Abstract 4
Introduction 4
1. Literature review 7
1.1 HR analytics and metrics 7
1.2 HR analytics in small enterprises and logistics 11
2. Methodology 14
2.1 Market context 14
2.2 Company overview 21
2.3 HR department in the company 28
2.4 Methodology 30
3. Development of HRA and metrics 32
3.1 Current HR metrics in Demex-Group company 32
3.2 Development of the HR analytic tool 34
3.3 Road-map for implementation of the system 43
4. Conclusion 46
List of references 48
Appendix 53
The final thesis is presented as a consulting project for the Demex-Group company that is headquartered in Saint-Petersburg, Russia. There are approximately 30 workers, with several of them being present abroad. There is only one HR specialist that processes all stages - from hiring personnel to preparing events and maintaining the corporate culture in the company. The company sets the goal to reach more than 100 employees within a year. To achieve this goal, the company has decided to redesign HR strategies and its approaches to the department. During the analysis of the context and company analysis, several problems in the current system (such as a lack of staffing table) were identified and solutions to them were added to the final prototype of the HR analytic tool.
The goal of the final thesis is to develop HR analytic tool for small logistics enterprise Demex-group to improve HRM performance. To meet this goal, the following objectives need to be covered:
1. Conduct literature review on HR analytics, including its applicability to small businesses.
2. Analyze the logistics labor market context,
3. Identify and examine the present HR metrics and difficulties in implementing HR analytics inside the company,
4. Identify the relevant HR metrics for the Demex-Group company,
5. Develop the prototype of the program for the company to process HR analytics,
6. Provide a road-map for implementation of the HR metrics on the basis of the tool
The research object is the Demex-Group company (for which a project is developed), while the research subject is its HR metrics.
Before developing the tool, it is crucial to identify the needs of the company. To do so, interviews with HR specialists and the CEO of the company were conducted. Overall, there were 3 semi-structured interviews and 5 in-depth interviews, all held in offline format.
The initial goal that the company wants to meet is to have more than a hundred within a year, starting at 30 workers in March 2024. There might be several reasons why a company may not enlarge its staff, which would be covered in the main part of the work. As a result of the semistructured interviews, the company stated the problem of unstructured information in different sources (Google Forms, Notion, Notes, and other apps). HR specialist spends too much time searching for current workers’ information, manually evaluating the well-being of personnel, and other metrics. As a consequence, (1) too much time is spent searching for information, and (2) there is a lack of up-to-date analysis of the current mood of the employees in the company.
As the company is on the stage of continuous growth, only within 3 months were 5 new positions established in the Demex-Group company. HR specialist stated the need of the tool to create one place for all relevant information and to produce analysis of the employees automatically.
Several problems to be solved are:
• Identify why 1 out of 3 potential workers finishes internship
• Collect information about employees in one place
• Automatization of the analysis
• Collect and store information about potential workers
• Collect and analyze information about fired workers (eNPS)
As a result of the paper, a prototype of the HR analytic tool is developed, and a road-map for the implementation is presented. The first version of the tool covers requirements that were stated by the company’s representatives and has a connection with the database. The tool was made in Python with web-page being constructed with the help of HTML and CSS. The database runs in MySQL. Both web-page and database are located on company’s server with lowest requirements for it.
...
First of all, the prototype of HR analytic tool was developed for the small logistics company Demex-Group. Before the development, literature review was made to identify the need of the project and its applicability to SMEs. As a result of the analysis, it was identified that HR analytics is essential for small enterprises even though they are more limited in terms of the resources. The main limitations are financial aspects, management system, qualification of personnel. However, SMEs still use HRA due to the clarity of the forecast, ability to adapt to the changes, and innovations. As a result of the project, Demex-Group, a small logistics company, got the final prototype of the HR analytic tool for further implementation and usage within a company. By offering insightful information on a range of HR indicators and procedures, this application helps to improve HR management performance.
Secondly, the analysis of the logistics labor market was conducted. As the company operates mainly in Russia but has employees who are abroad, there is data about trends worldwide and as well in Russia. The analysis depicts that there is a labor shortage in logistics segment. What is more, there are trend on innovations, API solutions, automatization of the processes. As a part of the analysis, benchmarking was used to clarify trends and consider the best practices.
Thirdly, analysis of the company’s HR metrics took place. In RCA potential issues in terms of increasing the number of employees were presented. What is more, relevant metrics for the chosen company were identified. The calculations and part of the code was presented in the final thesis as well.
Lastly, the road-map for implementation was presented. There are stages of deploying, adding information, debugging, A/B testing, uploading new features and metrics. Timelines for debugging and updates vary significantly as there are many minor causes to consider. For instance, time on debugging would be different if there were several issues and if there were a hundred of them. Even though the testing of the system was conducted within development stage, yet still problems might be identified due to many reasons. The HR analytic tool was tested in Linux system, while HR specialist would work in Windows.
It was identified that other small businesses can readily adapt the established HR analytics solution to their needs. It provides a scalable solution that can be adjusted to meet the unique data and analysis needs of various businesses. It was mentioned that the tool might be used independently and as a part of the CRM-system (is this case - Bitrix24). API might be adapted to the CRM-system requirements and minor corrections in terms of the HR procedures would be needed.
The initiative helps the business to make better decisions about HR policy and practices by leveraging HR analytics. This data-driven strategy aids in trend identification, outcome forecasting, and general HR efficiency enhancement.
By merging secondary data from academic publications and competitor reports, the study provides a complete overview of HR practices in the logistics labor market. This benchmarking enables Demex-group to better grasp industry norms and apply best practices.
The main HR variables to monitor are the attendance of the events, well-being of the employee, date of employment, end date, location, and other points.
For this specific case, there were requirements for the solution from the company representatives’ side. As a result of the work, all aspects are covered within prototype. The manner of presenting information in source of emojis, graphs, filters for different purposes.
Yet still A/B testing and debugging are needed. What is more, further changes in terms of the interface should take place.
The initial data collection is hampered by a small sample size of one HR professional and around 30 employees. This constraint may have an impact on the findings' generalizability and analytical soundness. The final thesis is mainly based on qualitative data acquired through interviews, which may add bias and subjectivity. Although qualitative data gives valuable insights, it may not always provide the statistical rigor necessary for some analysis. The research focuses on the usage of Bitrix24, which lacks advanced analytical capabilities. The lack of more sophisticated IT systems, such as SAP, limits the scope of analysis and automation possibilities.
While the created HR analytics tool is useful for small businesses, it may not be appropriate for medium or big businesses without considerable adjustments. Larger firms may require more complicated and sophisticated analytics systems to manage larger amounts of data. Applying HR analytics presents ethical concerns around data protection, fairness, and openness. Ensuring that employee data is managed properly and ethically is critical, but it may be difficult, especially as data quantities and analytical capabilities increase.
These contributions and limits give a fair assessment of the project's effect and prospective topics for future study and implementation initiatives.
As a result of the final thesis, the HR analytic tool was developed with regard to all the requirements and desires from both HR specialist and the CEO sides. Further steps need to be done to implement the system, train the specialists, add information to the database, debug and test, conduct A/B testing, change the system to current tasks.
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