HR BAROMETER 2018 - Vlerick Business School · WHAT IS HR ANALYTICS? 31 Also called people-, talent...

HR BAROMETER 2018HRM TRENDS AND CHALLENGES IN BELGIAN ORGANISATIONS

Dear HR professional,

For the fourth year in a row, Vlerick Business School and Hudson have launched an HR barometer on the trends and challenges in HRM in Belgian organisations. The barometer explores the HR priorities of leading companies operating in Belgium and shifts in these HR priorities over time.

The HR barometer is a yearly initiative launched in January and involves two parts. The first part of the barometer focuses on the strategic importance of different HR practices and policies, so that over time, the shifts in these priorities can be explored. The second part examines a hot topic in HR. For this edition of the HR barometer, we look into the topic of HR analytics.

This report provides you with an overview of the most important findings of the study in 2018 and the shifts compared to 2017, based on a quantitative analysis of the HR priorities of leading Belgian organisations.

We hope this report provides you with interesting and useful insights,

Nikola Trbovic Dirk BuyensDirector Research & Development Head HRM Centre & Director Open Exec EdEllen Volckaert Emmy DefeverManager Research & Development Senior Research Associate

1. Methodology 4

2. General results 12

I. HR barometer 2018: actual priorities 13

II. HR barometer 2018: perceived mastery 16

III. HR barometer 2018: priority vs mastery 19

IV. HR barometer 2018: planned priorities 28

V. HR barometer 2018: spotlight on HR analytics 30

VI. HR barometer 2018: topic next HR barometer 44

3. Final lessons learned 46

4. Contact Information 48

3

TABLE OF CONTENTS

1METHODOLOGY

METHODOLOGY

Research design

Investigate the trends and challenges in HRM in leading organisations operating in Belgium

Among the largest profit organisations in Belgium (Bel 20+ 200 largest profit organisations in terms of number of employees)

Through an online survey among HR Directors and Managers

Broad spectrum of industries

Timing

January 2018 to March 2018

Sample

62 organisations

Representing about 258.000 employees in Belgium

4

ONLINE SURVEYActual HR practices:

Indicate the priority of HR practices and the mastery of these practices in 2016

On a scale from 0% (no priority/low mastery) to 100% (top priority/role model)

Future HR practices: Look ahead to the planned priorities in 2017 and indicate top 5.

* New topic in the list

Specific HR Topic: Spotlight on the use of HR analytics

4

Selection & recruitment

Employer branding

Prepare organisation for growth

Learning & development

Talent management

Competency management

Performance management

Leadership development

Teamwork

The new ways of working

Well-being

Engagement

Compensation & benefits

Diversity

Retention

Prepare organisation for stagnation/downsizing

HR Analytics

HR Operational excellence

Industrial relationships

Cultural change

Agility*

…

SAMPLE CHARACTERISTICS

7

A. NUMBER OF EMPLOYEES IN BELGIUM

4,8

16,1

14,5

21

43,5 < 500 employees

501 - 1000 employees



> 2000 employees


8

B. NUMBER OF EMPLOYEES INTERNATIONAL (INCLUDING BELGIUM)

35,5%

22,6%12,9%

4,8%

24,2%

< 5000 employees


25001 - 50000 employees

50001 - 75000 employees

> 100000 employees


9

C. NUMBER OF BLUE & WHITE COLLAR EMPLOYEES

Blue collar White collar

27,42

9,68

9,6820,97

25,81 6,45

No employees1-200 employees201-500 employees501-1000 employees> 1000 employeesNot specified

3,28,1

12,9

22,646,8

6,5


10

D. COMPANY SECTOR

11,3%

4,8%

4,8%

4,8%

6,5%

6,5%

8,1%

9,7%

11,3%

12,9%

14,5%

19,4%

0% 5% 10% 15% 20% 25%

Other (mobility, social profit, hospitality, …)

Public Sector

Construction & Engineering

Telecommunications & IT

Fast Moving Consumer Goods

Transport & storage

Legal & Professional services

Energy & Utilities

Retail

Chemical, Pharmaceutical & Healthcare

Financial services & Insurance

Industry & Manufacturing


11

E. RATIO OF HR STAFF TO EMPLOYEES

Average ratio: 1 HR staff member per 89 employees

24,2

40,3

14,5

6,5 6,58,1

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

1/50 employeesor less

1/51 - 1/75employees




1/201 employeesor more

Num

ber o

f org

anisa

tions

(in

%)

2GENERAL RESULTS

I.HR BAROMETER 2018: ACTUAL PRIORITIES

10394040

505151

5354

596162

6465

707070

7377

7987

0 10 20 30 40 50 60 70 80 90 100

Prepare organisation for downsizing/ StagnationCompetency Management

DiversityRetention

The new ways of workingTeamwork

Industrial RelationshipsCompensation & Benefits

HR AnalyticsWellbeing

EngagementPrepare organisation for growth

Performance ManagementHR Operational Excellence

Employer brandingLearning and development

Cultural ChangeAgility

Talent ManagementLeadership DevelopmentSelection & Recruitment

HR BAROMETER 2018: ACTUAL PRIORITIES

14

Top 3 priorities

TRENDS IN ACTUAL PRIORITIES: HR BAROMETER 2017 COMPARED TO 2018

15* New topic in 2018

0

10

20

30

40

50

60

70

80

90Selection & Recruitment

Employer branding


Learning and development

Talent Management

Competency Management

Performance Management

Leadership Development

Teamwork

The new ways of workingWellbeingEngagement

Compensation & Benefits

Diversity

Retention

Prepare organisation fordownsizing/Stagnation

HR Analytics

HR Operational Excellence

Industrial Relationships

Cultural Change

Agility*

Barometer 2017

Barometer 2018

II.HR BAROMETER 2018: PERCEIVED MASTERY

4145

50505051

53545455

5658

6162

6465

666768

7074

0 10 20 30 40 50 60 70 80

Prepare organisation for stagnation/ downsizingHR analytics

Competency managementDiversity

Cultural changeAgility

Well-beingEmployer branding

HR operational excellenceThe new ways of working

TeamworkPrepare organisation for growth

RetentionPerformance management

Leadership developmentEngagement

Compensation & benefitsTalent management

Learning & developmentIndustrial relationships

Selection & Recruitment

HR BAROMETER 2018: ACTUAL PERCEIVED MASTERY

17

Top 5

TRENDS IN PERCEIVED MASTERY:HR BAROMETER 2017 COMPARED TO 2018

18* New topic in 2017

0

10

20

30

40

50

60

70

80Selection & Recruitment

Employer branding


Learning and development

Talent Management


Performance Management


Teamwork

The new ways of workingWellbeingEngagement


Diversity

Retention

Prepare organisation fordownsizing/ Stagnation

HR Analytics



Cultural Change

Agility*

Barometer 2017

Barometer 2018

III.HR BAROMETER 2018:PRIORITY VS MASTERY


Employer branding


Learning and developmentTalent Management


Performance ManagementLeadership Development

Teamwork

The new ways of workingWellbeing

EngagementCompensation & Benefits

Diversity

Retention

Prepare organisation for downsizing/stagnation

HR Analytics



Cultural Change

Agility*

HR BAROMETER 2018: PRIORITY VERSUS HR MASTERY

20

Act

ual

Mas

tery

Actual Priority

High

HighLow

Low Area for improvement

StrengthGood job

No priority

PRIORITY VS HR MASTERY: STRENGTHS

High score in terms of priority and

mastery:

21

Main strengths• Selection & Recruitment• Learning & development• Talent Management

Second in a row• Leadership Development• Performance management• Engagement

PRIORITY VS HR MASTERY: AREAS FOR IMPROVEMENT

High score in terms of priority, but not

in terms of mastery:

22

Main areas for improvement:• Agility• Cultural change• Employer branding

Second in a row• HR operational excellence• Wellbeing• Prepare organisation for

growth

PRIORITY VS HR MASTERY: UNDER CONTROL?

Lower score in terms of priority, but

high score in terms of mastery:

23

Good Job• Industrial relationships• Compensation & Benefits• Retention

PRIORITY VS MASTERY: NO PRIORITY

Rather low score in terms of mastery

but not perceived as a priority:

24

No Priority• Prepare organisation for

stagnation/downsizing• Competency Management• Diversity

Second in a row• The new ways of working• Teamwork• HR analytics



Learning and developmentTalent Management


Performance ManagementLeadership Development

The new ways of working

EngagementCompensation & Benefits

Diversity

Prepare organisation for downsizing/stagnation

HR Analytics



Cultural Change

Agility*

TRENDS IN PRIORITY VS MASTERY:TOPICS THAT REMAINED STABLE COMPARED TO 2017

25

Act

ual

Mas

tery

Actual Priority

High

HighLow


StrengthGood job

No priority

Employer brandingTeamworkWellbeing

Retention

TRENDS IN PRIORITY VS MASTERY:CHANGED PRIORITIES ACROSS QUADRANTS

26

Act

ual

Mas

tery

Actual Priority

High

HighLow


StrengthGood job

No priority



Talent Management


Leadership DevelopmentEngagement

TRENDS IN PRIORITY VS MASTERY:CHANGED PRIORITIES WITHIN QUADRANTS

27

Act

ual

Mas

tery

Actual Priority

High

HighLow


StrengthGood job

No priority

IV.HR BAROMETER 2018: PLANNED PRIORITIES

PLANNED PRIORITIES 2018

29



Talent Management

Cultural Change

Employer branding

Top 5 priorities when looking ahead to the coming year:

V.HR BAROMETER 2018: SPOTLIGHT ON “HR ANALYTICS”

WHAT IS HR ANALYTICS?

31

Also called people -, talent - or workforce

analytics.

The Use of people data in analytical processes to

solve business problems. HR analytics uses both

people-data, collected by HR systems and business

information.

HR analytics enables HR practitioners and employers

to gain insights into their workforce, HR

policies and practices, with a focus on the human

capital element of the workforce, and can ultimately

inform more evidence-based decision making

(CIPD)

HR analytics?

AVAILABLE HR-RELATED DATA

32

89% gathers data about:

• People productivity• Diversity & Inclusion

90% gathers data about employee engagement


• Succession planning • Skills & Competencies

94% gathers data about training & Development information


• Absenteeism• Turnover• Workforce planning• Performance data• Compensation & Benefits• Recruitment data

The majority of organisations gather HR-related data:

HR ANALYTICS MATURITY

33

Registering

Operational reporting

Trends are being discovered

Correlational Analytics

Causation Analytics

Predictive Analytics

Measurement Analytics

MEASUREMENT VS ANALYTICS OF PEOPLE DATA

34

50,8

54,2

55,4

57,6

63,2

63,6

67,8

69,0

69,5

69,5

77,2

89,1

49,2

45,8

44,6

42,4

36,8

36,4

32,2

31,0

30,5

30,5

22,8

10,9

0 10 20 30 40 50 60 70 80 90 100

Performance data

Turnover

Employee engagement

Absenteeism

Succession planning

People productivity

Workforce planning

Training & development information


Recruitment data

Skills & Competencies

Diversity & Inclusion

% of organisations measuring the data

% of organisations analyzing the data

Mostly only measured

Commonlyused for analytics

35

Q. Please indicate on a 6 point scale what your organisation is doing with the following data, going from 1) simply registering it up to 6) using it to predict future outcomes.

7

8

18

8

25

24

15

14

8

10

28

36

34

25

11

22

25

24

34

41

34

37

25

29

10

20

27

27

14

16

19

14

27

22

25

24

25

27

21

20

18

13

12

9

15

15

7

4

19

10

21

17

11

20

10

21

12

14

16

2

5

8

2

5

9

4

10

2

3

2

0

5

0 10 20 30 40 50 60 70 80 90 100

Performance data

Turnover

Employee engagement

Absenteeism

Succession planning

People productivity

Workforce planning

Training & development information


Recruitment data


Diversity & Inclusion

FROM REGISTERING TO PREDICTING

GENERAL HR ANALYTICS MATURITY

36

Registering

Operational reporting

Trends are being discovered

Correlational Analytics

Causation Analytics

Predictive Analytics75% of organisations focus on measurement*

25% of organisations focus on analytics*

* Based on overall HR maturity score on the 6 point scale (mean score between 1 – 3.5 = focus on measurement; mean score between 3.5 and 6= focus on analytics)

LOW HR ANALYTICS MATURITY HIGH HR ANAYTICS MATURITY

USE OF PEOPLE DATA FOR HR ANALYTICS

37

Turnover

Performance management

X

Employee engagement

Absenteism

MOST OFTEN USED FOR HR ANALYTICS: RARELY USED FOR ANALYTICS:

25% 19% 2% 21% 21% 2%

27% 10% 9% 20% 17% 5%

Correlational Causational Predictive

Diversity & inclusion


4% 2% 5%

7% 16% 0%

PEOPLE DATA LINKED WITH BUSINESS OUTCOMES

38

7,3

15,3 15,3 15,818,6 19,3 20,3 22,0 22,4 23,2 23,6 23,7

0

5

10

15

20

25

30

35

40

Number of respondents (in %)

Few organisations link their people data with

business outcomes. If they do, more causational

analytics than predictive analytics. 37,1%Say HR

analytics

help to

prepare

for

possible

future

business

challenges

HR ANALYTICS MATURITY: HIGHLIGHTS

39

• The majority of organisations gofurther than simply registering thepeople data. Though for most peopledata, focus remains onmeasurement, not on analytics.

• When doing analytics, most companiesfocus on correlations andcausations

• Few organisations focus onpredicting business outcomes usingHR analytics

IMPACT ON HR OUTCOMES

58% indicate an influence on their HR strategy

50% indicate an influence on the quality of HR decisions

45% indicate an impact on effective HR administration

44% indicate an impact on efficiency of their HR processes

HR outcomes

Q. To what extent does HR analytics influence the following HR outcomes within your organization (on a scale of 0-100)? This figure shows the % of organisations with a score between 55-100

IMPACT ON HR OUTCOMES ACCORDING TO HR ANALYTICS MATURITY

LOW MATURITY HIGH MATURITY

46%

39% 87%

34%

93%

73%

30% 73%

% of respondents indicating an impact of HR analytics on HR outcomes

IMPACT ON ORGANISATIONAL OUTCOMES

ACHIEVEMENT OF ORGANISATIONAL GOALS & STRATEGY

44%

37%

INNOVATION

23%

44%

PRODUCTIVITY CUSTOMER SATISFACTION

QUALITY OF PRODUCT/SERVICE

TIME(response time, cycle or delivery time)

37%

36%

Less than half of the companiesindicate a link between HR analytics and organiationaloucomeswithin their company.

Q. To what extent does HR analytics influence the following organisational outcomes within your organization (on a scale of 0-100)?

IMPACT ON ORGANISATIONAL OUTCOMES ACCORDING TO HR ANALYTICS MATURITY

ORGANISATIONAL GOALS & STRATEGY

80%

30%

INNOVATION

67%

30%

PRODUCTIVITY CUSTOMER SATISFACTION

QUALITY OF PRODUCT/SERVICE

TIME(response time, cycle

or delivery time)

60%

67%

LOW MATURITY vs HIGH MATURITY

93%

30%

27%

27%

53%11%

% of respondents indicating an impact of HR analytics on organisational outcomes

IMPACT ON FINANCIAL OUTCOMES

45%OPERATING EXPENSES

34%

29%

24%

16%

PROFITABILITY

ROI

REVENUE GROWTH RATE

MARKET/BOOK VALUE

Q. To what extent does HR analytics influence the following financial outcomes within your organization (on a scale of 0-100)?

IMPACT ON FINANCIAL OUTCOMES ACCORDING TO HR ANALYTICS MATURITY

OP. EXPENSES

PROFITABILITY

ROI

REV. GROWTH RATE

MARKET/BOOK VALUE

HIGH MATURITYLOW MATURITY

41%

27%

18%

16%

11%

60%

47%

53%

53%

33%

% of respondents indicating an impact of HR analytics on organisational outcomes

67,7

16,1

16,1

Not satisfied Neutral Satisfied

SATISFACTION WITH THE USE OF HR ANALYTICS

46

Q. How satisfied are you with the outcomes of your HR analytics within your organisation?

81,8

11,46,8

Low HR analyticsmaturity

26,7

26,7

46,7

High HR analytics maturity

“HR analytics are mainly focused on reporting, more focus should be placed on analytics for strategic decisions & predictions”

(quote respondent)

USE OF BIG DATA IN GENERAL WITHIN ORGANISATION

47

32,26

22,58

27,42

17,74

0

5

10

15

20

25

30

35

Very little extent Little extent Moderate extent Very large extent

Num

ber o

f res

pond

ents

(in

%)

Extent to which organisation makes use of big data

More than half of the organisations (54,8%) make hardly any use of big data

Q. Apart from HR analytics (which is linked to people data), to what extent does your organisation

as a whole use big data analytics?

BARRIERS TO IMPLEMENT HR ANALYTICS

48

0 20 40 60 80 100

Lack of HR information technology/softwaresolutions

Lack of proper/high-quality data

Lack of managerial/organizational wide buy-in

Lack of analytical competencies (strong datamanagement skills)

Lack of access to cross-functional data

Lack of a data-driven culture

Data security and privacy regulations (e.g.GDPR)

Lack of resources (time, people, capabilities, ...)

24,2

30,6

51,6

25,8

22,6

45,2

59,7

22,6

22,6

19,4

17,7

22,6

30,6

21,0

19,4

11,3

21,0

21,0

12,9

19,4

21,0

22,6

6,5

22,6

27,4

25,8

12,9

29,0

22,6

8,1

11,3

40,3

No barrier at all

Slight barrier

ModeratebarrierStrong barrier

BARRIERS: 3 LEVELS

49

31

LACK OF RESOURCES

TOOLS & COMPETENCIES

IS BIGGEST BARRIER

ACCES TO HIGH-QUALITY

DATA IS SECOND

BIGGEST HURDLE FOR

COMPANIES

CULTURE, BUY-IN AND

CONTEXT ARE LESS OF

AN ISSUE

63% indicate they do

not have the necessary

time, people, capabilities,

… for HR analytics

31% indicate they are

lacking a data-driven

culture

47% indicate they are

missing access to proper

and high-quality data for

HR analytics

1 2 3

INTERNAL OR EXTERNAL RESOURCES

50

31% fully rely on

internal resources

3% rely more on

external resources

24% combine internal & external resources

42%rely more on

internal resources

0% rely fully on

external resources

Q. Please indicate to what extent you rely on internal or external resources/providers to

perform HR analytics

INTERNAL RESOURCES

EXTERNALRESOURCES

73% 3%

HR ANALYTICS FUNCTION

51

87,5

12,5

Is HR analytics a responsibility of HR?

Yes

No54,3

45,7

Is this formalized in the job title?

Yes

No

Is there someone within the organisation who is

specifically responsible for HR analytics?

YES NO

65% 35%

TOOLS USED FOR HR ANALYTICS

52

Q. Which tools do you use for HR analytics?

98,4

77,4 74,2

50,0

0,00

20,00

40,00

60,00

80,00

100,00

120,00

Spreadsheet ERP Systems (SAP,People Soft, Oracle)

HRIS/dashboard Dedicated analyticssoftware

BUDGET FOR HR ANALYTICS (INCLUDING PERSONNEL)

53

4,9

11,5

26,2

57,4

0 10 20 30 40 50 60 70

> 500 000€

Less than 100 000€

Between 100 000€ and 500 000€

No separate budgetforeseen


Q. What is your budget for HR analytics (including personnel)

57% of organisationshave no separate budgetfor HR analytics.

Only 5% have a budget in excess of 500 000

HR ANALYTICS INVESTMENT PLAN

54

More than half of the respondents (i.e., 53,3%) predict that investments in HR analytics within their organisation will increase.

22,6

6,5

17,7

32,3

21,0

0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00

There are no investments planned

Investments will slightly decrease

Investments will remain the same

Investments will slightly increase

Investments will increase significantly


GDPR COMPLIANCE

55

94% of respondents predict that their organisation is ready

to be compliant with the EU GDPR by 25 May 2018.

EXPECTED IMPACT OF GDPR ON DATA ANALYTICS

56

56,5% expects a neutral

impact

33,9% expects a (rather) negative impact

9,7% expects a (rather)

positive impact

“A lot of administration”“Slower to reach goals on data management”“Impact on historical data”“Requires much time to manage all aspects of GDPR”

“Better respect for data privacy”“Increasing awareness for data privacy”

“Conscious use of data”

VI.TOPIC NEXT HR BAROMETER

NEXT HR BAROMETER: TOP 3 TOPICS

58

AGILITY

MOBILITY /EMPLOYABILITY

ORGANISATIONALCULTURE

12 3

3FINAL LESSONS LEARNED

KEY TAKEWAYS: PRIORITIES & MASTERY

Top priorities 2018

77

79

87

Talent Management


Selection & Recruitment50

7070

40

0

20

40

60

80

Employer branding Retention

2017 2018

Biggest shift in priority 2017 vs 2018

Most important areas for improvement:

• Agility

• Employer branding

• Cultural change

Scoring high in terms of priority but not in terms of mastery!

Compared to 2017, companies have a stronger focus on attracting talent.Prepare

organisation for stagnation is no priority today

Agility is chosen as a topic to explore in more depth next year

Topic next year

Measurement vs Analytics

Most companies measure people data, but do not apply analytics on them.

Analytics are most often performed on:

• Performance management• Employee engagement• Turnover• Absenteism

KEY TAKEWAYS: HR ANALYTICS

Use of HR analytics

16%

Is satisfied with HR analytics within their organisation

65%

Have someone within the organisation who is responsible for HR analytics

57%

Have no separate budget for HR analytics

Lack of resources biggest barrier for HR analytics.

73% relies especially on internal resources to do HR analytics.

53% Predict that investments in HR analytics will increase

Whether HR analytics has an impact on HR, organisational & financial outcomes depends significantly on the HR Analytics Maturity.

63%

4MORE INFORMATION?

Nikola TrbovicDirector Research & Development

[email protected]

(+32) 9 242 54 68

Ellen VolckaertManager Research & Development

[email protected]

(+32) 9 242 53 68

MORE INFORMATION?

Dirk BuyensHead HRM Centre & Director Open Executive Education

[email protected]

(+32) 475 83 68 83

Emmy DefeverSenior Research Associate

[email protected]

(+32) 9 210 97 56

HR BAROMETER 2018 - Vlerick Business School · WHAT IS HR ANALYTICS? 31 Also called people-, talent...

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