Talent insights ...How to proactively bring them into your business

How to proactively bring talent insights to your business

Aon Hewitt | Talent, Reward & Performance

Proprietary & Confidential | 4 December 2015 2

Faster, better, more accurate decisions on

investing in talent.



The talent landscape is changing...



Talent is a critical risk area for organisations today

1

2 3 4

6 7

8 9 10

Damage to

reputation/brand

Economic

slowdown/slow

recovery

Regulatory/

legislative changes

Increasing

competition

Failure to

innovate/meet

customer needs

Business

interruption

Property

damage

Cyber

crime

Third-party

liability

The Global Talent Index Report : Economist Intelligence Unit

“...there remain today

serious shortages of

recruits with the critical

soft skills companies

require most.”

5 Failure to

attract or

retain top

talent

Source : Aon Global Risk Management Report : 2015



6 megatrends that impact talent as a critical risk

Globalisation Social, mobile &

cloud

computing

Demographic

shifts

Shifts in social

and political

awareness

Technology

changing how

we work and

learn

Analytics

Increased mobility of talent

and competition for talent.

Talent cares more now

than ever about social

responsibility.

Workforces simultaneously

becoming younger and

older.

Major shift towards using

data to align talent strategy

with business strategy.

Increased automation of

rote tasks, greater

emphasis on

collaboration and

learning.

Creating the extended

enterprise and converging

value-chains.

5

Failure to

attract or retain

top talent



Data & Analytics is fast becoming a key talent enabler...



High performance firms use analytics to gain an advantage

Financial management and budgeting

Operations and production

Strategy and business development

Sales and marketing

Customer service

Product research and development

General management

Risk management

Customer experience management

Brand or market management

Workforce planning and allocation

1 0 2 3 4 5 6 7 8

Tendency to apply

Analytics Tendency to apply

Intuition

22

Top performing organisations Lower performing organisations

Source: MIT Sloan Management Review, in collaboration with the IBM Institute for Business Value

Note: A likelihood of 1.0 indicates an equal likelihood that the organisations will use either analytics or intuition.

Workforce planning and allocation



Data Analytics Matter...

46% of CEOs say they have already

implemented dedicated “people

analytics”

but that’s only part of the story…

Source: PwC’s Trends in People Analytics 2015

86% of CEOs say that creating or

improving “people analytics”

is a strategic priority for the

next 1-3 years



Prescriptive Analytics Matter…

78% of US CEOs are concerned

over the availability of key

skills

Executives are increasingly pressuring HR to produce

evidence-based insight on critical talent to drive

business outcomes

Source: PwC’s 18th Annual CEO Survey



Unifying for better talent outcomes...



Assessing and selecting for engagement

Leaders Who Drive Engagement

Drive >

< Cooperativeness,

Sensitivity

< Composure,

Positivity

< Liveliness

rxy = .70

People Who Are Engaged

rxy = .30

< Cooperativeness,

Sensitivity

< Positivity

Drive >



Starting with the basics – integrating leadership competencies

70%

85%

90%

80%

80%

75%

90%

80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Recruiting leaders from outside the company

Selecting leaders from within the company

High potential (or equivalent) identification

Performance planning and reviews

360-degree feedback for development

Promotion decisions

Leadership development

Leadership assessment

% of organisations integrating competency frameworks with other talent practices

Top Companies for Leaders

Other companies

Source: Aon Hewitt Top Companies for Leaders



Starting with the basics – integrating leadership competencies

70%

85%

90%

80%

80%

75%

90%

80%

39%

48%

61%

42%

61%

55%

68%

52%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Recruiting leaders from outside the company

Selecting leaders from within the company

High potential (or equivalent) identification

Performance planning and reviews

360-degree feedback for development

Promotion decisions

Leadership development

Leadership assessment

% of organisations integrating competency frameworks with other talent practices

Top Companies for Leaders

Other companies

Source: Aon Hewitt Top Companies for Leaders



148% Increase

.103 CAGR EBIT

98% Increase

-.004 CAGR EBIT

...and it pays off

Low Medium High

Degree of Integration of

Competencies

-.216 CAGR EBIT



Aligning leadership and engagement interventions

20%

No Engaging Leader

Interventions

Nothing

30%

1.5x

Select Leaders Based

on Ability to Engage

Others

Select

50% 2.5x

Coach Leaders to

Engage Others

Coach Is a Top

Company

Not a Top

Company



A curious mind, a bit of data and some simple math creates big impact

“Curiosity was framed. Ignorance killed the cat.”

Anon.

Having the intellectual curiosity to ask “why?” and

“what?” is as important as knowing the “how.” As the

architect of the HR strategy and HR service delivery

model, the CHRO is expected to be open to

learning and understand the contemporary trends in

the field. He/she cannot have a static mindset or

constantly fall back only on prior experience. Source : Developing the next generation of HR leaders. Key findings from the ‘Learning to fly’ study

(Aon Hewitt 2015)



No longer look at the past and guess about the future.

Predict it.



Cloud Computing

(Multi-tenancy)

Mobile &

Consumerisation (iOS, HTML5)

Big Data (Hadoop)

86% of CEOs expect tech to transform business over the

next 5 years.

39% believe HR is well-prepared.2

Technology Advances



What is Big Data? Our apps are collecting

data all the time.

Define the question. Use the data to unlock

the answer.

Big Data

How does it work? The power of analysing all this data with a state-of-the-art

machine learning platform.



What Happened?

Why did it

happen?

What will happen?

What should I do?

Types of Data Analytics

DESCRIPTIVE

DIAGNOSTIC

PREDICTIVE

PRESCRIPTIVE

Description of what has already

happened

Exploration of meaningful

information

Prediction of future outcome

based on historical data

Recommendations based on

predictive model output



Example: Weather Data

Severe chill and snowstorm

What Happened?

El Niño

Why did it happen?

Forecast travel conditions due to weather

What will happen?

Recommend rerouting travel either to…

What should I do?

DESCRIPTIVE

DIAGNOSTIC

PREDICTIVE

PRESCRIPTIVE



Talent Management is Changing

1995

2005

2015

PROCESS-CENTRIC

INTEGRATED

DATA-DRIVEN



Example: Descriptive Talent Analytics



Predicting the “Talent” Future

RECRUITING How can I predict who will stay longer?

Do teams that collaborate more get better results?

ONBOARDING How can we ramp up new hires more effectively?

CONNECT

LEARNING How can I predict who will be out of compliance?

Which pay structures improve performance?

PERFORMANCE Which factors predict higher performance?

COMPENSATION

Which skills or competencies drive promotions? SUCCESSION



Succession Planning

Predictive Succession

Predict employees with

high potential to succeed in

a new role in the near term

See which factors drive

success predictions


Proprietary & Confidential | 4 December 2015 27 27



Career Mobility

Career Planning

Understand mobility

throughout your

organisation

Create career paths &

development plans

automatically using

your own data

Note: Designs and features may or may not be different than illustrated.



Flight Risk

Flight Guide

Retain high performers for longer

Reduce replacement costs &

knowledge loss

Lower attrition & delayed

projects

Uncover flight risk predictive

factors

Enact policies to reduce future

risk




Compliance Risk

Compliance Guide

Reduce risk for regulatory fines

Help prevent employee downtime

Uncover non-compliance predictive

factors

Get policy change

recommendations to increase

compliance

Understand the factors that drive

compliance



Proprietary & Confidential | 4 December 2015 31 31



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One Solution Single Support Organisation

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Single data model, single repository and Big Data analytics Same experience and configuration across products

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Position

Previous Position

Education

Skills

Certifications

Accomplishments

Languages

Organisation

Preferences

User Collaboration Connections

Live Feed (Status)

Feedback

Actions

Snapshot

Teams

Discussions

Badges

Likes

Comments

Talent Organisation Transcript

Performance

Skills

Goals

Assessments

Development Plans

Succession

Compensation

Applicants

Applicant Status

Industry

Business Unit

Department

Division

Region

Groups

Hierarchies

Cost Center

Grade

Location

22.2M USERS | 191 COUNTRIES | DECADE OF DATA

Cornerstone has “Massive Data”



Cornerstone Analytics

REPORT DISCOVER PREDICT PLAN

Cornerstone

Reporting Standard & custom reports

embedded with

Cornerstone

Cornerstone

View Highly visual dashboards

that can easily slice/dice

talent information

Cornerstone

Insights Predictive analytics for

managing talent decisions

Cornerstone

Planning Big data solution for

workforce planning



Table conversations Where are you on the talent insights continuum “descriptive diagnostic predictive prescriptive”

Of all your talent challenges, where would predictive / prescriptive insights have the biggest impact?



Where are you?



Thank you

Recruiting & HR

Talent insights ...How to proactively bring them into your business