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Get your Insider’s Guide to Workforce Analytics. Learn the definitions of key terms, see examples of metrics and analytics, and discover how to measure your company’s workforce analytics maturity. Plus, learn about common approaches to workforce analytics and hear case studies of analytics in action.
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INSIDER’S GUIDE TO WORKFORCE ANALYTICS
Dave Weisbeck, CSO, Visier
Wednesday, March 5th, 3pm ET / 12pm PT
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Founded analytic industry veterans including former Business Objects CEO, John Schwarz
Won both HR Executives Top HR Product, and named Awesome New Technology at HR Technology conference
The only complete cloud-based workforce analytics and planning solution that integrates your data, answers best-practice questions and has you productive in 4-8 weeks
Smart. Intuitive. Complete.Workforce Analytics & Planning.
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TODAY’S AGENDA
1. A framework : key terms and definitions
2. Examples of metrics and analytics
3. How to measure “workforce analytics maturity”
4. Common approaches to workforce analytics
5. Case study examples of analytics in action
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POLL QUESTION - WHERE ARE YOU TODAY?
Over the next 12 months, your organization is:
1. Looking at workforce analytics for the first time (just starting)
2. Researching workforce analytics approaches (learning more)
3. Evaluating workforce analytic solutions (considering options)
4. Expanding existing workforce analytics (changing approaches)
5. Implementing a new workforce analytics solution (overhauling)
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KEY TERMS
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DEFINITIONS
METRIC
ANALYTICS
A system of measurement that seeks to quantify performance.
The systematic computational analysis of data or statistics.
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THE TACTICS
Data Discovery – data navigation and guided exploration that allows for exploring data to find answers to questions
Monitoring – to provide an at-a-glance way to see a summarized view of multiple metrics
Publishing – formatted content regularly created for and consumed by stakeholders
TACTIC
Report
Query &Analysis
Dashboard
Metric Measuring – A of measurement that seeks to quantify performance
PURPOSE
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TACTICS, STRATEGIES AND GOALS
We create and use:• Reports• Dashboards• Metrics
To enable better decisions about the workforce
So that, we can improve business outcomes
TACTIC STRATEGY GOAL
A N A LY T I C S
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MOVING BEYOND TACTICS
TACTICS
Measure single data points
Provide information - what
Guide operations
State past and present
Tabular outputs of counts and rates
ANALYTICS
Connect multiple data points
Provide insights - why
Drive strategy
State past, present, and predict the future
Visual outputs of patterns and trends
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EXAMPLES OF ANALYTICS
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RECRUITING EFFECTIVENESS
“Recruitment is the HR function that has the most positive impact on revenue creation and profitability…”
Boston Consulting GroupFrom Capability to Profitability July 2012
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COMMON RECRUITING METRICS
Common Metrics Time to Fill Open Requisitions Cost to Hire Quota Attainment
Shortcomings
Do not answer strategic questions about quality and value Do not provide insight into hiring connections to productivity (revenue
creation and profitability)
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BEST PRACTICE ANALYTICS
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TALENT RETENTION
“Voluntary Resignations are at a 5-year high.”
Bureau of Labor StatisticsJob Openings and Labor Turnover SurveyOctober 2013
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COMMON TALENT RETENTION METRICS
Common Metrics
Turnover Turnover
and… Turnover
Shortcomings Does not provide insight into why resignations are occurring Does not allow for meaningful preventative action Not all turnover is bad!
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CONNECTING TO BUSINESS THROUGH COSTSC
OST (
$)
TURNOVER RATE
Cost of Turnover(replacement)
Cost of Retention
Financial Benefit of Replacing
Financial Benefit of RetainingO
ptim
al T
urno
ver
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BEST PRACTICE ANALYTICS
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TOTAL COST OF WORKFORCE
“Total workforce costs average nearly 70% of a company’s operating expenses.”
Society for Human Resources Management
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COMMON COMPENSATION METRICS
Shortcomings Do not support strategic decisions about compensation Do not identify areas for optimization
Common Metrics
Salaries Total Direct Compensation Market Compensation Ratio Compa Ratio
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WHERE TO START?
Direct Compensation
Indirect Compensation
DeferredCompensation
ContingentLabor Costs
Create a Cost Hierarchy:
Total Cost of Workforce (TCoW)o Total Salarieso Total Benefits
Direct Compensation
Contingent Labor Costs
Build from the bottom (right to left on this diagram)
Total Cost of Workforce (TCoW)
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BEST PRACTICE ANALYTICS
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BUILD COSTS INTO YOUR PLANS
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EMPLOYEE MOVEMENT
Structure is the organizational hierarchy, distribution of work, and business units
Network is the relationships and connections between people within the organization
No matter how correct your structure, if the network is missing your organization will not perform at its best
Structure Network Organization
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COMMON MOVEMENT METRICS
Common Metrics
Headcount and/or FTE Turnover Internal Moves External Hires
Shortcomings Do not provide insight into
impact of employee movement
Do not correlate movement to other factors
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BEST PRACTICE ANALYTICS
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MEASURING “WORKFORCE ANALYTICS MATURITY”
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BERSIN’S TALENT ANALYTICS MATURITY MODEL
Level 1: Reactive – Operational ReportingAd hoc, reactionary
Level 2: Proactive – Advanced ReportingRoutine, benchmarking, dashboards
Level 3: Strategic AnalyticsSegmentation, analysis, people models
Level 4: Predictive AnalyticsPredictive models, scenario planning
Source: Bersin by Deloitte 2013
56%
4%
10%
30%
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A MAP TO WORKFORCE ANALYTICS MATURITY
Self-serve Analysis
PredictiveDashboardsReporting
Level 1:Reactive
Level 2:Standardized
Level 3:Focused
Level 4:Strategic
Reach in Data and Users
Assess Maturity Model Status
Analytic Capabilities
Core HRISData
PerformanceData
Compensation All Talent Data
Business Data
Recruiting
Executives HR Department Business Leaders All People LeadersAnalysts
Business Impact
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WORKFORCE ANALYTICS MASTER PROFILE
Reactive Standardized Focused Strategic
Path to maturity
Op
erat
ion
al t
o S
trat
egic
“Get it done”
“Be Consistent”
“Aligned with the business”
“Drive the business”
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Limited linkage between various
systems
Multi-system integration
MATURITY MODEL
• One off reports
• Highly manual• Spreadsheet-
based
• Predictive analytics align to specific business strategy
• Single data source
• Consistent scheduled reports
• Business-specific dashboards and visuals
• On-demand answers
Get it done.Drive the business.
Be consistent.Align with the
business.
Analytic Capabilities
Focus
Single System Big Data
AnalystsAll People Leaders
HR & Executive Leaders
Business & HR Leaders
Reach in Data
Reach in Users
Reactive StrategicStandardized FocusedLevel
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COMMON APPROACHES
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ANALYTICS LANDSCAPEH
R D
omai
n Sp
ecifi
city
Analytics Capabilities
HR CORE APPLICATIONS
• Operational / transactional metrics and reports
• Standardized • Self-service options• Application-specific data
SPREADSHEET SOLUTION
• Manually created• Non-standardized• Prone to error• No self-service
BUSINESS INTELLIGENCE SOLUTION
• Expensive and lengthy to implement and update
• Requires IT expertise• Requires data warehouse• Designed for technical user,
rather than business user
WORKFORCE ANALYTICS
• Purpose-built for workforce analytics
• Short implementation• Possibly skip data warehouse• Designed for HR and the business
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ANALYTICS LANDSCAPEH
R D
omai
n Sp
ecifi
city
Analytics Capabilities
HR CORE APPLICATIONS• Operational / transactional
metrics and reports• Standardized • Self-service options• Application-specific data
SPREADSHEET SOLUTION• Manually created• Non-standardized• Prone to error• No self-service
BUSINESS INTELLIGENCE SOLUTION
• Expensive and lengthy to implement and update
• Requires IT expertise• Requires data warehouse• Designed for technical user,
rather than business user
WORKFORCE ANALYTICS
• Purpose-built for workforce analytics
• Short implementation• Possibly skip data warehouse• Designed for HR and the business
BAD
REACTIVE
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Buy & Deploy ETL Tools
Buy & Deploy Warehouse
BuildWarehouse12-36 months
Buy & Deploy BI Platform
interview users
map data to BI model
interview users
build reports & dashboards
I need a new report, and new questions! And how do I plan?
deliver analytics
START HERE
END HERE18-40 months
HIGH FAILURE RATES OF BI:
“… More Than 50 Percent of Data Warehouse Projects Will Have Limited Acceptance or Will Be Failures”
“Between 70% to 80% of corporate business intelligence projects fail…”
Gartner
HIGH COST OF BI PROJECTS:
“… survey put average price for a data warehouse at $2.3M and average payback at 2.3 years.”
“…time to implement [a data warehouse] ranges from 12 to 36 months”
IDC
Services for Analytic Content
BUSINESS INTELLIGENCE (BI) CHALLENGE
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CASE STUDIES: ANALYTICS IN ACTION
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CONAGRA FOODS
Challenges Numerous, manually-created reports Complex HRIS with limited analytics capabilities Home-grown analytics solution that could not keep up with
demand Changing workforce data that was difficult to access
Solution Visier Workforce Analytics
Results 30 day implementation Delivers self-service analytics, with over 300 workforce
answers, out of the box Fact-based decision making and initiatives:
– Identified attrition most at risk for people with a specific age, ethnicity, gender, and tenure profile
– Predicted turnover was at risk of increasing for successor-level positions
Download at www.visier.com
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INFORMATICA
Challenges Workforce data in a limited, tabular format Difficult to produce workforce analytics,
requiring IT time and expense Operational reporting from Workday (vs.
strategic)
Solution Visier Workforce Analytics
Results Self-service analytics for the whole business Removal of dependency on IT Actionable insights, based on predictive
analytics
Download at www.visier.com
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Plus additional reports and on-demand videos on: Case Studies Whitepapers From HR Metrics to Analytics Big Data for HR And others…
Download these reports, on-demand webinars and more here:http://www.visier.com/resources/
Where to learn more…
Five Steps to Getting Started with Workforce Analytics
Find out how you can simplify and accelerate your journey from HR metrics to workforce analytics.
Watch the Recorded Webinars and Hear from ConAgra Foods and Informatica Directly
Mark Berry, VP People Insights ConAgra Foods
Kumud Kokal, Sr. Director HR Technology and Operations Informatica
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Q&A
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