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The Datafication of HR: Building your Business Case for Workforce
Analytics and Planning
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Speaker: Dave Weisbeck Chief Strategy Officer Visier
Moderator: Lauren Dixon
Associate Editor Workforce magazine
The Datafication of HR: Building your Business Case for Workforce
Analytics and Planning
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Frequently Asked Ques6ons
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Lauren Dixon Associate Editor Workforce magazine
The Datafica6on of HR: Building your Business Case for Workforce Analy6cs and
Planning
#WFwebinar
Dave Weisbeck Chief Strategy Officer Visier
The Datafica6on of HR: Building your Business Case for Workforce Analy6cs and
Planning
The Datafication of HR: Building your Business Case for Workforce Analytics and Planning
Dave Weisbeck, Chief Strategy Officer
JULY, 2015
Agenda
• The drivers behind the Datafication of HR
• How to build a Business Case for Workforce Intelligence
• With examples of Workforce Intelligence in action
Analyze Go from data to insight
Align Go from insight to plans
Act Go from plans to outcomes
Maximize your Business Outcomes, Through your People
Where are our recruiting bottlenecks?
How can we retain critical employees?
What if?
How well did we plan?
How do our total workforce costs breakdown in our plan?
Should I give my team
member a raise?
What are our total workforce costs and how are they changing?
How can we connect Total Rewards to our
bottom line?
How will turnover
impact our future
workforce?
Which workforce scenario will best meet our business goals and budget?
Where should we allocate people to
support the business?
Which Critical Talent is at risk of
resigning?
Who should I promote?
Workforce Analytics
Workforce Planning
Workforce Intelligence
Enabling HR and the business with Visier Workforce Intelligence solutions could be the most impactful action you
take this year.
The Datafication of HR
Q: To capitalize on the top-three global trends which you believe will most transform your business over the next five years, to what extent are you making changes, if any, to the following areas?
CEOs Recognize Talent is the Key
Great HR Leads to Great Companies
“Eight years of research into Watson Wyatt's Human Capital Index® (HCI) has consistently found a strong correlation between effective HR program design and financial performance. Indeed, the link goes beyond correlation: Effective HR programs are a leading indicator of financial performance.”
Towers Watson
We found that companies that are stronger in people management have a correspondingly higher financial performance. … In contrast, companies with the worst financial per-formance show a greater need for action across virtually all 27 HR subtopics… This has been a consistent finding… it is clear that the most successful people companies consistently outperformed the market, by nearly 100 percent.
Boston Consulting Group
Changing expectations for HR leaders
Evolution from Process-Oriented Talent Management to Data-Driven People Management
Analytic Companies Win
Source: Sierra-Cedar, 17th Annual HR Systems Survey
“… the effect of HR technologies for Top Performers as a competitive advantage has minimized … So we dug deeper…”
Quantified Organizations have a 79% greater Return on Equity (ROE)
Ber
sin
by D
eloi
tte
Operational Reporting Reactive Reporting of Operational & Compliance Measures •
Focus on Data Accuracy, Consistency, Timeliness
Advanced Reporting Proactive Reporting for Decision-Making • Analysis of Trends
& Benchmarks • Customizable, Self-Service Dashboards
Advanced Analytics Statistical Analysis to Solve Business Problems • Identification of Issues
& Actionable Solutions • Centralized Staffing & Integrated Data
Predictive Analytics Development of Predictive Models • Scenario Planning •
Integration with Business & Workforce Planning • Data Governance Model
Level 1
Level 2
Level 3
Level 4
Source: Bersin by Deloitte, 2014
4%
10%
30%
56%
Bersin by Deloitte’s Maturity Model
Despite Demand, Organizations are “Stuck in Neutral”
5%
5%
4%
7%
8%
7%
Conducting multi-year workforce planning
Correlating HR data to business performance
Using HR data to predict workforce performance and improvement
2015
2014
% of “excellent” ratings
Source: Global Human Capital Trends Study 2015, Deloitte
How to Build a Business Case
The Challenge
What makes creating a business case for Workforce Analytics and Workforce Planning challenging? § The value in analytics comes in its application – not in, and of, itself § Planning value is generally long term § The potential applications are very broad reaching § Often, the value is only understand after the investment is made § Often the benefit is reduced risk, but how much?
Recommendation: Take a structured approach
The 5 Key Aspects of the Workforce Intelligence Business Case
Start by: 1. Creating excitement about the potential opportunity
Then determine: 2. Efficiency gains 3. Direct workforce benefits 4. Business benefits
And remember: 5. Show (don’t just tell) people what they can achieve
Efficiency: Modernizing your systems
What systems will be sunset (turned off), and what is the savings in fees or administration costs?
From Gartner’s, Business Intelligence Platforms User Survey: “… of the three main components of the cost of a BI platform – software licenses, implementation fees and administrative costs – administration costs make up as much as 75% of the overall BI platform ownership cost”.
What are your key business and HR objectives and challenges? How are they connected?
Business growth in a new product or service area, without increasing costs
Business Objective/Challenge HR Objective/Challenge
Hiring, retaining, developing, and
motivating critical talent
Developing an optimal workforce plan -- the right talent, in right roles, within
budget
Getting ahead and proactively addressing workforce cost changes
Finding new savings through better talent
decisions
Hiring, retaining, developing, and motivating critical talent
Hiring Critical Talent More Efficiently, and with Better Outcomes
Common recruiting metrics, such as “time to fill” and “cost to fill,” do not answer strategic questions about the quality and value of the people being hired, and do little to improve recruiting effectiveness
The Hiring Pipeline
Source to Application to Employee Quality Hire. Efficient Process. Effective Recruiters.
Retaining Critical Talent: From How Many are Leaving, to Who is at Risk
New Big Data approaches can turn trends, into actionable insight
Retaining Critical Talent: More than measuring turnover
Understanding why: § Understand key resignation and retention drivers § Understand all aspects of turnover
Retaining Talent: What Action Should We Take?
Actions are often personal, and at the individual level: § Good analytics goes from the big to the small – macro to micro § Helps business partners and leaders make the right decision in the moment
Savings: Reduced Employee Replacement Costs
At a 5000-employee company, a 10% voluntary turnover rate can convert into more than $30 million in replacement costs in a single year
Savings: Hire, Develop, and Retain more Top Performers
• Analyze the characteristics, tenure, work experiences, and managerial connections of your top performers
• Understand how to grow future top talent. Consider the build or buy
Developing an optimal workforce plan -- the right talent, in right roles, within budget
To meet our business objective, who, when, and how many do we need?
Taking into account and optimizing all workforce costs
Considering different workforce scenarios
Continuously forecasting and adjusting plans
§ Most compensation analysis by HR is annualized – dig into actuals, it isn’t just for finance
§ Forecast – take actuals plus intended hires & costs and project to where you will end the year – then evaluate if you are on target
§ Review this monthly with leadership
WORKFORCE COSTS Transforming workforce planning from a position-oriented process, to a continuous, cost-driven process has the ability to drive significant, more quantifiable cost savings: Calculate what a small improvement in planning accuracy can have on the bottom line 1% of $100 Million in workforce costs = $1 Million / year
Getting ahead and proactively addressing workforce cost changes
Getting ahead of workforce costs and how they are changing
• How much does our workforce really cost?
• How can we optimize our workforce costs?
• How are our costs changing over time?
• Are we on track with our plan and budget?
• How can be better map to Finance?
Most HR departments lack a complete view of workforce
costs
76% of CEOs have cut costs in
the last 12 months.
People are 70% of a
company’s cost – and are the “final frontier” of savings in
competitive markets
Finding new savings through better talent decisions
Consider overtime, absenteeism, engagement… for new savings
Resources available at www.visier.com
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