Predictive Analytics - PASIA MANALO-MAPAGU.pdf · Organizations are turning to predictive analytics...
Transcript of Predictive Analytics - PASIA MANALO-MAPAGU.pdf · Organizations are turning to predictive analytics...
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Predictive Analytics:Best Practices in Attracting, Selecting, and Retaining Talents
Liza Manalo-MapaguCEO of HR Avatar Philippines
Presentation toUnited Portusers Logistics Summit
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CEO of HR Avatar Asia Former Managing Director of Assessment Analytics Consulting Director of Strategic Consulting Services Assistant General Manager of Eduquest, Inc. Director of Center for Educational Assessment and Research, Human
Resource Development Center at the De La Salle-University-College of Saint Benilde
Head of Evaluation of De La Salle University-Institutional Testing and Evaluation Office
Competency Profiling and Assessment projects for major corporations in the Philippines.
A BS Psychology graduate from University of Sto.Tomas Master’s Degree in Measurement and Evaluation at De La Salle University Ph. D course in Research and Evaluation at the University of the Philippines. Certified by British Psychological Society (BPS) on Levels A and B Assessment Certified by SHL to Conduct Courses Under the CEB SHL Training Academy
Liza Manalo- Mapagu
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Presentation Agenda
Why Use Predictive Analytics?
What is Predictive Analytics?
How can Predictive Analytics be used for Talent Acquisition
and Development? (5 Best Strategies)
What is HR Avatar?
How can HR Avatar be used by HR Managers for Talent
Management
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The value of talented people
“Organization doesn't really accomplish anything. Plans don't accomplish anything, either. Theories of management don't much matter. Endeavours succeed or fail because of the people involved.
Only by attracting the best people will you accomplish great deeds”
Colin Powell former US Secretary of State
“The chances are good that up to 66% of your company's hiring decisions will prove to be mistakes in the first twelve months”
Peter Drucker, The Management Guru
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The cost of a Talent walking out the door
Organisational Knowledge Lost
Performance and motivation impact on direct report
Time lag to competence
Lose talent to competitor
Wasted Recruitment Spend
“the cost of employee turnover is one-and-a-half the amount of employees monthly salary…..and the cost is even more ahigher with first year hires”
The PWC Saratoga Review, 2008
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Attrition is getting worse…
A growing number of new hires -- as well as top-performing employees -- are choosing not to stick around for long.
34.1% in 2013
22.6% in 2012
2014 PwC Saratoga U.S. Human Capital Effectiveness Report
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The SolutionOrganizations are turning to predictive analytics to boost their "quality of hire," and thus reduce the likelihood of first-year turnover
The PWC Saratoga Review, 2014
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Predictive Analytics Defined
Predictive analytics is the branch of data mining concerned with forecasting probabilities. The technique uses variables that can be measured to predict the future behavior of a person or other entity.
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Predictive analytics is the technology that learns from data to make predictions about what each individual will do — from thriving and donating to stealing and crashing your car,“
The power to predict who will click, buy, lie or die.
Predictive Analytics Defined
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How can predictive analytics benefit your pre-employment hiring process
by Jeff Furts
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1. Predictive analytics will help you improve your quality hire
Benefits of Predictive Analytics for TA
hiring process
• performance• attrition data• engagement survey
data
pre-employment assessment results, interview results, recruiting sources, personal data
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2. Predictive analytics will help you source more efficiently and effectively
Hiring managers can trace the hire back to the original hiring source and then link that to quality of hire.
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3. Predictive analytics will help you improve your speed of hire.
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1
0.70-0.99
0.60-0.69
0.50-0.59
0.40-0.49
0.30-0.39
0.20-0.29
0.10-0.19
0.01-0.09
0.00
Assessment Methods - ValidityPERFECT PREDICTION – Impossibly Good
Work Sample tests
Ability Tests / Structured Interviews
Job Knowledge Tests / Group Exercises / Personality Questionnaires
Assessment Centres (poorly designed and facilitated)
References
CV’s/Resumes / Years of Work Experience
Academic Results / Years of Education
Graphology / Age
CHANCE PREDICTION – Impossibly Bad
Source: Journal of Occupational and Organisational Psychology (2001), 74, 441 – 472. Robertson, I.T & Smith, M.
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“The objective of predictive analytics applied to recruiting is to help organizations more effectively deploy resources, and drive higher quality and greater longevity of new hires.”
Benefits of Predictive Analytics for TA
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Job Fit
Culture Fit
Performance
Retention
Potential
Trainability
What do you want to predict?
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How to use predictive analytics for predicting:
•Trainability•High Performance•Culture Fit
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Competencies is at the heart of the human capital management cycle….
Acquire Talent
Deploy
Talent
Develop Talent
RewardTalent
Retain Talent
Measure Quality ofHire
Assess for potential
Career pathing
Foster engagement
Talent matching
Succession planning
Development needs
COMPETENCIES
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A Competency is:
• “a cluster of related knowledge, skills and attitudes that affects a major part of one’s job (a role or responsibility) that correlates with performance on the job.
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• Threshold
• Differentiating
• Core
• Technical
(Spencer & Spencer, 1993)
Types of Competencies
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“Threshold” are essential characteristics required for all job incumbents to perform the job at a minimal level of proficiency.
Example: Cognitive Ability, Language Proficiency, Positive Work Attitude, Basic Skills
To predict: TRAINABILITY
POTENTIAL
Types of Competencies
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“Differentiating” competencies distinguish superior
from average performers.
Example:
Results-Orientation, Multi-Tasking, Selling and
Negotiation, Customer Service, Quality Focus
To predict: HIGH PERFORMANCE
Types of Competencies
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Core competencies are characteristics that must be
possessed by every member regardless of their level
of performance; they extend to all individuals in the
organization.
Core competencies support the
organization's mission, vision and values
To predict: CULTURE FIT
Types of Competencies
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Distinctive (Technical) competencies are position-specific KSAs.
Example: Selling and Negotiation, Territory Management, Product Knowledge
To predict: PERFORMANCE
Also use for TRAINING NEEDS ANALYSIS
Types of Competencies
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Best Practice #1
Predicting HIGH PERFORMERS through establishing
Success Profiles
Concurrent Validation Studies(Internal Benchmarking Study)
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This Performance Benchmarking Study aims:
Why will you set Success Profiles?
To improve the company’s ability to:
• Predict top performers
• Hire talents within the competency
standards of the company
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Presentation of Data
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Frontline ManagerOverall Score Comparison between High and Low Performers
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Frontline ManagerComparison between High and Low Performers
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Frontline ManagerComparison between High and Low Performers
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Frontline ManagerComparison between High and Low Performers
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Frontline ManagerComparison between High and Low Performers
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Identify the best predictors of performance through PredictiveValidation Studies
Best Practice #2
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Predictive validity is the extent to which a score or test predicts scores on some criterion measure.
Independent Variables Dependent Variables
(X=Predictors) (Y=To be Predicted)
Predictive Validity
• Personal Factors• Knowledge• Skills• Attitudes• Job Satisfaction• Engagement
Job
Performance
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Variables R2 Change of R2
1. Cognitive 0.20
2. Interview 0.12 0.016
3. Job Experience 0.10 0.015
4. Education 0.09 0.010
% of Prediction 0.241
Regression Summary Table for Job Performance
It can predict 24%
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Use of assessment solution to predict:
TrainabilityPotential
Best Practice #3
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Top 8 High-Impact Talent Acquisition Practices
High Impact Talent Acquisition Bersin by Deloitte, 2013
http://www.slideshare.net/jbersin/highimpact-talent-acquisition-research-findings
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“Threshold” are essential characteristics required for all job incumbents to perform the job at a minimal level of proficiency.
Example: Cognitive Ability, Language Proficiency, Positive Work Attitude, Basic Skills
To predict: TRAINABILITY
POTENTIAL
Types of Competencies
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How can HR Avatar help you in predicting:
TRAINABILITY?
PERFORMANCE?
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Packages According to HR Initiatives
Talent Acquisition
oCampus Recruitment
oProfessionalsoManagers
Process-People-Technology Solution through HR Avatar
Confirmatory Job Analysis (Threshold)
Capability Training for the Recruitment Team on:Design of Testing ProgramBehavioral Event Interviewing
“CareerMatch”
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Wide Range of Assessments
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Better Hires Through the Right Talent Data
Does the candidate:
Have the ability to learn and master all aspects of the job once hired?• Attention to detail• Analytical thinking
Have personality traits that ‘fit’ the needs of the job – to ensure tenure?• Expressive enough for sales?• Conscientious?• Etc.
Have the right attitude towards work?
Have a history of behaviors that correlate with consistency and tenure?
Have the specialized skills or knowledge needed for the job?
Cognitive Simulation
Personality Inventory
Personality Inventory
Behavioral History
Skills and Knowledge Modules
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Job-Specific
Based on US Government Occupational Information Network (O*NET)
Designed exclusively for quality of hire
Each test contains:• Animated work simulation (cognitive abilities)• Personality inventory• Behavioral history questionnaire• An automatically scored essay*• One or more job-related skills or knowledge
tests*
* Included when appropriate for the job.
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Individual Test Report
Designed for quality of hire
Includes targeted interview guide
Fully supports custom profiles
Self-interpreting
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Overall Weighted Score
Individual Scores
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Percentile scores
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Interview Guide using Behavioral Event Interviewing
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Use of assessment solution to predict:
• Leadership Potentials• Retention
Best Practice #4
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How to use predictive analytics for predicting:
• Leadership Potential
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High-Performers vs. High Potentials
WHO are potential candidates to the Talent Pool?
High-performers give immediate
return on investment, with
estimates averaging from more
than 50% additional value, to as
much as a 100% increase in
productivity over average
performers.
iii Corporate Leadership Council, Executive Summary, February 2005. William D. Koch, Directions: Closing the Gap Between the
Best and the Rest, Development Dimensions International, 2007.
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WHO are potential candidates to the Talent Pool?
High-potentials are typically
defined as those
demonstrating high-level
contributions, organizational
values, potential to move up
to an identified position within
a given timeframe, and
potential to assume greater
responsibility
iii Corporate Leadership Council, Executive Summary, February 2005. William D. Koch, Directions: Closing the Gap Between the Best and the Rest,
Development Dimensions International, 2007.
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“Most high-performers are NOT high-potentials BUT all high-potentials are high-performers.”
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Assessment of Leadership Potentials
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Types of high-performers who fail to become high-potentials
“Engaged Dreamers” have high motivation,
but only average ability.
“Unengaged Stars” have aspiration and
ability, but do not fully believe in their work or
organization.
“Misaligned Stars” have ability and
organizational commitment, but lack the drive
and ambition for success at the next level.
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IntellectualInterpersonal (Personality)
Engagement Aspiration
How do we assess High Potentials?
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The First-Line Supervisory Fundamentals skills test is a fast, easy way to confirm whether a candidate has a basic understanding of the core principles involved in supervising others.
The test asks questions from a bank of questions for testing security purposes. HR Avatar periodically adds new questions to this bank to prevent cheating and to stay current with developments in leadership, management and supervisory principles.
Topics within the discipline of supervising employees that are covered in the test include: • Professional Development• Dealing with Poor Behavior• Working with People• Roles and Responsibilities• Controlling• Interviewing
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HR AVATAR HIGH-POTENTIAL SOLUTION
Intellectual Fit: Analytical Thinking and Attention to Details and Accuracy
Personality Fit: The natural leader defined in Big Five terms is resilient (N-); energetic, outgoing and persuasive (E+); visionary (O+); competitive (A-); and dedicated to a goal (C+).
Basic Functional: Knowledge of Frontline Management Fundamentals, Communication Skills
Motivation Fit: Aspiration to go up to the corporate ladder
Engagement: Being physically, psychologically and intellectually involved at work.
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How to use predictive analytics for predicting:
• Retention
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What are the drivers of attrition and retention?
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1. New hires are disillusioned because the organization failed to provide a realistic preview of the job
2. Employees are hired into or assigned a job that doesn’t match their talents
3. Not getting enough performance coaching and feedback
4. Feeling devalued, ignored, and unrecognized
5. Seeing little or no opportunity for career growth and advancement
6. Feeling extreme negative stress from overwork, workplace conflicts, and work/life imbalance
7. Loss of trust and confidence in senior leaders
Saratoga Institute Survey Research“Why Employees Leave”
Based on analysis of 19,700 surveys from 1998 through 2004 across 17 different industries.
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Regarding retention - Why do people leave?
Employee KSAOs - traits, motivations, interests, skills, abilities, experiences -explain an estimated 10% of workforce turnover
Job Factors
Manager
KSAOs
External
Factors
(e.g., Job
Market)
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BETTER MANAGERS – Developing managers who know how to build teams,
manage performance, develop individuals to their full potential, and help them
achieve success on the job.
BETTER MATCHING – Use of employee assessment that can spot and
develop people who "fit" with the job description, the company culture, and the
supervisor or manager.
BETTER INTEGRATION -- Design of effective orientation and "Onboarding"
programs to build enthusiastic employees that stay longer.
BETTER CONNECTIONS – Provide an environment that build productive
relationships with their co-workers and supervisors.
BETTER CULTURE – Identify the critical drivers employees need and expect
from their job that drive high employee retention.
What can we do to arrest attrition?
Gregg Smith: “High Turnover to High Retention”
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What is the role assessment in RETENTION?
Employee KSAOs - traits, motivations, interests, skills, abilities, experiences - explain an estimated 10% of workforce turnover
External
Factors
(e.g., Job
Market)
KSAOs
Manager
Job
Factors
90-Day Retention Rate Comparison between Low and High OVERALL Scorers on the PreVisor Solution
73.0
87.0
70
75
80
85
90
90
-Da
y R
ete
nti
on
Ra
te
bottom 30% top 30%
“For every 100 low scoring applicants
we screen out and instead hire 100 high
scorers, we retain 14 more people and save
$94,010 in turnover and replacement costs.”
- Actual Client example
But even small effects can have powerful business impact…
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Maximize the value of giving feedback and validation of talent data with the talent.
Best Practice #5
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The talent…a human being
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Feedback process
Feedback and Exploration
Explain Dimension
Explain Position
Qualify
Probe
Explore Impact
Link
Summarise
85
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• Predictive analytics offers tremendous opportunities to use historical data in a way to predict future behaviour.
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Data may NOT tell the entire story.
Understanding the story is critical.
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Imagine HR being able to
predict which new hire has
the highest probability of
turning out to be a top
performer and effective
leader?
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Better breed of talents
Culture of excellence
High performing organization
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People are the key to
organization’s present and
future success.
“Get the right people
on the bus.”Jim Collins
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“MEASUREMENT MATTERS:
If you cannot measure it…you cannot manage it.”
Robert Kaplan and David Norton