Lecture 5: Good metrics

Question 1

Why is HR so slow to adopt people analytics?

Answer 1

(1) Lack of strategic clarity: traditionally seen as record keepers, need to convince
stakeholders they are important

(2) Poor quality data: HR systems have an absence of shared data-entry protocols and a lot of data isn’t very helpful

(3) Scepticism: people have no problem doing the opposite of what data says compared to
hearing it from a supervisor as we have a need for connection

Question 2

What does the strategic goal setting process look like?

Answer 2

(1) know what the appropriate business question to ask is
(2) what is needed to answer the question
(3) only then look at the data.

Question 3

What is the difference between lagging and leading indicators?

Answer 3

Lagging predictors are descriptive and tell us about performance right now (e.g. turnover)

Leading indicators are predictive and tell us what things will look like in the future (turnover over time)

Question 4

What is a good metric?

Answer 4

(1) comparative
(2) understandable
(3) a ratio or rate (e.g. over time)
(4) behaviour changing

Question 5

Where is people analytics headed?

Answer 5

• Using leading indicators
• Predictive and not descriptive data
• Targeted analytics