Hr Analytics Why What How

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© 2013, McBassi &Company

HR Analytics:

Why, What & How

Laurie BassiApril 18, 2013


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Why?

•Human capital management dries alue creation

•Analytics dries !etter HCM

•"mployee sureys #ae tremendous $!ut typically under%utilied' potential to create actiona!le !usiness intelligence

• Big data & predictie analytics are coming to t#e (peopleside) o* !usiness


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3

1+80 2012000

0-0

100

1-0

200

2-0

110

22+

Market to Book Ratio

1+80 2012

0.

20.

/0.

0.

80.

100.

+.

-.

Intangibles as % of Market Vale

Role of intangibles has risen !ra"atically

ntangi!les drie alue

Human capital is t#e source o* all intangi!les

Human capital management is no an essential organiationalcompetence

Analytics is no an essential H competence


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We#$e in$este! on this insight for o$er % years

/


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'o"(anies that se H' analytics ot(erfor"

-


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)*a"(le: 'o""on sense can lea! to $ery wrong conclsions


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Why?+((ortnity ls -ecessity

4pportunity

5ec#nological adances #ae greatly reduced t#ecost o* doing analytics

6ecessity

As HCM #as emerged as one o* t#e *e sustaina!lesources o* competitie adantage, decision%ma7ing

!y gut and intuition is grossly inadeuate

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hat & How?


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What (ictre best !escribesanalytics?

t:s not a!outreporting,das#!oards orcomple; mat#

t IS a!out data%deried insig#ts t#atdrie !etterdecisions

+


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.n!a"entally, analytics isabot:

• As7ing !etter uestions

•


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)*a"(le:I!entify the h"an !ri$ers of

bsiness reslts

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)*a"(les:WH+ /0)1

A-A234I'0

4+

R)0/24 5% R)0/24 56

ayroll(ro$i!er

mproeleaders#ipdeelopment

>igni?cantlyincreasedleaders#ipe@ectieness

/ percent more productieor7*orce and a 20 millionimproement to t#e !ottomline

4eleco"co"(any

mproecustomerserice

4er 10.increase insericeproductiity

More t#an /0 million inoperating pro?t improement

/0 1o1cor(orateni$ersity

educe scraplearning

-0. reductionin astedinestments

Hundreds o* millions o* dollarsin cost saings *or Americanta;payers

12";amples proided !y noledge Adisors


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7 0te( rocess

5#e"conomicmperatie

0tatisticallinkageto reslts

.act8base!(rioriti9e!reco""en!ations

Insightfl, easy8to8n!erstan!re(orts

0"arter e"(loyee sr$eys

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8estions

McBassi People Index®

5ypical employee engagement sureys are too narro% not up to t#e tas7 o* creating actiona!le !usiness

intelligence© 2013, McBassi &Company 1/

t


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"ore nno$at $e $ers onof 0te( 5%

McBassi Good Company Assessment

;oo!)"(loye

r

;oo!

0eller

;oo!

0tewar!

BusinessResults

ncludes allelements o* M


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0te( 56 8 0tatistical linkageanalysis

Depending on speci?cs o* data, t#ere are three(ri"ary statistical "etho!s *or lin7ingpeople *actors and !usiness outcomesE

1 Multiariate analysis

2 Correlations

3 Comparison o* meansFt%tests

Analytics is t#e (missing lin7) t#at ena!les you toidenti*y t#e top #uman driers o* your !usiness

results1


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*a"( e o n e ana ys s!atabase

Actio

nable

Insights

'sto"er

0atisf actio

n

Attain"en

t

of.inancial

4argets

Managers#

ro


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4wo "aor ty(es of bsinessintelligence analysis

1Creating insig#t*ul reports *rom your employeesurey – Conduct statistical lin7age analysis !ased on outcomes collected in t#e

surey itsel*

• "ngagement $including intent to stay, illingness to re*er a *riend'

•

>upport *or customer serice• "tc

24ngoing $post%surey' analysis o* t#e driers o*!usiness results – Ma7e decisions no t#at ill ultimately ma7e possi!le statistical lin7age

analysis !ased on (#ard) outcomes $collected outside t#e surey', een i*

t#at:s not part o* t#e ?rst round

• 5urnoer

• >ales

• Cost containment

• Customer satis*action 18

e( en ng areas o


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e( 8 en y ng areas oo((ortnity

5opDriers

Areas o*Gea7ne

ss

5op Areas

o*4pportunity

5#is step systematically com!ines in*ormation a!outt#e

top driers o* !usiness results it# measures o*1+


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)*a"(le: 'o""on sense can lea! to $ery wrong conclsions

20

0t 57 I i htf l


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0te( 57 8 Insightflre(orting

Hig#ly isual, easy%to%understand reports sere as acatalyst *or c#ange

4ne o* t#e most important lessons e:e learnedE less is

more #en it comes to reporting and recommendations tell #at:s important, not eeryt#ing you 7no

• Aoid (data dumps)

• Iocus on simple reporting t#at ma7es it easy *or!usy managers and leaders to 7no #at actions to

ta7e

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a"( e (or ons o re(or


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a"( e (or ons o re(orele"ents

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o What?


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• 5#e (people side) o* t#e !usiness #as !ecometoo important to !e le*t to guessor7 and

intuition

• Companies t#at use analytics isely illcontinue to outper*orm t#eir competitors t#at

don:t

• Analytics #elps us spea7 t#e language o*!usiness it eleates our *unction

• t #elps ?rms operate in t#e (seet spot) t#eintersection o* sustaina!ly pro?ta!le &enlig#tened management o* people


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Best ractices• Learn to t#in7 o* your organiation as a (naturally occurringe;periment)

• >tart small and !uild credi!ility –n t#e early stages, *ocus on soling immediate pro!lems

• Hae t#e end in mind and !uild an in*rastructure to support it

• Colla!orate it# ot#er analytic groups it#in your company

• BuildF!uy analytics competence it#in H

•


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A$oi!

•

Jsing analytics to (proe H:s ort#)

• Assigning t#is mission to a loer leel tec#nician

•

Con*usingE – Data dumps it# insig#t

– Benc#mar7ing it# analytics

•

Alloing t#e per*ect to !ecome t#e enemy o* t#egood


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esorces


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/sefl resorces

Good Company Bassi, et al

Analytics at Work

Daenport, et al

Drive


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.ree Resorces

McBassi Articles

• Ho to Create More Kalue Irom "mployee >ureys $TalentManagement , >eptem!er 2012'

• 4t#er !rie*s & #ite papersE mc!assicomF*ree%resourcesF

nowle!ge A!$isor Resorces

• 5alent Analytics Moduleune 2013

• G#at is 5alent Analytics and G#y Do Ge MeasureN

4alent 1e$elo("ent Re(orting rinci(les

• center*ortalentreportingorgF


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http://mcbassi.com/free-resources/http://knowledgeadvisors.com/talent-analytics/http://knowledgeadvisors.com/perspectives/talent-analytics-part-i-what-is-talent-analytics-and-why-should-we-measure/http://knowledgeadvisors.com/perspectives/talent-analytics-part-i-what-is-talent-analytics-and-why-should-we-measure/http://knowledgeadvisors.com/talent-analytics/http://mcbassi.com/free-resources/


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2arie Bassil!assiOmc!assicom
mailto:[email protected]:[email protected]

Hr Analytics Why What How

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