HR BAROMETER 2018 - Vlerick Business School · WHAT IS HR ANALYTICS? 31 Also called people-, talent...
Transcript of HR BAROMETER 2018 - Vlerick Business School · WHAT IS HR ANALYTICS? 31 Also called people-, talent...
HR BAROMETER 2018HRM TRENDS AND CHALLENGES IN BELGIAN ORGANISATIONS
Dear HR professional,
For the fourth year in a row, Vlerick Business School and Hudson have launched an HR barometer on the trends and challenges in HRM in Belgian organisations. The barometer explores the HR priorities of leading companies operating in Belgium and shifts in these HR priorities over time.
The HR barometer is a yearly initiative launched in January and involves two parts. The first part of the barometer focuses on the strategic importance of different HR practices and policies, so that over time, the shifts in these priorities can be explored. The second part examines a hot topic in HR. For this edition of the HR barometer, we look into the topic of HR analytics.
This report provides you with an overview of the most important findings of the study in 2018 and the shifts compared to 2017, based on a quantitative analysis of the HR priorities of leading Belgian organisations.
We hope this report provides you with interesting and useful insights,
Nikola Trbovic Dirk BuyensDirector Research & Development Head HRM Centre & Director Open Exec EdEllen Volckaert Emmy DefeverManager Research & Development Senior Research Associate
1. Methodology 4
2. General results 12
I. HR barometer 2018: actual priorities 13
II. HR barometer 2018: perceived mastery 16
III. HR barometer 2018: priority vs mastery 19
IV. HR barometer 2018: planned priorities 28
V. HR barometer 2018: spotlight on HR analytics 30
VI. HR barometer 2018: topic next HR barometer 44
3. Final lessons learned 46
4. Contact Information 48
3
TABLE OF CONTENTS
1METHODOLOGY
METHODOLOGY
Research design
Investigate the trends and challenges in HRM in leading organisations operating in Belgium
Among the largest profit organisations in Belgium (Bel 20+ 200 largest profit organisations in terms of number of employees)
Through an online survey among HR Directors and Managers
Broad spectrum of industries
Timing
January 2018 to March 2018
Sample
62 organisations
Representing about 258.000 employees in Belgium
4
ONLINE SURVEYActual HR practices:
Indicate the priority of HR practices and the mastery of these practices in 2016
On a scale from 0% (no priority/low mastery) to 100% (top priority/role model)
Future HR practices: Look ahead to the planned priorities in 2017 and indicate top 5.
* New topic in the list
Specific HR Topic: Spotlight on the use of HR analytics
4
Selection & recruitment
Employer branding
Prepare organisation for growth
Learning & development
Talent management
Competency management
Performance management
Leadership development
Teamwork
The new ways of working
Well-being
Engagement
Compensation & benefits
Diversity
Retention
Prepare organisation for stagnation/downsizing
HR Analytics
HR Operational excellence
Industrial relationships
Cultural change
Agility*
…
SAMPLE CHARACTERISTICS
7
A. NUMBER OF EMPLOYEES IN BELGIUM
4,8
16,1
14,5
21
43,5 < 500 employees
501 - 1000 employees
1001 - 1500 employees
1501 - 2000 employees
> 2000 employees
SAMPLE CHARACTERISTICS
8
B. NUMBER OF EMPLOYEES INTERNATIONAL (INCLUDING BELGIUM)
35,5%
22,6%12,9%
4,8%
24,2%
< 5000 employees
5001 - 25000 employees
25001 - 50000 employees
50001 - 75000 employees
> 100000 employees
SAMPLE CHARACTERISTICS
9
C. NUMBER OF BLUE & WHITE COLLAR EMPLOYEES
Blue collar White collar
27,42
9,68
9,6820,97
25,81 6,45
No employees1-200 employees201-500 employees501-1000 employees> 1000 employeesNot specified
3,28,1
12,9
22,646,8
6,5
SAMPLE CHARACTERISTICS
10
D. COMPANY SECTOR
11,3%
4,8%
4,8%
4,8%
6,5%
6,5%
8,1%
9,7%
11,3%
12,9%
14,5%
19,4%
0% 5% 10% 15% 20% 25%
Other (mobility, social profit, hospitality, …)
Public Sector
Construction & Engineering
Telecommunications & IT
Fast Moving Consumer Goods
Transport & storage
Legal & Professional services
Energy & Utilities
Retail
Chemical, Pharmaceutical & Healthcare
Financial services & Insurance
Industry & Manufacturing
SAMPLE CHARACTERISTICS
11
E. RATIO OF HR STAFF TO EMPLOYEES
Average ratio: 1 HR staff member per 89 employees
24,2
40,3
14,5
6,5 6,58,1
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
45,0
1/50 employeesor less
1/51 - 1/75employees
1/76 - 1/100employees
1/101 - 1/150employees
1/151 - 1/200employees
1/201 employeesor more
Num
ber o
f org
anisa
tions
(in
%)
2GENERAL RESULTS
I.HR BAROMETER 2018: ACTUAL PRIORITIES
10394040
505151
5354
596162
6465
707070
7377
7987
0 10 20 30 40 50 60 70 80 90 100
Prepare organisation for downsizing/ StagnationCompetency Management
DiversityRetention
The new ways of workingTeamwork
Industrial RelationshipsCompensation & Benefits
HR AnalyticsWellbeing
EngagementPrepare organisation for growth
Performance ManagementHR Operational Excellence
Employer brandingLearning and development
Cultural ChangeAgility
Talent ManagementLeadership DevelopmentSelection & Recruitment
HR BAROMETER 2018: ACTUAL PRIORITIES
14
Top 3 priorities
TRENDS IN ACTUAL PRIORITIES: HR BAROMETER 2017 COMPARED TO 2018
15* New topic in 2018
0
10
20
30
40
50
60
70
80
90Selection & Recruitment
Employer branding
Prepare organisation for growth
Learning and development
Talent Management
Competency Management
Performance Management
Leadership Development
Teamwork
The new ways of workingWellbeingEngagement
Compensation & Benefits
Diversity
Retention
Prepare organisation fordownsizing/Stagnation
HR Analytics
HR Operational Excellence
Industrial Relationships
Cultural Change
Agility*
Barometer 2017
Barometer 2018
II.HR BAROMETER 2018: PERCEIVED MASTERY
4145
50505051
53545455
5658
6162
6465
666768
7074
0 10 20 30 40 50 60 70 80
Prepare organisation for stagnation/ downsizingHR analytics
Competency managementDiversity
Cultural changeAgility
Well-beingEmployer branding
HR operational excellenceThe new ways of working
TeamworkPrepare organisation for growth
RetentionPerformance management
Leadership developmentEngagement
Compensation & benefitsTalent management
Learning & developmentIndustrial relationships
Selection & Recruitment
HR BAROMETER 2018: ACTUAL PERCEIVED MASTERY
17
Top 5
TRENDS IN PERCEIVED MASTERY:HR BAROMETER 2017 COMPARED TO 2018
18* New topic in 2017
0
10
20
30
40
50
60
70
80Selection & Recruitment
Employer branding
Prepare organisation for growth
Learning and development
Talent Management
Competency Management
Performance Management
Leadership Development
Teamwork
The new ways of workingWellbeingEngagement
Compensation & Benefits
Diversity
Retention
Prepare organisation fordownsizing/ Stagnation
HR Analytics
HR Operational Excellence
Industrial Relationships
Cultural Change
Agility*
Barometer 2017
Barometer 2018
III.HR BAROMETER 2018:PRIORITY VS MASTERY
Selection & Recruitment
Employer branding
Prepare organisation for growth
Learning and developmentTalent Management
Competency Management
Performance ManagementLeadership Development
Teamwork
The new ways of workingWellbeing
EngagementCompensation & Benefits
Diversity
Retention
Prepare organisation for downsizing/stagnation
HR Analytics
HR Operational Excellence
Industrial Relationships
Cultural Change
Agility*
HR BAROMETER 2018: PRIORITY VERSUS HR MASTERY
20
Act
ual
Mas
tery
Actual Priority
High
HighLow
Low Area for improvement
StrengthGood job
No priority
PRIORITY VS HR MASTERY: STRENGTHS
High score in terms of priority and
mastery:
21
Main strengths• Selection & Recruitment• Learning & development• Talent Management
Second in a row• Leadership Development• Performance management• Engagement
PRIORITY VS HR MASTERY: AREAS FOR IMPROVEMENT
High score in terms of priority, but not
in terms of mastery:
22
Main areas for improvement:• Agility• Cultural change• Employer branding
Second in a row• HR operational excellence• Wellbeing• Prepare organisation for
growth
PRIORITY VS HR MASTERY: UNDER CONTROL?
Lower score in terms of priority, but
high score in terms of mastery:
23
Good Job• Industrial relationships• Compensation & Benefits• Retention
PRIORITY VS MASTERY: NO PRIORITY
Rather low score in terms of mastery
but not perceived as a priority:
24
No Priority• Prepare organisation for
stagnation/downsizing• Competency Management• Diversity
Second in a row• The new ways of working• Teamwork• HR analytics
Selection & Recruitment
Prepare organisation for growth
Learning and developmentTalent Management
Competency Management
Performance ManagementLeadership Development
The new ways of working
EngagementCompensation & Benefits
Diversity
Prepare organisation for downsizing/stagnation
HR Analytics
HR Operational Excellence
Industrial Relationships
Cultural Change
Agility*
TRENDS IN PRIORITY VS MASTERY:TOPICS THAT REMAINED STABLE COMPARED TO 2017
25
Act
ual
Mas
tery
Actual Priority
High
HighLow
Low Area for improvement
StrengthGood job
No priority
Employer brandingTeamworkWellbeing
Retention
TRENDS IN PRIORITY VS MASTERY:CHANGED PRIORITIES ACROSS QUADRANTS
26
Act
ual
Mas
tery
Actual Priority
High
HighLow
Low Area for improvement
StrengthGood job
No priority
Selection & Recruitment
Prepare organisation for growth
Talent Management
Competency Management
Leadership DevelopmentEngagement
TRENDS IN PRIORITY VS MASTERY:CHANGED PRIORITIES WITHIN QUADRANTS
27
Act
ual
Mas
tery
Actual Priority
High
HighLow
Low Area for improvement
StrengthGood job
No priority
IV.HR BAROMETER 2018: PLANNED PRIORITIES
PLANNED PRIORITIES 2018
29
Selection & Recruitment
Leadership Development
Talent Management
Cultural Change
Employer branding
Top 5 priorities when looking ahead to the coming year:
V.HR BAROMETER 2018: SPOTLIGHT ON “HR ANALYTICS”
WHAT IS HR ANALYTICS?
31
Also called people -, talent - or workforce
analytics.
The Use of people data in analytical processes to
solve business problems. HR analytics uses both
people-data, collected by HR systems and business
information.
HR analytics enables HR practitioners and employers
to gain insights into their workforce, HR
policies and practices, with a focus on the human
capital element of the workforce, and can ultimately
inform more evidence-based decision making
(CIPD)
HR analytics?
AVAILABLE HR-RELATED DATA
32
89% gathers data about:
• People productivity• Diversity & Inclusion
90% gathers data about employee engagement
92% gathers data about:
• Succession planning • Skills & Competencies
94% gathers data about training & Development information
95% gathers data about:
• Absenteeism• Turnover• Workforce planning• Performance data• Compensation & Benefits• Recruitment data
The majority of organisations gather HR-related data:
HR ANALYTICS MATURITY
33
Registering
Operational reporting
Trends are being discovered
Correlational Analytics
Causation Analytics
Predictive Analytics
Measurement Analytics
MEASUREMENT VS ANALYTICS OF PEOPLE DATA
34
50,8
54,2
55,4
57,6
63,2
63,6
67,8
69,0
69,5
69,5
77,2
89,1
49,2
45,8
44,6
42,4
36,8
36,4
32,2
31,0
30,5
30,5
22,8
10,9
0 10 20 30 40 50 60 70 80 90 100
Performance data
Turnover
Employee engagement
Absenteeism
Succession planning
People productivity
Workforce planning
Training & development information
Compensation & Benefits
Recruitment data
Skills & Competencies
Diversity & Inclusion
% of organisations measuring the data
% of organisations analyzing the data
Mostly only measured
Commonlyused for analytics
35
Q. Please indicate on a 6 point scale what your organisation is doing with the following data, going from 1) simply registering it up to 6) using it to predict future outcomes.
7
8
18
8
25
24
15
14
8
10
28
36
34
25
11
22
25
24
34
41
34
37
25
29
10
20
27
27
14
16
19
14
27
22
25
24
25
27
21
20
18
13
12
9
15
15
7
4
19
10
21
17
11
20
10
21
12
14
16
2
5
8
2
5
9
4
10
2
3
2
0
5
0 10 20 30 40 50 60 70 80 90 100
Performance data
Turnover
Employee engagement
Absenteeism
Succession planning
People productivity
Workforce planning
Training & development information
Compensation & Benefits
Recruitment data
Skills & Competencies
Diversity & Inclusion
FROM REGISTERING TO PREDICTING
GENERAL HR ANALYTICS MATURITY
36
Registering
Operational reporting
Trends are being discovered
Correlational Analytics
Causation Analytics
Predictive Analytics75% of organisations focus on measurement*
25% of organisations focus on analytics*
* Based on overall HR maturity score on the 6 point scale (mean score between 1 – 3.5 = focus on measurement; mean score between 3.5 and 6= focus on analytics)
LOW HR ANALYTICS MATURITY HIGH HR ANAYTICS MATURITY
USE OF PEOPLE DATA FOR HR ANALYTICS
37
Turnover
Performance management
X
Employee engagement
Absenteism
MOST OFTEN USED FOR HR ANALYTICS: RARELY USED FOR ANALYTICS:
25% 19% 2% 21% 21% 2%
27% 10% 9% 20% 17% 5%
Correlational Causational Predictive
Diversity & inclusion
Skills & Competencies
4% 2% 5%
7% 16% 0%
PEOPLE DATA LINKED WITH BUSINESS OUTCOMES
38
7,3
15,3 15,3 15,818,6 19,3 20,3 22,0 22,4 23,2 23,6 23,7
0
5
10
15
20
25
30
35
40
Number of respondents (in %)
Few organisations link their people data with
business outcomes. If they do, more causational
analytics than predictive analytics. 37,1%Say HR
analytics
help to
prepare
for
possible
future
business
challenges
HR ANALYTICS MATURITY: HIGHLIGHTS
39
• The majority of organisations gofurther than simply registering thepeople data. Though for most peopledata, focus remains onmeasurement, not on analytics.
• When doing analytics, most companiesfocus on correlations andcausations
• Few organisations focus onpredicting business outcomes usingHR analytics
IMPACT ON HR OUTCOMES
58% indicate an influence on their HR strategy
50% indicate an influence on the quality of HR decisions
45% indicate an impact on effective HR administration
44% indicate an impact on efficiency of their HR processes
HR outcomes
Q. To what extent does HR analytics influence the following HR outcomes within your organization (on a scale of 0-100)? This figure shows the % of organisations with a score between 55-100
IMPACT ON HR OUTCOMES ACCORDING TO HR ANALYTICS MATURITY
LOW MATURITY HIGH MATURITY
46%
39% 87%
34%
93%
73%
30% 73%
% of respondents indicating an impact of HR analytics on HR outcomes
IMPACT ON ORGANISATIONAL OUTCOMES
ACHIEVEMENT OF ORGANISATIONAL GOALS & STRATEGY
44%
37%
INNOVATION
23%
44%
PRODUCTIVITY CUSTOMER SATISFACTION
QUALITY OF PRODUCT/SERVICE
TIME(response time, cycle or delivery time)
37%
36%
Less than half of the companiesindicate a link between HR analytics and organiationaloucomeswithin their company.
Q. To what extent does HR analytics influence the following organisational outcomes within your organization (on a scale of 0-100)?
IMPACT ON ORGANISATIONAL OUTCOMES ACCORDING TO HR ANALYTICS MATURITY
ORGANISATIONAL GOALS & STRATEGY
80%
30%
INNOVATION
67%
30%
PRODUCTIVITY CUSTOMER SATISFACTION
QUALITY OF PRODUCT/SERVICE
TIME(response time, cycle
or delivery time)
60%
67%
LOW MATURITY vs HIGH MATURITY
93%
30%
27%
27%
53%11%
% of respondents indicating an impact of HR analytics on organisational outcomes
IMPACT ON FINANCIAL OUTCOMES
45%OPERATING EXPENSES
34%
29%
24%
16%
PROFITABILITY
ROI
REVENUE GROWTH RATE
MARKET/BOOK VALUE
Q. To what extent does HR analytics influence the following financial outcomes within your organization (on a scale of 0-100)?
IMPACT ON FINANCIAL OUTCOMES ACCORDING TO HR ANALYTICS MATURITY
OP. EXPENSES
PROFITABILITY
ROI
REV. GROWTH RATE
MARKET/BOOK VALUE
HIGH MATURITYLOW MATURITY
41%
27%
18%
16%
11%
60%
47%
53%
53%
33%
% of respondents indicating an impact of HR analytics on organisational outcomes
67,7
16,1
16,1
Not satisfied Neutral Satisfied
SATISFACTION WITH THE USE OF HR ANALYTICS
46
Q. How satisfied are you with the outcomes of your HR analytics within your organisation?
81,8
11,46,8
Low HR analyticsmaturity
26,7
26,7
46,7
High HR analytics maturity
“HR analytics are mainly focused on reporting, more focus should be placed on analytics for strategic decisions & predictions”
(quote respondent)
USE OF BIG DATA IN GENERAL WITHIN ORGANISATION
47
32,26
22,58
27,42
17,74
0
5
10
15
20
25
30
35
Very little extent Little extent Moderate extent Very large extent
Num
ber o
f res
pond
ents
(in
%)
Extent to which organisation makes use of big data
More than half of the organisations (54,8%) make hardly any use of big data
Q. Apart from HR analytics (which is linked to people data), to what extent does your organisation
as a whole use big data analytics?
BARRIERS TO IMPLEMENT HR ANALYTICS
48
0 20 40 60 80 100
Lack of HR information technology/softwaresolutions
Lack of proper/high-quality data
Lack of managerial/organizational wide buy-in
Lack of analytical competencies (strong datamanagement skills)
Lack of access to cross-functional data
Lack of a data-driven culture
Data security and privacy regulations (e.g.GDPR)
Lack of resources (time, people, capabilities, ...)
24,2
30,6
51,6
25,8
22,6
45,2
59,7
22,6
22,6
19,4
17,7
22,6
30,6
21,0
19,4
11,3
21,0
21,0
12,9
19,4
21,0
22,6
6,5
22,6
27,4
25,8
12,9
29,0
22,6
8,1
11,3
40,3
No barrier at all
Slight barrier
ModeratebarrierStrong barrier
BARRIERS: 3 LEVELS
49
31
LACK OF RESOURCES
TOOLS & COMPETENCIES
IS BIGGEST BARRIER
ACCES TO HIGH-QUALITY
DATA IS SECOND
BIGGEST HURDLE FOR
COMPANIES
CULTURE, BUY-IN AND
CONTEXT ARE LESS OF
AN ISSUE
63% indicate they do
not have the necessary
time, people, capabilities,
… for HR analytics
31% indicate they are
lacking a data-driven
culture
47% indicate they are
missing access to proper
and high-quality data for
HR analytics
1 2 3
INTERNAL OR EXTERNAL RESOURCES
50
31% fully rely on
internal resources
3% rely more on
external resources
24% combine internal & external resources
42%rely more on
internal resources
0% rely fully on
external resources
Q. Please indicate to what extent you rely on internal or external resources/providers to
perform HR analytics
INTERNAL RESOURCES
EXTERNALRESOURCES
73% 3%
HR ANALYTICS FUNCTION
51
87,5
12,5
Is HR analytics a responsibility of HR?
Yes
No54,3
45,7
Is this formalized in the job title?
Yes
No
Is there someone within the organisation who is
specifically responsible for HR analytics?
YES NO
65% 35%
TOOLS USED FOR HR ANALYTICS
52
Q. Which tools do you use for HR analytics?
98,4
77,4 74,2
50,0
0,00
20,00
40,00
60,00
80,00
100,00
120,00
Spreadsheet ERP Systems (SAP,People Soft, Oracle)
HRIS/dashboard Dedicated analyticssoftware
BUDGET FOR HR ANALYTICS (INCLUDING PERSONNEL)
53
4,9
11,5
26,2
57,4
0 10 20 30 40 50 60 70
> 500 000€
Less than 100 000€
Between 100 000€ and 500 000€
No separate budgetforeseen
Number of respondents (in %)
Q. What is your budget for HR analytics (including personnel)
57% of organisationshave no separate budgetfor HR analytics.
Only 5% have a budget in excess of 500 000
HR ANALYTICS INVESTMENT PLAN
54
More than half of the respondents (i.e., 53,3%) predict that investments in HR analytics within their organisation will increase.
22,6
6,5
17,7
32,3
21,0
0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00
There are no investments planned
Investments will slightly decrease
Investments will remain the same
Investments will slightly increase
Investments will increase significantly
Number of respondents (in %)
GDPR COMPLIANCE
55
94% of respondents predict that their organisation is ready
to be compliant with the EU GDPR by 25 May 2018.
EXPECTED IMPACT OF GDPR ON DATA ANALYTICS
56
56,5% expects a neutral
impact
33,9% expects a (rather) negative impact
9,7% expects a (rather)
positive impact
“A lot of administration”“Slower to reach goals on data management”“Impact on historical data”“Requires much time to manage all aspects of GDPR”
“Better respect for data privacy”“Increasing awareness for data privacy”
“Conscious use of data”
VI.TOPIC NEXT HR BAROMETER
NEXT HR BAROMETER: TOP 3 TOPICS
58
AGILITY
MOBILITY /EMPLOYABILITY
ORGANISATIONALCULTURE
12 3
3FINAL LESSONS LEARNED
KEY TAKEWAYS: PRIORITIES & MASTERY
Top priorities 2018
77
79
87
Talent Management
Leadership Development
Selection & Recruitment50
7070
40
0
20
40
60
80
Employer branding Retention
2017 2018
Biggest shift in priority 2017 vs 2018
Most important areas for improvement:
• Agility
• Employer branding
• Cultural change
Scoring high in terms of priority but not in terms of mastery!
Compared to 2017, companies have a stronger focus on attracting talent.Prepare
organisation for stagnation is no priority today
Agility is chosen as a topic to explore in more depth next year
Topic next year
Measurement vs Analytics
Most companies measure people data, but do not apply analytics on them.
Analytics are most often performed on:
• Performance management• Employee engagement• Turnover• Absenteism
KEY TAKEWAYS: HR ANALYTICS
Use of HR analytics
16%
Is satisfied with HR analytics within their organisation
65%
Have someone within the organisation who is responsible for HR analytics
57%
Have no separate budget for HR analytics
Lack of resources biggest barrier for HR analytics.
73% relies especially on internal resources to do HR analytics.
53% Predict that investments in HR analytics will increase
Whether HR analytics has an impact on HR, organisational & financial outcomes depends significantly on the HR Analytics Maturity.
63%
4MORE INFORMATION?
Nikola TrbovicDirector Research & Development
(+32) 9 242 54 68
Ellen VolckaertManager Research & Development
(+32) 9 242 53 68
MORE INFORMATION?
Dirk BuyensHead HRM Centre & Director Open Executive Education
(+32) 475 83 68 83
Emmy DefeverSenior Research Associate
(+32) 9 210 97 56