The Insider's Guide to Workforce Analytics

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INSIDER’S GUIDE TO WORKFORCE ANALYTICS

Dave Weisbeck, CSO, Visier

Wednesday, March 5th, 3pm ET / 12pm PT

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Founded analytic industry veterans including former Business Objects CEO, John Schwarz

Won both HR Executives Top HR Product, and named Awesome New Technology at HR Technology conference

The only complete cloud-based workforce analytics and planning solution that integrates your data, answers best-practice questions and has you productive in 4-8 weeks

Smart. Intuitive. Complete.Workforce Analytics & Planning.


TODAY’S AGENDA

1. A framework : key terms and definitions

2. Examples of metrics and analytics

3. How to measure “workforce analytics maturity”

4. Common approaches to workforce analytics

5. Case study examples of analytics in action


POLL QUESTION - WHERE ARE YOU TODAY?

Over the next 12 months, your organization is:

1. Looking at workforce analytics for the first time (just starting)

2. Researching workforce analytics approaches (learning more)

3. Evaluating workforce analytic solutions (considering options)

4. Expanding existing workforce analytics (changing approaches)

5. Implementing a new workforce analytics solution (overhauling)


KEY TERMS


DEFINITIONS

METRIC

ANALYTICS

A system of measurement that seeks to quantify performance.

The systematic computational analysis of data or statistics.


THE TACTICS

Data Discovery – data navigation and guided exploration that allows for exploring data to find answers to questions

Monitoring – to provide an at-a-glance way to see a summarized view of multiple metrics

Publishing – formatted content regularly created for and consumed by stakeholders

TACTIC

Report

Query &Analysis

Dashboard

Metric Measuring – A of measurement that seeks to quantify performance

PURPOSE


TACTICS, STRATEGIES AND GOALS

We create and use:• Reports• Dashboards• Metrics

To enable better decisions about the workforce

So that, we can improve business outcomes

TACTIC STRATEGY GOAL

A N A LY T I C S


MOVING BEYOND TACTICS

TACTICS

Measure single data points

Provide information - what

Guide operations

State past and present

Tabular outputs of counts and rates

ANALYTICS

Connect multiple data points

Provide insights - why

Drive strategy

State past, present, and predict the future

Visual outputs of patterns and trends


EXAMPLES OF ANALYTICS


RECRUITING EFFECTIVENESS

“Recruitment is the HR function that has the most positive impact on revenue creation and profitability…”

Boston Consulting GroupFrom Capability to Profitability July 2012


COMMON RECRUITING METRICS

Common Metrics Time to Fill Open Requisitions Cost to Hire Quota Attainment

Shortcomings

Do not answer strategic questions about quality and value Do not provide insight into hiring connections to productivity (revenue

creation and profitability)


BEST PRACTICE ANALYTICS



TALENT RETENTION

“Voluntary Resignations are at a 5-year high.”

Bureau of Labor StatisticsJob Openings and Labor Turnover SurveyOctober 2013


COMMON TALENT RETENTION METRICS

Common Metrics

Turnover Turnover

and… Turnover

Shortcomings Does not provide insight into why resignations are occurring Does not allow for meaningful preventative action Not all turnover is bad!


CONNECTING TO BUSINESS THROUGH COSTSC

OST (

$)

TURNOVER RATE

Cost of Turnover(replacement)

Cost of Retention

Financial Benefit of Replacing

Financial Benefit of RetainingO

ptim

al T

urno

ver




TOTAL COST OF WORKFORCE

“Total workforce costs average nearly 70% of a company’s operating expenses.”

Society for Human Resources Management


COMMON COMPENSATION METRICS

Shortcomings Do not support strategic decisions about compensation Do not identify areas for optimization

Common Metrics

Salaries Total Direct Compensation Market Compensation Ratio Compa Ratio


WHERE TO START?

Direct Compensation

Indirect Compensation

DeferredCompensation

ContingentLabor Costs

Create a Cost Hierarchy:

Total Cost of Workforce (TCoW)o Total Salarieso Total Benefits

Direct Compensation

Contingent Labor Costs

Build from the bottom (right to left on this diagram)

Total Cost of Workforce (TCoW)




BUILD COSTS INTO YOUR PLANS


EMPLOYEE MOVEMENT

Structure is the organizational hierarchy, distribution of work, and business units

Network is the relationships and connections between people within the organization

No matter how correct your structure, if the network is missing your organization will not perform at its best

Structure Network Organization


COMMON MOVEMENT METRICS

Common Metrics

Headcount and/or FTE Turnover Internal Moves External Hires

Shortcomings Do not provide insight into

impact of employee movement

Do not correlate movement to other factors





MEASURING “WORKFORCE ANALYTICS MATURITY”


BERSIN’S TALENT ANALYTICS MATURITY MODEL

Level 1: Reactive – Operational ReportingAd hoc, reactionary

Level 2: Proactive – Advanced ReportingRoutine, benchmarking, dashboards

Level 3: Strategic AnalyticsSegmentation, analysis, people models

Level 4: Predictive AnalyticsPredictive models, scenario planning

Source: Bersin by Deloitte 2013

56%

4%

10%

30%


A MAP TO WORKFORCE ANALYTICS MATURITY

Self-serve Analysis

PredictiveDashboardsReporting

Level 1:Reactive

Level 2:Standardized

Level 3:Focused

Level 4:Strategic

Reach in Data and Users

Assess Maturity Model Status

Analytic Capabilities

Core HRISData

PerformanceData

Compensation All Talent Data

Business Data

Recruiting

Executives HR Department Business Leaders All People LeadersAnalysts

Business Impact


WORKFORCE ANALYTICS MASTER PROFILE

Reactive Standardized Focused Strategic

Path to maturity

Op

erat

ion

al t

o S

trat

egic

“Get it done”

“Be Consistent”

“Aligned with the business”

“Drive the business”


Limited linkage between various

systems

Multi-system integration

MATURITY MODEL

• One off reports

• Highly manual• Spreadsheet-

based

• Predictive analytics align to specific business strategy

• Single data source

• Consistent scheduled reports

• Business-specific dashboards and visuals

• On-demand answers

Get it done.Drive the business.

Be consistent.Align with the

business.

Analytic Capabilities

Focus

Single System Big Data

AnalystsAll People Leaders

HR & Executive Leaders

Business & HR Leaders

Reach in Data

Reach in Users

Reactive StrategicStandardized FocusedLevel


COMMON APPROACHES


ANALYTICS LANDSCAPEH

R D

omai

n Sp

ecifi

city

Analytics Capabilities

HR CORE APPLICATIONS

• Operational / transactional metrics and reports

• Standardized • Self-service options• Application-specific data

SPREADSHEET SOLUTION

• Manually created• Non-standardized• Prone to error• No self-service

BUSINESS INTELLIGENCE SOLUTION

• Expensive and lengthy to implement and update

• Requires IT expertise• Requires data warehouse• Designed for technical user,

rather than business user

WORKFORCE ANALYTICS

• Purpose-built for workforce analytics

• Short implementation• Possibly skip data warehouse• Designed for HR and the business


ANALYTICS LANDSCAPEH

R D

omai

n Sp

ecifi

city

Analytics Capabilities

HR CORE APPLICATIONS• Operational / transactional

metrics and reports• Standardized • Self-service options• Application-specific data

SPREADSHEET SOLUTION• Manually created• Non-standardized• Prone to error• No self-service

BUSINESS INTELLIGENCE SOLUTION

• Expensive and lengthy to implement and update

• Requires IT expertise• Requires data warehouse• Designed for technical user,

rather than business user

WORKFORCE ANALYTICS

• Purpose-built for workforce analytics

• Short implementation• Possibly skip data warehouse• Designed for HR and the business

BAD

REACTIVE


Buy & Deploy ETL Tools

Buy & Deploy Warehouse

BuildWarehouse12-36 months

Buy & Deploy BI Platform

interview users

map data to BI model

interview users

build reports & dashboards

I need a new report, and new questions! And how do I plan?

deliver analytics

START HERE

END HERE18-40 months

HIGH FAILURE RATES OF BI:

“… More Than 50 Percent of Data Warehouse Projects Will Have Limited Acceptance or Will Be Failures”

“Between 70% to 80% of corporate business intelligence projects fail…”

Gartner

HIGH COST OF BI PROJECTS:

“… survey put average price for a data warehouse at $2.3M and average payback at 2.3 years.”

“…time to implement [a data warehouse] ranges from 12 to 36 months”

IDC

Services for Analytic Content

BUSINESS INTELLIGENCE (BI) CHALLENGE


CASE STUDIES: ANALYTICS IN ACTION


CONAGRA FOODS

Challenges Numerous, manually-created reports Complex HRIS with limited analytics capabilities Home-grown analytics solution that could not keep up with

demand Changing workforce data that was difficult to access

Solution Visier Workforce Analytics

Results 30 day implementation Delivers self-service analytics, with over 300 workforce

answers, out of the box Fact-based decision making and initiatives:

– Identified attrition most at risk for people with a specific age, ethnicity, gender, and tenure profile

– Predicted turnover was at risk of increasing for successor-level positions

Download at www.visier.com


INFORMATICA

Challenges Workforce data in a limited, tabular format Difficult to produce workforce analytics,

requiring IT time and expense Operational reporting from Workday (vs.

strategic)

Solution Visier Workforce Analytics

Results Self-service analytics for the whole business Removal of dependency on IT Actionable insights, based on predictive

analytics

Download at www.visier.com


Plus additional reports and on-demand videos on: Case Studies Whitepapers From HR Metrics to Analytics Big Data for HR And others…

Download these reports, on-demand webinars and more here:http://www.visier.com/resources/

Where to learn more…

Five Steps to Getting Started with Workforce Analytics

Find out how you can simplify and accelerate your journey from HR metrics to workforce analytics.

Watch the Recorded Webinars and Hear from ConAgra Foods and Informatica Directly

Mark Berry, VP People Insights ConAgra Foods

Kumud Kokal, Sr. Director HR Technology and Operations Informatica


Q&A

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