The Datafication of HR in 2016: Graduating From Metrics to Analytics
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Transcript of The Datafication of HR in 2016: Graduating From Metrics to Analytics
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Sarah Sipek Associate Editor Workforce magazine
The Datafica6on of HR in 2016: Gradua6ng From Metrics to Analy6cs
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The Datafica6on of HR in 2016: Gradua6ng From Metrics to Analy6cs
Dave Weisbeck Chief Strategy Officer Visier
The Datafication of HR: Graduating from Metrics to Analytics
Dave Weisbeck, CSO, Visier JANUARY 2016
Maximize your business outcomes, through your people
Analyze: Go from data to insights Align: Go from insights to plans Act: Go from plans to outcomes
Where are our recruiting bottlenecks?
How can we retain critical employees?
What if?
How well did we plan?
How do our total workforce costs breakdown in our plan?
Should I give my team
member a raise?
What are our total workforce costs and how are they changing?
How can we connect Total Rewards to our
bottom line?
How will turnover
impact our future
workforce?
Which workforce scenario will best meet our business goals and budget?
Where should we allocate people to
support the business?
Which Critical Talent is at risk of
resigning?
Who should I promote?
Workforce Analy.cs
Workforce Planning
Visier Workforce Intelligence
Visier is about making both HR and the business better
Agenda
1. Trends & drivers shaping the Datafication of HR
2. The path to data-driven HR: Climbing the Workforce Intelligence Curve
3. How to graduate from metrics to analytics in key HR functional areas
4. Common pitfalls to avoid
Q: To capitalise on the top three global trends which you believe will most transform your business over the next five years, to what extent are you making changes to the following areas?
Talent Strategies is a top area of focus for CEOs
Great HR leads to great companies
“Eight years of research into Watson WyaT's Human Capital Index® (HCI) has consistently found a strong correlaFon between effecFve HR program design and financial performance. Indeed, the link goes beyond correlaFon: Effec6ve HR programs are a leading indicator of financial performance.”
Towers Watson
We found that companies that are stronger in people management have a correspondingly higher financial performance. … In contrast, companies with the worst financial per-‐formance show a greater need for acFon across virtually all 27 HR subtopics… This has been a consistent finding… it is clear that the most successful people companies consistently outperformed the market, by nearly 100 percent.
Boston ConsulFng Group
1996: “Why not blow the sucker up? I don't mean improve HR. Improvement's for wimps. I mean abolish it.”
2005: “Aber 20 years of hopeful rhetoric about becoming "strategic partners" with a "seat at the table" where the business decisions that maTer are made, HR professionals aren't nearly there.”
2015: “It’s Fme to blow up HR and build something new.”
301 executives from companies with $1B or more in revenue from across America— representing a wide range of industries— took the survey conducted on Visier’s behalf by Harris Poll in February 2015.
Changing Expectation for HR Leadership
80% say their company cannot succeed without an assertive, data-driven CHRO, who takes a strong stance on talent issues and uses relevant facts to deliver an informed point of view
78% say their company cannot succeed without a CHRO who takes on responsibility for contributing directly to business performance
362 responses, from companies with more than 500 employees, to a Pulse Poll conducted by Harvard Business Review Analytic Services.
The statistical margin of error is 5.12 percent.
The majority (60 percent) are senior business leaders.
The Changing Role of the CHRO
What the business wants, is what HR wants
A strategic HR organization, that creates talent strategies that align to business outcomes through the use of data and analytics.
Becoming Strategic
HR leaders who are proactive users of data may have a better chance of winning the CEO’s confidence.
HR Executive, Gaining their Trust, Sept 2014
Another key finding is that HR leaders will have a seat at the table for strategic discussions only if they can demonstrate the business impact of HR. …Our experience has found that data-driven, analytical HR departments are more likely to play a strategic role in their organizations, and the survey data supports this.
Boston Consulting Group, Creating People Advantage, 2014-15
HR’s Readiness to Take on Talent Challenges: Analytics one of the biggest gaps
Culture and engagement
Learning & development
Diversity & inclusion
Talent acquisition
22%
28%
30%
31%
31%
32%
37%
38%
40%
41%
Reskilling HR
Leadership gaps
Performance management
HR Technologies
Workforce capabilities
Talent analytics
But only 22% say they are “ready”
to effectively leverage talent
analytics
75% of organizations say
that talent analytics is important
Source: Global Human Capital Trends Study 2015, DeloiBe
No improvement in capabilities from 2014 to 2015
5%
5%
4%
7%
8%
7%
Conducting multi-year workforce planning
Correlating HR data to business performance
Using HR data to predict workforce performance and improvement
2015
2014
% of “excellent” ratings
Source: Global Human Capital Trends Study 2015, DeloiBe
The Path to Workforce Intelligence Maturity
Reactive Standardized Focused Strategic
Workforce Intelligence Maturity à
Busin
ess V
alue
Respond to data requests
Improve HR processes
Align HR with the business
Drive business outcomes
© Visier 2015
The Path to Workforce Intelligence Maturity
Reactive Standardized Focused Strategic
Workforce Intelligence Maturity à
Busin
ess V
alue
Respond to data requests
Improve HR processes
Align HR with the business
Drive business outcomes
© Visier 2015
56% 30% 10% 4%
5% 10% 30% 55%
Current Capability:
Desired Capability:(within 2 yrs)
Reactive Standardized Focused Strategic O
rgan
izat
iona
l Fo
cus
Goal Respond to people data requests
Improve HR processes
Align HR with the business
Drive business outcomes
Reach in users Analysts & planners Plus HR & ExecuFve Leadership
Plus all business leaders
Plus all people managers
Frequency of use One off Monthly reports & annual plans
Plus self-‐service analyFcs & monthly plans
Plus real-‐Fme analyFcs, conFnuous planning, & forecasFng
Func
tiona
l C
apab
ilitie
s
Technology Spreadsheets Spreadsheets & dashboards
Business-‐specific analyFcs, what if scenarios, & collaboraFon
Plus predicFve analyFcs & workforce modeling
Content Standardiza6on
None Basic key HR metrics & headcount-‐only planning
Plus metrics & analyFcs across all HR topics, & cost-‐driven planning
Plus workforce modeling & connecFng to business outcomes
Visualiza6ons Basic staFc charts Basic to intermediate staFc charts
InteracFve, purpose-‐built visualizaFons
Advanced interacFve, purpose-‐built visualizaFons
Dat
a
Man
agem
ent Scope Single system (e.g.
HRMS) Limited linkage between a few systems (e.g. HRMS & Payroll)
MulF-‐system integraFon (e.g. all HR systems + benchmarks)
Plus Big Data (e.g. business systems)
Effort Manual (new each Fme)
Manual to create & update
Automated & single source of the truth
From good to great Workforce Intelligence
M E T H O D O L O G Y approach, skillset, mindset
DO
MA
IN
prob
lem
s, g
oals
, tar
get
§ Ask the right questions § Determine root causes § Connect findings to business
outcomes § Build plan to improve outcomes § Monitor plan & course correct
Domain: Going beyond talent outcomes, to business outcomes
QUALITY OF TALENT
Right people?
COST OF TALENT
Right cost?
QUANTITY OF TALENT
Enough people?
Collaboratively plan with business stakeholders
Link HR planning to business priorities
Monitor, forecast and adjust plan
Learning & development programs
Hiring the right skills
Planning key roles, skills
Right roles, skills & number of employees
Supply & demand of talent
Forecast demand for talent
Current costs, and projected future costs
Beyond compensaFon, to total cost of workforce
Aligned with budgets
BUSINESS OUTCOMES
Methodology: Quantitative, data-driven HR: Connecting HR & Business Outcomes through Workforce Intelligence
Analyze: Go from data to insights Align: Go from insights to plans Act: Go from plans to outcomes
PrioriFze, using data-‐driven insights
Connect HR to the business, to improve operaFonal and financial performance
Hire, develop, retain… based on your plan & ensure accountability
Retention Analyze who is at risk of resigning and how to retain them.
Align on risk areas, resource needs, driving mitigation strategies.
Act on evolving plans in response to changing market conditions and business needs.
Retain criFcal employees, to improve outcomes.
Retention
2016: § Analyze:
§ What is our historical resignation rate? Who is at risk of resigning, who should we retain?
§ Align: § What talent, how many
resources and when, are needed to meet our business goals?
§ Act: § Develop a workforce plan that
considers business strategy, workforce needs, financial constraints, and historic resignation rates
2015: § React:
§ How many people have left, and what is our turnover rate?
§ Turnover by type – voluntary, involuntary, regrettable, etc.
METHOD: ALIGN DOMAIN: COST OF TALENT
View subplan assigned to Emily O’Hara
METHOD: ALIGN
“How do I engage the business to answer how many and when?”
METHOD: ACT DOMAIN: QUALITY OF TALENT
“What is the right acFon to keep this talent? And not cause me to risk losing other talent?”
Bad Data? “Bad” data is a fact of life when it comes to HR data Data only gets good when you shine a flashlight on it Do not let perfection be the enemy of good-enough
“Our data is bad, worse than most, and we need to clean it first….”
Not all decisions are equal: aim for the green zone
Impact of decision
Quality of data Inefficient
Risky decision
Data warehouse / Business Intelligence roadblock?
§ More than 50% of data warehouse projects have fail (Gartner)
§ Between 70-80% of corporate business intelligence projects fail (Gartner)
§ The average price for a data warehouse is $2.3M (IDC)
§ The time to implement a data warehouse ranges from 12-36 months
Modern Workforce Intelligence soluFons will not require you to build or manage a data warehouse
HR system roadblock?
§ Transactional HR systems (e.g. your core HRMS) are not designed for analytics
§ Siloed data & costly / complex data integration § Reporting engine, not analytics engine § Inability to perform multi-dimensional analysis § Incomplete view of workforce costs § Limited workforce planning
“…Unique opportunity for HR professionals to posiFon themselves as fact-‐based strategic partners of the execuFve board”
McKinsey & Company, March 2015
Resources available at www.visier.com
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