HR ANALYTICS ATTHE C-LEVELHR BREAKFAST, WIEN, ORACLE OFFICE, JULY 3, 2014

CONTENTS

► STRIM Focus Topics

► CEO Challenges and Strategies 2014

► HR Analytics

► Maturity Levels

► How to approach the C-Suite

► Measuring RoI in relation to HR Risks

► The role of HR Benchmarking

► Young Talent Benchmarks & Analytics

► What measures the C-level cares about

► Key Take Aways

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STRIM FOCUS TOPICS

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CEO CHALLENGES AND STRATEGIES 2014

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CEO CHALLENGES AND STRATEGIES 2014

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July 3, 2014STRIM-Blog: http://blog.strimgroup.com/artikel/leitfaden-analytics/ 6

HR ANALYTICSMATURITY LEVELS

HR ANALYTICSHOW TO APPROACH THE C-SUITE (1/2)

►Tips for a successful first interaction

► Keep it short and simple („KISS“)

► Speak in terms of business outcomes and set clear expectations

►Prepare a business case

► Identify a compelling question, business need, or imperative (why)

► Provide facts based on credible analysis (what)

► Offer alternative assessments, including what happens if we do nothing (why)

► Relay what the organization will receive for what it will spend (what)

► Indicate the timing, resources, and process needed (when, where, how, who)

July 3, 2014TCB Conference KeyNotes 7

„When you talk about engagement,

talent, retention, think of a euro

sign flashing in the executive´s

head every six seconds.“

HR ANALYTICSHOW TO APPROACH THE C-SUITE (2/2)

►Anticipate C-level HR questions

► What workforce segments create most value?

► What is our workforce productivity? Is it improving? How do we rank?

► Where do our stars come from in Sales? In Operations?

► What skills will we need in the next five years?

► Is it better to build, buy or rent talent? What is the right workforce cost?

► How will business be impacted by impending retirements?

► How much is turnover costing, not just in euros, but also in lost productivity, innovation, or quality?

► How much money are we losing each day by having unfilled positions?

► Can we reach out goals with our current workforce? Can we get there better, faster, cheaper?

► Are leaders effectively managing human capital? Do leaders correlate to employee engagement, retention and performance?

July 3, 2014TCB Conference KeyNotes, HCM Institute 8

„When you talk about engagement,

talent, retention, think of a euro

sign flashing in the executive´s

head every six seconds.“

HR ANALYTICSMEASURING ROI IN RELATION TO HR RISKS (1/2)

►employeeengagement

► learning & development

►…

July 3, 2014STRIM-Blog: http://blog.strimgroup.com/artikel/durchdringung-im-nebel/ und

http://blog.strimgroup.com/artikel/auswirkungen-von-hr-initiativen/

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Managerial

Leadership

TrainingHuman

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Retention

of Key

People

Business

Perfor-

mance

Knowledge

Generation

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Human

Capital

Depletion

0,506

0,442

0,530 0,326 0,360

R2=68,2%

R2=28,5%

R2=44,1%

R2=28,5%

0,751

0,3580,307

0,475

0,4910,734 0,327

-0,337

0,5430,439

0,456 0,4290,394

0,430

0,285 -0,233

0,262

-0,372

Motivation Risk

Failure and Availability Risk

Occupational

Skill Risk

Integrity

Risk

Alignment

Risk

Resignation

Risk

HR ANALYTICSMEASURING ROI IN RELATION TO HR RISKS (2/2)

Human capital risks ranked by significance

July 3, 2014Research Report, Managing Human Capital Risk 10

Top 5

HR ANALYTICSTHE ROLE OF HR BENCHMARKING (1/3)

July 3, 2014Project example of a transport and logistics company.

STRIM-Blog: http://blog.strimgroup.com/?p=126311

Current Performance

► Human capital RoI

► Financial productivity

► Employee

engagement

► Function & structure

► HR & People risk

Future Performance

Bringing in the right

people

Developing your

people

Motivation your

people

Efficiency and

effectiveness of HR

HR delivery model

HR activity analysis

HR capability

Additional areas of

measurement

Talent management

Innovation

HR shared services

Leadership

Impact on

Corporate Success

… HR

Function

… Core

Measures

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Revenue

Revenue by business

unit

Revenue by country/

region

Revenue by product

line

Full time equ. (FTE)

Full-time v part-time

Temps and casuals

Contract workers

Utilisation of overtime

Management structure

Excess absence

Average remuneration

Salary and wage

levels

Performance-related

pay

Benefits structure

Social security costs

Non-wage costs

Material costs

Facilities and

overhead costs

Costs of outsourced

activities

HR ANALYTICSTHE ROLE OF HR BENCHMARKING (2/3)

July 3, 2014 12

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Key Benchmark Lower 25-49th 50-74th Upper

Profile Quartile Percentile Percentile Quartile

Wealth Created per FTE

Human Investment Ratio 64

Profit per FTE 82

Revenue per FTE 58

Costs per FTE 50

Remuneration/Revenue 94

Average Remuneration 85

Resignation Rate

FTEs per HR Department FTE 9

HR Department Cost per FTE 83

HIGH

LOW

The KBP focuses on

►Financials

►Productivity & Value Added

►Behaviours

►Skills, and

►HR Function

Project example of a major bank.

STRIM-Blog: http://blog.strimgroup.com/?p=1263

HR ANALYTICSTHE ROLE OF HR BENCHMARKING (3/3)

July 3, 2014PwC Saratoga. Managing people in a changing world. Key trends in human capital, … 13

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HR ANALYTICSTALENT BENCHMARKS & ANALYTICS

July 3, 2014STRIM Study on Career Guidance 2014 (DACH Region) 14

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Kriterien für die Wahl des Ausbildungsplatzes nach Ländern

HR ANALYTICSTALENT BENCHMARKS & ANALYTICS

July 3, 2014STRIM Study on Career Guidance 2014 (Extract Austria) 15

Wichtigkeit der Informationsquellen

Dinge, die am häufigsten am PC, Smartphone, Tablet gemacht werden nach Geschlecht

HR ANALYTICSWHAT MEASURES THE C-LEVEL CARES ABOUT

CREDIBLE DATA

►CEOs appreciate solid data.

► In determining whether data arecredible, executives will look at

► the reputation of the source of data,

► motives of the researcher,

► type of data,

► audience bias,

► study methodology,

► etc.

BUSINESS IMPACT

►CEOs are most interested in thebusinesss impact of their L&D programs,

► „all roads lead to RoI“

►Top executives want to know theprecise trajectory from learning toincreased productivity and profits.

July 3, 2014 16

KEY TAKE AWAYS

►Concrete CEO Challenges and Strategies form the starting point of the considerations for HR Analytics.

►To fulfill the forecast element of HR Analytics so called leading indicators are in the foreground.

►Only the interaction of leading and lagging indicators assures that an HR scorecard can support the strategy execution.

►With the help of HR Analytics action initiated HR activities are expressed in monetary terms (“business impact”). Causality is an important prerequisite for HR Analytics.

►Personnel risks relate mainly to skills and competencies, and respectively on leadership and succession planning (“short-term human capital”).

July 3, 2014For more information (german): http://www.strimgroup.com/de/fachbeitraege-zu-hca 17

YOU WANT TO KNOW MORE?

18July 3, 2014

Video (german) -HCA-Foren 2014

Website-Info (german) -HCA-Forum Wien (30.10.)

CEO-Blog (german) -STRIMgroup AG

YOUR CONTACT PERSON

► President and CEO at STRIMgroup AG in Zurich http://www.strimgroup.com

► Senior Fellow Human Capital at The Conference Board in New York http://www.conference-board.org

► Associate Professor at HTWG Constance / LCBS – MBA in Human Capital Management http://www.lcbs.htwg-konstanz.de

► Selected professional positions:

► Global Head of HR Analytics at Deutsche Bank AG, and

► Senior Manager hrs at PricewaterhouseCoopers AG.

845 Third Avenue

New York, NY 10022-6600

Phone: +49 (0)172 7590 688

volker.mayer@conference-board.org

Gütschstrasse 22

CH-8122 Binz (Zurich)

Phone: +41 (0)43 366 05 58

volker.mayer@strimgroup.com

19July 3, 2014