Analytics Everywhere: Integrating Measurement of Learning, Talent Management, and Diversity

July 16, 2013 Analytics Everywhere: Integrated Measurement of Learning, Talent Management, and Diversity

Analytics Everywhere: Integrating Measurement of Learning,Talent Management, and DiversityPresenterJohn KranzProduct ManagerWorkforce Planning and Analytics Division

© 2013 Peoplefluent


Analytics Everywhere: Integrated Measurement of Learning, Talent Management, and Diversity │2

Agenda

• About Peoplefluent• Data, Metrics and Analytics• Integrated Analytics Approach• Solutions Overview• Questions




Who We Are




Why Peoplefluent?Strong History & Proven Track Record

• Over 5,100 customers• Over 6 million end users of SaaS products in more than

214 countries & territories• Peoplefluent solutions serve 80 of the Fortune 100• Over 550 Employees worldwide• Founded in 1997 – over 15 years of total workforce talent

management experience• Peoplefluent is privately held by Bedford Funding, a

private equity firm focused solely on the Human Capital Management marketplace




Social

Analytics

Mob

ile

Profiles

Workforce Planning

Learning & Development

Goals, Performance &

Succession

Total Compensation

Enterprise Collaboration

Compliance & Diversity

Recruiting & Onboarding

Contingent Management

The most comprehensive suite of talent solutions in the market todayWe Help Our Customers Realize the Potential Of Their People

A Holistic Approach




Data vs. Metric vs. Analytics




Data

Measure that is collected with no specific goal in mind




Data Integrity

• 83% of all data migration projects either fail outright or suffer significant cost overruns and/or delays

• Lack of confidence in data will block decision-makers from taking action

• Lack in timely delivery of data delays proper decision-makingand analysis




Metric

• A measurement with the goal of gauging some quantifiable component of a company’s performance

• Measures become Metrics when you set goals and thresholds the measure will be compared against

• Trending of Metrics tells afuller story and provideshistorical context

• Benchmarking of select KPIsmay help reveal problems




Common Metric Selection Mistakes

• Metrics for the sake of metrics (not tied to business goals)

• Too many metrics• Metrics not driving an intended action• Usually only “standard measures” – 80/20 rule• No record of methodology, formula or definition• No comparison figures (benchmarking and/or trends)• Data extraction difficulty




Key Performance Indicator

• Metric that reflects critical factors for success• Helps measure progress towards strategic goals• Must be selected and customized based on objectives

and priorities of each organization• Usually target-based with

explicit thresholds• Examples

• Time to Fill Critical Roles• Employee Engagement Score




Analytics

• Analytics depend on the problems and opportunities an organization faces

• Problems and opportunities lead to the metrics that decision makers need in order to perform analyses

• Analyses is what informsdecision makers




Common Process of Using HR Metrics

Data Elements

MetricsAnalytics

Problem Solving

“Data”

“Information”

“Knowledge”




Example: Retention of Key Talent

Specific Workforce Initiative

• Retention of Key Talent

Analytics

• Understand the extent of the problem, how it has changed over time, where it is the most prevalent and possible causes

Metrics

• Attrition Rate, Bad Attrition Rate, Involuntary & Voluntary Termination Rate, Employee Engagement and Satisfaction Rate

Data Elements

• Terminations, Headcount, Involuntary & Voluntary Terminations, Engagement scores by month – segmented into employee groups & depts.




Human Capital Analytics

• Process by which we transform measures, metrics, KPIs into insight to create value

• Information that can be used to make business decisions

• Highest purpose – to create business indicators to help management chart the course of the business

• Metrics Analytics Strategy




Metrics vs. Analytics

Source: Cathy Missildine-Martin, Profitability Through Human Capital, 2011




Integrated Analytics is the Cornerstone for Talent Management and Workforce Planning

• Analytics is increasingly driving the alignment of people with planning

• When Aberdeen Group surveyed 250 organizations for its 2012 Analytics in Action study, integration of talent and business strategy was the #1 initiative in place among all of the organizations

• Organizations need visibility into talent data and an understanding of the gap between available talent and the business need




Integrated Analytics in Action• Build scenarios that unlock information to drive business results• Forecast to allow decision makers to be pro-active and to help

ensure achievement of goals• Accountability driven by setting goals to track workforce results • Alerting leaders when key performance indicators go out of

threshold or simply trend in the wrong direction. • Collaborating through an interactive environment to understand

workforce issues and take action• Predicting trends and drive actions that will effect the future • Guiding executive decisions with concise, boardroom-ready focus

and expert analysis along with documented business conversation and collaboration




Greatest HR Challenges Faced by Today’s Leaders




HR Activities, Initiatives, Programs

Productivity

Customer Satisfaction / Loyalty

Safety

Quality

Profitability

Hiring / On-Boarding

Retention / Employee Separation

Employee Attitudes

Benefits / Work-Life Balance Initiatives

Development / Training




Talent Life Cycle




Strategic Planning

• Critical to map talent investment costs to business goals

• Identify strategic rolesCost per day when operating

without a key player(Sullivan, 2005)

Successor pool coverage Headcount demand (Workforce Planning)

$7000




Talent Acquisition

• Increase the quality of hire by identifying the best sources of hire

• Employee referrals deliver positive ROI Quality of hire per source Contractor cost Time to Fill Offers Accepted




Onboarding

• Strategic onboarding program increases engagement levels, and can decrease costs going forward

• Low engagement levels have a real impact on the bottom line

New hire engagement score New hire voluntary attrition New hire performance rating

60/80% 30-50%

Source: Human Capital Institute




Learning & Development

• New hire and ongoing – ensure all employees have the skills and tools they need to succeed

• What is the ROI? Training completion rate Internal placement rate Employee Trained Average Performance Rating Untrained Employees Average Performance Rating Training Performance Differential Training Expense per Employee




The HR Scorecard

Ongoing research program includes over 2,800 corporations

Bottom 10% Top 10%HR Index HR Index

(42 Firms) (43 Firms)Firm Performance

Employee Turnover 34.1% 20.9%Sales per Employee 158,101$ 617,576$ Market Value to Book Value 3.64 11.06

HR PracticePercentage of Jobs Filled Internally 34.9% 61.5%

Comparison of High and Low HR Management Quality

Becker Huselid Ulrich




Coaching/Mentoring

• Can help overcome costly performance problems

• There is value to putting coaching and mentoring programs in place. However, there are also costs.

Business impact of coaching program (ROI) Participation in mentoring programs

• OI Partners research: http://www.oipartners.net/Libraries/Reports/2013_national_retention_survey_report.sflb.ashx




Retention

High performer retention Critical role retention Employee engagement score

Source: Corporate Leadership Council Research




The Importance of Planning

• Workforce is the largest expense for most organizations and should be the largest player in organizational planning

• 67% of companies believe analytics create a competitive advantage (MIT Sloan Management Review)





Source: KPMG’s 10 Steps to Strategic Workforce Planning





Source: Carol Morrison from i4cpApril 24, 2013

• Create defined roles for organizational leaders

• Integrate workforce planning with strategic planning

• Apply corporate values to focus workforce planning

• Use innovative tools to customize and communicate workforce planning across the organization




Do we have the talent in place to meet our strategic goals?









• Translate business strategy into organizational capabilities• Determine the talent needed to deliver on organizational

capabilities• Confirm current talent needs and future talent forecasts• Conduct a talent gap analysis for current and future states• Identify actions and investments to close current and

future talent gaps

Source: Sibson Consulting




Solutions Review




Questions?




John KranzProduct Managerp. 214-278-5148e. [email protected]

Find Peoplefluent on…Twitter: twitter.com/peoplefluentLinkedIn: linkedin.com/company/peoplefluent Facebook: facebook.com/peoplefluentBlog: peoplefluent.com/resources/peoplefluent-blog

Thank You!

Don’t Miss WISDOM 2013!September 22-25, 2013 | Orlando, FL

Analytics Everywhere: Integrating Measurement of Learning, Talent Management, and Diversity

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