Human resource analytics

download Human resource analytics

of 27

Embed Size (px)

Transcript of Human resource analytics

Slide 1

Prepared By:Gokulnaath Kamalika SomeKrishanu Mukherjee

1

Background2

Strategic Work Force Planning/Workforce AnalyticsStrategic workforce planning is:

Analytic, forecasting and planning process

That connects and directs talent management activities To ensure an organization has the right people in the right places at the right time. At the right price to execute its business strategy.

3

3

Exploring Workforce Analytics

4

Dow Chemicals

The Dow Chemical Company(NYSE:DOW) is-

An Americanmultinationalchemical corporation headquartered inMidland, Michigan.

Provides chemical, plastic, and agricultural products and services to consumer markets that include food, transportation, health and medicine, personal care and construction

Operates in approximately 180 countries.

In 2014, Dow was ranked third inchemical production(afterBASFandSinopec)

In 2015, was the third largest chemical company in the world by revenue (after Sinopec and BASF).

5

6

Dow Chemicals: Talent figures

Dow Chemicals & Workforce Analytics

Web-link: https://www.youtube.com/watch?v=hxIKMywl4m47

Evolution of Workforce Analytics

8

Dows Tryst with Workforce AnalyticsWanted to accurately forecast fluctuations in future demand that result from the chemical industrys recurrent seven-year cycle of peaks and troughs.

Mining 3 Yrs of workforce data from the companys PeopleSoft database, the new tool could forecast promotion rates, internal movement, and overall workforce supply three years ahead.

Business Strategy was not incorporated, this model had limitations.

Dow partnered with Central Michigan University Research Corporation and developed the Strategic Simulator tool for workforce analytics in 2001

9

Dows Approach to Workforce Analytics

10

Dows Approach to Workforce Analytics (contd)

11

Dows Approach to Workforce Analytics (contd)

12

The Base Model

13

How the model worksProjecting future supply (Unit Headcount)

Tool extracts data from PeopleSoft to produce a snapshot of the units current workforce, categorized into five age groups and 10 job levels. It then fast-forwards that image to some point in the future, typically three to five years.

Dows strategic staffing simulator models how todays workforce will change over the next five years as current employees age, retire, gain more experience or training, get promoted, move within the company, or leave all based on its analysis of historical patterns within the units workforce.

14

How the model works (contd)Projecting demand (Target Headcount) Dows new strategic staffing process is designed to forecast demand as well as supply. It does so by factoring in a host of qualitative variables that were never part of previous models: Industry trends Political developments in any of the 37 countries where Dow operates Changes in labor laws or retirement plans New business strategies15

Technology Used

16

Strategic Simulator Screenshots

17

Strategic Simulator Screenshots

18

Workforce Analytics KPIs from Peoplesoft and Strategic Simulator

19

Understanding a Units cultureTo apply workforce analytics to a business unit, the culture of the unit must be understood.Dow has created a set of 40 questions for business units...

20

Challenges

21

Challenges

22

Challenges The Strategic Simulator needs to be able to forecast staffing costs as well.

For a global player like Dow Jones , forecasting needs to factor in cultural and geographical factors. The average retirement age for Dows U.S. employees is lower than in Europe.Skews global retirement projections because the company has so many U.S. employees.

23

Bind Talent management to SWP

24

Benefits

Dow Chemical has evolved its workforce planning over the past decade mining historical data on its 40,000 employees for insights.

The human resources supply/demand model lets Dow hire the right talent at the right time.Forecasts the future workforce requirements in the next two to three years by predicting: 1. Where todays workforce is located 2. The most critical skills and jobs. 3. The future composition of the workforce (regular employees, contractors). 4. The Cost of Hiring, and productivity gains.

25

Dow Chemical has evolved its workforce planning over the past decade mining historical data on its 40,000 employees to anticipate workforce needs throughout the chemical industrys volatile business cycles 25

BenefitsKeeping target headcount in mind, Dows strategic staffing tool simulates A variety of staffing options that unit managers may consider, such as hiring to meet the headcount target, implementing a hiring freeze, or shutting down a facility.Dow uses a custom modelling tool to segment the workforce into 5 age groups and 10 job levels and calculates future head count by segment and level for each business unit. These detailed predictions are aggregated to yield workforce projection for the entire company. Dow engages in what if scenario planning for talent projections.\

By Effective workforce analytics Dow Chemicals cut its cost of talent hiring by 4% in 2014, which lead to .8% increase sales per employee.26

Dow engages in what if scenario planning, altering assumptions on internal variables such as staff promotions or external variables such as political and legal considerations26

Way forwardEstablish definitive and consistent data that is universally accessibleKeep data on skills and competencies up to date Adapt workforce planning to business needs and workforce.Make the SWP process and tools efficient and employee friendly.Integration of employee social media preferences into hr analytics to deliver business value

27