Application of the MVP (minimum viable product) approach for justifying the effectiveness of HR-analytics implementation

Abstract

This article discusses the problem of implementing HR analytics in a company, namely the problem of the evidence base for the effectiveness of tools, methods and the overall system of HR analytics. There are many approaches to justification: peer review, someone else's experience, experiment, empirical way. The authors have developed an approach that allows you to prepare material for a business case for the introduction of HR analytics tools. The material is evidence of the effectiveness of HR analytics tools based on our own experience in implementing the Minimum Viable Product (MVP). This approach was borrowed from innovation management. Using the example of HR-analytics in the recruitment system, the efficiency of the MVP approach is demonstrated. Among the tools of HR-analytics the funnel of recruitment, calculation of recruitment costs and analysis of recruitment sources were considered. Improving the efficiency of recruitment service is substantiated by the authors through two indicators: reducing time costs, minimizing recruitment costs. Having calculated the effect of the proposed tools, it is proposed to calculate the efficiency through costs and results. Important in this work is the presence of practical experience in applying the MVP approach to substantiate the effectiveness of HR analytics in the recruitment system in a company. The example used the experience of a pharmaceutical company, which, after implementing the Minimum Viable Product in the form of several HR analytics tools, saw reserves for improving the efficiency of the recruitment system. HR analytics of the market for products and services for HR managers is an additional key to improving the efficiency of the recruitment system, it can increase the effective efficiency, which is also important to remember. The article reviewed the work of Dirk Jonker, programs, products for personnel managers (Talantiks and Pulse), services of job sites. The authors propose HR metrics and formulas for calculating the main and most important selection indicators, and also describe in detail the key HR analytics tools that anyone who has read the article can use.