HR Analytics - A Pathway to Business Impact

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HR Analytics – A Pathway to Business Impact

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Speaker: Charles GoretskyPrincipal ConsultantBersin & Associates

Moderator: Kellye WhitneyManaging EditorTalent Management magazine

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Kellye WhitneyManaging EditorTalent Management magazine


Copyright © 2012 Bersin & Associates. All rights reserved. Page 6

Today’s Webinar is Sponsored by:

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Recruit & Onboard

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Candidates

RecruitingCloud

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Cloud

Customers & Partners

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Unified Comprehensive Solution

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Cornerstone OnDemand is a global leader of cloud-based talent management software solutions. Over 9.4 million users across 180 countries rely on Cornerstone to maximize their potential, develop their skills and foster new levels of collaboration. Cornerstone’s comprehensive solution helps organizations manage entire employee lifecycle, from hiring through retirement. The solution includes: Cornerstone Recruiting Cloud, for social recruiting, sourcing, onboarding, and planning of talent Cornerstone Performance Cloud, for managing the performance, succession and compensation of your workforce Cornerstone Learning Cloud, for training, development and certification of employee skills and expertise Cornerstone Extended Enterprise Cloud, for managing and training your extended network of customers and partners Based on Cornerstone’s pure cloud architecture, Cornerstone’s comprehensive solution helps organizations manage entire employee lifecycle, from hiring through retirement.

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Charles GoretskyPrincipal ConsultantBersin & Associates


Copyright © 2012 Bersin & Associates. All rights reserved. Page 8Copyright © 2012 Bersin & Associates. All rights reserved.


Charles GoretskyPrincipal Consultant

September 18, 2012

Sponsored by:


Bersin WhatWorks® Membership Program

Learning &Development

TalentManagement

Leadership& Succession

TalentAcquisition

HumanResources

Research and ToolsFrameworks, Maturity Models, High Impact® Research Programs, Factbooks®

Scorecards, checklists, forms, RFP’s, selection guides, case studies, solution provider library

Advisory ServicesAsk the Experts®, Business Impact Workshops

Analyst Advisory Calls, Webinars

Networking and Professional DevelopmentMember Roundtables, Peer Connection®,

IMPACT Conference, Bersin Lexicon®, Analyst Blogs

Consulting ServicesStrategy Development, Executive Alignment, Benchmarking,

Systems Selection and Roadmap, Measurement Strategy and Programs

Mem

ber S

ucce

ss P

rogr

am

Presenter

Presentation Notes

CHARLIE:


Topics

The importance and impact of quality HR measurement on talent and business outcomesHow analytics helps address critical talent challenges organizations face todayHow to evolve and mature your analytics capabilityHow current technologies can be readily leveraged to build an analytics capability that enhances both the prioritization and outcome achievement of your human capital initiatives.

Presenter

Presentation Notes


Analytics is a Well-Known DisciplineBusinesses Measure What Matters

The Industrial Economy

Steel, Oil, Railroads

The Financial Economy

Conglomerates, Financials, Engineering

The Customer Economy and Web

Customer segmentation, Personalized products

The Talent Economy

Globalization, Demographics, Leadership

and Skills Shortages

Early 1900’s 1950’s- 60’s 1970’s-80’s Today

The Waves of Business Analytics

Finance & Logistics

Logistics and Supply Chain

Analytics

1980s Financial and

Budget Analytics

Integrated Supply Chain

Integrated ERP and Financial

Analytics

Recruiting, Learning, Performance Measurement

Integrated TM and Workforce

Planning

Customer Analytics – CRM (Data Warehouse)

Customer Segmentation

Shopping Basket

Web Behavior Analytics

Predictive Customer Behavior

Talent & LeadershipCustomer & Marketing

Business-driven Talent analytics

Predictive Talent Models


HR Organizations are Not Ready

What percentage of HR organizations believe they have strong skills in data analysis and interpretation?

6% rate themselves “High”

56% - “Poor”Bersin & AssociatesHigh-Impact HR Organization® 2011 and 2010, n=741 organizations


The Lowest Rated HR Skill

17%

15%

7%

6%

4%

1%

-4%

-5%

-6%

-11%

-12%

-18%

Attracting and selecting the right talent

Promoting health and wellness

Onboarding new talent

Fairly allocating compensation

Understanding skills needed by role

Encouraging innovation and collaboration

Creating a high-performance culture

Enabling a learning organization

Identifying and developing future leaders

Driving internal mobility

Developing workforce analytics for management

Measuring HR program effectiveness

Relative Strengths of HR Skills and Capabilities

Bersin & AssociatesHigh-Impact HR Organization® 2011 and 2010, n=741 organizations

Measurement and analytics are the lowest-rated

capabilities for HR teamstoday


Impact on HRHR Best Practices HR Framework Area HR Impact

1. Implement Governance & Planning * HR Strategy & Business Planning 39%

2. Invest in Quality Workforce Planning HR Service Models 28%3. Create the “Right” HR Philosophy HR Strategy & Business Planning 27%

4. Reduce HR BP Administrative Work HR Service Models 25%

5. Create a Flexible HR Org Structure Organization & Governance 20%

6. Improve Key Audience Facing Tools Technology and Infrastructure 19%

7. Measure Workforce & HR Ops * Measurement 19%

8. Develop Internal HR Skills * Governance & Organization 13%

9. Outsource Strategically Service Models 10%

10. Improve Line Manager Capabilities * Audience & Stakeholders 10%

•Negative impact if not implemented well

Source Bersin & Associates HIHR Survey N=720HR Impact =‘s Opportunity for improved efficiency, effectiveness, and business alignment


HR Business Partners Activities# 1 Differentiator of HIHR organizations over 15,000 employees

5%

15%

12%

19%

18%

16%

41%

20%

45%

37%

3%

3%

7%

10%

21%

22%

28%

28%

48%

66%

Orientation

Performance Management

Data Gathering & Reporting

HR Program Training

Employe Inquiries

Coaching executives & Managers

Manager Inquiries

Workforce Strategy

Employee Relations

Providing Decision Support

High Impact HR All Others

What does the HR Business Partner role do?


Poll: What does your organization measure

today?

Process Efficiencies CPH, TTF, HR headcount/ee, Learning $/ee

Process Effectiveness % Satisfied with class, 70/20/10 %’s

Talent Outcomes% HiPo’s promoted, % Ready-now successors, speed-to-productivity

Integrated Talent/BusinessCoached leader revenue increase, # sales staff needed to open

Shanghai office


Talent Processes vs. Talent Outcomes: How to Communicate, Prioritize, Execute and Measure

Talent Outcomes

Leadership Pipeline Two-deep+ all key roles*

Talent Mobility70% hi-po’s with cross-BU/functional assignments/experience*

Critical Talent PoolsSegments identified; High Performer retention rate, % with high quality development plans

Skill Gaps Identified, being closed

65% critical skill Partners with necessary competency levels*

Talent ProcessesSuccession Management, Leadership Development

Career Development, Internal Job Postings, Learning & Development

Employee Engagement, Performance Management, Learning & Development

Talent Planning, Learning & Development, Competency Management

* Sample goal


Decision Support: Focus on Solving Business Problems

Why is turnover high in some areas?

What drives sales productivity?

Why is their fraud in some branches?

What sales or service processes drive account renewal?

What is the training of hiring profile we need to drive greater revenue per customer?

How do we assess the “right” candidates for sales?

What will our talent gaps be next year based on retirement rates?


Cases in Point: Driving Business Value & Impact with Analytics

Major Retailer developed integrated “people model” to correlate relationship between engagement, rewards, leadership capabilities, tenure, skills and revenue

Major Insurance Company statistically validated 30+ factors in recruiting which led to 20%+ improvement in sales performance and completely revamped recruiting process

Major Food Service Company identified key drivers of account renewal and upgrade and developed statistically valid measures which have been used to create company-wide dashboard which measures risk on a weekly basis

Major Retail Bank correlated dozens of workforce measures against engagement and branch financials to develop risk management dashboard for small and large branches


THE EVOLUTION OF AN ANALYTICS CAPABILITY


Progression of HR/TM Measurement

HR & Talent Metricsanalyzed againstbusiness metrics

Drives business decisions &

supports forecasts

Business Metrics & Analytics

EmployeeDiversity

Learning Plans

Enterprise Recruiting

Pipelines

PerformanceRatings

Basic Workforce Metrics

Integrated TM Metrics

WorkforcePlans

Talent Plans

Competency Gaps

TalentMobility

Performance Movement

EmployeeEngagement

Career Paths

Employee Satisfaction

TurnoverHiring

Basic HR Metrics

Measure Workforce Metrics & HR Operations : Bersin’s HIHR, 2010

Develop a TM Measurement Strategy

Budget


Technology Systems – Data Warehouses, Reporting and Analytic Tools

Business Translation & Analysis

Inte

rnal

HR

Mea

sure

s

HR Program and COE Process

External HR

Benchm

arks

Workforce Demographics

Talent and Leadership

People Performance & Business Outcomes

Workforce Engagement & Wellness

HR Measurement Framework

HRMS’s – Employee Demographic and System of Record Data

Applicant Tracking | Recruiting System

Performance & Talent System

Learning Management System

Compensation System(s)

Workforce Planning System Third party

data

HR and L&D Effectiveness

Organizational Readiness

Talent SupplyWorkforce Planning

Manager andEmployee Dashboards

Scenarios& Future Planning

Dashboards and Scorecards


Build an Analytics FunctionNot a set of tools

80% Data Capture

20%Analysis

20% Data Capture

80%Analysis

Measurement as aProject

Measurement as anProcess

“Go out and measure & analyze the reasons for

turnover of my sales people”

“Build a dashboard that continuously

correlates retention with engagement, competency

scores and other measures”


Analytics – a Journey


Transparency of business and workforce information

Analytics as a journey, not an end

Develop culture of data-driven decision-making

Empower line leaders, not just HR and L&D

Myth: Build an HR Data Warehouse

Reality: Deliver Actionable Business Information

Keys to Success

Presenter

Presentation Notes


Poll: What are the barriers to quality HR

measurement and analytics in your organization?

SystemsProcess

Staff SkillsManagement Support

Other


SYSTEMS CAPABILITIES


Weakness in HR Systems Solutions

How would you rate your LMS’s ability to obtain the information you need to measure training programs?

How would you rate your Talent Management System’s ability to deliver the talent measures you need?

How would you rate your HRIS system’s ability to deliver the measures you need?

63% Fair or Poor

72% Fair or Poor

17% Good

17% Good

3% Excellent

2% Excellent

82% Fair or Poor14% Good1% Excellent


Deliver Tools that Make a Difference

11.8%

13.2%

13.6%

13.7%

13.9%

14.4%

14.5%

17.3%

18.6%

19.6%

19.6%

Learning Management

HRMS

Manager Self Service

Eployee Self Service

Compensation

Aplicant Tracking

Performance Management

Succession Management

Knowledge Sharing

Manager Dashboard

Web Social Networking Recruiting

Percentage of improved HR effectiveness based on tool investments


Systems Support the Reduction of Tactical Workloads

Manager Inquiries

Employee Relations

Resolution

Data Gathering

& Reporting

Workforce Strategy &

Mobility Planning

Decision Support Sr. Managers

Coaching Executives

Efficiency -4.0% -2.0% -2.7% 3.0% 3.1% 5.7%Effectiveness 1.3% -2.5% -1.0% 5.4% 6.8% 8.2%Business alingment -4.0% -1.0% -4.1% 1.0% 2.7% 4.3%

-6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%

10.0%Negative

Impact on HR

Positive Impact on HR

Best Practice 4: Reduce HR BP Administrative Work


Progression of Measurement Technology

‘70’s

‘80’s

‘90’s

‘00’s

‘10’s

Employee files, hand-written record keeping

PC’s, Excel; data transferred manually from files or records to Excel

HRIS generates via Crystal Reports, Business Objects, SAS, SPSS

Data Warehouses, auto-loaded data from different systems, “cubes”

HCMS with integrated TMS, analytic packages, intuitive user interface

We’re in a new era – one that requiresnew information, integrated data

and leverages new technologies and data sources


0%10%20%30%40%50%60%70%80%90%

100%

Diversity Representation(As of 6/17/2011)

TBS-Non-Minority

TBS-Minority

DiversityInc-Minority

DiversityInc-Non-Minority

0%

20%

40%

60%

80%

100%

Ready Now

Ready in 6

months

Ready in 12

months

Ready in 18

months

Ready in 2 years

Ready in 3 years

Too New To Rate or N/A

Pipeline Readiness(2010 Succession Planning: VPs and Above)

Too New To Rate Under‐Performing Well‐Placed

Growth Potential Highly Promotable

TALENT MANAGEMENT SCORECARD (Q2 2011)

1. Disparity in minority population amongst leadership; non-managers and other positions split approximately 50/50

2. On average, over half of VP+ talent assessed during 2010’s Succession Planning process are ready to assume a new role within the next 12 months

3. Manager effectiveness: SVP & above below current 3.0 average- most likely due to rating scale difference (VPs and above receive either a 1, 2, or 3 numeric rating value whereas ratings for Directors and below can include a decimal value)

4. Males/females represented almost equally in leadership development programs, however, non-minorities still represent more than half of 2011 YTD participants

5. The majority of leadership development program participants experienced no change in job role after participating in one or more programs

6. Turner overall has spent less on training per employee during Q1 as compared to the ASTD/Bersin combined average benchmark (average $81.94/employee across Turner vs. $147/employee)

7. Turner is currently spending .02% of its YTD profit on learning & development; the ASTD benchmark is approximately .4% of quarterly profits

3.2

3.0

2.7

2.7

0.0 1.0 2.0 3.0 4.0 5.0

Dirs/Equivalent by Title

Mgr/Equiv by Title

SVP and above

VPs/Equivalent by Title

Average of EE Engagement, Perf. Ratings, Promos Out of Hierarchy, and Num. of

Terminations

Manager Effectiveness Index

Percentages may not add to 100% due to rounding

49%

51%

0%10%20%30%40%50%60%70%80%90%

100%

Female Male

6%18%8% 1%

66%

0%10%20%30%40%50%60%70%80%90%

100%

ASIAN BLACK HISPA

PACIF WHITE

Gender/Ethnicity Representation in LDPs(YTD 2011)

No Change

74%

Promotion20%

New Position

4%Suspensio

n1%

Job Title Change

1%

Executive Leadership Development Outcomes(YTD 2011)

0

50

100

150

200

1st Qtr 2011 - Training Expense per FTE

Dollars per FTE ASTD/Bersin Benchmark

1 2 3

4 5 6

7


Poll: Are you currently using a talent management technology vendor

for HR Analytics?

YesNo

Not Sure

Presenter

Presentation Notes

As opposed to a separate analytics package outside of your HR systems, such as SAS or SPSS?


Critical Analytics & Technology Questions

Is it easy to understand and implement?

Does it deliver reliable and credible information?

Does it deliver actionable information?

Is it inexpensive to operate and maintain?

Is it flexible to implement and change over time?

Is it relevant to your organization’s specific strategies?

What do organizations do with their HCM Metrics?

How are metrics integrated into HR & Business scorecards?

Who makes use of the HC metrics in the organization?

To whom are HR metrics reported?

Copyright © 2012 Bersin & Associates. All rights reserved. Page 35Copyright © 2012 Bersin & Associates. All rights reserved.

Thank You!Questions or Comments?

email : [email protected]: charles goretsky

For more information about our WhatWorks® Membership, contact us today at [email protected]

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