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Data Collection Methods in HR Analytics

Data collection is a systematic process essential for generating insights and ensuring the reliability of research findings, particularly in HR analytics. It involves gathering both internal data from HR systems and external data from various sources to inform data-driven decisions. Effective data collection requires careful planning, adherence to guidelines, and consideration of data validity, reliability, and potential errors.

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0% found this document useful (0 votes)
39 views6 pages

Data Collection Methods in HR Analytics

Data collection is a systematic process essential for generating insights and ensuring the reliability of research findings, particularly in HR analytics. It involves gathering both internal data from HR systems and external data from various sources to inform data-driven decisions. Effective data collection requires careful planning, adherence to guidelines, and consideration of data validity, reliability, and potential errors.

Uploaded by

BHARTI MAKHIJANI
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

Data collection methods

Data collection refers to the systematic process of gathering information from


various sources to address a specific research question or problem. This process
is essential for generating meaningful insights and ensuring the validity and
reliability of research findings.
Data collection is the process of gathering and measuring information on targeted
variables in an established system, which then enables one to answer relevant
questions and evaluate outcomes.
HR departments have a tradition of collecting vast amounts of HR data.
Unfortunately, this data often remains unused. As soon as organizations start to
analyze their people problems by using this data, they are engaged in HR
analytics.
By using HR analytics you don’t have to rely on gut feeling anymore. Analytics
enables HR professionals to make data-driven decisions. Furthermore, analytics
helps to test the effectiveness of HR policies and different interventions.
Broadly, the data required by an HR analytics tool is classified into internal and
external data. One of the biggest challenges in data collection is the collection of
the right data and quality data.
Internal data
Internal data specifically refers to data obtained from the HR department of an
organization. The core HR system contains several data points that can be used
for an HR analytics tool. Some of the metrics that an HRIS system contains
includes:
• Employee tenure
• Employee compensation
• Employee training records
• Performance appraisal data
• Reporting structure
• Details on high-value, high-potential employees
• Details on any disciplinary action taken against an employee
The only challenge here is that sometimes, this data is disconnected and so may
not serve as a reliable measure. This is where the data scientist can play a
meaningful role. They can organize this scattered data and create buckets of
relevant data points, which can then be used for the analytics tool.
External data
External data is obtained by establishing working relationships with other
departments of the organization. Data from outside the organization is also
essential, as it offers a global perspective that working with data from within the
organization cannot.
• Financial data: Organization-wide financial data is key in any HR analysis
to calculate, for instance, the revenue per employee or the cost of hire.
• Organization-specific data: Depending on the type of organization and its
core offering (product or service), the type of data that HR needs to
supplement analytics will vary.
• Passive data from employees: Employees continually provide data that is
stored in the HRIS from the moment they are approached for a job.
Additionally, data from their social media posts and shares and from
feedback surveys can be used to guide HR data analysis.
• Historical data: Several global economic, political, or environmental
events determine patterns in employee behavior. Such data can offer
insights that limited internal data cannot.
Data Sources
HR professionals gather data points across the organization from sources like:
• Employee surveys
• Attendance records
• Employee reviews
• Salary and promotion history
• Employee work history
• Demographic data
• Personality data
• Recruitment process
• Employee databases
Data Collection Plans
A data collection plan is a guide that identifies goals, objectives, and special focus
areas, and lays out timelines, procedures, and best practices for collecting data.
You will need to follow a series of steps to ensure that data collection process is
stable and reliable
• formulate a clear statement of the problem
• define and list the characteristics to be measured
• select the right measurement technique
• construct a clear and simple data collection form
• arrange the sampling method
• determine who will collect the data, who will analyze and interpret the data,
and who will report the results
Data Collection Methods
Few types of data collection methods includes
• Check sheets – It is a structured, well-prepared form for collecting and
analysing data consisting of a list of items and some indication of how often
each item occurs. There are several types of check sheets like confirmation
check sheets for confirming whether all steps in a process have been
completed, process check sheets to record the frequency of observations
with a range of measurement, defect check sheets to record the observed
frequency of defects and stratified check sheets to record observed
frequency of defects by defect type and one other criterion. It is easy to
use, provides a choice of observations and good for determining frequency
over time. It should be used to collect observable data when the collection
is managed by the same person or at the same location from a process.
• Coded data- It is used when presence of too many digits are to be recorded
into small blocks or during data capturing of large sequences of digits from
a single observation or rounding off errors are observed whilst recording
large digit numbers. It is also used if numeric data is used to represent
attribute data or data quantity is not enough for a statistical significance in
the sample size. Various types of coded data collection are
• Truncation coding for storing only 3,2 or 9 for 1.0003, 1.0002, and 1.0009
• Substitution coding – It stores fractional observation, as integers like
expressing the number 32 for 32-3/8 inches with 1/8 inch as base.
• Category coding – Using a code for category like “S” for scratch
• Adding/subtracting a constant or multiplying/dividing by a factor – It is
usually used for encoding or decoding
• Automatic measurements – In it a computer or electronic equipment
performs data gathering without human intervention like radioactive level
in a nuclear reactor. The equipment observes and records data for analysis
and action. Technological tools for automated data collection include video
recording, self-recording test equipment, computers with verifications and
crosschecking, bar codes, magnetic strips, scanning devices, and radio-
frequency identification (RFID).
Guidelines before data collection
• Is there a genuine benefit to collect this data? – There is always the
temptation to collect data, just in case you need it later, or because it can
have some minor value to the company. When making informed HR data
decisions, it’s best to limit data collection to what is truly valuable and
necessary for the business to run successfully.
• Could the intended purpose of the data collection have any negative
ramifications to employees? – Consider whether employees would be okay
with this information being collected, and whether the data could be used
to negatively impact their job or opportunities at work.
• How could this data be misused? – A lot of problems with collecting
employee’s personal information relate to misuse and abuse.
• Are HR allowed to collect and process this data in the in the locations
where employees work? – You can have the best idea to improve an HR
practice, but if the data collection is not allowed where employees are
working, it’s a non-starter. If you aren’t sure whether you can collect a
certain piece of data, check each country’s data collection guidelines.
For having an effective collection of data, the data being collected must be valid,
reliable and bias free. These characteristics only will make the process more
useful and hold up to the scrutiny while performing data analysis. Three key terms
that refer to accuracy in data collection are – Reliability, Validity, and Margin of
Error.
• Reliability: Reliability refers to the consistency of the data collection
method. The higher the sample size is in relation to the population size, the
more reliable it is.
• Validity: Validity refers to the accuracy of the data collection efforts being
made. The purpose here is to analyze that the chosen data collection
method truly measures what it seeks to measure, and if it does, then it must
be considered valid.
• Margin of Error: Margin of error ties into our surveys as they are subject
to some uncertainty about how well a sample represents a population, and
the validity and reliability of the testing tool. In this case it becomes
important to make every effort to guarantee that the data is free of errors as
it may affect both the reliability and the validity. This implies that the error
shouldn’t be so significant that it prevents from reaching valid conclusions.

Primarily there are two types of errors such as sampling error and non-sampling
error.
• Sampling Error: A sampling error is statistical in nature and is caused by
human error. The sampling error from surveying is where a portion of the
population is surveyed versus getting a representative sample from the
entire population.
• Non-Sampling Errors: Non-sampling error, are statistical in nature and is
caused by human error.

Common questions

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One of the main challenges in HR data collection is obtaining the right and quality data. Internal data, such as employee tenure, compensation, and performance data, may be disconnected, reducing their reliability as a measure. This can be addressed by involving data scientists to organize scattered data into relevant buckets for the analytics tool . Additionally, ensuring data is valid, reliable, and bias-free is crucial, as these qualities uphold the process to scrutiny during analysis . Implementing guidelines for data collection that focus on collecting only valuable data can help mitigate these challenges .

HR departments can leverage employee-generated data by analyzing internal sources such as training and appraisal records for performance insights. Externally, data from economic trends and employee social media activity can provide context for workforce planning. By synthesizing this data, HR can identify problem areas, forecast trends, and ultimately, make informed decisions that align with organizational goals .

Designing a stable and reliable data collection process involves several key steps. First, formulate a clear statement of the problem and define the characteristics to be measured. Next, select appropriate measurement techniques and construct a simple data collection form. Determine the sampling method and specify who will collect, analyze, and report the data. It's also important to limit data collection to what is valuable and necessary for the business, considering legal constraints and ethical concerns .

Validity, reliability, and margin of error are critical to the quality of data in HR analytics. Validity ensures that the method measures what it intends to, maintaining accuracy. Reliability focuses on consistency and requires a robust sampling plan. A high margin of error indicates less precision, leading to less trustworthy insights. Collectively, these factors determine whether the data can lead to valid conclusions, directly impacting decision-making processes .

Automated measurements streamline data collection processes by eliminating human intervention, thus reducing errors and improving accuracy. Technologies supporting this include video recording, barcode scanning, RFID, and self-recording test equipment, each facilitating efficient data capture across various applications. These technologies enhance real-time data collection, allowing organizations to react swiftly to data insights .

Data coding methods, such as truncation and substitution coding, simplify complex or abundant data by compressing information into manageable formats, aiding data capture and analysis. Truncation is useful for reducing digits in data sequences, while substitution coding helps when transforming fractional observations into simpler forms. These methods enhance clarity and efficiency, particularly when dealing with numeric data or where data entry errors are common .

Check sheets facilitate effective data collection by providing a structured format that simplifies data recording and analysis. They are appropriate when collecting observable data over time, managed at the same location or by the same person. Various types such as process or defect check sheets can help in recording frequencies, ensuring that data collection is both systematic and comprehensive. This method is particularly useful for repetitive tasks or when monitoring process adherence .

Ethical considerations in collecting personal employee data include ensuring consent and transparency about data use. Potential negative ramifications on employees should be evaluated, ensuring that data is not used to adversely affect job prospects. Misuse of data must be guarded against, and compliance with regional data protection laws is mandatory to prevent unauthorized data processing .

Integrating internal and external data enhances HR analytics by providing a comprehensive view of organizational operations and employee behavior. Internal data from HR departments, such as employee tenure and performance records, provides insights into internal dynamics. External data, like financial metrics or global economic trends, offers a broader context that enhances understanding . By combining these data types, organizations gain a more nuanced understanding of HR challenges, enabling more effective data-driven decisions .

Sampling error arises from surveying a portion rather than a representative sample from the entire population, leading to potential inaccuracies. Non-sampling error, on the other hand, results from human errors during data collection not related to the sampling process itself. Both impact the accuracy and reliability of the collected data, but non-sampling errors tend to be more challenging to predict and control .

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