Human Resource Analytics in Indian Banking Sector

Volume 5, Issue 5, May – 2020 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Human Resource Analytics in Indian Banking Sector

Prateek Gupta
Student at Department of Human Resource Management
XISS, Ranchi, Jharkhand, India
Abstract:- This study aims to identify and benchmark  Descriptive: It includes tradition HR measures which are
the best HR Analytics policies and practices prevailing primarily efficiency metrics like cost of hire, time to fill
in leading banks of India. Also, an external survey was etc. The objective of this is how to reduce cost and
conducted to find out the various Key Performance improve the process. Descriptive analytics sets up a
Indicators (KPI's) for competitive Banks. This research relationship and correlation between the past and current
has used quantitative data types wherein 43 HR data. This provides the foundation of our analytics
executives and managers pitched in their inputs through efforts. It may include dashboards, balanced scorecards,
convenient sampling method. Primary data was reports and data mining.
gathered from the questionnaire which was process
through MS Excel Charts. The results showed that  Predictive: Predictive analysis encompasses wide range
almost all banks were having a fierce competition of techniques from statistics, modelling to complex data
amongst themselves when it comes to use of analytics in mining. It uses past and current data and facts to make
HR department. All the major banks are having KPI's predictions about the future. It is based on concept of
around the industry benchmarks as per SHRM. Few probabilities and impact. It constitutes of data models
weakness or area of improvements were also found for which are used to increase the chances of selecting the
certain banks.
right people to recruit, train and promote.
Keywords:- HR Analytics, Banking Sector, People
 Prescriptive: Prescriptive analysis is different from
Analytics, Benchmarking.
predictions and focuses on decision alternatives and
I. INTRODUCTION workforce optimization. It analyses complex set of data
to predict forthcoming events, suggest decision
Over the period of last 100 years, Human Resource alternatives and showcase business impacts.
Management function has changed. It has developed from
an transactional function towards the transformational The procedure begins with operational reporting of
function. That is why the term Strategic human resource several HR metrics and goes up to the prescriptive analysis
management is popular now a days. This data driven of business policies. Although financial capital and
methodology behind HR analytics is aligned with the economic capital are important for an organization, it is the
SHRM. When we use the data driven approach, we don’t Human capital which uses financial and economic capital
need to depend upon gut feeling for decision making. Also for organization’s growth (Reddy & Lakshmikeerthi,
analytics helps us to assess that whether the HR policies and 2017).
interventions are effective or not.
As per Baron (2011), People analytics is very much
HR Analytics is viewed as a systematic procedure to content specific and it depends on industry to industry how
understand and identify the relationship amongst the HR much relevant is this to them.
interventions and organization's performance metrics like
Sales or Profit. It also provides meaningful insights for HR HR Analytics aids a company to identify, measure and
decisions which will affect the business strategies and analyze how effective are the HR practices and policies in
performance by use of statistical methods and experimental terms of organizational performance and how they can
methodologies which are based on efficiency and influence the business strategy. It is a very strong tool in
effectiveness metrics (Lawler III, Levenson, & Boudreau, the hands of HR Management so that they can add value to
2004 ; Boudreau & Ramstad, 2006). the organization (Lawler III, Levenson, & Boudreau, 2004).
People analytics is primarily a communications "Benchmarking is defined as the technique of

device. It gathers information from several sources like identifying and adopting industry wide best practices to
surveys and records and then use this to design an action enhance performance.” It is not just a comparative analysis
oriented insight of present scenario and forthcoming events. in which we copy practices from other firms. It constitutes
This is defined as approach which is based on evidence and of learning, spreading information and adopting best
it helps in making better decisions. It is mainly the practices to manage changes in the firm. It can be stated as:
aggregation of primarily objective facts and secondarily 'Improving ourselves by learning from others'.
subjective data. It can be classified in three levels:
IJISRT20MAY513 www.ijisrt.com 422

ISSN No:-2456-2165
In this research, Xerox Benchmarking was From Fig. 1 and Fig. 2, it was observed that majority
incorporated as compared to AT&T’s Benchmarking of the banks were using dashboards for automation of HR
process because of following advantages: If it is done operations. However, few big players are still not using
efficiently, it is a cost effective activity which provide basic dashboards for the operational purpose as well. Few
massive returns; It provides innovation to the firm; it Banks does not even have a dedicated HR Analytics Team
enhances the level of cost awareness and performance to assist them with statistical analysis.
relative to competitors.
II. MATERIAL AND METHODS
In this research, Tool which is used for collecting

primary data was questionnaire. It was developed to collect
the information of both HR Analytics KPI’s and
benchmarking purpose. Tools that were used for secondary
data collections were Bank websites, HR portals and
newspapers from which information about their HR
analytics practices was found and analysed. Apart from Fig 3:- Percentage of banks using different types of
questionnaire, Benchmarking tool was used for this research Dashboards
work.
As observed in Fig. 3, strategic dashboards are used
The respondents of the external survey were HR by least banks. On the contrary it is the most important type
managers and executives of leading private sector banks in of dashboard as it helps the strategy developers.
India. 43 respondents pitched in their inputs related to
several KPI’s related to recruitment. Sampling technique
which was incorporated here was – Convenient Sampling.
Convenient sampling which is also known as grab

sampling is a type of non probability sampling in which
sample is being drawn from that part of population which is
close to the hand.
III. RESULTS
On the basis of external survey that was done through

a questionnaire, following observations were found.
Fig 4:- Different HR Analytics tools used by banks
Today, It is very important for the large companies to

invest in HR analytics tools as they help in keeping a record
of their employee details. Large companies corresponds to
more employees which leads to huge amount of data which
has to be managed. As observed from Fig. 4, Microsoft
Excel is being used by almost all the banks. However, MS
Excel is primarily a spreadsheet tool rather than data
Fig 1:- Percentage of banks having HR Analytics team visualization tool.
Fig 2:- Percentage of banks using HR Dashboards

Fig 5:- Time to fill of different Banks (in Days)

ISSN No:-2456-2165
Time to Fill is defined as a measure which
organizations are using to calculate the total number of
days starting from job requisition posting till offer is
accepted. This metric aids in measuring the effectiveness of
recruiting managers within the firm
In Fig. 5, As per the Banking industry standards,

Average time to fill is 32 days and almost all the leading
banks are well within this range.
Fig 8:- Whether banks are measuring satisfaction index or

not
Candidate Satisfaction Survey is a method to evaluate

the candidate’s views of our firm's recruitment process. It
can be done in three approaches. Firstly, survey the
candidates after every selection process. Secondly, survey
only rejected candidates. Lastly, we can survey only the
selected candidates.
Fig 6:- Variation of offer acceptance rate in banks It has been observed from Fig. 8 that majority of the
banks are measuring either of candidate satisfaction, hiring
As per a report from SHRM, ideal offer acceptance
manager satisfaction or both which is very important
rate for any organization should be 90%. The leading banks keeping in mind the strategic decision making.
are having offer acceptance range well within the industry
benchmarks. However, few small and microfinance banks
IV. CONCLUSION
are struggling to reach the industry average as per Fig. 6.
After analyzing the survey output, Strengths and
weaknesses were found for HR analytics in Indian Banks.
 Strengths:
 No concern for financial issues for supporting HR
Analytics
 Time to fill is as per industry average (Nearly 35 days)
 Offer acceptance rate is as per industry average (Nearly
90%)
 Weaknesses:
 Many banks lack dedicated HR analytics team.
Fig 7:- Variation of cost per hire in banks (in Rs.)  Adequate usage of dashboard is still not there
 Many banks are not measuring hiring manager
Cost per hire is defined as the average amount of satisfaction and candidate satisfaction
money you spent on recruiting a talent. This metric is
 No software is used other than MS Excel for analysis
helpful when you are developing your recruiting budget.
and data visualization
Cost per Hire depends on various internal and external
costs incurred by the organization during the recruitment. It
ACKNOWLEDGMENT
also depends upon the type of position; the organization is
trying to fill. As per Fig. 7, All the major banks were
I wish to extend my sincere gratitude to the Acting
exceeding the Industry average of CPH since recruitment
Director of XISS Ranchi, Dr. Amar E. Tigga, Head of
was done mainly through third party agents.
Department Human Resource Management, Dr. Ramakant
Agrawal and Research Guide, Dr. Indrani Ghatak, who
gave me their careful and ardent guidance because of which
I am able to complete this project.

ISSN No:-2456-2165
REFERENCES
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[3]. Jurevicius, O. (2014, January 19). Benchmarking.
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https://strategicmanagementinsight.com/.
[4]. Lawler III, E. E., Levenson, A., & Boudreau, J. W.
(2004). HR Metrics and Analytics: Use and Impact.
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[5]. Mayo, A. (2006). Measuring and reporting – the
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Volume 5, Issue 5, May – 2020 International Journal of Innovative Science and Research Technology

Human Resource Analytics in Indian Banking Sector

People analytics is primarily a communications "Benchmarking is defined as the technique of

IJISRT20MAY513 www.ijisrt.com 422

II. MATERIAL AND METHODS

In this research, Tool which is used for collecting

Convenient sampling which is also known as grab

On the basis of external survey that was done through

Fig 4:- Different HR Analytics tools used by banks

Today, It is very important for the large companies to

Fig 2:- Percentage of banks using HR Dashboards

IJISRT20MAY513 www.ijisrt.com 423

In Fig. 5, As per the Banking industry standards,

Fig 8:- Whether banks are measuring satisfaction index or

Candidate Satisfaction Survey is a method to evaluate

IJISRT20MAY513 www.ijisrt.com 424

[1]. Baron, A. (2011). Measuring human capital. Strategic

IJISRT20MAY513 www.ijisrt.com 425

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