Oracle Confidential Internal/Restricted/Highly Restricted · 11 Copyright © 2015 Deloitte...
Transcript of Oracle Confidential Internal/Restricted/Highly Restricted · 11 Copyright © 2015 Deloitte...
Oracle Confidential – Internal/Restricted/Highly Restricted
HR and People Analytics
Erica Volini – US HR Transformation Leader, Deloitte Consulting
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.3
Today’s Discussion Topics
Global Human Capital
Trends - 2015The Value of Workforce
Analytics
Workforce Analytics in
Practice
Building Workforce
Analytics Capability
Closing Remarks
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.4
One of the largest-ever longitudinal global talent studiesGlobal Human Capital Trends 2015
Unless otherwise cited, all data referenced in this presentation
is from the Global Human Capital Trends 2015 survey.
3,300+Business and
HR leaders
106countries
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.5
10 Human Capital Trends for 2015HR and People analytics and People Data were acknowledged as two of the top ten trends
in 2015 due to the impact on other talent dimensions and business outcomes.
Leading
Engaging
Reinventing
Reimagining
Leadership – Why
A Perennial Issue?
Focus on
developing leaders at
all levels
Culture and
Engagement: The
Naked Organization
Create meaningful
work, engagement
and job fit
Reinventing HR –
Extreme Makeover
Align HR capabilities
with business
goals
Learning and
Development – Into the
Spotlight
Reinvent the learning
experience
Workforce on
Demand – Are you
Ready?
Apply engagement
strategies to all
workers
HR and People
Analytics –Stuck in
Neutral
Develop long-term
commitment to
analytics
Machine as Talent-
Collaboration Not
Competition: Stay
vigilant for opportunities
to apply technology
Performance
Management –The
Secret Ingredient
Less emphasis on
evaluation; more on
agile goal setting
People Data
Everywhere – Bringing
the Outside in
Leverage inside
and outside data sources
Simplification of
Work- The Coming
Revolution:
Redesign work
to focus on
what matters
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.6
Case for Change
HR capabilities
Simplifying
Work
Learning
anddevelopment
PerformanceManagement
ReinventingHR
HR & peopleAnalytics
Culture andEngagement
Leadership
-26-28
-29
-30
-31
-31
-36
Business needs
Global
Economic Growth
HR Capabilities lagging behind Business needs
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.7
Stuck in neutral
HR and People Analytics
Need a
long-term
commitment
to analytics
No year-
over-year
improvement
in analytics
capabilities
rate analytics
important;
only 8% are
“strong”
75%
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.8
39%
People data everywhere Bring the outside in
Need to
leverage
inside and
outside
data sources
Vast amount
of valuable
social
and other
outside data
leverage
social data
for recruiting
and
engagement
The Value of Workforce Analytics
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.10
Use of measurement and analysis techniques to understand, improve, and optimize the
people side of business
Workforce Analytics
Advanced Reporting
Operational Reporting
Advanced Analytics
Predictive
Analytics
Development of predictive models, scenario planning. Risk
analysis and mitigation, integration with strategic planning
Statistical modeling and root cause analysis to solve
business problems. Proactively identify issues and
recommend actionable solutions
Proactive, operational reporting for benchmarking
and decision making. Multi-dimensional analysis
and dashboards
Reactive, operational reporting of efficiency
and compliance measures. Focus on data
accuracy, consistency, and timeliness
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.11
Business Challenge How Workforce Analytics Can Help
Sustained Revenue
Growth
• Predict talent requirements, focus attention on highest-value current talent sources, and identify potential new
sources to support growth
• Mix customer data, pricing data, and labor data to optimize the development and deployment of human capital to
drive revenue in new and existing channels
Profit Growth &
Cost Reduction
• Protect the organization's ability to retain top talent by proactively predicting attrition risk and identifying cost-
effective interventions at the individual employee level
• Provide granular analyses of labor spend and ROI by combining labor, compensation and finance data to track
specific business outcomes
Strategy Execution
Capability
• Anticipate potential leadership gaps and proactively develop a pipeline of top talent
• Provide the necessary data for HR to operate as a strategic partner to the business
Speed, Flexibility &
Adaptability
• Calibrate performance and rewards with speed, flexibility, and adaptability; monitor specific outcomes and make rapid
adjustments to drive desired impacts
• Continually optimize HR processes and service delivery through fact-based decision making including increased
transparency and accountability
Employee Loyalty /
Retention
• Use data to identify, optimize, and monitor the unique levers that impact and drive employee lifetime value
• Understand employee acquisition and retention strategies and ensure HR programs
(e.g. incentives, performance, learning) are rigorously aligned
Address business needs, not just HR issues
Workforce Analytics
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.12
Workforce Analytics
Embed in delivering solutions across all HR functions and service areas
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.13Copyright © 2015 Deloitte Development LLC. All rights reserved.
Most Frequent Analytics-Driven Analyses In Use Today
Area Example Analytics Projects
Talent Analytics• Identifying the predictors of success in specific workforce groups, designing recruitment/ development
levers to maintain supply of top talent
Engagement
Analytics
• Understand the affinity of team members and design interventions to protect against turnover
• Correlate engagement survey findings with performance, demographic and operational data to
identify root causes
Organization
Design Analytics
• Visualizing organizational data to support quick, rigorous and dynamic organizational design
• Overlaying KPIs and employee data on organization design to identify hot spots
Training
Analytics
• Measuring the effectiveness and the business and financial impact of training interventions using
operational and training data
Performance and
Retention
Analytics
• Predicting potential voluntary terminations – individuals or groups at risk – and designing interventions
• Identifying the drivers of high performance
• Using internal and external mobility data to identify areas of healthy churn and predict impact of
scenarios
Safety
Analytics
• Predicting clusters of employees most likely to suffer a safety event, down to area, location, shift,
demographic and time
Wellbeing
Analytics
• Correlating recorded sick leave with external factors, including weather, location, sporting events and
workload
• Statistically identifying the drivers of wellbeing across groups
Process
Optimization• Simulate processes to identify bottlenecks and improvements
Workforce Analytics in PracticeArt of the Possible
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.15
Using a combination of analytics and data visualization tools, organizations are investing
in short-term deep-dive projects to identify millions of dollars in unnecessary Talent spend
Optimization of Spending/Investment in Talent Programs
Time &
Attendance
Organizational
Structure
Learning &
Development
RecruitingTotal Rewards
Analyzing a variety
of payroll data to
identify how
systems, process,
governance, and
policy are
contributing to
excess payroll
spend and identify a
path to improving
controls
Evaluating spans,
layers, and pay
bands to identify
opportunities to
standardize and
simplify structures
that have become
complex and costly
as the business has
grown.
Using text analytics
and other data
mining and
visualization
techniques to
identify cost savings
across the learning
organization,
curriculum,
technology, and
vendors
Assessing the
recruiting
organization’s
structure, processes,
and vendors to
identify cost savings
and opportunities to
acquire talent in a
more targeted and
efficient manner
Creating utility
curves using a
variety of analytical
techniques can
identify opportunities
to optimize benefit
options and reduce
duplicative and/or
ineffective rewards
spend.
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.16
What is retention analytics? What are the Organizational Benefits?
Understand the Importance of Retention Analytics Assess
Overall Attrition
Customize for Groups
Identify Risk by Individual
Estimate Total
Attrition Cost
Calculate Threshold
Retention analytics measures the risk of voluntary attrition in your
workforce down to the individual level. Retention analytics is
measured using both internal Human Resource (HR) and external
market data, such as economic factors
Improved, Customizable, Timely Data
Using advanced analytics to predict turnover risk, down to the
individual, can provide the lead-time needed to:
• Identify employees who are likely to leave by projecting attrition
for the whole organization, isolated sub-populations, and each
individual
• Understand the drivers behind why employees are likely to
leave and the tipping point for high risk levels
• Determine what to do, today, to reduce the risk of that employee
leaving in the future
Proactive Decisions and Better Planning
Retention analytics can enable organizations to better:
Implement plans to retain critical talent
• Prevent excessive attrition costs
• Align talent strategy with business objectives
• Customize strategies to meet the needs of target populations
A proactive approach to identifying and addressing retention issues and designing
interventions
Retention Risk Analytics
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.17
Analytics to inform Sourcing, Retention and Productivity of Customer Facing Resources
• Developed model to predict Customer Service Associate
success using12 internal and external data sources that
spanned 70+ disparate files and contained 100+ data
elements
• Amassed 6MM+ records across a three-year timeframe
to provide a single, multidimensional view of the
Customer Service population
• Developed a robust Pre-Hire model as a predictor of employee
success.
• Validated that representatives in the highest predicted success
group realized a 45% actual success rate versus 8% in the
lowest predicted success group
• In addition, a Post-Hire model was built that identified specific
post-hire attributes
Understanding the Pre- and Post-Hire success attributes enabled the Customer Service
organization to focus on specific interventions that could generate $324M annual opportunity
Building Workforce Analytics Capability
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.19
• Accurate, timely, and consistent information is critical to running the business,
understanding the workforce and driving management discussions
• The large amount of data through the various collection mediums create challenges
with the management, storage, retention and usage of the data
• Moving an organization from traditional (internal) to emerging data sources (social,
third party, mobile, etc.) for analytic analysis is not an easy journey
• Technology is an enabler and the investments need to be planned thoroughly
• Improving the manager experience requires improved analytics and innovative
technology. Individually they can only get you so far
• Knowing how and when to communicate change to users and customers takes
planning and strategizing
• Whenever changes are made, additional business risk is always introduced.
Understanding that risk allows for better decisions
• Managers and Business leaders need stable weekly reports with insights and current
information to drive trend analysis and comparisons
• Users want all the bells and whistles…yesterday!
“What technology do I need?”
“What data do I need?”
“What insights are available?”
???
?
?
?
??
?
“Is my organization and
customer ready?”
“I need it…when I need it.”
MON
Key Considerations
Define a Workforce Analytics Strategy
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.20
Define an insightful and action-oriented process
Business
Results
Facts
What workforce data
is required and can be
leveraged to
understand the HR
functions?
Understanding
What is currently
happening related to
our workforce and
why?
Actions
What should we do
based on the insights
available?
Workforce Issues
What are the
workforce challenges
at hand?
Enabled by Technology
Analytics Strategy
CRITICAL
QUESTIONS
Define a clear analytics strategy identify the business issue understand and use data to
uncover insights and create action plans.
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.21
Governance
OrganizationTechnology
ProcessDataWorkforce
Analytics
Capability
Dimensions
Workforce Analytics Governance Model
Decision-Making & Controls
Roles & Ownerships
Internal Governance Structure and Escalation
Operating Model
Organization Structure
Roles & Positions
Skills & Competencies
Technology Landscape
Talent Analytics
Technology
Data Sources & Fields
Measures & Metrics
Data Management
Key Processes
Process Integration
Desired Outputs (Reports,
Workforce Plans, Talent Analysis)
Five dimensions critical to implement an effective and sustainable Workforce Analytics
capability
Adopt a Workforce Analytics Capability Framework
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.22Copyright © 2015 Deloitte Development LLC. All rights reserved.
Communications and Strategic Thinking
• Simplify analytical outputs
• Influence business stakeholders through effective communication
Industry Expertise
• Understand industry trends/key business drivers impacting profitability
• Evaluate business issues by applying data-driven approaches
Analytical and Visualization Tools
• Expertise in advanced analytics tools and techniques
Technology Expertise
• Knowledge of Infrastructure Management, Distributed Systems, Cloud Management and Systems Integration
Knowledge of Corporate Functions
• Work experience, knowledge and skill sets in specific corporate functions
Data Expertise
• Expertise in Data Architecture, Modeling, Extraction, Transformation, and Loading, Data Management / Quality / Governance
Functional CompetenciesEnterprise Competencies
Build key competencies & skillsNo individual person will have all enterprise and functional competencies
Closing Remarks
Copyright © 2015 Deloitte Consulting LLC. All rights reserved.24Copyright © 2015 Deloitte Development LLC. All rights reserved.
Build a multi-disciplinary team, combining employees (and third-parties) with business knowledge, talent awareness, technical, consulting and analytical skills
Show the return on investment by quantifying the value that better decision making is bringing to the organization
Start with the tools you have to analyze data that are too often underused
Do not let the perfect be the enemy of the good as it is better to do analytics based on less-than-perfect data and tools than to do no analytics whatsoever
Partner with IT to help build a program to clean up, rationalize, and continuously monitor data quality
Use analytics, modeling and visualization techniques on the HR organization’s services and operating model to demonstrate analytics’ potential
Focus on immediate business needs since analytics is a business priority, not merely an HR tool
Leverage embedded analytics by upgrading technology platforms and core HR systems
Lessons
learned that
expedite the
implementation
of Workforce
Analytics and
realization of
business value
Right Team IT
Usage
Prioritization
TechnologyTools
Data
ROI
Critical Success Factors