For several years now, Iâve been asking, no, begging, human capital/resources software vendors to do something with their analytics modules other than provide a fancy tool that accesses the data that already exists in their applications. But the ’solution’ they usually present is a collection of tools with little pre-delivered analytical insights within it.
One business problem I have repeatedly zeroed-in with these firms is that a human capital analytics solution should be analyzing whether certain employees are prone to leaving the firm and/or which bosses are toxic to the company.
More often than not, what vendors would show me is this x/y graph that shows the correlation between performance review rankings and compensation. This is not as spectacular an analysis as vendors think it is as I saw a client do this with Lotus 1-2-3 in 1984. His data came right out of the payroll and HR systems. No, this concept is not new and it isnât stretching the thinking or best practices in human capital.
What would be cool to see is vendors evolve to a new level of management science: A science where executives use âproxiesâ not journal entries or static, out of date employment data. Proxies would help an executive to prove or disprove certain hypotheses. If you thought some of your employees were flight risks, what would give you clues to their potential for departing the firm? Iâd suggest these proxies might work in some situations:
-Employees that have cashed out all of their stock options
-Employees that have recently exhausted all of the vacation and sick days
-Employees that are taking a higher number of personal days than usual
-Employees that are requesting transfers to other parts of the firm
-Employees that have gotten a new boss
-Employees that have recently had their overall performance rating drop a level
-Employees that have recently had more responsibility dropped on them without a corresponding increase in pay
-Employees that have had to take a cut in pay
-Employees whose spouse, sibling or best friend was recently let go from the firm
-Employees whose boss was recently terminated or quit
Granted some of these reasons are not at all indicative of an employee about to depart. An employee may have, for example, used up all of their vacation time for a once in a lifetime trip, to plan and throw their wedding, or to extend a family leave situation…