Introduction
Continuous improvement of HR systems in a company’s organizational structure is a guarantee of commercial and professional success in the industry market. This report explores the case of the Wincheap Group, which faced the problems of low efficiency of current HR practices, increased absenteeism, and barriers to a fast and streamlined recruiting process for new employees. The result of the current problems could be a drop in the company’s organizational productivity and a decline in competitiveness, which in turn would negatively impact profits and consumer perception of the success of this business.
Consideration of professional experience with similar problems at large companies in the same industry market, an understanding of the root causes of absenteeism in large companies, and a commitment to fixing the dysfunctional People Analytics mechanisms should be the driving forces for choosing our company as the critical data analyst and HR consultant for the firm. This proposal details the thorough process of starting a change program assesses the type of data one needs to work with and outlines the importance of their analytics, uses the concept of best-in-class as applied to the firm, and describes strategies for addressing current organizational challenges for Wincheap Group. Thus, the purpose of this report is to demonstrate the current organizational agenda for the company and to discuss, based on facts, the key challenges and how to address them.
Assessment of Foundations
People Analytics is a widely used phenomenon in HR theory, describing the use of data and analytics to understand and improve the performance of individuals and teams in an organization. A distinctive feature of People Analytics is its focus on data and, thus, the ability to draw valid conclusions, leading to credible decisions on how to optimize employee performance. People Analytics as a tool can be used at Wincheap Group because some prerequisites already exist in the organization. In particular, to start working on the problem of absenteeism, it is necessary to collect data from the people who are directly involved in this process, namely employees and their direct managers. Data in this sense would be the results of surveys or interviews, the purpose of which would be to identify the reasons why employees began to be absent from the workplace more often, as well as their suggestions for a way to fix the organizational problem. For example, if the data demonstrate that employees have become sicker or absent from work more often for personal reasons, one potential solution could be to move them to remote or partially remote work. The second problem, the time-consuming recruitment process and the low quality of newly hired employees could also be solved with People Analytics. Potential sources of valuable data are HR specialists and department heads who take part in the creation of employees. Data can be gathered through direct interviews, the purpose of which is to determine why the quality of new hires continues to drop, and the process itself is time-consuming. Collecting such material is vital in order to have a deep understanding of the foundation of the problem and to understand precisely how it can be solved. Specific questions that can help better collect data include:
Absenteeism
- What is the main reason for the high absenteeism rate? Is it related to certain departments or job roles?
- How does the high absenteeism rate affect the company’s productivity and performance?
- Have any efforts been made to address the high absenteeism rate? If so, what has been done and what have been the results?
- Are there any policies in place to support employee attendance and reduce absenteeism?
- Are there any trends or patterns in absenteeism rates, such as at certain times of the year or on certain days of the week?
Recruiting Problems
- What is the current process for recruiting and hiring new employees?
- How is the quality of newly hired employees assessed, and what criteria are used?
- Are there any problems in the hiring process that may contribute to the low quality of newly hired employees?
- Have any efforts been made to improve the hiring process and the quality of newly hired employees?
- Are there any education or training programs in place to support the integration and development of newly hired employees?
Data analysis can be done using standard data processing techniques, whether statistical software applications or thematic analysis. For the two data collection methods described, validity and accuracy may be justified by the desire to improve organizational culture, but the employees who are directly responsible for creating the problem may need to be more honest. Reward tools or formal contracts can be used to motivate them to collect only valid data. Moreover, to increase employee engagement, the data collection program must be accepted and approved from the top, that is, Wincheap Group leadership must demonstrate a personal interest in the procedures. Effective leadership realized through motivation, support and inspiration should be the central construct for initiating People Analytics in the company.
In addition to ensuring integrity, the main challenge for this project at Wincheap Group may be resistance to change. Accustomed to a degree of stability and corporate security, employees may resist proposed changes and deliberately influence data collection and analysis procedures. A well-known example of such resistance is at Boeing, whose decision-makers needed to be prepared to quickly implement aircraft testing programs for the sake of safety (MacArthur, 2020). Wincheap Group, however, will not necessarily face problems and can achieve positive results in the development of People Analytics, as Google has demonstrated (Bhardwaj and Patnaik, 2019). In particular, Google began using the data to improve hiring by starting to ask those interview questions that correlated with better predictions of performance in the workplace.
The Importance of People Analytics
Each stakeholder in the Wincheap Group has its own interests that overlap in the areas of productivity and business profitability. Executives are interested in making the most of available resources, HR professionals are interested in enhancing the corporate culture and using human resources more effectively, and employees are interested in making their work environment comfortable and profitable. People Analytics helps ensure that these interests are met: based on the collection and analysis of data interpretation, People Analytics enables data-driven decision-making rather than relying on assumptions alone. By analyzing the data, HR professionals can identify patterns not apparent at first glance. One way in which People Analytics can lead to better decisions is through support in identifying and fixing in-house problems. The Google example above, which analyzed the ineffectiveness of specific interview questions, shows how successful using People Analytics can be in successfully organizing operational processes. Meanwhile, if analysis of the collected data shows, for example, that a training program is not having the desired impact on employee productivity and motivation, HR professionals can use this information to develop alternative solutions.
Another way HR analytics can create value is to help connect the HR department with other stakeholders. For example, by analyzing employee data, HR professionals can identify areas where HR practices have a positive impact on the overall performance of the organization. This data, in turn, can be transferred to managers and other parts of the company, which supports communication across departments and shows the role of HR professionals as key performance controllers within the Wincheap Group. Such use helps demonstrate the value of HR to the rest of the business and makes it easier for the HR department to provide the resources and support it needs to be effective. Making informed decisions also helps create a corporate environment that helps take care of employee well-being and well-being while minimizing the detrimental effects on individual employees.
Aspiration to be “Best in Class”
The concept of Best in Class is defined by the aspiration to be at the forefront of People Analytics, to set trends, and to be an example for competitors and internal stakeholders. The classification tool for determining the maturity of an HR practice is a maturity chart consisting of five levels, as shown in Figure 1. In an effort to be the best Wincheap Group should strive to implement HR practices at high levels, beginning with level three. At level three, Wincheap Group has fully integrated People Analytics into its processes, uses it to inform, and makes informed decisions. The company uses more advanced technologies, such as AI and machine learning, as essential tools at this level. An example of a company at this level is Accenture Applied Intelligence, which uses Workforce Insights to automate talent management processes, and My Learning to tailor personalized learning processes for employees (The HR Gazette, 2022). At the fourth level, Wincheap Group has fully implemented a data-driven culture, uses People Analytics for continuous real-time improvement, and operates on feedback for decision-making. Additional challenges at this level include ongoing training on how to use data to drive continuous improvement, deep statistical analysis of data, and the ability to predict change based on models built accurately. An example of a fourth-level company would be Adobe, which uses “Adobe Workforce Insights” technology that collects data from various sources and uses advanced computer technology to analyze data in real-time, or Google, which has predicted the best interview questions for job seekers (Ofori-Boateng, 2021). Finally, the fifth level of the maturity diagram is the most in-depth implementation of data technology in People Analytics, considering the potential effects of interventions, coordinating action planning, and scenario testing. An example of a level five company would be McKinsey & Company, which has a dedicated People Analytics team that uses “what if?” tools to assess the potential impact of a new training program, among other things (Abdeldayem and Aldulaimi, 2020; Aghina et al., 2021). Thus, Wincheap Group must strive to reach the highest level to be the best in its industry.
It is worth emphasizing, however, that the transition between levels can be challenging, as it requires companies to make significant changes in culture, processes, and organizational thinking. Nevertheless, there are examples of companies that have been able to achieve excellent results in this, including McKinsey & Company, which can be considered a top-tier company. The main problems that arise in transition are resistance to change, data security, lack of resources, and limited organizational support.
Building a People Analytics Strategy
An essential part of solving current problems at Wincheap Group is building an effective People Analytics strategy. A five-step model for adopting change is proposed that effectively addresses and covers potential and weaknesses. First is a clear definition of the strategy’s goal and objectives, which can include improving productivity, improving employee retention, or reducing costs. Realistic goals for Wincheap Group are to improve the quality of new hires, reduce recruiting time, and reduce absenteeism in the company. Secondly, it is to identify the stakeholders who will be affected by the strategy and who should be involved in its development and implementation. For Wincheap Group, these individuals are human resources, employees, and business leaders. The third step is data collection: analytical information should be gathered from various sources, which can be opinion surveys, questionnaires, HR information systems, and personal interviews. Ideally, this process should be set up in a continuous and automated manner to ensure continuous improvement of organizational systems. Fourth, a workforce analysis strategy should be developed based on the data collected: this should include a clear framework for how the strategy will be implemented, as well as a description of the critical components of the strategy. Finally, the fifth step is to develop a system of KPIs to track the strategy’s progress. Such KPIs include employee retention rates, productivity levels, or cost savings. In addition, relevant to Wincheap Group would be the cost of absenteeism, satisfaction rate, time to fill, and cost of getting to optimum productivity levels. A formal representation of the strategy will be a document containing a description of all of the above steps, any changes and adjustments, and any problems that the HR specialists encountered while working on the strategy. The last step, which is not included in the model but is part of continuous improvement, is to bring the strategy to perfection continually. In particular, once the strategy is implemented, it is essential to maintain its effectiveness and applicability to all stakeholders. This can include training and support to help staff understand and embrace the new approach to a staff analysis.
To develop the People Analytics strategy at Wincheap Group, there are several stakeholders with different needs. To meet them, the strategy and metrics developed need to be tailored to the specific needs and concerns of each cohort. For example, for employees, a fundamental interest may be that their work environment be as attractive, comfortable, and profitable as possible, so the People Analytics strategy may have separate strands that assess current satisfaction on a weekly basis and suggest changes based on dynamics. If employees are not satisfied with the short duration of their lunch breaks, the results of the surveys may show this, and HR professionals will need to develop appropriate changes in corporate break practices. Accordingly, a fundamental interest of HR is employee engagement and retention, as well as adherence to management’s directives so that they can customize a flexible People Analytics strategy. Because management is unhappy with the poor quality of newly hired employees, HR can ask those employees about the barriers they face and offer them personalized training. For business leaders, productivity and cost-savings metrics are vital interests, so the People Analytics strategy should be based on these goals and continually monitor whether its practices are meeting the initial objectives. Thus, considering the needs of all stakeholders is a fundamental responsibility in developing a People Analytics strategy to ensure high engagement and an increased chance of high results.
Absenteeism
Absenteeism is an actual organizational problem characterized by regular employee absenteeism; at Wincheap Group, this rate reaches 40%, which is a severe threat to productivity in the company. In order to determine the root causes of absenteeism at Wincheap Group, it is necessary to segment the organization to identify the departments experiencing the most potent effects of absenteeism. Segmentation can be done through data analysis of each department, job role, and demographic aspects of the absent employees. This segmentation will identify commonalities that can help explain the increase in absenteeism. Segmentation also involves fragmenting the overall absence rate (40%) into individual components in order to trace the root causes of employee absences; this practice is beneficial when viewed over time, such as every month.
To better understand absenteeism in Wincheap Group, metrics that track absenteeism should also be used. These may include the absenteeism rate [1], the cost of absence [2], and the Bradford coefficient [3], the combination of which allows us to determine the organizational and financial damages of employee absenteeism. It is essential not to use these indicators separately but to determine their connection with the indicators of employee engagement and retention because the increased level of absenteeism can be a sign of burnout or low job satisfaction.
Thus, understanding the root cause of increased absenteeism among employees requires a combination of data analysis within People Analytics and a deep understanding of both organizational and individual employee factors. Forming an overall picture of causes can be helpful for organizational purposes, but the importance of individual considerations must be considered so that employees feel valued, and their engagement grows (Budie et al., 2019). Hence, by tracking relevant metrics and considering the correlations between them, HR professionals at Wincheap Group can identify the causes of absenteeism and implement practical actions to reduce the detrimental impact.
The Recruitment Function
To analyze the problem of time-consuming recruiting and low quality of new hires, a thorough review of available resources is necessary. First, complete segmentation of recruitment is necessary to identify weaknesses and emerging barriers: such segmentation can be based on professional and demographic factors. Second, it is necessary to trace the connections between recruitment rates (efficiency) and their quality (effectiveness), such as through time to hire [4], time to hire [5], and cost per hire [6] (efficiency), and quality of hire, cost of getting to Optimum Productivity Level [7] and retention rate [8] (effectiveness). Each of the metrics is important, not just once, but as a regular measurement, such as monthly, to ensure that the hiring process is continually improving (Joppen et al., 2019). It would be useful to relate the hiring process to other HR metrics: turnover, absenteeism, and productivity, to understand the overall impact of hiring on the business.
Conclusion
Wincheap Group currently faces several challenges in human resource management, namely increased absenteeism, low quality of new hires, and long recruiting times. These factors negatively impact the company’s productivity and create a potentially disruptive corporate environment. The increased absenteeism rate, reaching 40%, is a cause for concern: to develop an effective and multi-stakeholder approach, it is necessary to identify the root causes of the increase in absenteeism, segment the problem by division and conduct a thorough analysis using statistical tools. The low-quality problems found with new hires also support the need for changes in recruiting processes. KPIs were suggested for each of the problems, which are important to collect on a regular basis in order to study them over time. The report proposed a model for developing a change strategy for HR practices that would capture the maximum number of stakeholder requests and ensure effectiveness, including in reaching the highest levels of the maturity diagram. Overall, however, the main recommendation for Wincheap Group now is to prioritize addressing these issues and improving employee engagement, retention, and productivity. This is made possible through a data-driven approach.
Reference List
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Aghina, W., et al. (2021) The impact of agility: how to shape your organization to compete. Web.
Bhardwaj, S. and Patnaik, S. (2019) ‘People Analytics: challenges and opportunities – a study using Delphi method’, IUP Journal of Management Research, 18(1), pp. 7-23.
Budie, B., et al. (2019) ‘Employee satisfaction with the physical work environment: the importance of a need-based approach’, International Journal of Strategic Property Management, 23(1), pp. 36-49.
Joppen, R., et al. (2019) ‘Key performance indicators in the production of the future’, Procedia CIRP, 81, pp. 759-764.
MacArthur, J.B. (2020) ‘Cost savings versus redundant systems: the case of the Boeing 737 MAX debacle’, Journal of Business and Accounting, 13(1), pp. 4-21.
Ofori-Boateng, C. (2021) Data-driven workforce insights: helping small teams become more cohesive. Web.
The HR Gazette (2022) HRchat podcast – interviews with HR, talent, and tech experts. Web.