Big Data and HR: Efficiency of process or...

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© SHL 2012 December 20, 2012 Version 1.0 COMPANY CONFIDENTIAL Big Data and HR: Efficiency of process or effectiveness of talent? Ray Glennon, PhD, C. Psychol, Senior Psychologist, SHL Dec 5 th 2012

Transcript of Big Data and HR: Efficiency of process or...

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Big Data and HR: Efficiency of process or effectiveness of talent?

Ray Glennon, PhD, C. Psychol, Senior Psychologist, SHL

Dec 5th 2012

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SHL

• SHL is the leader in talent measurement

• We drive better business results through delivering People Intelligence

• We help organisations transform the way they assess, hire and manage talent.

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World-class customers

>50% of Global Fortune 500

>40% of Fortune 500

>80% of FTSE

>50% of ASX

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Today’s journey….

Context: • HR and its need to use data for greater impact An approach to bridging the gap: • Using data to answer strategic questions – SHL Talent Analytics™ The first ‘SHL Talent Report’: • “Big Data Insights and Analysis of the Global Workforce” Talent Analytics Discussion: • Where are you today? What are your challenges

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Today’s journey….

Context: • HR and its need to use data for greater impact An approach to bridging the gap: • Using data to answer strategic questions – SHL Talent Analytics™ The first ‘SHL Talent Report’: • “Big Data Insights and Analysis of the Global Workforce” Talent Analytics Discussion: • Where are you today? What are your challenges

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“If you and your head of HR haven’t recently discussed ideas for using data to generate a talent strategy that’s more closely linked to business results

…it’s time to start.”

People Intelligence data in HR: Not just “nice to have”

Source: McKinsey Quarterly 2011 Source: McKinsey 2011 “Question for your HR chief: Are we using our people data to create value?”

How good is HR at using data to justify its case and drive change?

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“Talent remains no.1 priority for CEO’s”

79%

Q: To what extent do you anticipate changes at your company in any of the following areas over the next 12 months?

Source: PwC 15th Annual Global CEO survey, 2012

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A minority of CEO’s have enough Talent Information

Q: When making decisions, how important is it to have information on each of the following talent-related areas? For those areas that are important to you, how adequate is the information

that you currently receive?

The real question?

“How capable are my people of delivering against my strategy?”

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Today’s journey….

Context: • HR and its need to use data for greater impact An approach to bridging the gap: • Using data to answer strategic questions – SHL Talent Analytics™ The first ‘SHL Talent Report’: • “Big Data Insights and Analysis of the Global Workforce” Talent Analytics Discussion: • Where are you today? What are your challenges

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What can we do about it? People Intelligence

• People Intelligence is the insight into people’s behaviour, ability and potential offered through: ◦ More than 30 years’ experience and innovation

◦ Delivering 25 million assessments a year

◦ A database of over 80 million assessment records across 38 countries, 31 business functions and 40 industry sectors

Helping understand, benchmark and make better decisions about people

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Our scientifically proven assessment products and services include:

• Personality/behaviour

• Assessment centres

• Cognitive ability

• 360 multi-rater feedback

• Job specific solutions

• Interview tools

• Simulations

• Skills tests (IT, Business, etc.)

Objective assessment drives People Intelligence

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“Haven’t we been here before?” (Said the Organisational Psychologist)

Predictors of job performance

Source: Mike Smith, UMIST

Perfect prediction

+.65 Assessment Centres

+.45 Ability Tests/Job Samples +.40 Group Exercise/Personality Composites +.35 Structured Interviews/In-Tray Exercises +.30 Biodata

+.15 Employment Interviews

+.10 Educational Qualifications

Graphology/Astrology/Phrenology

Random prediction 0

+1

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So, there are analytics ....

Descriptive ...

... tells you where you’ve been

Efficiency ...

... tells you about the time and cost of your processes

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Predictive ...

... tells you where you’re going

... and Analytics

Effectiveness...

... tells you what you will achieve when you get there

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Introducing SHL Talent Analytics™

SHL Talent Analytics benchmarks customers’ talent pools against their competitors and is built upon the largest global database on the potential of people to deliver organisational success.

SHL Talent Analytics is benchmarking to gain the People Intelligence that drives business results

SHL Talent Analytics provides data-driven talent insights that improve business performance

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SHL Talent Analytics

What’s in the SHL Database?

• 80+ million data points on potential

25 million every year

• 30 countries

• 37 industry sectors

• 31 business functions

• 5 job levels

Each customer engagement is based on a subset of this data depending

on the clients talent-related questions……

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The questions you want to answer

‘Traditional’ Assessment: The Internal View

• Who are my future leaders?

• Who are my strongest sales people?

• What are the relative strengths my middle management group?

• Which are my top performing functions?

Put an external lens to traditional assessment

Talent Analytics: The External View

• Are my future leaders as capable as the competition?

• Is my sales talent the best in my sector?

• Are my middle managers as strong as others in my industry?

• Are my top performing functions strong relative to the marketplace?

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0

25

50

Leading & Deciding

Supporting & Cooperating

Interacting & Presenting

Analysing & Interpreting

Creating & Conceptualising

Organising & Executing

Adapting & Coping

Enterprising & Performing

Applicants

Invited to Assessment Centre

Interviewed

Hired

SHL Banking & Finance Benchmark

Your recruitment process is screening out Leading & Deciding and Enterprising & Performing strength…

• Is the focus on acquiring talent that “delivers” high enough among recruitment decision-makers?1

• The biggest step change is occurring in your assessment centres; look here first

Overall process effectiveness: Competency

Notes: Benchmark for all applicants reaching each stage in the recruitment process against the banking and finance industry globally. Where bars increase across stages, stronger talent is being acquired. Where the bars decrease across stages, the level of talent is being reduced at successive stages.

% Top talent

1 1

An Example: Evaluating a recruitment process Sample SHL Talent Analytics™ output

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0

25

50

Leading & Deciding

Supporting & Cooperating

Interacting & Presenting

Analysing & Interpreting

Creating & Conceptualising

Organising & Executing

Adapting & Coping

Enterprising & Performing

Direct Applicants

Recruitment Agency Applicants

SHL Banking & Finance Benchmark

An Example: Where do you get your best talent from?

• Direct candidates are stronger on five dimensions1

• Candidates applying via Recruitment Agency sources fall short of the benchmarks for Creating and Conceptualising and Enterprising and Performing2

Effectiveness of applicant source: Competency

Note: Benchmark for all applicants against the banking and finance industry globally.

% Top talent

1

1 1 1

1

2

2

Sample SHL Talent Analytics™ output

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30

60

Leading & Deciding

Supporting & Cooperating

Interacting & Presenting

Analysing & Interpreting

Creating & Conceptualising

Organising & Executing

Adapting & Coping

Enterprising & Performing

Applicants

Hired

Those Who Stay

Those Who Leave

SHL Banking & Finance Benchmark

Hires who leave within a year are taking valuable strengths with them. Why don’t they fit?

• The biggest areas of leakage are Leading & Deciding, Interacting & Presenting and Enterprising & Performing; areas where you already show weakness right from the candidate pool through to new hires1

• These people clearly don’t feel that they fit which is a concern

How new hires who leave within a year compare

Note: Benchmark for applicants and hires against managers and professionals in the banking and finance industry globally.

% Top talent

1

1 1

Sample SHL Talent Analytics™ output

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Today’s journey….

Context: • HR and its need to use data for greater impact An approach to bridging the gap: • Using data to answer strategic questions – SHL Talent Analytics™ The first ‘SHL Talent Report’: • “Big Data Insights and Analysis of the Global Workforce” Talent Analytics Discussion: • Where are you today? What are your challenges

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Driven by SHL Talent Analytics™

Predictive analytics, based on almost 4 million assessment and 200 countries from 2006-2011, with chapters covering:

The SHL Talent Report has….

1. The global availability of current and future leaders 2. The global availability of innovation 3. The landscape of organizational risk 4. The landscape of diversity 5. The global race for skills

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The leadership challenge

“Major economic shifts, swift social and political change, and accelerating technological and communications capabilities are driving an ever-greater demand for effective leadership.”

Where will top leadership talent come from to meet high demand?

How intelligent is your organisation about identifying leaders for today and for tomorrow?

Corporate Executive Board, 2012

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SHL’s perspective on leadership

Leadership is about influencing people such that they come to share common goals, values, and attitudes, and work more effectively towards the achievement of the organisation’s vision.

An effective leader is one who makes a demonstrable impact on one or more of these criteria in a positive way by influencing the behaviour and performance of others.

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The SHL Corporate Leadership Model

Transactional Focus Functions of Leadership Transformational Focus

Analysing & Interpreting Developing the Vision Creating & Conceptualising

Adapting & Coping Sharing the Goals Interacting & Presenting

Supporting & Cooperating Gaining Support Leading & Deciding

Organising & Executing Delivering Success Enterprising & Performing

0

10

20

30

40

50

Very Low Low Moderate High Very High

SHL Global Benchmark

Leadership for Today

Leadership for Tomorrow

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Leaders for today

Just 1 in 15 managers or executives globally have the potential to become a top leader.

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Leaders for tomorrow

The question is not whether there is leadership talent The question is how intelligent is your organization in recognizing that talent and developing it

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Combined view of today and tomorrow

China (Hong Kong)

Germany

United Kingdom

Australia

United States

Top 5 Supply of potential leaders

for today

Mexico

Turkey

Egypt

Switzerland

Brazil

Top 5 Supply of potential leaders

for tomorrow

1

2

3

4

5

1

2

3

4

5

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Leadership for today by industry sector

• Professional Services

• Public Sector

• Mining

• Insurance & Financial Services

• Banking

• Consumer Goods (Heavy)

• Consumer Goods (Leisure/Personal)

• Travel & Leisure

• Engineering

• Oil & Gas

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By sector, by geography…

Weakest sectors overall: Oil & Gas, Utilities

Particularly in Eastern Europe and North America

Strongest sectors overall: Banking, Insurance and Financial Services,

across most geographies, with the exception of Western Europe

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The question is not whether there is leadership talent…

• Future leadership supply will only be realised if organisations are serious about the need to drive development initiatives that ensure leadership potential translates into leadership success

• Analysis of the supply of leaders for today and leaders for tomorrow shows an approximate alignment, respectively, with the ‘established’ versus ‘emerging’ economic powerhouses.

• Established sources of leadership should not assume they will be able to maintain that supply into the future

• Is there a succession time bomb in your organisation?

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The innovation challenge

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The SHL Innovation Index

There are at least three conditions that determine whether organisational investment in innovation will deliver value: • Organisational processes • Geographical, economic and social

context • People with the right talent to be true

innovators

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Innovation by sector

• Technology

• Professional Services

• Food, Beverages & Tobacco

• Retail

• Consumer Goods (Heavy Goods)

• Telecoms

• Utilities

• Engineering

• Oil & Gas

• Travel & Leisure

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• New ways of working, new and more sophisticated goods and services, as well as innovative ways of delivering those goods and services are becoming critical globally

• SHL’s data shows that sectors with the greatest need to recognise this and take action include Travel & Leisure, Oil & Gas, Engineering, Utilities and Telecoms.

• Whatever the geography or sector, those organisations with the People Intelligence to identify, acquire and develop innovator talent will be the organisations to thrive.

Innovation isn’t an option – it’s a must do

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Where talent and the socio-economic context collide

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Gender, leadership potential, leadership actuals

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What motivates leaders?

There are no substantial overall differences between men and women on these motivational factors

People that succeed to higher job levels value these motivational factors more:

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Drilling into gender differences in motivators

Our data shows evidence that women are more motivated by Ease and security and Recognition than men.

Men are more motivated by Power and Fear of Failure

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The gender maths isn’t complicated….

The first step is to understand what motivates women to become leaders and how it varies between individuals.

The second is to use that People Intelligence earlier in the career path to shape mentoring, coaching and learning experiences. This will equip women with leadership potential for the times when they meet inevitable motivational roadblocks.

Ultimately, the gender maths are simple - ignoring what motivates 50% of the global talent pool makes the search for leaders all the more challenging.

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Talking about “my” generation

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It’s not really about gender and generations

• It’s about the best person for the job and having managers who know how to leverage differences effectively

• It’s not about stereotypes - Organisations need clear evidence based perspectives on their talent – such as in this chapter

• Organisations are better served by understanding where differences matter and what those differences mean for employee performance and engagement

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Overall conclusion: Do you have what you need?

• There are a finite number of forces that influence business success. Most of these are driven by the abilities and motives of the people who make up our workforce

• This report provides you with data. But data on its own doesn’t solve problems. At most, it throw some light on your current challenges, identify trends for your industry and geography and provide insights to help you solve them

The value of analytics is in the insight it provides.

The value of People Intelligence is in the informed actions you take

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The End

• To download the ‘SHL Talent Report 2012’ and the ‘SHL Global Assessment Trends Report 2012’: ◦ www.shl.com/de/campaign/2-reports-2012-en

◦ Or - email me at: [email protected]