Human resource analytics and scorecards measure the effectiveness and value of human resource tasks.

A. Descriptive and Prescriptive Analytics

Describe the differences between descriptive and prescriptive analytics. Provide at least two human resource related examples for each type of analytic. 

B. HR Scorecards

Conduct a web search on the topic of HR scorecards. Post a response based on your reading about HR scorecards and identify specific points.

What are three examples of measures used in HR scorecards? How might these measures be used to add value to an organization?

A. The differences between descriptive and prescriptive analytics

1) Descriptive analytics is the process of parsing historical data to better understand the changes that have occurred in a business.

Descriptive analytics HR Examples:

• A headcount report of all employees
• Turnover rate

2) Prescriptive Analytics, on the other hand, prescriptive analytics provides recommendations on what to do based on predictions and what has occurred in the past.

Prescriptive Analytics HR Examples:

• The number of people to be staffed during peak seasons
• The problem of employee retention

B. HR Scorecards

This is a strategic HR measurement system that helps to measure, manage, and improve the strategic role of the HR department.

However, for the HR to prove itself effective, it must be in knowledge of the competitive advantage of the business and the goals of the business. 

Some specific points regarding HR scorecards:

• Most HR scorecards are tied to corporate goals or strategic plans.
• Scorecards include current data and comparisons to previous time periods.

Three examples of measures used in HR scorecards:

1. Costs
2. Hiring
3. Turnover

How might these measures be used to add value to an organization?

1. Costs. Human resources costs that are measured and reported on through HR scorecards include adherence to budgets, recruiting costs to attract and hire staff and costs of benefits such as group health insurance.
2. Hiring. Hiring is being tracked and monitored in HR scorecards by numbers of employees hired per department, business unit and even location.
3. Turnover. It is the measurement of the number of employees who leave an organization during a specified time period.

Step-by-step explanation

A. The differences between descriptive and prescriptive analytics

1) Descriptive analytics:

• It is the process of parsing historical data to better understand the changes that have occurred in a business.
• Because it is taking historical data and summarizing it into something that is understandable, descriptive analytics is the basic type of analytics an HR most likely used to.
• Descriptive analytics can help to identify the areas of strength and weakness in an organization.
• Data aggregation and data mining are two techniques used in descriptive analytics to discover historical data. 

Descriptive analytics HR Examples:

• A headcount report of all employees within the organization is a form of descriptive analytics. Even the count of how many team members are there in each department is also an example of descriptive analytics.
• Turnover rate. It is the measure of how many people are leaving an organization during a period of time. It is calculated by taking the number of people who left the organization during a given time frame divided by the average number of people within that population. 

2) Prescriptive Analytics:

• On the other hand, prescriptive analytics provides recommendations on what to do based on predictions and what has occurred in the past.
• Prescriptive analytics could even help determine how to properly onboard a new hire base on their skills and strengths.
• However, it is not widely used in the field of learning & development due to the complex requirements needed in the field of machine learning.
• There is an element of risk when using automated recommendations: human behavior can be unpredictable. Statistical models that base an outcome on the analysis of human behavior requires a degree of caution.

Prescriptive Analytics HR Examples:

• A retailing firm that needs to know how many people are they going to staff during the holidays or an amusement park that needs to know how many to staff during the summer months. Prescriptive analytics would help them simulate the probability of various outcomes such as better understanding the level of risk and uncertainty they face--whether they overstaff or understaff-- these organizations can gain a better understanding of the likelihood of worst-case scenarios and plan accordingly.
• Another example here is consider the problem of employee retention, prescriptive analytics would prescribe the course of action that is most likely to succeed in retaining these employees.

B. HR Scorecards

I have learned that HR scorecards are visual representations of key measures of human resource department achievements, productivity and other factors important to the organization. This is a strategic HR measurement system that helps to measure, manage, and improve the strategic role of the HR department. I also found out that an effective entrepreneur or business organization must have the right business acumen and understanding the need for HR analytics is necessary to run the business well.

However, for the HR to prove itself effective, it must be in knowledge of the competitive advantage of the business and the goals of the business. 

Some specific points regarding HR scorecards:

• Most HR scorecards are tied to corporate goals or strategic plans and are designed to track and measure the efficacy of human resource activities and enable managers to make targeted investments in HR and organizational structures.
• Scorecards include current data and comparisons to previous time periods, such as the previous quarter or year, and historical data to show improvements toward goals.
• An HR scorecard is a technique for the HR department to implement itself as the strategic planning partner of the executives in an organization.
• This indicates how HR affects the profitability of the organization by developing and analyzing the metrics to increase the effectiveness and efficiency of the organization. 

Three examples of measures used in HR scorecards:

1. Costs
2. Hiring
3. Turnover

How might these measures be used to add value to an organization?

1. Costs. Human resources costs that are measured and reported on through HR scorecards include adherence to budgets, recruiting costs to attract and hire staff and costs of benefits such as group health insurance. Tracking and monitoring costs through scorecards enables managers to plan human resources goals and expenditures and control costs in specific areas and set realistic budgets. A well-run human resources department manages an essential link to company success, quality workers and exceptional performance. 
2. Hiring. Hiring is being tracked and monitored in HR scorecards by numbers of employees hired per department, business unit and even location. Hiring goals, position vacancies and time to fill positions are other hiring indicators tracked in scorecards. This information gives managers a way to see how well human resources fulfills the business organization's need for new personnel, and where HR may benefit from extra resources to increase or improve hiring practices. HR is largely responsible for building and managing the systems that recruit, attract, hire, train, motivate and retain a company's best employees.
3. Turnover. It is the measurement of the number of employees who leave an organization during a specified time period. There are many reasons why employees leave a department or an organization, and while some reasons for turnover are negative, some turnover is expected and perfectly normal. Turnover costs companies money to recruit staff and in lost productivity and low morale amongst other employees. Low employee turnover indicates employee satisfaction, making lowering turnover a significant goal. A healthy employee turnover rate is one that allows the business to run smoothly and presents the employer with more opportunities than headaches. If the company has a low turnover rate, it apparently adds value to the organization.