Those organizations who value their employees are good at customer satisfaction also, in today’s woven world another job is not so far from your employees. If he/she is not happy with the policies of your company he will quit even before you come to know.


The power of decision sciences can be leveraged to understand your employee, to know that what will make him happy and predict that how probable is he to leave your organization.

For example, currently more than 70% of the organizations conduct exit interviews at the times when employee is 1 or 2 days away from seeing your office again. What can your people practice team do to resolve his grievances? The answer is nothing. Because, the fire-fighting practice should be exercised before the fire hits the floor.

Wouldn’t it be better to know even before he thinks of resigning? Wouldn’t it be better to get a hint when he shows some sort of frustrating signals?


Why should a company invest in workforce analytics?

According to Brooks (2000), between 40 and 80 percent of customer satisfaction and customer loyalty was correlated to relationship between customer-related variables and employee attitudes.

The correlation mentioned by Brooks can directly be related to revenue numbers. According to the research performed by Bersin (2013), companies who invested in knowing their employee better (through HR analytics) generate high returns, with stock market returns 30% higher than the S&P 500.

Analytical approaches for an employee

Since the inception of decision sciences, analytics is focused towards customer study. Which is obvious as they are the one who are giving you money, but you should also care about the person who is bringing this money to you. In this part of the article, I am trying to cover up few analytical frameworks which can be useful

1)      Employee Segmentation As every consumer can’t be treated according to a similar rule book, the same thing applies for the employees also. By using segmentation exercise we try to divide entire employee base into certain segments based on their demographics, performance, tenure and many other factors. The ability to segment your employee comes down to how well you know your employees and how they behave.


Though there are various techniques for segmentation but majorly used segmentation techniques are listed below:

a)      Demographic: This is one of the most basic forms of segmentation. It involves grouping individuals according to demographic characteristics like gender, sex or marital status

b)      Behavioral: Behavioral segmentation groups people on the basis of their actions. For example, you might group individuals that have received satisfaction rating above

c)       Psychographic: Using psychographic segmentation involves grouping based on personality characteristics and/or lifestyle

d)      Benefit: This segmentation can be used to group employee based on the fact that what type of customers they are bringing in


Impact of segmentation:  Currently your organization must be giving hikes to your employees based on their performance only, but if you consider other parameters also then won’t it be more satisfactory for them?


2)      Employee attrition: the worst part of the life of an HR professional comes when an employee decides to quit the job. Whatever you try to do you can’t save the impact from him/ her moving out. It will be easy for you if you know that out of your 100 employees 10 are on the verge of moving out in next 3 months. Sounds like magic? No, it is not. By using simple statistical modeling techniques you can identify these employees.



3)      ELTV (Employee life time value):  the concept of ELTV is derived from “Customer Life Value (CLV)”. Using CLV marketers provides various kinds of promotional schemes to different customers.

CLV basically calculates the total worth of a customer for ‘x’ future years. If a customer is more valuable, he is given schemes of high worth.


Similar kind of concept can be used in ELTV, where we can estimate the total earnings due to relationship of employee with the company.

Based on the ELTV, you can plan out the compensation plan or hike plan for each and every customer.

Challenges for implementation

Though, from the discussion it is clear that using the analytics in your HR department will improve employee satisfaction and in turn will increase the revenue. But, it is not easy for each HR professional to move into analytics side due to following constrains-

1)      Lack of team who understand analytics

2)      Lack of properly arranged data

3)      Lack of vision towards the HR analytics

If, your company can come over these constrains – you are welcome to the better world of HR management.



Written By Mohit Bansal


Trainee Decision Scientist (Business Analyst) at Mu Sigma Business Solutions Pvt. Ltd. and Co-Founder at


Disclaimer : “The views expressed are of author himself and doesn’t reflect the views of organization he works for”

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