Human resource analytics
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Transcript of Human resource analytics
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Strategic Work Force Planning
atDow Chemicals
Prepared By:Gokulnaath Kamalika SomeKrishanu Mukherjee
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Background
What is Workforce Analytics/Strategic Workforce Planning ?
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Strategic Work Force Planning/Workforce Analytics
Strategic 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.
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Exploring Workforce Analytics
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Dow ChemicalsThe Dow Chemical Company (NYSE: DOW) is-
An American multinational chemical corporation headquartered in Midland, 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 in chemical production (after BASF and Sinopec)
In 2015, was the third largest chemical company in the world by revenue (after Sinopec and BASF).
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Dow Chemicals: Talent figures
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Dow Chemicals & Workforce Analytics
Web-link: https://www.youtube.com/watch?v=hxIKMywl4m4
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Evolution of Workforce Analytics
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Dow’s Tryst with Workforce Analytics Wanted to accurately forecast fluctuations in future demand that result
from the chemical industry’s recurrent seven-year cycle of peaks and troughs.
Mining 3 Yrs of workforce data from the company’s 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
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Dow’s Approach to Workforce Analytics
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Dow’s Approach to Workforce Analytics (contd)
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Dow’s Approach to Workforce Analytics (contd)
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The Base Model
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How the model worksProjecting future supply (Unit Headcount)
Tool extracts data from PeopleSoft to produce a snapshot of the unit’s 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.
Dow’s strategic staffing simulator models how today’s 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 unit’s workforce.
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How the model works (contd)Projecting demand (Target Headcount) Dow’s 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 strategies
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Technology Used
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Strategic Simulator Screenshots
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Strategic Simulator Screenshots
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Workforce Analytics KPIs from Peoplesoft and Strategic Simulator
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Understanding a Unit’s 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...
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Challenges
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Challenges
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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 Dow’s U.S. employees is lower than in Europe.Skews global retirement projections because the company has so many U.S. employees.
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Bind Talent management to SWP
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BenefitsDow 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 today’s 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.
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BenefitsKeeping target headcount in mind, Dow’s 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.
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Way forward Establish definitive and consistent data that is universally accessible Keep 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