Creating Value Through People Analyticsacton.the-tma.org/acton/attachment/28093/f-012f/1/-/-/-/-/Jacklynn... · Future of Retail Source: ... Why a KPI and not Metrics Division Avg

Fall 2016

Creating Value Through People Analytics

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Our Winning Strategy

Meijer

• 230 supercenters and grocery stores throughout Michigan, Ohio, Indiana, Illinois, Kentucky and Wisconsin employing over 70,000 team members

• Privately-owned and family-operated company since 1934

• Pioneered the “one-stop shopping” concept which now includes fresh produce and meat departments, as well as pharmacies, comprehensive apparel departments, garden centers and electronics offerings

• HR Priorities: • Ensuring the organizational structure supports future growth & business results • Investing in our team members to drive retention and engagement • Executing on our HCM Roadmap to support strategic talent decisions and drive key HR

program and policy deployment

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Agenda

The Need to Shift to Business Outcomes

Development of an HR Value Stream

Linking Workforce Insights to the HR Value Stream

Measuring Business Impact

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Shifting to Business Outcomes

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Great HR is Strategic

The best people decisions drive the best business outcomes

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Great HR leads to Great Companies

“Eight years of research into Watson Wyatt's Human Capital Index® (HCI) has consistently found a strong correlation between effective HR program design and financial performance. Indeed, the link goes beyond correlation: Effective 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 performance show a greater need for action 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 Consulting Group

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Changing Expectation for HR Leaders

Source:The Changing Role of the CHRO, Harvard Business Review

Analytic Services, April 2015

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Talent Strategies are top CEO Priority

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The War on Talent

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Development of an HR Value Stream

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What is a Value Stream

Lean Lexicon 5th Edition Defines a Value Stream:

“All of the actions, both value-creating and non value-creating, required to bring a product from concept to launch (also known as the development value stream) and from order to delivery (also known as the operational value stream). These include actions to process information from the customer and actions to transform the product on its way to the customer.”

• The growing use of mobile among consumers.

• New payment methods are becoming more mainstream.

• Retailers are investing in their workforces to attract and retain top talent.

• Retailers fight discounting with a focus on merchandise.

• Omnichannel is not an option for retailers anymore – ‘it is just business’

• Retailers and tech companies are disrupting the traditional delivery model.

• Retailers are adjusting store formats and merchandise to target urban customers.

• Brick-and-mortar is becoming more of an experience.

• Commerce is coming to social media.

• Retailers investing more and more in e-commerce.

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Future of Retail

Source: http://www.retaildive.com/news/10-trends-shaping-the-future-of-retail/404793/

http://www.retaildive.com/news/10-trends-shaping-the-future-of-retail/404793/

Attract: Cultivating an employment value proposition that attracts top talent,

making Meijer an employer of choice.

Develop & Deploy: Planning and managing for our talent in ways that drive

the business while enabling higher job performance through the delivery of

development solutions allowing us to win with our team.

Engage & Retain: Driving team member’s passion and commitment while

fostering a culture of inclusion to drive business results.


HR Value Stream at Meijer

Attract

Develop & Deploy

Engage & Retain

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Linking Workforce Insights

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Why a KPI and not Metrics

Division

Avg Hourly Rate

FY17

Q1 P2

FY16

Q4

FY16

Q3

FY16

Q2

Stores Total $15.71 $15.70 $14.98 $15.02

FT $15.85 $15.85 $15.74 $15.45

PT $14.49 $14.46 $14.27 $13.84

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Business Area

Full Time

Part Time

Stores 30% 70%

Supply Chain 85% 15%

Corporate 95% 5%

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Hires Promotions

Diverse 30% 15%

Non Diverse 70% 85%

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Meijer Workforce Insights

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KPI: Leadership Movement

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KPI: New Hire Turnover

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Behind the KPI: New Hire Turnover

Team Members: Less Than 1 Year Team Members: Greater Than 1 Year

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KPI: Diversity Against National Average

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KPI: Impact of Right to Work

692691

355

663

643

301

Q3 Q4 Q1 Q2 Q3 Q4

2016 2017

-60

40

140

240

340

440

540

640

740

RTW Declined Membership

Originally Declined Membership Continue to Decline Membership

85%

95% 93%

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KPI: Applicant Flow Funnel

Attract

Grow

Engage & Retain

Deploy


Future StateAttract Quality of Hire: Leveraging Quarterly Performance Checks Ins For New Hires

Grow Pivotal Roles with Ready Now Successors*Ready Now Successors by Role/Level*Leadership Development Programs Effectiveness

Engage & RetainOpen Store Leadership Positions – Show Churn which impacts Engagement & Retention*Engagement and Pulse Data showing real time trends*

Deploy % of Pivotal Roles filled with Exceeding Expectations* YTD Payroll VS. Plan and LY With Forecast* Disruptive Turnover – Loss off Top Talent & Above Staffing Assessment Data from Ken Barton (Future TBD)

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Business Impact


Business Impact

Increased WagesChanges to Corrective Action Process

Recognition Platform Introduced

Turnover Reduction

Increased Engagement

Increased Applicant Flow

Cashier Performance

Customer Satisfaction

Same Store Sales

HR Program Introduction Typical Measurements Business Impact

Questions?

Fall 2016

Documents

Creating Value Through People Analyticsacton.the-tma.org/acton/attachment/28093/f-012f/1/-/-/-/-/Jacklynn... · Future of Retail Source: ... Why a KPI and not Metrics Division Avg