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Research Bulletin | 2013

Copyright © 2013 Deloitte Development LLC. All rights reserved. • Not for Distribution

Licensed Material Available to Research Members Only.

Introduction

We have entered a “talent-constrained” economy. A recent survey of 780

CEOs1 showed that “talent shortages” are now the number one topic on

the minds of CEOs, ranking higher than “operational execution” as their

top priorities for success. These talent challenges vary widely —

attracting and engaging highly talented people, developing global

leaders, improving and sharing new skills, and keeping people

aligned and working together in a highly connected way.

In this report, we discuss how new approaches and a new science of

human resources have emerged to develop a “smarter workforce,”

resetting the bar on talent, learning, and leadership strategies.

Today’s Workforce: A Nexus of Change

Global businesses are at a nexus of change, as shown in Figure

1. At the core of change, many businesses are facing accelerated

product and delivery cycles driven by technology. The emergence of

electric vehicles, disruption of the mobile device industry, changes in

energy resources, and the expansive growth of social networks have

impacted manufacturing, retail, and many other industries.

Second, the world economies have shifted and companies now

see the need to shift resources toward fast-growing economies.

Companies like Ford, Apple and even Amway now see China as a

fast-growth market.2

1 Source: The Conference Board CEO Challenge® 2013, The Conference Board, http://www.conference-board.org/subsites/index.cfm?id=14514.

2 For more information on the globalization of business and HR, please read the blog, “The World Is Local: A New Model for Human Resources,” Bersin by Deloitte/Josh Bersin, April 23, 2013, http://www.bersin.com/Blog/post/The-World-is-Local--A-New-Model-for-Human-Resources.aspx.

July 3, 2013

BERSIN BY DELOITTE180 GRAND AVENUE

SUITE 320OAKLAND, CA 94612

(510) [email protected]

Building a Smarter Workforce in Today’s Global Economy

About the Author

Josh BersinPrincipal and Founder

Bersin by DeloitteDeloitte Consulting LLP

http://www.conference-board.org/subsites/index.cfm?id=14514

http://www.conference-board.org/subsites/index.cfm?id=14514

http://www.bersin.com/Blog/post/The-World-is-Local--A-New-Model-for-Human-Resources.aspx

http://www.bersin.com/Blog/post/The-World-is-Local--A-New-Model-for-Human-Resources.aspx


BERSIN & ASSOCIATES, LLC6114 LA SALLE AVENUE






Building a Smarter Workforce in Today’s Global Economy Josh Bersin | Page 2



Third, we now operate in a new model of work. What we call

“the borderless workplace” has created a highly interconnected

enterprise — one which creates transparency, a flatter organization

structure (companies like GE have flattened their organization

structures by nearly one-half over the last 20 years), more sharing of

information, and new ways of building teams. This connectedness

extends beyond the borders of the company to include contractors,

part-time workers, alumni, and even job candidates. The U.S. Bureau

of Labor research shows that almost 40 percent of the U.S. workforce

now works part-time and these individuals often play critical roles in

operational business teams.3

3 Source: U.S. Department of Labor, Bureau of Labor Statistics, November 2012, http://www.bls.gov/cps/lfcharacteristics.htm#fullpart.

Source: Bersin by Deloitte, 2013.

Figure 1: 2013 – A Nexus of Global Talent Challenges

1 Business

Speed and Scale Disruptive

Competition

4 Specialization

Contingent Work New Job and

Career Models

3 Borderless Workplace

Team Model of Work

5 21st Century

Models of Leadership

2 Shift toward Emerging Markets

6 Competition

for Talent Social Sourcing and Recruiting

Agile Management and Leadership Models

New Generation of HR Practices A New Type of HR Organization

New Technology:

Analytics Social Tools

Improved HR Skills and Capabilities

At the core of

change, many

businesses are

facing accelerated

product and

delivery cycles

driven by

technology.

KEY POINT

http://www.bls.gov/cps/lfcharacteristics.htm#fullpart











This new model of work has created the fourth part of the nexus — a

need for new career models and the need for deeper specialization.

Now that people can work anywhere, we can find and use specialists

in a more scalable way, driving deep skills as an increasing source

of competitive advantage. Skills are the new arms race; our newest

research4 shows that nearly 70 percent of global organizations feel they

lack the required skills to compete, and those who thrive are those who

continuously build deep skills.

Career mobility has become a high priority part of this puzzle. Our

research shows that employee engagement and commitment is directly

related to job mobility and career growth.5 Yet traditional career

models have changed — today employees grow their career through a

“pathway” or “lattice” not a “ladder6,” one which is often much more

specialized and focused on professional development, not necessarily a

in the direction of management and leadership.

Figure 2 shows Bersin by Deloitte’s new career model, demonstrating

the need for organizations to create career paths which develop

professional as well as managerial skills.

4 Source: Human Capital Trends: Leading indicators, Deloitte Consulting LLP/Barbara Adachi, Michael Gretczko, Bill Pelster, et al, April 2013, http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/Consulting/us_cons_humancapitaltrends2013_040213.pdf.

5 For more information, High-Impact Talent Management: Trends, Best Practices and Industry Solutions, Bersin & Associates / Josh Bersin, May 2007. Available to research members at www.bersin.com/library or for purchase at www.bersin.com/hitm.

6 Source: The Corporate Lattice: Achieving High Performance In the Changing World of Work, Cathleen Benko and Molly Anderson/Harvard Business Review Press, 2010.

Skills are the

new arms race;

our newest

research shows

that nearly 70

percent of global

organizations

feel they lack the

required skills to

compete.

KEY POINT

http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/Consulting/us_cons_humancapitaltrends2013_040213.pdf



http://www.bersin.com/library

http://www.bersin.com/hitm











As these changes permeate the business environment, companies see a

need for new models of leadership. Our research shows that 45 percent

of organizations believe their global leadership pipeline is weak,7 driven

largely by the need for a new model and the growth of young leaders

in emerging economies. Global leadership is even more challenging;

new global leadership research shows that leadership models must vary

from country to country.8 Not only do we need leaders who encourage

participation and drive teamwork, we need leaders with cultural

agility. The days of “expat leadership” in which we move staff from

headquarters are starting to go away as companies build local leaders

who understand local culture and local workforce dynamics.

Finally, as we progress around the diagram in Figure 1, we see

accelerating competition for top talent. As competitors walk down

7 For more information, TalentTrends™ 2012: A Year of Guarded Optimism, Bersin & Associates / Kim Lamoureux and Josh Bersin, July 2012. Available to research members at www.bersin.com/library.

8 For more information, Leadership Development in China: Building Bench Strength in the World’s Largest Marketplace, Bersin by Deloitte/Katherine Jones, Ph.D. and Karen O’Leonard, April 2013. Available to research members at www.bersin.com/library.


Figure 2: Specialization and Skills Drive Competitive Advantage

High-Performing Organizations Understand This

Expertise drives competitive advantage

Specialization improves quality and reduces cost

Deep skills developed through “deliberate practice” and reinforcement

Deep skills come from a range of developmental experiences

We need career development in all critical job roles

Back Office, Operational, Contingent Employees

Functional Specialists / Front-Line Employees

Top Management

Senior Management

Middle Management

Senior Specialists First-Line

Management

The Experts

Our research shows

that 45 percent

of organizations

believe their global

leadership pipeline

is weak.

KEY POINT













the same path for business success, a shortage of specialized skills in

engineering, science, analytics, and business leadership has created a

new war for talent and the need to invest in tools, skills, and process

to recruit and attract top people. This tight market for top skills makes

it more important than ever to recruit well, manage well, and engage

high performers in place.

The Skills Crisis: Growing Lack of Technical and Professional Skills

Despite high unemployment levels in many countries, companies are

competing for skills. College graduation levels in computer science, for

example, are below where they were three years ago, creating a very tight

market for technical skills. Manufacturing skills are similarly in demand, as

are skills in math, science, and other technical professional areas.9

9 Source: “Brawn from Brains: Talent, Policy, and the Future of American Competitiveness,” Making America Stronger/William D. Eggers and John Hagel III, September 27, 2012, http://dupress.com/articles/brawn-from-brains-talent-policy-and-the-future-of-american-competitiveness/?id=us%3Ael%3Adc%3Aredirect.

The days of “expat

leadership” in which

we move staff

from headquarters

are starting to go

away as companies

build local leaders

who understand

local culture and

local workforce

dynamics.

KEY POINT


Figure 3: Number One Workforce Challenge – Skills

Human Capital Trends 2013Leading indicators

U.S. edition

“We have entered a global economy where talent

and skills shortages challenge world economics and

business growth around the world.”

— Klaus Schwab, Chairman, World Economic Forum

Despite high unemployment rates in many

countries, more than 65% of global leaders cite

“talent and leadership shortages” as their #1

business challenge.

— Bersin & Associates TalentTrends®, Fall 2012

Source: Deloitte Consulting LLP, 2013. All rights reserved.

http://dupress.com/articles/brawn-from-brains-talent-policy-and-the-future-of-american-competitiveness/?id=us%3Ael%3Adc%3Aredirect













This problem has been driven by three factors. First, organizations are

being flattened, creating more functional and technical roles than ever.

Second, the high rate of unemployment has created a “skills atrophy”

as many professionals are out of work for months to years. Finally,

research shows that the global educational infrastructures in many

countries have not kept up with changing standards; fully 45 percent

of employers in the U.S. state that entry-level college graduates do not

have the skills they need to start work.10

A Younger Team: Demanding New Models for Engagement

Around the world, particularly in emerging economies, the workforce

is getting younger. According to the 2013 U.S. Census, 47 percent of

U.S. workers were born after 1977.11 These younger workers (called the

“Me Me Me Generation” by Time magazine12) have new and different

work habits and expectations for their careers. They want to believe in

the mission of their organizations, and they fully expect to change jobs

and careers many times during their working life. If we do not create a

highly engaging environment, their level of commitment will be low;

workers under the age of 35 were twice as likely to be actively looking

for a new job in 2012.13

For both younger and more experienced workers, the social contract

between companies and their employees is weakening. Only 55 percent

of employees in 2012 believed that their company is a sound, long-term

place to work, as compared with 65 percent only three years before

that, with almost one-third of workers having reported they were

planning on leaving their company.14 Not only do companies have to

10 Source: The Open Talent Economy: Human Capital Trends 2013, Deloitte Consulting LLP/Andy Liakopoulos, Jeff Schwartz, and Lisa Barry, April 2013, http://www.deloitte.com/view/en_US/us/Services/consulting/human-capital/268bfb80ddbcd310VgnVCM2000003356f70aRCRD.htm.

11 Source: http://data.bls.gov.

12 Source: “Millennials: The Me Me Me Generation,” Time/Joel Stein, May 20, 2013, http://www.time.com/time/magazine/article/0,9171,2143001,00.html.

13 Ibid.

14 Ibid.

Workers under the

age of 35 were

twice as likely to be

actively looking for

a new job in 2012.

KEY POINT

http://www.deloitte.com/view/en_US/us/Services/consulting/human-capital/268bfb80ddbcd310VgnVCM2000003356f70aRCRD.htm



http://data.bls.gov

http://www.time.com/time/magazine/article/0,9171,2143001,00.html

http://www.time.com/time/magazine/article/0,9171,2143001,00.html











attract the right people, they must create a work environment that

makes them want to stay.

The Need to Manage Globally

The fastest growing economies in the world (China, India, Brazil, and

Eastern Europe) are often the youngest and their labor markets are

very dynamic. In China, for example, clients tell us that top employees

expect a promotion or job rotation every year or less, otherwise they

simply move to another company. Organizations must develop highly

localized recruiting and management practices to take advantage of

these differences.

Ford and Apple, for example, have developed unique and local staffing,

development, and leadership models in China, focused on attracting

and managing employees with a faster pace of development; Ford15

has also done this in India, as well. Organizations of all sizes are facing

these new challenges as the concept of a “career” is not only different

but widely varying from country to country.

Social Technologies Transform Recruiting

Social technologies have transformed the science of recruiting.

Thanks to tools like LinkedIn, Facebook, Twitter, and Glassdoor, most

companies’ “employment brands” have become open to the outside

world. This puts an even greater burden on HR — to make sure that the

talent “brand” is positive and improving.

Continuous Learning versus Traditional Training

How do we develop people in this new environment? Our research

shows that the borderless workplace has created a new model for

employee learning. While formal training is still necessary for many core

job skills, employees now want to search, learn, and share information

with each other online. Our research shows that the highest-performing

15 For more information, Creating a Culture of Empowerment and Learning: How Culture and Talent Practices Differentiate Ford India as an Employer of Choice, Bersin by Deloitte/Kim Lamoureux, April 2013. Available to research members at www.bersin.com/library.

Organizations must

develop highly

localized recruiting

and management

practices to take

advantage of

cultural differences.

KEY POINT

While formal

training is still

necessary for many

core job skills,

employees now

want to search,

learn, and share

information with

each other online.

KEY POINT












companies (high-impact learning organizations, in the Bersin Model16),

are generating two-to-three times the financial performance of their

peers — and they are doing it by creating a set of tools, content, and a

culture that facilitates skills sharing and learning on a continuous basis.

(See Figure 4.)

Today’s HR Teams Are Challenged

Our research shows that many HR organizations are struggling to keep

up with these changes. Our latest research on HR readiness (collected

from 350 senior HR and business leaders in winter of 2012-2013) plots

many of today’s common talent challenges on the axis of “importance”

versus “readiness.”17 (See Figure 5.) What it shows is that items in

16 For more information, The High-Impact Learning Organization Series, Bersin & Associates / David Mallon, Janet Clarey and Mark Vickers, September 2012. Available to research members at www.bersin.com/library or for purchase at www.bersin.com/hilo.

17 This information is based on our current research on the topic of HR organization and governance, the report for which is due to be published later in 2013.

Continuous LearningSpecialist

Novice

Time

Traditional Training

TrainingEvent

SocialNetworking

CareerCurriculum

Communitiesof Practice

MobileLearning

Job-Aids

e-LearningCourses

CoachingMentoring

Source: Bersin by Deloitee, 2013.

Figure 4: The Bersin Continuous Learning Model


http://www.bersin.com/hilo











the lower right corner (see Figure 5), those of high importance with

low readiness, fall into the categories of employee and management

development, workforce planning, strategic recruiting, and employee

engagement — all part of the nexus previously described.

If you look at the issues on the bottom right of Figure 6, they are

actually quite difficult to solve. They require systemic solutions —

involving the better use of data, implementation of more integrated

talent strategies, greater sharing of information, and focus on

leadership development and change management.

Source: Bersin by Deloitee, 2013.

Figure 5: Talent Priorities versus Preparedness

Low Preparedness Low Importance

Low Preparedness High Importance

High Preparedness Low Importance

High Preparedness High Importance

Identifying Talent GapsFilling Talent Gaps

Forecasting Future Talent Needs

Culture of Internal Mobility

Handling Retirements

Sourcing/Managing Contingent Workforces

Analyzing Job Requirements

Developing Job Profiles

Manager Interview Skills

Employee Referral Programs

Internal Peer Networking

External Peer Networking

Leadership Bench Strength

PM Process

Manager Capabilities to Drive Employee Performance

Manager Capabilities to Develop EmployeesBuilding a High Impact Learning

Organization

Deep Specialization

Promoting Career Development

Understanding Global Culture

Diversity &Inclusion

Wellness Programs

Retaining Key Employees

MeetingMultigenerational

Needs

WorkforcePlanning

Redefining HR Roles

Leveraging HR Metrics

Blending Social into HR Programs

Global HR Service Model

Localizing HR Service Model

Global Awareness and Fluency

Talent Mobility Across Regions

Sourcing Talent in Emerging Markets

GlobalBusiness Acumen

Prep

ared

ness

Importance

Low Importance Low Preparedness

Low Importance High Preparedness

High Importance High Preparedness

High Importance Low Preparedness











Also, recruiting is more strategic than ever. In a talent-constrained

labor pool, if you do not hire the “right people” in the first place, no

amount of “talent management” can improve performance. So, as

we think about the challenges created by the “nexus of change,” we

should remember that talent strategies must include the tools and

science to attract and recruit the leading and most appropriate people

to our teams.

Creating a Smarter Workforce

How do we address these challenges to create a “smarter workforce?”

Ultimately, winning strategies focus in the following two areas.

• Smart Recruiting — First, organizations should leverage technology

and science to develop new ways to attract, source, and hire the

leading people in the market. These people should not only have

high-quality skills and potential capabilities, but should also be a

strong fit for your organizational culture.

• Smart Development — Second, we should put in place a series

of programs, systems, incentives, and cultural norms which

enable you to continuously develop people, build leadership, and

engage employees, so that they stay passionately engaged in your

business. All of our research shows that the number one driver

of engagement is an employee’s sense of progress in his/her own

career and continuous development is one of the most powerful

way to create such passion.

These strategies cannot succeed without other important practices —

programs for talent mobility, continuous development of managers

and leaders, and data analysis which lets HR look at pockets of low

performance or high turnover to rapidly fix problems and plan for

the future.

Four Keys to Success

While there are many important practices that create a more engaged,

skilled, and aligned workforce, we see four keys to success.

Talent strategies

must include the

tools and science to

attract and recruit

the leading and

most appropriate

people to our

teams.

KEY POINT











1. Using the Science of Fit18 to Improve Talent Acquisition

The first part of building a smart workforce is getting the right people

onboard. Talent acquisition is a complex process but, at its core, leading

organizations create a magnet for great people. They do this by deeply

understanding their own culture, and then building a high-powered

employment brand, coupled with marketing, sourcing, and assessment

solutions to attract just the right people. We call this process, “the

science of fit19,” and it leverages the science of assessment and

online sourcing.

Case in Point: Strategic Prehire Assessments Promote Fit at Sprint

Sprint Nextel provides wireless and hardline communications

services to more than 55 million customers worldwide. The

company is widely recognized for developing, engineering,

and deploying innovative technologies. In 2009, Sprint Nextel

was challenged by a need to hire large volumes of employees

while, at the same time, trying to rebound from low customer

service measures.

With a need to hire more than 14,000 new employees, 80

percent of whom would be customer-facing, two groups within

HR (recruitment technology and assessments, and management

quality and leadership strategy) partnered to develop a new

process for using prehire assessment20 to strategically recruit and

hire quality talent. While Sprint Nextel had used paper prehire

18 For more information, The Science of Fit: Using Psychology to Replicate High Performance, Bersin & Associates / Josh Bersin, May 2011. Available to research members at www.bersin.com/library.

19 “Job fit” refers to the assessment of current knowledge, skills, competencies and other key qualifications of an individual against the requirements of a specific role, current or future.

20 For more information, Prehire Assessments: A Four-Step Model, Bersin by Deloitte/Charles Handler, Ph.D. and Kim Lamoureux, April 2013. Available to research members at www.bersin.com/library.

The science of

fit is the process

by companies

in deeply

understanding

their own culture,

and then building

a high-powered

employment

brand, coupled

with marketing,

sourcing, and

assessment

solutions to attract

just the right

people.

KEY POINT













assessments for more than 20 years, the new online-based

strategy was designed to provide more relevant and consistent

data about a candidate’s “fit” by combining personality, profile,

and skills information from traditional assessments with the

results of a role-based, online work simulation.

The use of more refined prehire assessments tailored to job roles

resulted in more consistency in hiring across locations; it also

produced an increased speed to competence, a lower turnover

rate, and it drove a higher performance rate. For example, retail

employees with high scores on the new assessments produced

16 percent higher revenues, while high-scoring call-center

employees showed higher sales performance, better customer

service skills, and higher call resolution metrics. As a result, after

two years, Sprint Nextel was ranked number one in customer

satisfaction among national carriers on the American Customer

Satisfaction Index, a ranking the company still holds today. e

This process, which is detailed in our report The Science of Fit21, requires

a study of current high performers, and then a scientific assessment

of the traits, skills, experiences, and backgrounds of these individuals.

Through this assessment process, we can dramatically improve our

selection process and create a tunnel of high-potential candidates.

Unfortunately, our research shows that fewer than 35 percent of

organizations even use some form of skills-based assessment during the

hiring process, so many companies have lots of room for improvement.22

21 For more information, The Science of Fit: Using Psychology to Replicate High Performance, Bersin & Associates / Josh Bersin, May 2011.

22 This information is based on our current research on the topic of talent acquisition, the report for which is due to be published later in 2013.

Case in Point: Strategic Prehire Assessments Promote Fit at Sprint (cont’d)

Our research

shows that fewer

than 35 percent

of organizations

even use some

form of skills-based

assessment during

the hiring process,

so many companies

have lots of room

for improvement.

KEY POINT











2. Implementing a Continuous Learning Environment

One CEO recently stated,

“If we could only connect people to the right experts

in our own organization more quickly, we could

double our business in a year.”

Organizations are filled with expertise and important information, but

it is just not easy to find.

This leads us to the second key to success — implementing a continuous

learning model (see Figure 5). This involves implementing systems and

a culture which make it easy for people to share information, promote

their expertise, find each other, and share content easily.

Case in Point: VCC Connects Data to Expertise

VCC is a North American construction company which primarily

works on large-scale retail projects. As the construction

market became constricted, the company looked to expand

its opportunities beyond its current niche. Making this shift

required that VCC transform sales and customer relationship

tools to include social tools which would allow managers

in the field to access crucial customer data, project updates

and industry analytics, as well as internal expertise through

their smartphones.

The company accomplished this by consolidating several

of its existing systems, including its customer relationship

management system, into an integrated solution that allows

managers to have real-time access to information and each

other. VCC estimates that this integrated access to social and

organizational data resulted in a 40 percent increase in new

construction sales and a savings of approximately 400 employee

hours per month. e

Developing

a continuous

learning

model involves

implementing

systems and a

culture which

make it easy for

people to share

information,

promote their

expertise, find each

other, and share

content easily.

KEY POINT











The solution should be broader than simply putting information online.

High-impact learning organizations (those that operate at Level 4 in the

Bersin High-Impact Learning Organization Maturity Model23) create a

culture of learning which enables people to rapidly collaborate and seek

solutions together. This requires an implementation of sound, content-

sharing systems, coupled with management incentives and behaviors

which encourage reflection, sharing, and development of expertise.

Case in Point: Cemex Increases Speed to Market through Global Collaboration

Cemex, a global building materials company, was looking for

ways to expand its ready-mix concrete products globally. In

order to facilitate the sharing of information across markets and

locations, the company implemented an internal social network

system that allows employees to share ideas, suggestions,

and recommendations. Additionally, virtual communities of

practice24 were created to bring together employees who are

working on similar challenges, locations, or skills sets to drive

innovation in specific areas.

As a result of this strategy, Cemex was able to pool its dispersed

expertise and bring its new ready-mix concrete products to

market in one-third the time of previous product rollouts. e

3. Creating Passion and Engagement through Leadership and Culture

While many companies use traditional practices like goal-setting and

performance appraisals, ultimately, employee performance thrives

when people greatly enjoy their work. The third key to building a smart

23 For more information, The High-Impact Learning Organization Maturity Model®, Bersin & Associates / David Mallon, Janet Clarey and Mark Vickers, August 2012. Available to research members at www.bersin.com/library or for purchase at www.bersin.com/hilo.

24 A “community of practice” (or “CoP”) is often defined as a group of people who share an interest or concern about a common topic, and who deepen their knowledge in this area through ongoing interaction and relationship-building within their group. While communities often come into being spontaneously, they nonetheless require nurturing if they are to become valuable to the members and remain viable over the course of their evolution.


http://www.bersin.com/hilo











workforce is to develop leadership models and a work environment that

makes work enriching.

While the concept sounds soft and squishy, our research shows that

three programs must be in place to create passion in the workforce.

• First,managementmusthaveastrongsenseofmissionandculture.

People want to work for companies they believe in — and no

amount of “good management” can replace the innate desire of

employees to help their organizations succeed. Mission and culture

are created through top leadership and a commitment to putting

employees first.

• Second,wemustmeasureandactonemployeeengagement.

Most companies measure turnover and many assess engagement.

In today’s highly volatile workforce in which global business units

operate under widely varying conditions, it is more important than

ever to measure engagement, and to use this data to understand

management gaps, workplace issues, and compensation and

benefits problems which might hold back employee engagement.

• Third,wemustdevelopcareermobilityprogramsinthe

organizations. While many companies have traditional career

models and certification programs, many organizations tell us

that their career “programs” are either ineffective or out of date.

We recommend that companies take the time to understand and

study “patterns of mobility” in their own organizations, and to

create online systems to help employees to learn about their “next

opportunity,” assess themselves against competency models for

success, and work with managers to plan their next moves. These

are complex problems to solve, but the payoff is tremendous.

4. Using Big Data Analytics to Make HR and People Decisions

The fourth key to building a smarter workforce is to start to apply data

and analytics to the science of HR. Most companies today have far more

data about their employees than they realize — mobility, performance,

demographic, education, experience, and training data all play a role in

understanding how your workforce performs.











Our research into this area (Big Data in HR25) shows a clearly defined,

four-level Maturity Model to building a talent analytics capability which

will help you make smarter people decisions over time.

This model, developed after several years of research and discussion

with hundreds of companies, shows a deterministic path to building

a “Big Data” analytics capability within HR. Today, as organizations

become more dynamic and global, it is nearly impossible to rely on

“belief systems” and “philosophies” to make critical talent decisions.

We must build internal HR and talent analytics capabilities to help drive

competitive advantage.

25 For more information, Big Data in HR: Building a Competitive Talent Analytics Function – The Four Stages of Maturity, Bersin & Associates / Josh Bersin, April 2012. Available to research members at www.bersin.com.

Level 1: Reactive – Operational Reporting Operational Reporting for Measurement of Efficiency and Compliance,

Data Exploration and Integration, Development of Data Dictionary

Level 2: Proactive – Advanced Reporting Operational Reporting for Benchmarking and

Decision-Making, Multidimensional Analysis and Dashboards

Level 3: Strategic Analytics Segmentation, Statistical Analysis, Development of “People Models,”

Analysis of Dimensions to Understand Cause and Delivery of Actionable Solutions

Level 4: Predictive Analytics Development of Predictive Models, Scenario Planning,

Risk Analysis and Mitigation, Integration with Strategic Planning

Source: Bersin & Associates, 2012.

Figure 6: Bersin Talent Analytics Maturity Model®

http://www.bersin.com











Case in Point: The Chilean Red Cross Uses Predictive Analytics to Save Lives

For the Chilean Red Cross, the ability to quickly mobilize people

and resources to disaster areas is literally a matter of life and

death. Until recently, the logistics of coordinating disaster relief

and humanitarian efforts was a manual process which limited

the organization’s ability to respond with the desired rate of

speed and efficiency.

In order to modernize its operations, the Chilean Red Cross

invested in software systems that helped them to manage

and analyze near real-time data about its resources, such as

the number and location of volunteers and storage facilities.

During an emergency, this data can be used to quickly mobilize

resources and can be updated by responders in the field as the

resource needs change. This allows the Chilean Red Cross to

gain a clearer picture of the different phases of the emergency

and adjust accordingly. This data can also be used to develop

predictive models of disaster scenarios that help the Chilean Red

Cross to prepare contingency plans based on current accounts of

resources in different locations.

The Chilean Red Cross estimates that the automation of the

collection and analysis of data, and the online collaboration

tools have improved its disaster response operations by 100

percent because of the increased speed and accuracy of the

mobilization and delivery of its relief aid. e

How do you build the talent analytics skills you need? Our research

shows that this is a fast-changing area and companies need support. In

our 2010 research on high-impact HR organizations, we found that only

6 percent of organizations believe they have a high level of analytics

skills in HR today.26 (See Figure 7.)

26 For more information, The High-Impact HR Organization: Top 10 Best Practices on the Road to Excellence, Bersin & Associates / Stacey Harris, January 2011. Available to research members at www.bersin.com/library or for purchase at www.bersin.com/hihr.


http://www.bersin.com/hihr











The key to talent analytics is to bring your analytics expertise together

and build a core team that can focus on leveraging data. Many

companies have people measuring training, recruiting, engagement,

compensation, leadership, succession, and a variety of other HR areas.

These groups have to be brought together — and they need to look at

the employee population in an integrated way.

Case in Point: Using Big Data to Manage Sales Productivity

A large insurance organization looked at the profiles of its

top salespeople to understand what characteristics drive top

sales productivity. After analyzing data from recruitment

systems, testing, internal performance data, and demographic

data, the company discovered that many of the traditional

recruiting standards were incorrect. This particular company

used grade-point average (GPA) and school pedigree as key

screening criteria.

High Skills 6%

Average 38%

Poor Skills 56%

Source: Bersin & Associates, 2010.

Figure 7: HR Leaders’ View of Analytics Skills in Their Organizations











The research shows that these factors had very little correlation

to sales performance; so, with new data, the company totally

changed its hiring profile. The results included a $4 million

improvement in revenue the first year after the program

was implemented. e

With all the changes taking place in the workforce, the use of Big Data

in HR is key to building a smarter workforce in the years ahead.

Conclusions

Workforce challenges today are complex and global. Organizations

today should take a systemic approach to HR and talent management,

and leverage new technologies to succeed. The keys to building

a “smarter workforce” include using science to attract the right

candidates, implementing a continuous learning strategy, using

new models of leadership to build a passionate work environment,

and building capability in Big Data to leverage the vast amounts of

workforce data available.

Companies that bring these solutions together will likely drive

competitive advantage for many years to come.

Case in Point: Using Big Data to Manage Sales Productivity (cont’d)

The keys to

building a “smarter

workforce” include

using science

to attract the

right candidates,

implementing

a continuous

learning strategy,

using new models

of leadership to

build a passionate

work environment,

and building

capability in Big

Data to leverage

the vast amounts

of workforce data

available.

KEY POINT











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