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© 2017 Gartner Inc. and/or its affiliates. All rights reserved.
Innovations in TalentAnalytics
By Kelvin ChuaSenior Executive AdvisorJuly 2017
Speaker Profile
Kelvin Chua, Reg Psychol, AFHKPsS Senior Executive Advisor
• Previously the Head of Human Resources with overall responsibilityfor Human Resources across all companies within AIG Hong Kong,Macau and Taiwan
• Registered Industrial-Organisational Psychologist and Associate Fellow of the Hong Kong Psychological Society and also an Adjunct Lecturer of Organizational Behavior at the University of Hong Kong
• BA in Psychology from the University of British Columbia andMA in Organizational Psychology from Columbia University
Email: Phone:
[email protected]+852 2837 3917
#ReimagineHR
Pressure on HR to Capitalise on Data AssetsCEOs Want More Talent Data from HRPercentage of CEOs Who Believe Information Is Important and Comprehensive
HR Plans to Increase Investments in HR Data and Analytics in the Next Two YearsPercentage of Senior HR Leaders
n = 1,258.Source: PwC, “15th Annual Global CEO Survey,” 2012, http://www.pwc.com/en_GX/gx/ceo-survey/pdf/15th-global-ceo-survey.pdf.
n = 108.Source: CEB 2013 Analytics Survey.
0% 50% 100%
Costs of Employee Turnover
Return on Investment in Human Capital
Assessments of Internal Advancement
Labour Costs
Employees’ Views and Needs
Staff Productivity
Information Is Important Receives Sufficient Information
Project # 132706
Catalog # CLC5841813SYN
95% Agree
#ReimagineHR
Data Is Not Leading to Insights or ImpactHR Analytics Has Led Me to Change a Business Decision in the Past YearPercentage of Senior Business Leaders
I Believe I am Getting SignificantReturns on Analytics InvestmentsPercentage of Senior HR Leaders
n = 1,590.Source: CEB 2013 Business Barometer.
8% Agree
15% Agree
n = 108.Source: CEB 2013 Analytics Survey.
Lots of Data; Minimal Insight
“ There’s a lot of data out there but not a lot of information.”
VP, HR Mining Company
Project # 132706
Catalog # CLC5841813SYN
#ReimagineHR
From Reporting to Analytics
From HR Using Data to Provide Talent Reports
Defining terms
To HR Using Analytics to Improve Business Decisions
Talent Analytics: The discovery and communication of meaningful patterns in talent data
Talent Metrics: Units of measurement for talent data
Talent Dashboards and Reports: Tools to communicate talent data
Analysis and Insights Link Explicitly to Evolving Business Challenges
Information Provided Is Driven by Leader Requests and Data Availability
Insights Provide Implications for Business OutcomesReports Provide Leaders with Talent Metrics
Purpose of Analytics Is to Improve Business DecisionsPurpose of Reports Is to Provide Talent Information
Source: CEB analysis.
Project # 132706
Catalog # CLC5841813SYN
#ReimagineHR
Source: CEB analysis.
Analytics Central to the Future of HRTrends Shaping the Future of HR and Their Implications
Trend Implications for the HR FunctionDegree of Change
Required in HRNeed for Talent
Analytics
Talent Shortage and Skills Scarcity
Succession Planning Deeper into the Organisation
Intelligent Sourcing and Attraction
Personalisation of EVPs
The New (Networked) Work Environment
Virtual Relationships and Fragmented Work Arrangements
Network Performance and Learning
Globalised and Multi-Generational Workforce
Multi-Generational Management
Shift from Expat to Local Talent Investments
Knowledge Transfer from Retiring Workers
Convergence of Talent Management and Business Management
Heightened Talent Scrutiny by Board/CEO
Migration of HR Transaction Processing to Multifunction Shared Services
Project # 132706
Catalog # CLC5841813SYN
#ReimagineHR
The Analytics Era: The Role of Big Data
34% Not or
Somewhat Important66%
Important or Very Important
Source: CEB analysis.
Big Data Will Be ImportantWithin the three year time-frame, how important do you think “Big Data” (usage of external and internal, unstructured people data) will be to inform workforce related business decisions and to increase analytics maturity and impact?
Two thirds of companies believe that “Big Data” will be important or very important to deliver business value from workforce analytics.
#ReimagineHR
Big Data 101
Source: CEB analysis.
Extremely large data sets that may be analysed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions
Big Data
#ReimagineHR
Structured Data and Unstructured Data 101
Source: CEB analysis.
Data organized into related categories (e.g., spreadsheets)
Structured DataData that is not organized in any predefined manner
Unstructured Data
#ReimagineHR
Big Data Analytics
Source: Wikimedia Commons, https://commons.wikimedia.org/wiki/File:Eight_Ishihara_charts_for_testing_colour_blindness,_Europe_Wellcome_L0059158.jpg.
#ReimagineHR
The Best Predictor of Attrition?
File Insert Format Text
ReviewMessages
Paste ?B I UCalibri (Body) 10
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Address Book
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Required
Categories
Attachments
When:
Where:
Description:
MEETING
ATT00001.txt (64B)
Friday, 21 September 2012 2:00 p.m.–3:00 p.m.
The meeting has been canceled
Canceled Remove from Calendar
#ReimagineHR
Where We Are Effective Today
Today, companies are only effective at managing structured, quantitative data.
Effectiveness of Managing DataPercentage of Companies Perceiving Themselves as Being Effective or Very Effective at Managing Workforce Data
Structured Quantative Data
Structured Qualitative Data
Unstructured Data
0%
50%
100%
0%
50%
100%
90%
31%
0%
Source: CEB analysis.
#ReimagineHR
Data Types Most Important in the Future
The value of qualitative and unstructured data will grow disproportionally.
Future Value of Data CategoriesPercentage of Companies Receiving or Expecting to Receive High or Very High Business Value from Workforce Data
Structured Quantative Data
Structured Qualitative Data
Unstructured Data
0%
50%
100%
0%
50%
100%
55%
76%
41%
90%
11%
39%
Today
Three Years from Now
Source: CEB analysis.
#ReimagineHR
A Global Study
Project # 132706
Catalog # CLC5841813SYN
#ReimagineHR
The Goal: Analytic ImpactAnalytic Impact: The Extent to Which Talent Analytics Improves Decisions and Provides Actionable Support to Key Stakeholders
Actionable Support:“ HR Is Effective at Providing Actionable Data-Based Guidance on Key Talent Areas”
Key talent areas include: ■ Sourcing ■ Performance Evaluation ■ HIPO Selection ■ Leadership Development ■ Employee Engagement ■ Succession Planning ■ Compensation and Benefits
Decision Improvement:“ Analytics Support from the HR Function Improves Talent Decisions”
Improvement of decisions made by: ■ CEO ■ Board of Directors ■ Business Leaders ■ Line Managers
Source: CEB analysis.
#ReimagineHR
…That Drives Talent and Business OutcomesAnalytic Impact Improves Key Talent Outcomes Difference in Analytic Impact Between Leading Analytic Organisations and the Average Organisation
Bench Strength Employee Performance Quality of Hire Employee Engagement
n = 108. Source: CEB 2013 Analytics Survey.1 Financial information on participating organisations was collected through Compustat for organisations where it was available. The median organisation has $9.21 billion in revenue and a 30.76% gross profit ma gin. Increasing from median to maximum Analytic Impact improves collected talent outcomes by 12 percentage points,
which in turn leads to a 6% increase in gross profit ma gin. 2 Talent outcomes were identified y senior HR leaders and surveyed organisations and validated through other internal CEB surveys.
Analytic Impact = Decision Improvement + Actionable Support
0.00
0.60
1.20 1.001.17
1.001.12
1.001.10
1.00 1.09
Average Organisation Leading Analytic Organisations (Top Quartile)
Average Improvement in Key Talent Outcomes by Leading Analytic Organisations = 12%
#ReimagineHR
The Business Application GapAnalytic Impact and Effectiveness at Business Application and Sophistication
High
Low
Low High
Bus
ines
s A
pp
licat
iona
Sophisticationb
High Application, Low Sophistication
Average Analytic Impact: 1.14x
3% of organisations
Leading Analytic Organisations
Average Analytic Impact: 1.22x
17% of organisations
Low Application, Low Sophistication
Average Analytic Impact: 1.00x
60% of organisations
Low Application, High Sophistication
Average Analytic Impact: 1.05x
20% of organisations
Best Path to Impact
Only 17% of organisationsmatch high sophistication with business application of insights.
Source: CEB 2013 Analytics Survey.a Business application is measured by effectiveness at identifying the right business problems, applying business judgment to data, and engaging leaders to take action.b Sophistication is measured by effectiveness at complex analyses (e.g., predictive and prescriptive modeling).
Project #
Catalog # CLC5841813SYN
#ReimagineHR
Is It What We Measure?The Long Tail of Metrics Percentage of Organisations Reporting Usage by Metric
Metrics
Per
cent
age
of
Org
anis
atio
ns
Rep
ort
ing
the
Met
ric
CEB asked members which metrics they track across their organisation and report to the Board of Directors or the CEO.
These metrics covered a wide variety of talent areas, including:
■ Employee engagement ■ Learning and development ■ Performance management ■ Recruiting ■ Succession planning ■ Workforce planning
Source: CEB 2013 Analytics Survey.
Project #
Catalog # CLC5841813SYN
0%
50%
100%
#ReimagineHR
No Shortage of MetricsWide Range of Metrics from “Mild” to “Wild”
Benefits Cost per Employee
Smiles Frequency (Harrahs Entertainment) Employee Digital Footprint Size (Intel)Employee Loyalty Statistic (JetBlue Airways)Departure Probability (Sprint)
Revenue Per Employee
Hire and Promotion Rate (Google)
Total Compensation per Employee
Benefits Expense as a Percentage of Total Operating Expense
Benefits Expense as Percentage of Revenue
Employee Retention Index
Employment Brand Strength
Employee Commitment Index
Average Employee Compensation
Compensation Expense per FTE
Absentee Rate
Cost/FTEs
Employee Engagement Level
Cost per Hire
Number of FTEs
Wild
Mild
Internal Pay Equity
Forecast the future organisational structure based on current hiring and promotion practices.
Use employee behaviour data to identify employees who are likely to leave.
Use a single question net promoter score to measure engagement.
Record the frequency with which customer-facing staff smile to determine customer satisfaction.
Source: Thomas H. Davenport, Jeanne Harris, and Jeremy Shapiro, “Competing on Talent Analytics,” Harvard Business Review, October 2010; http://hbr.org/2010/10/competing-on-talent-analytics; CEB analysis.
Project #
Catalog # CLC5841813SYN
#ReimagineHR
No Magic Number of MetricsWide Range in the Number of Metrics Tracked and Reported by Leading OrganisationsRange of Metrics Tracked by Leading Analytic Organisations
n = 116.CEB 2013 Analytics Survey.
Project #
Catalog # CLC5841813SYN
n = 116.CEB 2013 Analytics Survey.
Number of Metrics Tracked
ÿ
0 100 200
35 81 140 1 49 118
ÿ
0 100 200
Number of Metrics Reported to CEO and Board
#ReimagineHR
No Magic MetricsTop Performers and Low Performers Track Largely the Same MetricsRange of Metrics Tracked by Top Quartile and Bottom Quartile Performing Organisations
Bottom Quartile Organisations
1 Performance Appraisal Participation Rate
2 Gender Staffing Breakdown
3 Performance Rating Distribution
4 Compensation Gap to Market
5 Employee Engagement Level
6 Internal Hires/External Hires
7 Transfers
8 Ethnic Background
9 Average Merit Increase for Each Performance Rating
10 Total Number of Hires
Overlapping Metrics
Project #
Catalog # CLC5841813SYN
Leading Analytic Organisations
1 Performance Rating Distribution
2 Performance Appraisal Participation Rate
3 Total Number of Hires
4 Internal Hires/External Hires
5 Employee Engagement Level
6 Average Performance Appraisal Rating
7 Average Time to Fill
8 Average Merit Increase for Each Performance Rating
9 Compensation Gap to Market
10 Average Employee Compensation
#ReimagineHR
Progress in Tracking and Reporting Talent MetricsAverage Organisations Leading Analytic Organisations
Exclusively Tracking Operational Metrics Capture operational metrics recorded in information systems, such as number of employees, performance scores, etc.
Tracking Both Operational and Qualitative Metrics Capture critical talent information that is difficult to capture through traditional HRIS database fields (e.g. engagement and quality of hire) to expand the potential for metrics to impact business decisions.
Track Broad Metrics EpisodicallyA variety of metrics are tracked at specific times across the year as they align to HR initiatives and projects.
Tracking Key Metrics ContinuouslyHR identifies a set of key metrics that are measured more frequently.
Localised DefinitionsMetrics are measured differently across functions, business units, and geographies making organisation-wide comparisons difficult.
Standardised DefinitionsStandard definitions are enforced throughout the organisation to ensure consistency and enable organisation-wide comparisons.
Reporting Only to Senior LeadershipReport findings and insights to senior leaders, such as the CEO or board of directors, limiting the potential impact of metrics.
Reporting to Line ManagersReport findings and insights to line managers empowering them to make decisions.
Source: CEB analysis.
#ReimagineHR
The Analytics Era: Business-Led and Actionable Analytics
Bus
ines
s O
utco
mes
HR
So
phi
stic
atio
n
Bus
ines
s A
lignm
ent 5 Actionable Analytics
Workforce analytics utilises a variety of techniques to inform business decisions
and provides actionable guidance
Business-Led Analytics4Workforce analytics prioritises talent areas most important to the business by engaging with key
stakeholders to identify where to apply analytics
Cause and Effect Analytics3
HR investigates the causes of talent phenomena to inform HR activities
Standalone Analytics2Workforce analytics is distinguished from reporting and measurement, allowing HR to prioritise specific talent areas for descriptive analysis
1 Ad-hoc Reporting Extension
Workforce analytics is an extension of manually intensive HR measurement and provides descriptive information to the line
Source: CEB analysis.
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
Focus on Business Judgement Capabilities Over Data Science
Source: CEB analysis.
Effectiveness at Business Judgment Improves Analytic Impact More Than Effectiveness at Data ScienceMaximum Impact of Business Judgment and Data Science Activities on Analytic Impact
0%
18%
36% 34% 33% 32%
27%
19% 19%16%
Applying Judgment
to Data
Challenging Business
Assumptions
Diagnosing Business Problems
Where Analytics Can Be Applied
Differentiating the Highest
Value Metrics
Building Simple
Quantitative Models
Building Advanced
Quantitative Models
Managing Datasets
Business Judgment Average = 32%
Data Science Average = 18%
Max
imum
Imp
act
on
Ana
lyti
c Im
pac
t
n = 108.
Source: CEB, CEB Corporate Leadership Council Head of HR Survey, 2013.
#ReimagineHR
Three Challenges to Improving Analytic Impact
n = 9,528.Source: CEB 2013 Global Labour Market Survey.
Few Business Leaders Believe HR Analytics Focuses on the
Right Business QuestionsPercentage of Business Leaders
Few Business Leaders Trust Talent Data and Insights from HR
Percentage of Business Leaders Who Trust Talent Data
“Criticality”Where Should I Focus
Talent Analytics?
“Capability”How Do I Upskill My HR Function?
“Credibility”How Can I Increase
Credibility of HR Data?
2 3
n = 108.Source: CEB 2013 Analytic Survey.
n = 9,528.
Source: CEB 2013 Global Labour Market Survey.
18% Agree
17% Agree
80% Agree
Most HR Leaders Believe HR Staff Capabilities Are a Barrier
to Improving HR AnalyticsPercentage of Senior HR Leaders
1
Gap Inc. Needed To Prioritise Enterprise-Wide Analytics Investments
Supply Challenge: Scattered Data Prevents Easy Fulfillment of Requests
Demand Challenge: Diverse Issues and Priorities Exist Across Brands and Stakeholders
Taleo
SuccessFactors
Oracle G/L
IQ Navigator
PeopleSoft
Learn@Gap
Brand Operations Team
Brand Operations Team
Brand Operations Team
Brand Operations Team
Brand Operations Team
Brand Operations Team
Gap Inc. Workforce
Analytics Team
How do we effectively manage demand and prioritise investments
to serve common, high priority needs across the
enterprise?
Criticality
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
On-Demand Data Requests Create Prioritisation Challenges
On-Demand Analytics Process
Two Challenges Prevent Prioritizationof Highest-Value Opportunities
VP of Finance
“This development program is really expensive. What returns are we getting?”
Importance: HighNeeded: ASAP
SVP of HR
“How well is our HIPO development plan working?”
Importance: HighNeeded: ASAP
HRBP, Business Unit A
“I need to see turnover rates for my business unit, particularly for senior leaders.”
Importance: HighNeeded: ASAP
VP, Business Unit B
“Do we have promotions data from the last five years?”
Importance: HighNeeded: ASAP
Gap Inc. Workforce
Analytics Team
Translation ChallengeBusiness requests for data often provide a distorted or incomplete view of underlying needs and challenges.
1
Volume ChallengeThe volume and diversity of requests generated through on-demand approaches spreads the analytics team too thin to provide effective support.
2
Criticality
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
#ReimagineHR
Gap Inc.’s Analytics Prioritisation Principles
Principle 1
Conduct prioritisation exercise based on key questions.
Question-Based Needs Assessment
Principle 2
Identify the most scalable opportunities for impact.
Enterprise Opportunity Identification
Principle 3
Create a roadmap for action and investment.
Analytics Input Evaluation
100 Human Capital Questions Illustrative
Please rank the top 15.1. Are we losing critical talent?
2. Have we sufficiently minimised timeto productivity for new hires?
3. Are we accurately predicting qualityof hire?
4. …
Available? Location Other Barriers to Acquiring or Using Inputs
Required Investment
Today Scattered across the brands in disparate systems
We do not have a clear definition of “critical role.”
We need to invest to ensure a new definition is consistently applied across brands.
2013+ N/A Don’t capture reasons for turnover—use departure survey to fill the gaps.
Launch departure survey in all brands.
Availability Gaps Application GapsBrand Operations Teams’ Responsibilities
Gap Inc. Workforce Analytics Team Priorities
Turnover of Non-
Critical Talent Segments
Recruiting Efficiency
New Hire Quality
Training Participation
Turnover of Critical Talent
Productivity Versus Competitors
Successor Pool Quality for Key
Positions
Employee EngagementBenefits
Satisfaction
Staffing Ratios
Criticality
Source: Gap Inc.; CEB analysis.
Survey Stakeholders to Identify Key Human Capital Priorities
Criticality
Maximize Stakeholder Input, Not Consensus, to Identify Scalable Opportunities for Impact
Gap Inc. Workforce
Analytics Team
HR representatives from each brand review the 100 human capital questions provided by the Workforce Analytics Team and identify the top 15 that are most important to help them make decisions for their business.
HR Generalist Team (Business Expertise)
HR Operations Team (Data Expertise)
Old Navy
Top 15 Questions (Old Navy)
VP
100 Human Capital Questions2 Survey
Please rank the top 15.
Top 15 Human Capital QuestionsPiperlime
Top 15 Human Capital QuestionsBanana Republic
Top 15 Human Capital QuestionsOld Navy
Key Stakeholders
Piperlime
Old Navy
Banana Republic
Intermix
Gap
Athleta
Why Not Take a More Consensus-Based Approach?
Gap Inc. chose not to use a focus group or cross-
functional committee because of risks that might hinder
the accuracy of the final priorities, such as:
1. Group think and2. Only representing the loudest voices or
strongest personalities
Surveying each stakeholder group individually ensured a
“true” representation of most common needs across the
organisation.
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
Narrow Analytics Focus to Most Scalable Opportunities for ImpactEstablish Ownership Boundaries Based on Scalability of Opportunities
Project # 132706
Catalog # CLC5841813SYN
Criticality
Brand Operations Teams' Responsibilities
Gap Inc. Workforce Analytics Team Priorities
Turnover of Non-
Critical Talent Segments
Recruiting Efficiency
New Hire Quality
Training Participation
Turnover of Critical Talent
Productivity Versus Competitors
Successor Pool Quality for Key
Positions
Employee EngagementBenefits
Satisfaction
StaffingRatios
Analytics Ownership Boundaries
Top 15 Most Commonly Selected Questions Across Gap Inc.1
Illustrative■ Are we losing critical
talent?■ What is the depth and
quality of the successorpool for key positions?
■ Do we have sufficientinternal mobility?
■ Which lines of businessor managers are the bestdevelopers of talent?
■ ...
Top 15 Human Capital QuestionsPiperlime
Top 15 Human Capital QuestionsBanana Republic
Top 15 Human Capital QuestionsOld Navy
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
Translate Human Capital QuestionsInto a Roadmap For ActionEvaluate Required Inputs to Build a Roadmap for Action and Investment
Project # 132706
Catalog # CLC5841813SYN
Criticality
Question Review Committee
What inputs do we need to answer these questions?
What barriers must we address to obtain the input?
Two representatives
from the Workforce
Analytics Team
Three volunteers from brand operations
teams
Top 15 Questions
AssociatedMeasures
RequiredInputs
Available? Location Other Barriers to Answering the Question Effectively
Investment Required to Address Gaps
1.. What arecritical talent departures really costing the organisation?
Voluntary Turnover Rate
Average head count (critical role)
Today Scattered across the brands in disparate systems
We do not have a clear definition of “critical role.”
Invest to ensure a new definitionis consistently applied across brands.
Voluntary terminations (critical role)
2013+ N/A Don’t capture reasons for turnover—use exit survey to fill the gaps
Launch exit survey in all brands.
Data Availability Gaps Data Application Gaps
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
Translate Human Capital QuestionsInto a Roadmap For ActionGap Inc.’s Three-Year Analytics Investment Roadmap
Project # 132706
Catalog # CLC5841813SYN
Criticality
Systems
Capability
S ditta
ndar
diza
tion
Identifying barriers beyond just data availability provides a more realistic picture of the time and investment needed to support key priorities.
tegr
Begin daatiota
in
n.
Integra
ta.ritized
talent da
tion prio
Exploration opportuniti
e additional data
integr
es.
PartnerOR
wi h Co
E
Lt
&D todevelicp
analyt s
skills.
Launch Wacross
A
platformHR.
Engage key business
partners in WA activities.
sta
prKic
k of
f do
dat
a oj
es
ndar ct
dta p
r
Impl
emen
t oc
da tan mm
eardi
zaes t
s/
s cond
atiio
n
re
ons.
Audit
es w
orkf
diza
ses
as p
art
of o
n
orce
dat
a/
proc st
anda
rtio
n w
goin
g or
k.
2012
2013
2014
#ReimagineHR
Three Challenges to Improving Analytic Impact
“Criticality”Where Should I Focus
Talent Analytics?
“Capability”How Do I Upskill My HR Function?
“Credibility”How Can I Increase
Credibility of HR Data?
1 3
n = 9,528.Source: CEB 2013 Global Labour Market Survey.
Few Business Leaders Believe HR Analytics Focuses on the
Right Business QuestionsPercentage of Business Leaders
Few Business Leaders Trust Talent Data and Insights from HR
Percentage of Business Leaders Who Trust Talent Data
n = 108.Source: CEB 2013 Analytic Survey.
n = 9,528.
Source: CEB 2013 Global Labour Market Survey.
18% Agree
17% Agree
80% Agree
Most HR Leaders Believe HR Staff Capabilities Are a Barrier
to Improving HR AnalyticsPercentage of Senior HR Leaders
2
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
Reorient HR Analytics Beyond Data Science To Inspire, Influence, and Shape DecisionsTelefonica’s HR Analytics Realignment to Drive Actionability
Project # 132706
Catalog # CLC5841813SYN
Criticality
Telefonica’s Solutions
Use Data and Insight to Inspire, Influence, and Shape How We Make Decisions
HR Analytics Function Our Mandate:
Hire for Business Judgment; Train for Advanced Quantitative Skills
Telefonica assesses the ability to drive actionable insight when hiring HR analytics employees using simulations that test for the required skills.
Reinforce Actionability at Each Stage of the HR Analytics Project Cycle
Telefonica provides unique opportunities to employees to drive actionability of HR data throughout the HR analytics project cycle.
Establish Mutual Accountability for HR Analytics Application
Telefonica educates the business community on how HR analytics will support them in applying data to take action as well as the support the HR analytics team will require from the business.
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
Hire For Business Judgement; Train for Advanced Quantitative SkillsTelefonica’s HR Analytics Candidate Assessment Criteria
Project # 132706
Catalog # CLC5841813SYN
Criticality
Desired Skill Set:■ Degree-level education in a related field, master’s degree a plus■ Strong analytical skills■ Business acumen■ Strategic thinking■ Insight generation
Assessment Task 1: Using HR Analytics to Support Business Growth
One of the businesses in Telefonica Europe has had significant growth in the past 12 months. Another business is struggling to retain customers, and their customer satisfaction index is lower than competitors.
Put together a proposal for the HR director on how the HR analytics team could add some value here. Your proposal should contain:
■
■
■
■
What is the business challenge/research question?How can the HR analytics team add value?What sources of information will you use to explore your research question?What will the high-level project plan look like? How would you partner with the business to add maximum value?
Assessment Task 2: Communicating Insights to the CEO
Attached you will find an Excel sheet containing employee engagement data, contact-driven data, and nonfinancialKPIs.
Your task is to consider the data, identify key findings or hypotheses, and develop a five–minute presentation for the CEO of one of the operating businesses.
The findings should consider some key tangible recommendations for consideration by the CEO. You should also make reference to other data that you would find useful to consider as part of this analysis. The presentation should focus on effectively communicating the insight to the CEO.
■ Judgment■ Influence and collaboration■ Commercial awareness■ Communication/presentation skills■ Ability to identify/prioritise the right metrics
*Although quant skills areused as “table stakes” and assessed through degree/
course work, the main assessment tasks focus on assessment of skills
required to drive business decision making.
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
Reinforce Actionability at Each Stage of theHR Analytics Project CycleSample Tasks to Reinforce Actionability
Project # 132706
Catalog # CLC5841813SYN
Criticality
1.. Problem Identification
2. Measurement PlanDesign
3. Stakeholder Buy-Infor Measurement Plan
4. Data Collection andAnalysis
5. Insight Generationand Communication
Use internal networking opportunities with cross-functional analytics teams to
discuss HR data in context with other available business data.
Conduct simulation exercises where HR analytics employees
present findings to their teams as they would to the business.
Use team brainstorming sessions to identify
the right metrics to track to address a business problem and exchange best practices on methodology.
Create opportunities for HR analytics employees to network with the HR community to get in-depth knowledge of business unit–specific challenges
Use one-on-one manager coaching for business case building, and use role plays to practice presenting the business case.
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
Establish Mutual Accountability For HR Analytics ApplicationTelefonica’s Two-Step Business Stakeholder Education and Engagement Process
Project # 132706
Catalog # CLC5841813SYN
Criticality
Business Stakeholder
HR Analytics Team Lead
1 Set Expectations for Overall Functional Goals
Our goal is to use data and insights to inspire, influence, and shape how you make decisions. Our goal is not to provide you with data reports after running complex analyses.
2 Set Project-Specific Performance Expectations
Through the course of this project, we will support you by:
■
■
Identifying key challenges most critical to your business;Identifying the right HR data and analyses that can solve the challenge;
■
■
Communicating the implications of data analyses; andPartnering to determine actionable decisions based ondata implications.
3 Set Expectations for Desired Business Support on Project Execution
■ To achieve the desired project outcomes, we will needyour support in helping the team understand businesspriorities and challenges and require more involvement indata discussions.
Before Starting an HR Analytics ProjectSample Questions to Collect Qualitative Business Stakeholder Feedback
Inspire
1. Does the work of the HR analytics team inspire business decisionmaking—do you feel they clearly understand business prioritiesand on-the-ground business challenges?
2. Do you agree that the quantitative models developed by the HRanalytics team are designed to generate the data and insightsmost relevant to you?
Influence
1. Does the output generated by the HR analytics team influence your decisions—are the deliverables timely and easily consumable?
2. Do you fully understand all the implications of the data analysis(different scenarios and outcomes)?
Shape
1. Did the recommendations provided by the HR analytics team helpshape your actions—can you provide examples of how you usedthe information to drive change and how that affected your KPIs?
After Project Completion
#ReimagineHR
“Credibility”How Can I Increase
Credibility of HR Data?
Three Challenges to Improving Analytic Impact
“Criticality”Where Should I Focus
Talent Analytics?
“Capability”How Do I Upskill My HR Function?
1 2 3
n = 9,528.Source: CEB 2013 Global Labour Market Survey.
Few Business Leaders Believe HR Analytics Focuses on the
Right Business QuestionsPercentage of Business Leaders
Few Business Leaders Trust Talent Data and Insights from HR
Percentage of Business Leaders Who Trust Talent Data
n = 108.Source: CEB 2013 Analytic Survey.
n = 9,528.
Source: CEB 2013 Global Labour Market Survey.
18% Agree
17% Agree
80% Agree
Most HR Leaders Believe HR Staff Capabilities Are a Barrier
to Improving HR AnalyticsPercentage of Senior HR Leaders
#ReimagineHR
Seagate End User PlatformSeagate’s Analytics Delivery Strategy Addresses Three Common Delivery Pitfalls
Filtered Data VisualisationsBenchmark Visualisation
Too Much Data to Consume Quickly
Unclear Decision Implications
Limited Implementation
Seagate’s Delivery Strategy: Maximise End User
Ownership
Workforce Distribution
Gra
dua
te
Inte
rmed
iate
Fel
low
Sen
ior
Sta
ff
Sen
ior
Sta
ff
Pri
ncip
al40%
0%
20%
Current State
Industry Benchmark
Internal Goal
Leader-Driven Decision Scenarios Scenario Planning Tool
Proactive Decision OutputStaffing Plan for Recruiting Team
Staffing Plan
Job LevelEstimated Hiring (2013)
Estimated Hiring (2014)
Graduate 35 30
Intermediate 40 35
Senior 45 40
Staff 20 15
Senior Staff 10 10
Principal 2 2
Fellow 0 0
1 2 3
Credibility
Source: Seagate; CEB analysis.
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
Present Visualisations that Help Leaders Diagnose Challenges ThemselvesDeveloping Simplified Visualisations
Credibility
Typical Approach: High Volume of Workforce Planning Data Available to HR
Key insights are lost among irrelevant data.
Requires HRBP support to understand implications
Criteria for Filtering HR Data for Business Leaders1. What is the talent condition we want the leader
to diagnose (e.g., workforce health, talentrequirements, etc.)?
2. What information would the leader findmeaningful, even if they disagree?
3. What questions do we want the leader to ask?4. What resistance do we anticipate?5. What challenges do we want to bring to the
leader’s attention?
What is the most important data for business leaders to diagnose challenges?
“ ”
1. Highlights the talent conditionthat needs to be diagnosedWorkforce Distribution
Current State
Industry Benchmark
Internal Goal
Workforce Planning Discussion
HRBP Business Leader
Seagate’s Approach: Filtered Data Visualisation for Leader-Led Diagnosis of Workforce Health
Gra
du
ate
Inte
rmed
iate
Fel
low
Sen
ior
Sta
ff
Sen
ior
Sta
ff
Pri
nci
pal
40%
0%
20%
2. The current state and industrybenchmark
3. The challenge diagnosis leadsto discussions around the idealinternal goal.
Source: Seagate; CEB analysis.
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
Use Scenarios to Support Complex DecisionsKey Principles of Solution Self-Discovery
Credibility
Source: Seagate; CEB analysis.
Self-Service Workforce Distribution Tool
Financial Implications
Decision Implication
Job Level Current State Internal Goal Decision Options
Graduates 7% 5% Reduction in Force Promotion Hiring
Intermediate 10% 14% - - -
Senior 19% 23% - - -
Staff 23% 30% - - -
Senior Staff 26% 14% - - -
Principal 12% 23% - - -
Fellow 3% 5% - - -
Current Benchmark 3 Year 5 Year
Estimated Labor Cost $125,000 $100,000 $110,000 $105,000
Current
Benchmark
Year Three
Year Five
3.. Include guardrails to manage risk associated withself-service.
1.. Provide insight into different variables affecting thedecision to help frame alternative decision scenarios.
2. Allow users to compare outcomes of alternativedecisions:■
■
Across time horizonsIn terms of financial implications
Gra
du
ate
Inte
rmed
iate
Fel
low
Sen
ior
Sta
ff
Sen
ior
Sta
ff
Pri
nci
pal
30%
0%
15%
Works best when…
■
■
■
■
Few variables involved in decision (e.g., compliance)Minimal judgment and interpretation required from dataRequires HR expertiseHigh receptivity to HR’s recommendations
Works best when…
■
■
■
Large number of variables and more than one acceptable solution (e.g., workforce distribution)High degree of judgment and interpretation required from dataLow receptivity to HR directives due to unclear implications
Level of Judgment and Interpretation Required
HighLeader Self-DiscoveryEnable leaders to assess different
solutions for the identified problem before making a decision.
Low
Determining Feasibility of Discovery-Based Decision Support HR DirectivesProvide clear recommendations for leaders.
© 2013–2016 CEB. All Rights Reserved. CEB160934PRINT_JM_02 #ReimagineHR
Provide Action Owners withImplementation GuidanceExtending the Influence of Analytics Team to Decision Execution
Credibility
Source: Seagate; CEB analysis.
“What is the optimal workforce distribution for my business unit?”
Phase 1: Decision MakingMost analytics teams focus only on influencingdecision makers.
Analytics Team
Decision Maker
Action Owners
Phase 2: Execution StrategySeagate ensures that decision outcomes are disseminated to action owners to ensure decision implementation.
HRBP
Staffing team: “Where do we need to focus our sourcing efforts?”
Learning and Development Team: “How many recent graduates do we expect to onboard next year?”
Proactive Decision Output Illustrative Example
Leader’s Decision: Fill majority of positions at entry and middle level in 2013–14 to balance top heavy workforce distribution.
Immediate and Strategic Next Steps for Action Owners
Primary Action Owners Secondary Action Owners
Recruiting Team: Create sourcing plan to hire 100 employees in 2013 and 150 employees in 2014.
Recruiting Team: Consider internal mobility strategy at senior level.L&D Team: Prepare development plan for expected new graduate hires.
Staffing Pl
Job Level Estimated Hiring (2013)
Estimated Hiring (2014)
Graduate 35 30
Intermediate 40 35
Senior 45 40
Staff 20 15
Senior Staff 10 10
Principal 2 2
Fellow 0 0
#ReimagineHR
Moving from Insight to ActionInnovations in Talent AnalyticsRecommended Next Steps and Resources
#ReimagineHRContact Your Account Manager
Diagnose analytic maturity against business needs.
CEB Corporate Leadership Council™ Talent Analytics Diagnostic and Metrics That Matter™
Develop talent analytics strategy.
CEB Metrics That Matter™ Consulting
Drive business application of
talent analytics.
CEB Corporate Leadership Council™ Driving Returns from HR Analytics: Implementation Tools
Leverage talent analytics to drive business strategy.
CEB TalentNeuron and CEB Metrics That Matter™ Consulting
Plan Recruit Assess Develop Engage Perform
Visit CEB Meet and Greet
gartner.com/ceb
Thank you
Kelvin Chua, Reg Psychol, AFHKPsS Senior Executive Advisor
Email: Phone:
[email protected]+852 2837 3917
gartner.com/ceb
© 2017 Gartner Inc. and/or its affiliates. All rights reserved.
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