ways to do that. For example, you
can collect information from departing employees through exit interviews
and surveys, then use analytics software to identify commonalities
between the results.

Tool tip
In order to get turnover in check, you need to understand what’s contributing to
it. HR analytics tools help with this by collecting data related to employee
attrition, such as voluntary and involuntary turnover rates, average employee
tenure, and employee retention rate.
 A dashboard shows tenure and termination reason for employees in BambooHR
(Source)

4. Benefits and compensation

One of the biggest expenses for any business is employee compensation.
This, coupled with the fact that we’re currently in an inflationary
environment , has made compensation analytics a more essential practice
than ever for HR managers.

For instance, our Recruiting Strategy Survey* revealed that only 13% of
employers are not considering increasing compensation as a means of
attracting job seekers to their organization. So, if you’re having a hard
time recruiting quality talent and you’re a part of that minority, it’s time to
take a more intentional approach to compensation planning. You can do
this by comparing your organization's salary ranges to those from similar
businesses, reviewing adoption rates of different benefits to determine
where changes should be made, and assessing pay equity gaps.

Tool tip

Ask your payroll software vendor about the capabilities of their reporting and
insights functionalities. There may be analytics features that can help guide your
compensation strategy that you aren’t currently taking advantage of.
 Compare your planned merit spending to suggestions based on industry trends in
CompensationXL (Source)

5. Employee productivity
From the perspective of the HR department, productivity refers to how
efficiently resources such as talent, money, and time are being used. Data
analytics is particularly helpful when it comes to measuring productivity,
but the kind of productivity data you should analyze depends on your
goal.

For instance, some metrics (such as revenue per full-time employee ) are
helpful for judging the productivity of your workforce as a whole, while
others (such as project completion rate) are more useful for measuring
the performance of a team or individual. Further, you can measure how
efficiently resources are being allocated by tracking the adoption rates of
different tools or benefits.
Tool tip

Encourage department leaders to report on their team’s productivity. Most

businesses today use a collaboration tool or project management platform , and
these tools often have reporting features that track everything from communication
between employees to missed deadlines.

The status, progress, and priority of different company objectives organizes in Asana
(Source)

Use your organization’s data to make

better decisions and meet your goals
According to our Recruiting Strategy Survey** , over a quarter (27%) of
the HR professionals we polled already have recruiting analytics software
and an additional 52% are either considering or planning to purchase it in
the future.
If you’re a part of the minority who is not considering investing in a tool
that makes data analysis easy, we have to ask: Why not?

When data informs every decision your HR department makes, from

recruiting and retention to training and productivity, the outcome
will be a much more effective human resources business function.

And while kicking off a data analysis strategy may seem like a daunting
practice to put in place, it doesn’t have to be. Start with the three
suggestions we included earlier on in this guide:

1. Determine where your current data collection strategy is at.

2. Align the goals of your data analysis strategy with business priorities.

3. Find a tool, or upgrade your current software plan in order to automate parts of
the data collection and analysis process.
And lastly, visit these additional resources for more actionable insights related
to the human resources industry:

 Human Resources Benchmarking: A Beginner's Guide

 3 Challenges for HR Professionals to Tackle in 2022

Methodology

* Capterra’s 2022 Company Culture Survey was conducted in December 2021 among 958 employees at U.S.
companies with at least six employees: 332 who work fully on-site (e.g., in an office, store, or other central
location), 300 who work fully remote, and 326 who split their time between working on-site and remote (i.e., a
 hybrid model). The goal of this survey was to learn how hybrid and remote work formats impact different
aspects of company culture.

** The Capterra Recruiting Strategy Survey was conducted in July 2021. We collected 300 responses from
workers with recruiting responsibilities at U.S. employers. The goal of this survey was to learn how much
companies are struggling with recruiting and hiring, and what solutions they’ve considered to improve
recruiting and hiring outcomes.

Note: The applications mentioned in this article are examples to show a feature in context and are not intended
as endorsements or recommendations. They have been obtained from sources believed to be reliable at the time
of publication.

Statistics, in some form or another, always come to the rescue!

Step 1: Making Everyday Decisions with Democratized Data

A good data strategy begins with transactional data, which is the substance of everyday
company interactions, insight, efficiency, and output, says Tom Starner.
Here HR executives must concentrate on giving information to
employees, HR personnel, and line managers so that they can, in turn, take action to
reach a better degree of productivity and success. It may be at the most basic level, but
it's vital. HR and department leaders need access to necessary data to make decisions.
It must make data accessible across the company while ensuring security.
In terms of data decentralization:
 Keep it simple; for your fundamental data strategy, make a brief list of essential HR and

business needs.

 Ensure that company governance allows all data to be accessed.

 Provide management teams with robust dashboard-style tools that enable them to

access several data points for strategic choices and core transactional data for team

and people management decisions.

Step 2: Leveraging Talent Insights to Build a Stronger, More Engaged

Workforce
 Once data democratization is in place and basic dashboards are in the hands of HR,
business partners, managers, and most importantly, employees, engagement building
through HR statistics should take centre stage. Retention is the best place to begin.
Gauging turnover in a certain business unit or job family—or any other easily isolated
cluster—can lead to discovering crucial data indicators for increasing employee
engagement.

You can analyze what employees are thinking and feeling using engagement scores,
social listening, or any number of other new tools. For example, you may build a
retention plan based on employees learning history and invest in continued growth. It
might be a tuition-assistance program. Any variety of statistics-driven decisions might
be made to improve retention and engagement.

Statistics could aid these initial and ongoing career transfers by recording an
employee's skills and indicating the next steps, or by tracking most likely shifts from one
role to the next based on prior employee movement. People want to ensure that they
are always learning, gaining new skills, and receiving feedback. HR must remain on top
of everything. They want to know how well the person is doing and whether or not they
are receiving adequate feedback on their professional development. Employers may
use HR Statistics to measure success across the employee lifecycle, from sourcing and
employing increasingly diverse employees to providing internal growth opportunities for
employee development. As a result, they may improve talent retention and diversity at
the same time.

To increase engagement:
 Provide managers with dashboard-based tools to measure and manage engagement elements

including diversity, pay equity, retention risk, succession pipeline reporting, and recruiting

metrics like time to hire, pipeline health, and hiring source performance—all of which are

engagement-boosting factors.

 Monitor an employee's cycle to find key tipping points that can be recognized

using HR Statistics, such as critical determinants of when an employee is disengaged and likely

to seek new employment.

 Provide employees with the data they need to discover areas for improvement and encourage

their development, resulting in increased levels of engagement.

 Assist employees in better understanding their skills and what alternative internal routes

correspond to their skills.

Step 3: Using Statistics and Insights to Infuse and Chart Organizational

Strategy
In HR, here is where you get to the most complex and difficult level of data use. While
the other two phases are more extensive, this phase focuses on how HR may aid in the
development of company strategy using data and contribute to executive-level planning.
It's here that HR can use statistics to become strategic, which is a much-discussed but
elusive HR ideal. Complex concepts like big data, predictive and prescriptive statistics,
and combining internal and third-party statistics all play a role here.
This third phase may entail looking into topics like workforce planning. Establishing how
HR can collaborate with finance to combine workforce analytics with financial data to
support top-level company objectives such as entering a new market, successfully
executing acquisitions and mergers, introducing a new product, or converting to a
sustainable business model.

HR moves into predictive statistics at this level. Instead of informing business leaders
what happened (descriptive statistics), HR will tell them what will happen. Although
predictive and prescriptive modes can be valuable in data analytics planning, most
organizations are seeking answers to their problems rather than these specific types of
analytics, adds Schlampp. In a related area, the aforementioned blending of operational
data with employer data from the HR system is a last tough but in-demand area in this
higher-level use of data analytics. Employers are increasingly expressing a desire to
combine external data with their own, but many are disappointed by the current
limitations in their ability to do so. And this may indicate that they are unable to provide
the analysis that company leaders require.

Why does HR require a variety of data sources, including operational data? This data is
frequently the key to an HR-related insight. Companies evaluate employee performance based on
various factors, including calls per shift, defect rates, and client retention. Non-
traditional HR data sources, such as a customer relationship management system, a point-of-sale
system, or an industry-specific system, provide the statistics you need to measure this. Using
this data in conjunction with HR Statistics can help you better understand worker productivity,
organizational performance, and other critical issues. When combining data, it's critical to ensure
that the appropriate data preparation and security capability are available.
If it comes to producing the most HR statistics, consider the following:
 To acquire a birds-eye view of crucial indicators and KPIs at the leadership level, use workforce,

and organizational performance scorecards.

 Ascertain a strong and unmistakable link between HR statistics and organizational strategy.

 When presenting HR statistics-driven results to business leaders, make sure clarity is at the top

of the list. They don't want to be mystified by jargon; instead, they want to understand how data

can help them address problems and build their organization.

Other intriguing facts, the Human Capital Hub states that:

 According to 47 per cent of HR executives, the top workforce management problem is employee

retention and turnover, followed by recruiting and company culture management.

 Employees cite a lack of career advancement (22%), lack of support with work-life balance

(12%), their manager's behaviour (11%), unacceptable remuneration and benefits (9%), and low

well-being as the main reasons for leaving their positions (9 percent ).

 In 2020, 97 percent of HR executives expected to increase their investment in recruiting

technology, with nearly a quarter (22%) expecting a 30-50 percent rise in cost. (Workplace of

the Future)

When it comes to using statistics to make better HR and general company strategy
initiatives, there is no turning back. . HR decision-makers want to know
how statistics influence the success of their workforces, both in terms of knowledge and
skills and self-service, as well as the overall company.

What is the talent management life

cycle?
The talent management life cycle refers to the entire process of developing long-
term strategies for managing talent—from attracting and recruiting high-caliber
professionals to developing and retaining talent over the long term.

Key stages include:

  Recruitment and selection. This stage of the talent management life cycle is all
about identifying the talent needs of your business, sourcing and attracting high-
level candidates, interviewing and selecting top talent, and offering hiring
packages that appeal.
 Onboarding and orientation. Orienting new hires with an effective onboarding
process is important for helping employees understand their new roles and
requirements. Many activities go into onboarding and orientation, including staff
introduction, initial team training, and meal-sharing events.
 Performance management and development. A well-designed performance
management and development framework recognizes and rewards outstanding
performance, sets clear expectations and goals, and enables employees to
receive training and development.
 Retention and succession planning. By turning attention to retention
and succession planning, you can ensure your organization has the talent and
leadership necessary to meet current and future business needs—all while
promoting the company culture.

Overview of the talent management

life cycle
Knowing how to navigate the different stages of the talent management life cycle
effectively—from attracting the right candidates to developing future leaders—can
help your organization increase agility, improve efficiency, and drive growth.

Recruitment and selection

Because having the right people in the right places is central to business success,
recruitment and talent acquisition are critical in the talent management life cycle.

According to research by Beamery, a human resources platform, “only 1 in 6

business leaders can effectively identify and address talent and skills gaps in their
organization,” while “83% of business leaders are concerned about talent loss or
leakage.” In addition to monitoring key performance indicators and conducting
regular employee assessments, you can help to address skill gaps within your
organization by attracting valuable new talent.

With that in mind, you can do several things to attract qualified and skilled talent:

 Offer attractive benefits and a competitive compensation package

  Build a great employer brand (for example, you can share stories of career
transformation and testimonials on your social media and LinkedIn pages)
 Provide employee development opportunities
 Focus on inclusive recruitment strategies that value diversity
 Have a dedicated careers page on your website and maintain an active social
media presence
 Write compelling job descriptions—your job description should get job seekers
excited about working, developing, and growing in your organization

Onboarding and orientation

The onboarding and orientation phase in the employee life cycle is crucial for
ensuring new hires acclimate to the company’s culture and environment.

During onboarding, introduce new employees to the company’s corporate culture,

policies, and procedures, which can help them understand their responsibilities and
blend into the work environment. Additionally, effective onboarding can make
employees feel more supported and valued.

According to Gallup’s onboarding report, employees who experience a positive

onboarding are 2.6 times as likely to be satisfied with their workplace—and as a
result, are far more likely to stay.

Performance management and development

Providing the resources for employees to develop in their roles is key to an
effective talent management strategy—and so is rewarding them for their work.

With the right performance management and development framework, employees

are more likely to engage in their work and achieve their full potential, leading to
increased job satisfaction and better overall organizational performance.

In fact, a Gallup report showed corporations that invest in employee engagement

realize an 18% difference in productivity and a 23% difference in profitability.

Follow these steps to improve performance management and development:

 Communicate job responsibilities and expectations to employees

  Offer regular performance feedback to help employees grow and advance their
career paths
 Encourage employees to strive for personal and professional growth through
regular learning opportunities
 Establish an employee recognition program that incentivizes employees to
perform at their best
 Have a comprehensive performance management framework that rewards
outstanding performance
 Regularly review and evaluate the performance management and development
framework, taking into account employees’ feedback
 Prepare employees for future work and help them adjust to new technologies with
dedicated learning programs

Retention and succession planning

According to The Predictive Index , the cost of resignation is approximately $11,000
per employee, meaning that filling talent gaps isn’t just a challenge for employers
but also comes at a high cost.

To reduce employee turnover and improve employee engagement, focus on an

effective human capital strategy that prioritizes retention and succession planning.
A strong retention and succession plan can help your organization minimize the
impact of departures and maintain a strong leadership pipeline.

Some effective strategies are to:

 Offer competitive compensation and benefits

 Provide opportunities for growth and development
 Create a positive work environment that prioritizes diversity, equity, and inclusion
 Plan for leadership transitions and identify and develop successors
 Prioritize work-life balance and employee well-being
 Measure progress by conducting exit interviews and tracking metrics

Talent management life cycle FAQs

Want to learn more about the talent management life cycle? Keep reading to find
answers to some frequently asked questions.
Why is the talent management life cycle
important?
In today’s competitive job market, having an effective talent management
framework can help your organization make better hiring decisions, improve
employee retention, and optimize the recruiting process.

A talent management plan can help drive better results and organizational
performance when implemented strategically.

Why is company culture so important in the life

cycle of talent management?
A strong and positive company culture attracts the brightest minds in the industry
and fosters a great work environment where employees feel valued and
appreciated.

A supportive and inclusive corporate culture also offers employees a platform for
growth and advancement while promoting teamwork and open communication. The
result? Happier employees with enhanced productivity and better performance.

That said, LinkedIn research shows that 40% of candidates consider company
culture a top priority when picking a job. When improving company culture,
consider investing in these areas:

 Professional development opportunities

 Flexible work support
 Mental health and wellness
 Training managers to lead hybrid and remote teams
 Diversity and inclusion

What are some characteristics of an effective

talent management system?
Knowing what to expect from your talent management system can help you
evaluate its effectiveness and identify areas that require changes or improvements.

Key characteristics of an effective talent management process include:

 Positive employee reviews. Positive employee reviews can provide insights into
the overall employee experience, including the company culture, compensation,
development opportunities, and career progression.
 High retention rates. Employees staying with the company for a long period
suggests they’re happy, engaged, and motivated in their work. High retention
rates may also mean a competitive compensation scheme.
 Employees with increased motivation. New and current employees who feel
motivated to bring their best efforts to the workplace are a great sign of an
effective talent management process.
 Open communication between managers and employees. With an effective talent
management process, managers and employees communicate openly about
thoughts and ideas, feedback, and performance.
 Employee involvement. Employees who give input into their development and are
actively involved in their career planning and professional progression indicate a
positive talent management process.

Work with talent management

professionals from Upwork
As with most things, talent management systems aren’t one size fits all.
Understanding the different stages of the talent management life cycle can help
your organization tailor a talent management strategy for attracting, engaging,
developing, and retaining the best talent.

By tapping into the expertise of skilled talent management professionals available

on Upwork, your organization can address skills gaps, reduce operational costs,
and build an empowered and motivated team.

If you’re a talent management specialist, browse Upwork to find talent management

jobs that match your skill set.
Problem Solving
Problem analysis is an essential Human Resource discipline that

contributes to organizational agility and helps drive business results.

In order for your business to stay ahead of the curve, your team must

conduct regular problem analysis in HR, which involves evaluating HR-

related issues and proposing resolutions.

By proactively identifying areas for improvement and implementing

practical solutions, HR professionals can understand situations that

are preventing the business from advancing and then develop potential

improvement opportunities.

What is a problem analysis?

Problem analysis in HR is the process of identifying, evaluating, and

proposing possible solutions to HR-related issues within an

organization. This involves analyzing HR and workplace-related

processes and policies, identifying areas of improvement, and

eventually implementing solutions that increase the effectiveness and

efficiency of the business. With more companies using big-

data insights, HR is more equipped than ever to engage in data-

informed problem analysis.

By using problem analysis in HR, you can stay ahead of the curve and

ensure that your organizations are equipped to meet changing

business needs. In addition, this enables your team to become more

strategic and proactive in their approach, contributing to the

organization’s overall success.

Why would HR need to conduct a problem

analysis?

Problem analysis helps HR teams understand current and future issues

while generating a range of possible improvement opportunities

through the use of a logical method in pinpointing problems, analyzing

the causes, and effectively evaluating the solutions. It also enables

your team to research the situation thoroughly instead of jumping to

conclusions that might yield different results and ultimately could be

costly for the company.

Examples of when HR could

perform a problem analysis
1. Change management

Change management is the process of guiding individuals, teams, and

organizations through the process of transitioning from the current

organizational setup to a desired future organizational structure. This

can involve systems, processes, technologies, team structures, and/or

cultural changes.

The purpose of change management is to minimize disruption and

negative impacts while maximizing the benefits of the change. As you

can imagine, this is a significant shift in your company’s way of

working, and many possible problems can arise during this change.

One common problem that comes up during this time is

communication issues. Your employees may not see the need for

change when it’s not appropriately communicated. By using problem

analysis, HR can find solutions to this issue before it even happens.

Workforce planning

Workforce planning is anticipating and aligning an organization’s

staffing needs with its business goals and objectives. It involves

analyzing current workforce data, predicting future trends and skill

requirements, and developing strategies to address gaps or surpluses

in the workforce.

Problem analysis can help your team ensure that the organization has

the right people, with the correct skills, in the right place, at the right

time to meet its business needs.

Predicting future problems

Also known as predictive analytics, it is a data analytics component

that uses statistical algorithms and machine learning to determine the

likelihood of future developments based on historical data.

Predictive analysis aims to make predictions about future events by

analyzing patterns and trends in past data. In HR, it can be used in

problem analysis to predict issues that can come up in the future, such

as when an employee will decide to leave the company.

Talent management

Talent management encompasses all HR activities aimed at

attracting, developing, motivating, and retaining top-performing

employees; therefore, it is one of the essential tasks of Human

Resources. Your HR teams can use problem analysis to help identify

recruitment, employee engagement, or skills gap concerns.

Recruiting

Recruiting refers to identifying, attracting, and hiring qualified job

candidates for your organization. This process typically involves

advertising job openings, screening resumes, conducting interviews,

and making job offers.

One common recruiting challenge is figuring out how to hire talent

fast. According to OfficeVibe, top talent is off the job market in 10

days, so your organization needs to be quick if you want to hire high

performers. Problem analysis can help you understand the bottleneck

and possible solutions to fast-track your recruitment process.

5 Problem analysis techniques

Problem-solving techniques are systematic methods to aid teams

through a step-by-step procedure, starting from recognizing issues or

difficulties, generating potential solutions, and then determining the

most appropriate solution to use. Finding the right solution to complex

problems can be challenging; however, utilizing the correct approach

and method can streamline the process for your team.

There are a variety of problem analysis techniques you can use to

identify your HR-related challenges. Let’s unpack 5 types to consider:

1. Problem tree analysis

Problem tree analysis, also called Situational Analysis, is a flow chart

that helps find solutions by mapping out main issues and their causes

and effects. This analysis has 3 stages:

1. Identifying negative aspects of the current situation and their causes

and effects.

1. Converting the problems into solution objectives – which you can group

into an objective tree.

2. Defining the solution project scope in a strategy analysis.

This problem analysis can be very beneficial to HR teams and is most

valuable when conducted as a workshop with stakeholders where

everyone can share their views on the situation at hand.

An example where you can use this problem analysis model is

employee well-being and happiness. You can bring together a small

group of employees to identify any negative aspects of their well-being

at work, find ways to turn those problems into objectives, such as new

benefits or perks, and then build a project scope to take back to the

HR team to implement the goals.

2. Root cause analysis

It is possible that your team knows there is an issue but does not

know where this problem stems from. In that case, a Root Cause

Analysis (RCA) may be necessary to determine the exact cause and

find a solution. RCA aims to get to the heart of the problem and find a

permanent solution rather than simply treating the symptoms.

In HR, root cause analysis can be used to identify and address various

issues, such as high employee turnover, low morale, or inadequate

training programs. The process would involve gathering data on the

problem through exit interviews, employee surveys, and performance

metrics, and analyzing this data to identify the root cause of the

problem.

For example, if the root cause of high employee turnover is found to

be poor management practices, HR can work with managers to

develop and implement new training programs to address the issue. By

using root cause analysis, HR can implement effective and sustainable

solutions to improve employee satisfaction and reduce turnover.

3. CATWOE analysis

CATWOE is a tool used in systems thinking and soft systems

methodology to analyze and evaluate complex problems and

situations. The acronym stands for the following elements:

 C – Customers: Who are the stakeholders that the problem or solution

will impact?

 A – Actors: Who are the people involved in the problem or solution

being analyzed?

 T – Transformation process: What processes must be transformed to

solve the problem?

 W – World view: What worldview or values underlie the problem or

solution?

 O – Owner: Who is responsible for analyzing the problem or solution?

 E – Environmental constraints: What physical, political, or economic

factors may impact the problem or solution?

By considering each of these elements, CATWOE analysis provides a

comprehensive view of a problem or solution, enabling individuals and

organizations to make informed decisions and develop effective

strategies.
For example, in the case of low employee morale, CATWOE analysis

could be used to identify the:

 Customers: Employees

 Actors: Managers and HR professionals

 Transformation process: How to improve employee morale

 World view: the company’s values and mission

 Owner: HR and management

 Environmental constraints: budget, company culture, workload, etc.

By considering each of these elements, HR can develop a

comprehensive strategy to address the cause of low employee morale

and improve the overall employee experience.

4. Kepner Tregoe analysis

Kepner Tregoe (KT) Analysis is a specific method of rational problem-

solving and decision-making developed by Charles Kepner and

Benjamin Tregoe. It is a structured, data-driven approach that provides

a systematic way to identify and solve problems, make decisions, and

evaluate potential outcomes.

KT Analysis consists of 4 main steps:

 1. Situation appraisal: Identify the problem and gather relevant

information.

2. Problem analysis: Determine its root cause.

3. Decision analysis: Determine the best solution.

4. Potential problem analysis: Identify potential problems with the

chosen solution and develop contingency plans to address them.

KT Analysis can help your team make informed decisions on many HR-

related topics. For example, it can help identify areas for improvement

in the training and development process and develop solutions to

address these areas or when you are going through change

management.

In addition, KT Analysis differs from other problem analysis techniques

because it allows for a contingency plan in case your first solution

does not make the impact you expected.

5. SCAMPER analysis

SCAMPER is a creative problem-solving technique that helps generate

new ideas for products, services, and processes. For example, in the

recruitment process, SCAMPER can be used to create new and

innovative approaches to selecting and assessing candidates.

SCAMPER is an acronym that stands

for Substitute, Combine, Adapt, Modify, Put to another

use, Eliminate, and Reverse.

Here’s how it can be used in recruitment:

1. Substitute: What if your team substituted one aspect of the

recruitment process for another? For example, what if you used virtual

interviews or video conferencing instead of face-to-face interviews?

2. Combine: Can your team combine two or more elements of the

recruitment process? What if you mixed a written assignment with a

behavioral interview?

3. Adapt: What if you adapted an existing process or technique to the

recruitment process, such as you adopting a sales pitch during the

recruitment process and asking candidates to sell themselves to the

company?

4. Modify: Is your team able to modify, magnify, or minimize a particular

aspect of the recruitment process, such as using a smaller or larger

interview panel or changing the duration of an interview?

5. Put to another use: Can you use a different approach in the

recruitment process? For instance, what if you used an assessment

center to assess a candidate’s skills instead of a traditional interview?

 6. Eliminate: What if you eliminated a certain step or aspect of the

recruitment process? For example, what if you eliminated one of the

interview rounds that you currently hold?

7. Rearrange: Can your team rearrange the order of the steps in the

recruitment process or change the recruitment process format? Can

you rearrange the order of the steps in the assessment process so a

technical assignment is completed first and the hiring manager

interview is completed after?

By using SCAMPER analysis in the recruitment process, HR

professionals can think outside the box to improve the process.

These are just a few of the many problem-solving techniques available.

The choice of method will depend on the nature of the problem, the

resources available, and the preferences and skills of the problem

solvers. The key is to choose a technique well-suited to the problem at

hand and apply it in a structured and systematic manner to achieve

the desired outcome.

How to conduct a problem

analysis
Step 1: Determine the problem analysis approach – Start by deciding

which problem-analysis approach to use. Of course, choosing the

correct technique depends on the specific problem, so your team

should consider the problem type, its complexity, and available

resources. But don’t worry too much; go for the approach you feel

would be the most accurate in determining the problem.

Step 2: Identify and define the problem – Clearly state the problem

you’re trying to solve and make sure that the problem is well-defined

and understood by all stakeholders involved in the analysis.

Step 3: Analyze the problem– Conduct a thorough analysis of the

problem to determine its root cause(s) and use data to support the

research. This will ensure that you have a comprehensive

understanding of the problem.

Step 4: Generate the solutions – Brainstorm possible solutions to the

problem. Consider a range of solutions, from simple to complex, to

ensure that you have a variety of options to choose from.

Step 5: Make decisions on your next steps – Review the solutions

generated in the previous step and select the most appropriate

solution. Make sure to bring in the right stakeholders to get buy-in and

allocate roles and responsibilities for implementing the solution.

Step 6: Implement the solution – Once the solution has been agreed

upon, implement it. Ensure the implementation plan is well thought

out, and that all necessary resources are in place.

Step 7: Evaluate and iterate – Evaluate the results of the solution

implementation to determine its effectiveness. If necessary, repeat

the problem analysis process to identify and resolve any remaining

problems or improve the solution.

Key takeaways
 What is problem analysis in HR: Problem analysis in HR involves

using systematic techniques to evaluate HR-related issues and

proposing solutions to improve the effectiveness and efficiency

of the business.

 Why is problem analysis used in HR: HR teams use problem

analysis to understand current and future issues, research

situations thoroughly, and make data-informed decisions.

 Examples of when problem analysis is used: HR can conduct

problem analysis to solve issues around change management,

workforce planning, predicting future problems, talent

management, and recruiting.

Examples of 5 problem analysis techniques: Problem tree analysis,

Root cause analysis, CATWOE analysis, Kepner Tregoe analysis, and

SCAMPER analysis are some of the systematic analysis tools your

team can use to help you solve problems.

LAMP Framework in HR Analytics

Organizations utilize the LAMP Framework in HR to comprehend and
enhance employee performance. Logic, Analytics, Measures, and
Process are referred to as LAMP.
This framework offers an organized method for gathering, evaluating,
and leveraging employee performance data to inform organizational
effectiveness and drive strategic change.
The LAMP framework is used to pinpoint and evaluate the elements
that affect employee performance inside a company and to
comprehend how the many facets of employee behavior relate to
one another and how they impact overall performance.
Organizations may use this framework to develop a measuring system
that will aid in understanding and enhancing employee performance,
promoting strategic change, and enhancing organizational effectiveness.
Logic: This framework element refers to the methodical and logical
process of discovering the pertinent data and metrics required to assess
and enhance employee performance.
Analytics: This part of the framework examines the determined data
and metrics to gather knowledge and spot patterns and trends.
Measures: The exact metrics and indicators used to track and evaluate
employee performance are included in this framework section.
Process: This part of the framework refers to how the measuring system
is implemented and managed, including how goals are created, progress
is tracked, and decisions are made in light of the data.
Organizations may use this framework to develop a measuring system
that will aid in understanding and enhancing employee performance,
promoting strategic change, and enhancing organizational effectiveness.

Why is the LAMP Framework Important in HR

Analytics?
In HR analytics, the LAMP Framework is crucial since it aids firms in:

Identify the critical aspects that affect employee

performance: Organizations may use the framework to pinpoint the
main elements that affect employee performance, including leadership,
attitudes, and motives.

Measure and track employee performance: Employee performance is

measured and tracked using a framework that offers a systematic
method for selecting and monitoring the metrics used.

Analyse data to generate insights: Organizations may uncover

patterns and trends to help them understand and enhance employee
performance by studying the data and metrics.

Take action to improve performance: To enhance performance, take

action. The framework offers a mechanism for doing so based on the
insights drawn from the data, including defining goals, tracking
advancement, and implementing adjustments.

Drive strategic change and organizational effectiveness: Boost

employee performance, which in turn may boost corporate energy and
strategic change: By utilizing the LAMP Framework, businesses can
raise employee performance.
Companies may utilize the LAMP Framework as a reliable tool to
understand employee performance better and make data-driven
decisions that can enhance the entire organization’s performance.

Top Benefits of Using LAMP Framework

The following are the main advantages of applying the LAMP Framework
to HR analytics:

Better decision-making: The LAMP Framework offers an organized

method for gathering, evaluating, and analyzing data, enabling firms to
choose more wisely regarding hiring, training, and performance
management.

Enhanced employee performance: Organizations may enhance and

boost productivity by utilizing the framework to recognize and
comprehend the elements that affect employee performance.

Better employee retention: Organizations may enhance employee

satisfaction and lower turnover by utilizing data to understand better the
elements that affect employee attitudes and motivations.

Enhanced organizational effectiveness: Organizations may drive

strategic transformation and boost organizational effectiveness by
utilizing the LAMP Framework to improve employee performance.

Cost savings: Organizations may make adjustments that can save time
and money by using data to pinpoint weak areas.
Identifying critical areas for improvement: Organizations may
prioritize the changes that will have the most impact by prioritizing the
essential regions where improvements can be made based on data
analysis.

Identifying patterns and trends: Patterns and trends in employee

performance may be found using the LAMP Framework, which enables
firms to forecast future performance and implement proactive
adjustments.

Evidence-based decision-making: Organizations may guarantee that

judgments are founded on facts rather than assumptions by employing
data and evidence, which can enhance the decision-making process.

How to Implement the LAMP Framework in HR

Analytics?
Here is a step-by-step tutorial for putting the LAMP Framework into
practice in HR analytics:

Determine the primary elements that impact employee

performance: Use the LAMP Framework to pinpoint the critical
variables that affect employee performance, such as management style,
employee attitudes, and employee motivation.

Find the pertinent measurements and data: Determine the

information and metrics necessary for tracking and evaluating employee
performance.
Data collection and organization: Gather pertinent data and arrange it
so it is simple to examine and decipher.

Analyze the data: You may discover patterns and trends in employee
performance by analyzing the data and using analytics tools.

Set targets and create action plans: To increase employee

performance, define goals and develop action plans based on the
insights revealed by the data.

Implement the action plans: To enhance employee performance,

implement the strategies and make any required adjustments.

Monitor progress and make adjustments: To ensure the action plans

are successful, monitor the progress and make any revisions.

Share the findings: Share the results with the appropriate parties,
including management and staff, to ensure that everyone is aware of the
changes and their effects.

Continuous Improvement: Make adjustments to the process after

collecting input and reviewing the outcomes.

It’s crucial to remember that the LAMP Framework deployment may

necessitate a shift in the corporate culture, mainly if the organization is
not accustomed to leveraging data and evidence-based decision-
making.

As a result, getting everyone on board is critical to properly explaining

the process and advantages to the pertinent stakeholders.
Where can the LAMP framework be applied in HR
analytics?
Examples of how the LAMP Framework may be used in HR analytics are
given below:

Recruiting: Organizations may determine the elements that affect the

effectiveness of recruitment efforts by utilizing the LAMP Framework,
including the sources of applicants, the hiring procedure, and the kind of
job offers.

The recruiting process may be better with this information, raising the
likelihood of selecting the best individuals.

Employee Development: Organizations may pinpoint the elements that

affect employee development, such as training programs, mentoring
relationships, and possibilities for career advancement, by utilizing the
LAMP Framework.

The information provided can aid in designing and implementing

employee development programs that are more successful in raising
employee performance.

Performance Management: Organizations may pinpoint the elements

that affect employee performance, such as work-life balance, motivation,
and job satisfaction, by utilizing the LAMP Framework.

Performance management systems that are more successful in

enhancing employee performance may be designed and implemented
using the information provided.
Employee Retention: Organizations may discover the elements that
affect employee retention, such as work-life balance, employee
engagement, and job satisfaction, by utilizing the LAMP Framework.

Using the information provided, designing and implementing retention

strategies that are more successful in lowering turnover and keeping top
personnel.

Talent Management: Employee engagement, succession planning, and

leadership development are a few examples of the characteristics that
firms may identify utilizing the LAMP Framework for talent management.

Using this knowledge, talent management plans may be created and put
into action that are better at attracting, developing, and keeping elite
personnel.

Employee Benefits: Organizations may identify the variables that affect

employee benefits, such as employee happiness, engagement, and
turnover rate, by utilizing the LAMP Framework.

With the aid of this knowledge, employee benefit plans can be created
and put into action in a way that will increase employee retention and
satisfaction.

Tips and best practices for using LAMP Framework

For implementing the LAMP Framework in HR analytics, consider the
following guidelines and best practices:
Start with a clear objective: It’s crucial to grasp the project’s aims and
objectives before using the LAMP Framework.

This will make it easier to ensure that the measurements and data
gathered and evaluated are pertinent to the objective.

Involve key stakeholders: Key stakeholders should be involved in

ensuring the LAMP Framework’s success, including HR managers, staff
members, and business executives.

Insights and data will be more applicable to the company, and the action
plans will be more doable and practical.

Utilize many data sources: The LAMP Framework may be used with
several data sources, including survey results, performance statistics,
and demographic information.

It is possible to have a more complete view of employee performance by

utilizing various data sources.

Use the right analytics tools: The LAMP Framework needs the right
tools to analyze the data and obtain insights.

These resources may include machine learning, data visualization, and

statistical analysis.

Properly communicate results and action plans: Effectively

communicating them to the appropriate stakeholders, including
managers and employees, is critical.
Ensuring everyone is informed of the changes and their effects will
assist.

Continuously evaluate and tweak: Keep an eye on developing the

action plans and tweak them as necessary to ensure they work.

Continually obtain input, examine findings, and make necessary process

updates.

Observe the steps: To find, measure, and analyze data linked to

employee performance and use this data to drive strategic change and
organizational effectiveness, follow the LAMP Framework’s procedure
precisely as intended.

Frequently Asked Questions (FAQ)

1. How does the LAMP framework differ from other frameworks
used in HR analytics?

The LAMP Framework is distinct from existing HR analytics frameworks

in a few significant aspects, including:

Focus: While other frameworks may concentrate on different facets of

HR, like recruiting, employee development, or talent management, the
LAMP Framework focuses solely on employee performance.

Structure: The LAMP Framework is an organized strategy that offers a

logical and systematic means to find, gauge, and examine information
on employee performance.
Other frameworks could be more centered on general best practices or
principles and less organized.

Four essential parts make up the LAMP Framework: logic, analytics,

measures, and process. These elements offer a simple, thorough
method for comprehending and enhancing staff effectiveness.

Different frameworks may have different elements or concentrate on

certain facets of HR analytics.

Evidence-Based: The LAMP Framework uses data and metrics to

comprehend and enhance employee performance.

Other methods, like interviews and surveys, could rely more on

subjective data.

The LAMP Framework emphasizes continual development through

obtaining input, examining the outcomes, and revising the procedure as
necessary.

There might be different emphases on ongoing development in other

systems.

The LAMP Framework is a potent instrument that can improve

organizational performance by developing a more profound knowledge
of employee performance and making data-driven choices.

The LAMP Framework offers an organized, evidence-based method to

comprehend and enhance employee performance.
Other frameworks may concentrate on other parts of HR and may have
different components.

2. How can organizations implement the LAMP framework in their

HR analytics strategy?

Organizations may take the following actions to integrate the LAMP

Framework into their HR analytics strategy:

Determine the primary elements that impact employee

performance: Use the LAMP Framework to pinpoint the critical
variables that affect employee performance, such as management style,
employee attitudes, and employee motivation.

Find the pertinent measurements and data: Determine the information

and metrics necessary for tracking and evaluating employee
performance.

Data collection and organization: Gather pertinent data and arrange it

so it is simple to examine and decipher.

Analyze the data: You may discover patterns and trends in employee
performance by analyzing the data and using analytics tools.

To increase employee performance, define goals and develop action

plans based on the insights revealed by the data.

Implement the action plans: To enhance employee performance,

implement the strategies and make any required adjustments.
Monitor progress and make adjustments: To ensure the action plans
are successful, monitor the progress and make any revisions.

Share the findings: Share the results with the appropriate parties,
including management and staff, to ensure that everyone is aware of the
changes and their effects.

Continuous Improvement: Make adjustments to the process after

collecting input and reviewing the outcomes.

It’s crucial to remember that the LAMP Framework deployment may

necessitate a shift in the corporate culture, mainly if the organization is
not accustomed to leveraging data and evidence-based decision-
making.

As a result, getting everyone on board is critical to adequately explain

the process and advantages to the pertinent stakeholders.

3. Are there any limitations to the LAMP framework in HR

analytics?

The LAMP Framework for HR Analytics has various restrictions, just like
any other framework:

Data Quality: The LAMP Framework is built on data analysis, and the
accuracy and value of the insights gained will depend on the quality of
the data gathered. Organizations must ensure that the data is collected
consistently, reliably, accurately, and thoroughly.

Complexity: Because the LAMP Framework is a planned and

methodical approach, putting it into practice can be challenging, mainly if
the business is not accustomed to adopting data-driven decision-making.
It could be necessary to alter the corporate culture; it might take some
time before the organization completely grasps and applies the
framework.

Workforce Planning, Recruitment, Retention, and Talent Management

are additional HR analytics areas for which the LAMP Framework is
inappropriate because it is limited to employee performance.

Reliance on metrics: Because the LAMP Framework depends on

metrics to gauge and monitor employee performance, it might not be
appropriate for firms that cannot gather and process data.

Limited to the present: Because the LAMP Framework is based on

data from the present, it might need to be able to forecast performance
or trends for the future.

Requires knowledge: For the LAMP Framework to be applied

successfully, skill in data analysis, statistics, and visualization is
required.

Organizations needing more skills could find the implementation process

more manageable.

Overall, the LAMP Framework is a potent tool for analyzing and

enhancing employee performance. Still, businesses must know its limits
and ensure they have the knowledge and resources to use it
successfully.
4. How can the LAMP framework be integrated with other HR
technologies and tools?

The LAMP Framework may be connected with other HR technologies

and applications to increase its potency and enrich the entire HR
analytics strategy. Here are a few illustrations:

Human Resource Information Systems (HRIS): An HRIS is a tool for

gathering, managing, and storing personnel data, thus the foundation for
the LAMP Framework. The LAMP Framework and an HRIS may give
businesses a complete picture of employee performance.

Workforce Management Systems: Workforce management systems

may monitor employee performance-related indicators such as
attendance, time and attendance, and other metrics. The LAMP
Framework and a workforce management system may give businesses
a more comprehensive view of employee performance.

Tools for Business Intelligence and Data Visualization: These

resources may be used to analyze data and discover patterns and
trends. Organizations may improve employee performance and decision-
making knowledge by combining these technologies with the LAMP
Framework.

Systems for managing learning: Learning management systems may

be used to monitor staff training and advancement. The LAMP
Framework and a learning management system may be integrated to
help firms better understand how training and development initiatives
affect employee performance.

Social media monitoring tools: These tools may monitor sentiment

and staff involvement on social media. Organizations may better
understand employee attitudes and behavior by combining the LAMP
Framework with social media monitoring technologies.

Artificial intelligence and machine learning: These technologies may

evaluate data and create predictions. Organizations may improve their
understanding of employee performance and ability to anticipate future
performance by connecting the LAMP Framework with these
technologies.

Combining the LAMP Framework with other HR technology and tools

may give employers a more complete view of employee performance
and aid decision-making.

Conclusion
In conclusion, the Logic, Analytics, Measures, Process (LAMP)
framework offers a structured and comprehensive approach to HR
analytics.

By incorporating logic, organizations can define clear objectives and

align their analytics efforts with strategic goals. Analytics provides the
tools and techniques to collect, analyze, and interpret HR data, enabling
evidence-based decision-making.
 Measures ensure that relevant and meaningful metrics are established
to track progress and evaluate the effectiveness of HR initiatives. Lastly,
process refers to the systematic and consistent approach to HR
analytics, including data collection, analysis, reporting, and continuous
improvement.

Implementing the LAMP framework empowers organizations to harness

the power of HR analytics and drive data-led insights for enhanced talent
management and organizational success.

The Definition of Human Capital Management

The term HCM can refer both to a business strategy and a set of modern IT applications and other
technologies that are used to implement that strategy. Though sometimes used interchangeably, the
terms related HR, HRMS, and HRIS do have subtle distinctions:

 HR: Refers to a set of traditional employee management functions that includes hiring, job and
position management, HR compliance, and reporting.
 HCM: Encompasses the same processes, but also includes workforce rewards and talent and workforce
management.
 Talent management: Looks at the strategic management of talent throughout the talent lifecycle. It
includes sourcing and recruiting candidates, goal and performance management, learning and career
development, talent review, and succession management.
 Workforce rewards: Refers to all HR functions that manage any monetary or nonmonetary rewards
including compensation, benefits, or payroll.

Attract and Retain Talent  Increase hiring speed and quality by quickly sourcing and recruiti
 right candidates. Increase engagement with work-life solutions t
 Retain and nurture talent by providing professional learning
 and growth opportunities.
 Increase bench strength by proactively planning for succession
  in leadership and other key roles.

 Differentiate compensation by allocating the right mix of

 monetary and nonmonetary rewards.
Optimize Workforce Management and  Manage time and labor, scheduling, and related expenses.
Spending
 Maintain expenses for specific projects and other costs.
 Build a pay-for-performance culture.

 Align people strategy with business strategy.

 Anticipate workforce attrition with powerful insights.
Respond with Agility to Change
 Adjust the workforce quickly to organizational changes.
 Tailor HR processes to account for unique needs.

 Consolidate disparate HRMS.

 Leverage analytics for more intelligent workforce decisions.

Streamline HR Operations  Automate manual processes globally and locally.

 Accelerate HR processes with self-service.


 Workforce management: Involves all HR functions that are related to positive and negative time
management including time and labor and absence management.
 HRMS: Refers to the set of applications and other technologies that support and automate HR
processes throughout the employee lifecycle. While the terms HCM and HRMS are often used
synonymously, HCM puts particular emphasis on the strategic approach to managing employees.
 HRIS: Originally referred to keeping administrative employee records. It has been largely replaced by
the term HRMS. In practice, HRMS and HRIS are virtually interchangeable terms.

Key Benefits of a Powerful HCM Solution

The Functional Components of HCM Solutions
HR
Simplify your HRIS systems and manage your entire workforce with a single, global system of
record.
 Employee lifecycle: Manage from hire to retire for all employees, full-time and contingent, with
localizations for more than 200 countries and jurisdictions.
 Strategic HR: Track personal and employment information, create job structures, manage employee
documents, and predict performance and attrition with a single solution.
 HR service delivery: Enable manager and employee self-service on any device and provide an HR Help
Desk for sensitive HR cases.
 Employee engagement: Motivate your people with wellness, competitions, volunteering, and
personal branding tools.
 Compliance and fraud detection: Improve health and safety through incident reporting and
safeguard your data through fraud detection and autonomous security.
Talent Management
Enable organizations to manage the entire talent lifecycle—from effectively sourcing and
recruiting to onboarding new hires, managing goals and performance, rewarding for
performance, providing continuous learning, developing careers and conducting talent reviews
and planning for best-fit successors—all while keeping employees engaged.

 Talent acquisition: Present a compelling candidate-centric experience and match the best-fit
candidates to jobs by leveraging innovative technologies.
 Performance management: Align individual and business goals and support employees with frequent
checkpoints to optimize performance.
 Career development: Identify career opportunities and maintain a development plan to bring
employees closer to their career goals.
 Talent review and succession management: Evaluate macro-organizational talent trends and
proactively plan for future needs in leadership and other critical roles.
 Learning: Meet the learning demands of the modern workforce and keep employee skills current.
Leverage embedded intelligence to provide a tailored learning experience.
Workforce Management
Control labor costs, reduce manual processes, and simplify compliance for all of your
employees, globally.

 Compensation: Analysis, modeling, budgeting and administration of local and global compensation
plans.
 Total compensation: Deep insight into all compensation activity to executives, managers, and
employees.
 Pay-for-performance: Leverage performance ratings, goal attainment, and other metrics into
compensation calculations.
Workforce Rewards
Attract and retain the right talent and drive value through a differentiated workforce rewards
strategy. Maximize the accuracy of payroll and compensation data using modern and innovative
technology.

 Compensation: Analysis, modeling, budgeting and administration of local and global compensation
plans.
 Benefits: Deliver flexible benefit program options that adapt to unique business needs.
 Payroll: Process payroll and support compliance by delivering accurate payroll, tax reporting, and
regulatory rules.
 HCM—A Brief History
The term “human capital” was first used in the 1950s and 60s as computing began to accelerate
the automation that had begun in the industrial age. Economists and business people began to see
employees not as replaceable units completing routine tasks, but as knowledge workers with
specific skills and talents that could fuel business growth.

Not surprisingly, the term returned to prominence with the rise of the internet in the late 1990s.
New technologies were rapidly automating a whole new set of business processes. While the
internet changed the how employers and managers worked and collaborated. All of this change
meant that workforce leaders had to transform how they went about attracting, retaining, and
engaging talent in an evolving set of job roles.

This decade could be called The Golden Age of HCM. New digital technologies are enabling HR
leaders to provide a more engaging and personalized employee experience at scale. At the same
time, emerging technologies, such as data automation, predictive analytics, and artificial
intelligence (AI), have added new innovations for understanding, managing, incenting, and
engaging the workforce. And HR leaders have a whole new set of tools that can maximize the
value of their workforce, from intelligent, social-driven recruiting and personalized retention
practices to highly optimized compensation.

HCM in the Cloud

The cloud and software-as-a-service (SaaS) delivery models are quickly becoming the new
normal for HCM technologies. The cloud approach accelerates deployment, turns variable
capital expenses into fixed and transparent operating expenses, lowers IT costs, and drives agility
by speeding and simplify upgrade paths.

Although there are many SaaS HCM providers, they are not all alike. In evaluating vendors and
solutions, businesses need to ask key questions as they consider not just the HCM capabilities
they want today, but the ones they will need in the future.

 Will the provider be around for the long term?

 Does the provider invest in innovation?
 Will the provider be able to secure highly sensitive employee data?
 Can the provider keep data in country-specific locations for regulatory reasons?
 Can you decide on your own upgrade path and timing?
 Will you be able to integrate HR processes with ERP, CRM, and other business processes, quickly and
easily?
The Future of HCM
Clearly, technology is disrupting the world of work as we know it. New technologies are
changing business strategies, eliminating job roles, and creating new work opportunities. But
while traditional hierarchical structures are changing, the workforce is transforming as well—
into flatter, more agile networks of teams, becoming more mobile, global, and diverse. HCM too,
 is evolving rapidly. Expect to see accelerating adoption of already-familiar technologies, such as
SaaS and mobile, as well as leading-edge technologies, from machine learning to AI.

 Mobile increases engagement and productivity by empowering HR, workers, and managers with
consumer-grade, self-service mobile apps.
 Social improves productivity for everyone when being able to collaborate with peers and mentors in
the organization.
 Chatbots serve constituents faster and more efficiently with answers.
 AI augments what is not humanly possible, such as quickly mining thousands of resumes and data
points to find best-fit candidates.
Transform Your HCM with Oracle Modern Best Practice
For global, comprehensive insights into HCM strategy, emerging technologies, and best
practices, check out Oracle Modern Best Practice for HR and Talent Management. This covers:
 Recruit to onboard
 Benefits to payroll
 Payroll to payment
 Time collection to payroll
 Goal setting to performance
 Career planning to development
 Talent review to succession
 Absence planning to continuity
 Employee insight to work-life alignment
 Employee separation to workforce analysis