The Top HR Stories to Tell with Data: Templates …...HR Joins the Analytics Revolution, Harvard...
Transcript of The Top HR Stories to Tell with Data: Templates …...HR Joins the Analytics Revolution, Harvard...
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The Top HR Stories to Tell with Data: Templates that Wow Business Leaders
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TABLE OF CONTENTS
! The need for HR Transformation
! Use Data to Become a Strategic Player
! Top HR Stories to Tell with Data
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A growing number of corporate boards, CEOs, and CHROs understand that by applying data-driven solutions to improve decisions about talent, they can improve revenues and profits.”
HR Joins the Analytics Revolution, Harvard Business Review Analytic Services, 2014.
“
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FORCES DRIVING HR TRANSFORMATION
Hire Right
Demographic Shift
Retain Top
Talent Skills
Shortages
Ensure Planning Agility
Economic Flux
Optimize Spending
Competitive Pressures
more than ever before HR can play a critical role in driving business performance.
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WHERE IS HR? THE SOPHISTICATION AND USE OF DATA
Level 1: Reactive – Operational Reporting Ad hoc, reactionary
Level 2: Proactive – Advanced Reporting Routine, benchmarking, dashboards
Level 3: Strategic Analytics Segmentation, analysis, people models
Level 4: Predictive Analytics Predictive models, scenario planning
4%
10%
30%
56%
Bersin by Deloitte, October 2013.
86% of HR is lagging
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METRICS ! A system or standard of
measurement ! E.g. Turnover rate
“DATAFICATION” INVOLVES METRICS AND ANALYTICS
ANALYTICS ! The connecting and analysis
of data ! E.g. Who is at risk of
leaving?
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Use Data to Become a Strategic Player
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CHOOSE TOPICS THAT HAVE BOTH HIGH PEOPLE AND BUSINESS IMPACT
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PEO
PLE
IMPA
CT
BUSINESS IMPACT
High/High
High Low/Low
High
Recruiting, Retention, Performance, Labor Costs Diversity, Development
Cost reduction, increased revenue, improved customer satisfaction, higher margins
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TELL STORIES ABOUT YOUR INSIGHTS, USING VISUALIZATIONS
Align
Act
Analyze
• Measure past trends and present realities
• Connect data points to achieve insights and predict future events
Analyze
• Articulate your findings • Define, refine & share your
strategy • Collaborate and gain buy-in
Align
• Act on workforce decisions • Develop and implement
credible workforce plans • Balance costs with budgets
Act The Workforce Intelligence Cycle
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Top HR Stories to Tell With Data
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The Fundamentals Org Summary, Movement, & Total Rewards
1. Acquiring Talent
2. Keeping Talent
3. Developing Talent
4. The Real Cost of the Workforce
5. Reducing Unnecessary Workforce Costs
6. Performance
7. Diversity
8. You Need a Plan
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THE FUNDAMENTALS – ORGANIZATION SUMMARY
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Dashboards are a starting point that can quickly show the metrics you want a business leader to review. They are effective at presenting interesting information. BUT Dashboards lack context. Context is required to dive deeper into the information and drive conversations about workforce decisions and HR strategy.
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HOW DID HEADCOUNT CHANGE? EMPLOYEE MOVEMENT – IN/OUT/WITHIN
Dive deeper into “Headcount” by understanding the changes in employee movement.
This data visualization shows the number of external hires and internal hires (or transfers). Each type of movement requires its own training/onboarding strategies.
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After showing how the headcount changed within the organization, you can now show the drivers behind the change including growth, replacement involuntary turnover and voluntary turnovers. If a measure such as voluntary turnover is significant for your organization, the discussion could move towards retention strategies and actions to reduce this number.
WHERE DID THE CHANGE COME FROM?
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This view of total rewards breaks down spending into categories to give business leaders a quick view of where the workforce expenses can be attributed.
HOW MUCH IS TOTAL COMPENSATION?
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1. ACQUIRING TALENT
A dashboard about talent acquisition can be used to give an overview of the hiring situation. BUT Hiring is a process. In a dashboard, you are limited to static numbers. It brings more value to see the flow and movement through the hiring process.
Understanding the process makes it easier to establish a way to reach hiring goals and to identify gaps.
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Visualizing the hiring pipeline takes the typical hiring metrics and puts them into context. It shows how 369 filled positions resulted from 3617 Applications. This helps business leaders understand what type of work is involved in the hiring process so that they can align their expectations to balance speed, quality, and cost of talent acquisition.
WHAT IS THE HIRING PROCESS/PIPELINE?
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Business leaders may encourage a faster Time to Fill, as it could reduce costs. This visualizations compares the Time to Fill with Turnover, an indicator of poor organizational fit and quality, to show how quality may be sacrificed with faster hires.
SPEED OR QUALITY OF HIRE?
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Begin looking at retention and regrettable turnover – those whom you don’t want to lose. By comparing overall turnover to turnover of Top Talent, you can identify if there are particular groups where you are losing people you want to keep and discuss how that will impact the business.
2. KEEPING TALENT – ARE WE KEEPING TOP TALENT?
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Big Data technology and analysis can help you answer the question of “Why are people leaving?” and identify which characteristics are common to groups who are less likely to resign and those who are more likely to resign.
WHAT ARE THE LEADING INDICATORS OF TURNOVER?
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Think about development from an outcome perspective by looking at Time to Promotion for example. This 9-box analysis shows Performance Level, Potential Level, and Time to Promotion. If an organization is maximizing it’s development efforts, those who are high performers and have high potential should have a shorter time to promotion.
3. DEVELOPING TALENT – ARE WE BUILDING TOP TALENT?
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A good basis for conversation is about which groups within your organization are high producers of talent. This visualization shows which teams are giving more promotions vs. who is acquiring promoted talent. The net product is shown on the right side. This shows which sources are best at building great talent.
WHERE ARE WE BUILDING TALENT?
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4. THE REAL COST OF WORKFORCE
To effectively manage costs, it’s critical to to be able to drill down to find out which groups or business units are increasing most rapidly. The ability to look at the same data through multiple levels of specificity allows you to communicate the most important cost drivers and back them up with details.
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One way to pinpoint what unnecessary costs can be reduced is to perform an internal benchmarking evaluation. This type of analysis will help you identify outliers or opportunities to better allocate resources. For example, if absence costs are important to your organization, you can identify that your organization is significantly above your peers within your organization. Reducing absence costs could lead to substantial overall cost savings.
5. REDUCING UNNECESSARY COSTS
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The costs associated with overtime and supplemental pay are also important to monitor. Often as other costs are reduced, items like overtime or supplemental pay increase to cover the short fall. Monitoring the year over year change of supplemental costs to changes in in your base pay is crucial.
HOW WELL ARE WE MANAGING SUPPLEMENTAL COSTS?
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Performance management and the analysis of performance is quality of high-performing organizations. In a comparison of the performance of employees and managers, it’s important to think critically. Managers should perform at high levels, but are they being measured relatively (compared to other managers) or absolutely (compared to all employees)?
6. PERFORMANCE – DISTRIBUTION OF EMPLOYEES AND MANAGERS
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Compensation changes are standard to all organizations. Compensation increases should be with high performers / high potential employees if pay for performance is effective in the organization. Allocating resources to the most deserving will get the organization the most reward for the costs.
DRIVING PERFORMANCE WITH COMPENSATION CHANGES
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Research has shown that organizations with similar diversity to the environment of the business and customers have more financial success. An effective way to measure diversity is with industry and environmental benchmarking. Shifting diversity from a compliance issue to a strategic factor can increase your value.
7. DIVERSITY – OF FUNCTIONAL GROUPS
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Leadership decisions drive results and a more diverse leadership group is more likely to build a diverse organization. Hence this comparison of the diversity of managers to total population will inform how and where you can further your organizations diversity initiatives and build better results.
HOW DIVERSE IS OUR LEADERSHIP GROUP?
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To maintain the diverse leadership that you have built up requires a succession pool or candidates of diverse individuals in your future senior leadership pipeline. Evaluating this ahead of time will ensure that your organization maximizes the benefits of a diverse workforce.
WILL WE MAINTAIN LEADERSHIP DIVERSITY?
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The most important measure of success is whether or not you have reach your organizational goals. To be impactful, you need to know your desired outcomes and continually monitor to ensure your actions are aligned with your plan. Being able to see headcount and compensation compared to actual counts and spends are key to conversations about HR strategy and aligning business goals.
8. YOU NEED A PLAN, BUT WHAT IS IT?
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Where are we today?
Is our hiring process effective with time, cost, and quality?
How can we keep our best talent?
Are we developing our top talent?
What is the real cost of the workforce?
How can we reduce unnecessary costs?
Are managers being evaluated appropriately?
How can we maximize our diversity?
Are we acting in line with our plan?
IN SUMMARY: KEY QUESTIONS TO ANSWER
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