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Copyright © 2017 ADP, LLC. Proprietary and Confidential.

Introduction to People Analytics


Agenda• Setting the Stage

– Changing Role of HR

– What is People Analytics?

– Why is it important?

• What is ADP doing in this space?

• Demo

• Q&ASource: http://genepease.com/2017/02/follow-your-gut-or-follow-the-data/


Steve McDonell

[email protected] Advisor, People Insights Team

– Joined ADP in Feb 2017– Former CIO– Lifelong Pittsburgher– Baseball fan

Setting the Stage

5


HR is Changing

• Build out the strategic focus tocompliment the operational focus

• HR must measure the impact of thepeople strategy to the bottom line

• HR requires data to drive fact-baseddecisions and conversations

Source: Human Resource Champions: The Next Agenda for Adding Value andDelivering Results, 1996

What is People/HR Analytics?

7

An “HR practice enabled by technology that uses descriptive, visual, and statistical

analyses of data related to HR processes, human capital, organizational

performance, and external economic benchmarks to establish business impact and

enable data-driven decision-making" (Marler & Boudreau, 2017, p. 15).

Or more simply put…

… the application of quantitative analysis to make better people decisions that help

drive positive outcomes for the business.

*or HR/Workforce/Talent

People* Analytics

8

Reporting vs. Analytics

Backward looking – Lagging indicators

Forward leaning – Leading indicators


Questions Analytics Can Help With

• Do happy employees translate to more productive employees?

• Can compensation growth be slowed without loss of performance growth?

• Do “better” managers make for higher employee engagement scores?

• What leading indicators best predict successful employees in our company?

KEY POINT: Metrics and analytics are only as good as the question(s) that generate them

10

• Staff demographics

• Management behaviors

• Employee attitudes

Practical Application

Why People/HR AnalyticsMatters


Leaders are expecting workforce analytics to help attract and retain their best people

A tight U.S. labor market is driving executives to focus on how analyticscan help them retain and attract their best people

(19th Annual Global CEOSurvey, PWC)

(Global Human Capital Trends2016, Deloitte)

(CEB 2017 Future of HRAgenda Poll)

of CEOs areconcerned about the

availability of keyskills

of HR Executivesidentified “people

analytics” as“important” or “very

Important

of CHROs plan toprioritize improvingthe organization’s

talent analyticscapabilities in 2017

72% 77% 68%


However, organizations find themselves at different stages ofHR analytics maturity

Strategic

Out

com

e

• Total Headcount• # of Leaves• # FTE hourly

employees• # of positions filled

• % turnover priorperiod

• New hire retention• Healthcare cost per

employee

• Hi Potentialemployees whochange jobs every 2or more years aremore likely to exit theorganization*

• For every 1%increase inengagement, turnoveris reduced by 3.4%*

• Structured job rotationprogram for HiPoemployees based onkey traits of successfulleaders

• Responsive staffingbased on real-timecustomer demand

Prescriptive

Reporting PredictiveDescriptiveClean data

Documented processesSingle source of truth

Metrics & Benchmarksemerge

Trends monitoredSummarize what happened

Use of historical dataMeasure business Impact of HR

Recommend best options

Apply historical dataPredict likelihood

Used for HR decisionmaking

Tactical

Stage (Time and Resource Investment)

Operational

Insight Examples

*Hypothetical examples


Reporting and analytics are complementary ways to getrapid insight from data

Tabulardata

Trenddata

Insightthrough

Data

Standard& Ad-hoc

(client-defined)Metrics

StandardADP-defined

Metrics

Time Benefits

TalentPayroll

HR

Reporting Analytics

15

Obstacles

<1,000 employees >= 1,000 employees

Source: ADP HR Metrics and Analytics Study, 2017; n=353

#1

16

ADP Client Examples


How Can ADP Help?


What Does Technology Got to Do With It?

• Process Automation, Data Governance and Error Reduction

• Timely Self-Service with Appropriate Access

• Integrated Visualizations and Data Exploration

• Secure Delivery through Multiple Devices

Image Source: http://www.enablesoft.com/


IdentifyingWorkforce Trends

Seeing HowYou Measure Up

UnderstandingLikely

Future Trends

MEASURE COMPARE PREDICT APPLY

People InsightsProfessional

ServicesYour Data Market andPeople InsightsReporting &

Analytics Benchmarking,Data Explorers

ADP HCMSOLUTIONSPeople

and TalentWorkforce

Management& Operations

Taking Actionfrom Insight

Introducing the ADP® DataCloud, delivering insights regardlessof where you are in your analytics journey

Powerful andintelligent set of dataanalysis toolsdesigned to help HRprofessionalsmeasure, compare,predict and applyinsights uncoveredfrom ADP workforcedata.


Your Data: Reporting

Easy, quick drag and dropreport building for HRpractitionersEnables the creation of ad-hoc, custom client metricsReports can then beanalyzed through chartsand graphs to reveal trends

AVAILABLE NOW(ADP Vantage, ADP Enterprise v.5.03+

and ADP Workforce Now)


Your Data: AnalyticsProvides the ability toquickly spot trends andtake actionMultiple methods ofdata analysis to get theinsight that is right foryour organizationAvailable on ADPMobile Solutions inearly 2018

AVAILABLE NOW(ADP Vantage, ADP Workforce Now, ADP Enterprise

v.5.04+, and Enterprise eTime)


Market and People InsightsA group of dynamic data visualization tools that apply market data to tohelp you make better decisions about your people and overall workforcemanagement

BENCHMARKINGDATA

EXPLORERS

Copyright © 2017 ADP, LLC. Proprietary and Confidential.HRTransactional Data


23

Data Explorers “explore” insights that drive talentmanagement strategies forward

Deep insightwithout dataoverload

Highly visual &intuitive-to-use

Curated data tohelp solve abusiness problem

ANNUALCOMPENSATION

TURNOVERPROBABILITY*

PAYEQUITY

WFN Fall 2017*


BenchmarkingBenchmarks for Compensation, HR &Time based on one of the deepestand broadest data sets in the industry(~30M employees at 95K+ orgs)

Dynamic nature of aggregated andanonymous data provides uniquemarket insight beyond survey results

Helps answer questions such as:“Am I paying my peoplecompetitively?”“How do my workforce turnover andretention rates compare to thebroader market?”

AVAILABLE NOW(ADP Vantage, ADP Workforce Now,

ADP Enterprise v.5.04+, and Enterprise eTime)


Big data can expand HR’s influence in the enterprise byanswering new types of questions


ADP® DataCloud Roadmap Summary (External)Fall 2017 Spring 2018

YourData

Reporting

§ Redesigned Reports Central (WFN)§ Manager Access – Ability to View/Run

Reports (Vantage)§ TMBC Reporting (StandOut Integrated)§ Field Grabber (WFN v15)

§ Filter Edits in Simplified Reporting§ View Ad-hoc Metrics by Expanded Time

Views (monthly, quarterly annually)§ Manager Access – Ability to View/Run

Reports (WFN)

Analytics

§ Embedded Analytics (WFN)§ System Usage Metrics (WFN)§ Custom Date Ranges (Vantage)§ Benefits & Recruitment Metrics (WFN)§ Recruitment Metrics (ADPRM)

§ Talent Metrics (WFN)§ Other TBD

Market &PeopleInsights

Benchmarking

§ Deeper Industry Filters§ Expanded Job Taxonomy

§ Annual Compensation Updates – You vs. theMarket (?)

§ Expanded # of Benchmarks TBD

DataExplorers

§ Pay Equity Explorer GA (Enterprise,Vantage, WFN) – Aug Release

§ Turnover Probability Explorer GA (WFN)– Oct Release

§ Overtime Explorer GA§ Org & Layers Explorer GA (TBD)

Data Exchange (workingname)

§ Expanded Pilot through Reporting § Anticipated GA

Cross-DataCloud

§ Next Gen DataCloud Platform§ Redesigned DataCloud Homepage

(Vantage, WFN)§ ADP Mobile Solutions integration

§ People Insights Professional Services GA

NOTE: Roadmap subject to changeGA = Generally Available


Everything we do is increasingly leaving a digital trace (or data)

Big Data is only as good as ourability to make use of this everincreasing volume of data

Data to Insight


People Insights is now part of Professional Services at ADP!

§ The Professional ServicesPeople Insights team consultswith clients to help them usedata to formulate strategy andaddress HR challenges.Contact us [email protected] more information.

ADP Professional Services


Professional Services for “People Insights”

Questions?


Appendix


• Learn@adp https://learn.adp.com/adp

– Using Analytics, powered by the ADP DataCloud

– Making the Most of the Pay Equity Explorer

– Custom Reports Made Easy! Introducing Simplified Reporting in

ADP Workforce Now

• Learning Bytes (on the Bridge)

https://thebridge.adp.com/docs/DOC-3358

• The Bridge

Resources Available


The Bridge: ADP DataCloud Group forClients

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