During 2008, the economic downturn evolved from sector-based (e.g., financial services, automobiles) to broad-based. The economic conditions have brought on increasing layoffs, limited hiring, delayed salary increases and reduced benefits, conditions that may persist through the first half of 2010. Everyone is busy more than the past with the implementation of the various cost-cutting measures in response to business pressure - Sharp decreased demand for goods and services and the need to aggressively control costs. We have been constantly asked by business units to provide workforce metrics to measure whether they are contracting at a targeted rate. For most people, they are doing reactive jobs by consolidating existing data to answer “what was” or “what is”, which will remain to prove operational return on investment. However, the origin of thoughts is still coming from the supply model, which they are still addressing what & how as-is situation. HR is still focusing on employee data: How many people work there? (Total HC number) How many did we fire? (Managed Attrition) How many quit? (Turnover Rate) what are they costing us? (Cost per hire). Metrics measure “what is” or “what was”, which is very important to prove process efficiency and return on investment for technology decisions. However, it's hard to predict the end state and cannot guide strategic decisions. That's why HR is always viewed as service centers providing critical, but nonstrategic, services to the business.
In today’s turbulent economic environment, workforce analytics play an increasingly important role in addressing strategic human capital challenges. It's a key capability for HR organizations looking to take a more proactive role in driving business strategy. In another word, it provides the solid linkage between Business strategy and HR Strategy and leads the organization to establish an adaptable and competitive workforce through the workforce transformation process. Workforce analytics ensure us the ability to look to predict and model “what-if” scenarios, from the view of supply model to demand model. Predictive analytics will provide HR leaders with actionable data that will help form workforce strategies for the future. Armed with solid analytics, HR professionals can go well beyond reporting last quarter's metrics to discussing future leaders in the organization and the development methods proven to accelerate their careers — or the best way to close critical skill and competency gaps that may jeopardize business objectives. This means your HR dashboard should have more than “what is” metrics like open requisitions. It should also include analytics like gaps in your succession plans and what-if scenario planning for filling those gaps.
