Empower the People Possibility by Big Data · Big Data Peter Zhang CEO, Aon Hewitt Greater China. 2 Proprietary & Confidential Proprietary & Confidential ... improved Sales Rewards

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Proprietary & ConfidentialProprietary & Confidential

Empower the People Possibility by Big Data

Peter ZhangCEO, Aon Hewitt Greater China

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Technology

User Experience

Use of Information

Changing Demographics & Societal Developments

Market Structure

New tech advancements happening every day

Availability 24/7, on their time and their terms

Easy access, but with absolute safety and privacy

Not everyone speaks the same “language”

Shifting global markets, interconnected businesses

Source: Aon Growth Study, 2018

Every Company Is Transforming

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Digitalization of HR People Analytics

Talent Development

Agile Organization

Consumer Level

Employee Experience

HR Is Driving Transformation

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▪ We are expecting to drive 5% y-o-y growth in EPS by optimizing our critical talent pipeline

▪ We have reduced business risk by up to 10% through better Employee Engagement

▪ We are forecasting a 10 – 15% increase in sales through improved Sales Rewards

▪ We are improving workforce productivity and optimizing our total operating expenses

▪ Are we hiring the right people to drive growth?

▪ Are we retaining employees in pivotal roles?

▪ Is my Employee Engagement improving?

▪ Am I compensating my sales staff effectively?

▪ Do I have the right workforce strategy?

HR Focus

Business focus

Business Growth

Managing Risk

OrganizationEffectiveness

People Analytics: Data x Analytics x (Business Expertise)2

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What is your long-term business strategy and HR?

How do we focus analytics on high value questions?

What technology solutions do you use and what capabilities do you have on your team?

How do we streamline data and deliver with speed and efficiency?

Where does your data reside and what is data consistency and quality

How do we ensure credibility around data and analytics within the business?

What is your HR organization and business’ readiness to use analytics?

How do we increase capability and adoption?

Business ValueFocused and Optimized HR Impact

InfrastructureTechnology and Resources

Data GovernanceConsistency and Control

Cultural ReadinessAnalytical Mindset and Capability Building

People Analytics Strategy Framework

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Delivering Business

Outcomes

Predictive and Prescriptive

Analytics

Descriptive Modeling

Implementing Technology &

Driving Adoption

BU

SIN

ES

S V

AL

UE

ANALYTICS CAPABILITY

Define the analytics strategy and delivery models for Analytics COE, and establish the right set of people metrics that enables the HR function to provide measurable analytical outcomes

Establish technology vision/ roadmap, set data governance standards & processes, and build HR capability to adopt analytical solutions with ease.

Enable descriptive analytic solutions across employee lifecycle by integrating analytics into new or existing technology platforms.

Leverage data from multiple sources to build advanced predictive and prescriptive models that address critical talent questions facing the organization.

Ensure delivery of critical business outcomes by aligning business strategies with analytics driven talent strategies.

Defining Strategy &

Identifying high Value Analytics

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How do we get started on People Analytics?

Which technology should we invest in and how do we drive use?

What is happening around our people/ talent and why?

What is likely to happen and what can we do to influence the future?

How do we integrate people analytic outcomes into core business decisions?

People Analytics Value Chain

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How do we recruit high quality employees for our pivotal employee roles?

Which employees are most likely to be successful as future leaders?

Predictive Leadership

Potential

Predictive Safety

Analytics

Risky Behavior Modeling

Predictive Attrition Risk

Modeling

Predictive Absenteeism

Predictive Retirement

Modeling

Predictive Quality of Hire

Modeling

Predictive Learning

Effectiveness

Predictive High-

Performance

Which learning programs are providing greatest returns to the organization?

Which factors predict performance and employee productivity?

Which employees are more likely to exhibit chronic absenteeism and when?

Who is likely to retire early if incentives like voluntary retirement programs are offered?

Why are employees leaving? Can we predict and mitigate future flight risks?

Which employees are likely to exhibit risky or non compliancebehavior and why?

How do we predict safety incidents and reduce costs to the employees and organization?

Predictive Pay Equity

Modeling

Are we paying equitably, and who is underpaid/ overpaid?

Applying Predictive Analytics Across the Employee Lifecycle

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High Frequent, Live Updating, Multi-dimensional HR Data Dashboard

Workforce

• Our turnover rate is high this year, what about our peers?

• Which exact group’s turnover rate is higher than market and should take intervention actions?

• How about key performer and key talents’ turnover rate in the market?

• How’s the talent supply across cities?

• What is peers’ headcount change?

• What is new hire pay?

Recruitment Rewards

• What is the bonus effectiveness?

• What is the relations between performance achievement and bonus payout?

Development

Retention ProductivityPivotal Roles

Historical Data

Market Data

• What is the most common development path across functions?

• What the promotion or rotation rate should be?

• What is the workforce of key functions?

• What are the supporting ratios?

• What might be the reporting layers?

• What might be the practices and management situation of pivotal roles?

• How is employee productivity comparing with peers?

• How is the E-Commerce performance comparing with peers?

Integrated Data Source With Both Internal and External Analysis

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Hiring Perspective

Rewards & Development Perspective

Talent Management Perspective

Organization Pulse®

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CEO

Does rewards investment align with business strategy, culture & performance?

CFO

How to optimize the rewards spending portfolio while driving more financial result?

CHRO

Does rewards strategy support people strategy by attracting and retaining right employee groups?

Rewards Committee

Does the level of executive pay align with that of business performance by peer group?

CXOs’ Challenge

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69.8%

Total Rewards ROI

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Total Rewards ROI

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Increasing Total Rewards

Value:

✓ Optimize spend

✓ Align to business

objectives

✓ Align to market data

✓ Increase engagement or

retention and align to

workforce needs

Decrease rewardEffectiveness

Increase RewardEffectiveness

Increase RewardInvestment ($)

Decrease RewardInvestment ($)

Efficient frontier

Current InvestmentCurrent Effectiveness

Risk Zone

ROIZone

Win-Win Zone

Package 3 - Point of diminishing returnsPackage 2 - More

effective, at no additional cost

Package 1 -

Reduction in spend, same effectiveness

2

1

3CFO Point

CHRO Point

Total Rewards Optimization

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Make DECISI NS Based On

What You KN W

Not What You FEE

Documents

Empower the People Possibility by Big Data · Big Data Peter Zhang CEO, Aon Hewitt Greater China. 2 Proprietary & Confidential Proprietary & Confidential ... improved Sales Rewards