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People Analytics is the New HR Wharton People Analytics Conference April 2015

People Analytics is the New HR

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People Analytics is the New HR

Wharton People Analytics Conference │ April 2015

What we tell our friends about people analytics…

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…what our business partners think of people analytics…

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…what we actually do in people analytics

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People analytics:

A tiny but growing field in HR

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People analytics is a small field within HR

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Number of member profiles in 2015 (not to scale)

Source: LinkedIn, estimate based on member reported job titles and skills, (Apr 2015).

4.5MHR professionals

9,500People analytics

professionals

Source: LinkedIn self-reported member data based on job title, start date, and company

…but it’s growing quickly

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2,000 2,400 3,000 3,400 3,500 3,900 4,300 4,700 5,300 8,100 9,5000%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Q1

Number of People Analytics Professionals Growth Rate

Number of people analytics members on LinkedIn

~5X growth

over 10 years

People analytics professionals have diverse skill profiles

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Percent of profiles by segment

Source: LinkedIn, estimate based on member reported job titles and skills

8%

17%

10%

13%24%

28%

Data guru

Staffing expert

Talent manager

Reporting analyst

Workforce consultants

HR process manager

4,500Companies have

employees focused on

people analytics

43%of the Fortune 1000

55%of all people analytics

functions have been

started within the last 5

years

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Companies are catching on

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People analytics: What it is and how it’s evolving

The 4-step evolution of people analytics functionsWe create business value through behavior change, not predictive analytics

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Imp

act

People Analytics Maturity

Level 1

Data monkey

Level 2

“Why?” asker

Level 3

Proactive business partner

Level 4

Change leader

“I need this data tomorrow for the company All Hands”

“How do we shape our talent strategy to

meet our business goals?”

“Help me understand what problem you are

trying to solve?”

“How do we reduce bias in our people decisions?”

People analytics professionals tackle big business questionsSample business & HR problems across the employee lifecycle

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Workforce Planning

What is our talent strategy to grow the business in key areas?

How do we forecast talent demand & supply of critical talent?

Talent acquisition

How do we quickly identify and prioritize critical talent pools?

Learning & Development

How do we define, assess, and develop great leaders at LinkedIn?

How do we measure the impact of learning?

Talent Management

What are the drivers of attrition?

How do we reduce regrettable attrition and retain top talent?

Example: Implementing Data Driven Recruiting at LinkedInProblem: How do we efficiently identify and prioritize critical talent pools?

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We sized & prioritized the market of Systems & Infrastructure engineers

Affinity

Which prospects are most likely engage?

Skill

Matc

h

Who h

as e

xpert

ise in s

kill

s w

e n

eed

?

1:Many

“Nurture”

High

HighLow

1:1

“Blue Carpet”

1:Many

Talent Brand

1:Many

“Telesales”

Pilot results

Most successful quarter in Systems & Infrastructure Engineering recruiting

Influenced LinkedIn Recruiter product roadmap

Data driven recruiting led to sky high InMail response ratesWe used engagement & connectedness to target candidates w/ high affinity

Noengagagement /

connection

Engaged w/Competitor

Connected w/ LI Engaged w/ LI Engaged w/ LI &w/ Competitor

Engaged w/ LI &Connected w/LI

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2.8x higher response ratesvs. no connection

InMail response rates

Source: North America; n=100k

So you think you want to do people analytics?

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Professionals

Get to know people who work in people

analytics! Sharpen your analytics skills.

Companies

Don’t wait for the data infrastructure to

be finished. Pursue quick wins that

build credibility and provide immediate

business value.

Reporting

Analytics Dashboards

Ad Hoc Reporting

Data Mining & Cleaning

Technical Project

Manager

Consulting

Process Improvement

Performance Mgmt.

Organization Design

Strategic Planning

Analytics

Statistical Modeling

A/B Testing

Survey Design

Research

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How to build your people analytics functionSuccessful people analytics teams start with 3 critical skill areas

Questions?

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Lorenzo Canlas

Head of Talent Analytics

LinkedIn

Will Gaker

Senior Manager, Talent Analytics

LinkedIn