Oracle Confidential Internal/Restricted/Highly Restricted · 11 Copyright © 2015 Deloitte...

Oracle Confidential – Internal/Restricted/Highly Restricted

HR and People Analytics

Erica Volini – US HR Transformation Leader, Deloitte Consulting

Copyright © 2015 Deloitte Consulting LLC. All rights reserved.3

Today’s Discussion Topics

Global Human Capital

Trends - 2015The Value of Workforce

Analytics

Workforce Analytics in

Practice

Building Workforce

Analytics Capability

Closing Remarks


One of the largest-ever longitudinal global talent studiesGlobal Human Capital Trends 2015

Unless otherwise cited, all data referenced in this presentation

is from the Global Human Capital Trends 2015 survey.

3,300+Business and

HR leaders

106countries


10 Human Capital Trends for 2015HR and People analytics and People Data were acknowledged as two of the top ten trends

in 2015 due to the impact on other talent dimensions and business outcomes.

Leading

Engaging

Reinventing

Reimagining

Leadership – Why

A Perennial Issue?

Focus on

developing leaders at

all levels

Culture and

Engagement: The

Naked Organization

Create meaningful

work, engagement

and job fit

Reinventing HR –

Extreme Makeover

Align HR capabilities

with business

goals

Learning and

Development – Into the

Spotlight

Reinvent the learning

experience

Workforce on

Demand – Are you

Ready?

Apply engagement

strategies to all

workers

HR and People

Analytics –Stuck in

Neutral

Develop long-term

commitment to

analytics

Machine as Talent-

Collaboration Not

Competition: Stay

vigilant for opportunities

to apply technology

Performance

Management –The

Secret Ingredient

Less emphasis on

evaluation; more on

agile goal setting

People Data

Everywhere – Bringing

the Outside in

Leverage inside

and outside data sources

Simplification of

Work- The Coming

Revolution:

Redesign work

to focus on

what matters


Case for Change

HR capabilities

Simplifying

Work

Learning

anddevelopment

PerformanceManagement

ReinventingHR

HR & peopleAnalytics

Culture andEngagement

Leadership

-26-28

-29

-30

-31

-31

-36

Business needs

Global

Economic Growth

HR Capabilities lagging behind Business needs


Stuck in neutral

HR and People Analytics

Need a

long-term

commitment

to analytics

No year-

over-year

improvement

in analytics

capabilities

rate analytics

important;

only 8% are

“strong”

75%


39%

People data everywhere Bring the outside in

Need to

leverage

inside and

outside

data sources

Vast amount

of valuable

social

and other

outside data

leverage

social data

for recruiting

and

engagement

The Value of Workforce Analytics


Use of measurement and analysis techniques to understand, improve, and optimize the

people side of business

Workforce Analytics

Advanced Reporting

Operational Reporting

Advanced Analytics

Predictive

Analytics

Development of predictive models, scenario planning. Risk

analysis and mitigation, integration with strategic planning

Statistical modeling and root cause analysis to solve

business problems. Proactively identify issues and

recommend actionable solutions

Proactive, operational reporting for benchmarking

and decision making. Multi-dimensional analysis

and dashboards

Reactive, operational reporting of efficiency

and compliance measures. Focus on data

accuracy, consistency, and timeliness


Business Challenge How Workforce Analytics Can Help

Sustained Revenue

Growth

• Predict talent requirements, focus attention on highest-value current talent sources, and identify potential new

sources to support growth

• Mix customer data, pricing data, and labor data to optimize the development and deployment of human capital to

drive revenue in new and existing channels

Profit Growth &

Cost Reduction

• Protect the organization's ability to retain top talent by proactively predicting attrition risk and identifying cost-

effective interventions at the individual employee level

• Provide granular analyses of labor spend and ROI by combining labor, compensation and finance data to track

specific business outcomes

Strategy Execution

Capability

• Anticipate potential leadership gaps and proactively develop a pipeline of top talent

• Provide the necessary data for HR to operate as a strategic partner to the business

Speed, Flexibility &

Adaptability

• Calibrate performance and rewards with speed, flexibility, and adaptability; monitor specific outcomes and make rapid

adjustments to drive desired impacts

• Continually optimize HR processes and service delivery through fact-based decision making including increased

transparency and accountability

Employee Loyalty /

Retention

• Use data to identify, optimize, and monitor the unique levers that impact and drive employee lifetime value

• Understand employee acquisition and retention strategies and ensure HR programs

(e.g. incentives, performance, learning) are rigorously aligned

Address business needs, not just HR issues

Workforce Analytics


Workforce Analytics

Embed in delivering solutions across all HR functions and service areas

Copyright © 2015 Deloitte Consulting LLC. All rights reserved.13Copyright © 2015 Deloitte Development LLC. All rights reserved.

Most Frequent Analytics-Driven Analyses In Use Today

Area Example Analytics Projects

Talent Analytics• Identifying the predictors of success in specific workforce groups, designing recruitment/ development

levers to maintain supply of top talent

Engagement

Analytics

• Understand the affinity of team members and design interventions to protect against turnover

• Correlate engagement survey findings with performance, demographic and operational data to

identify root causes

Organization

Design Analytics

• Visualizing organizational data to support quick, rigorous and dynamic organizational design

• Overlaying KPIs and employee data on organization design to identify hot spots

Training

Analytics

• Measuring the effectiveness and the business and financial impact of training interventions using

operational and training data

Performance and

Retention

Analytics

• Predicting potential voluntary terminations – individuals or groups at risk – and designing interventions

• Identifying the drivers of high performance

• Using internal and external mobility data to identify areas of healthy churn and predict impact of

scenarios

Safety

Analytics

• Predicting clusters of employees most likely to suffer a safety event, down to area, location, shift,

demographic and time

Wellbeing

Analytics

• Correlating recorded sick leave with external factors, including weather, location, sporting events and

workload

• Statistically identifying the drivers of wellbeing across groups

Process

Optimization• Simulate processes to identify bottlenecks and improvements

Workforce Analytics in PracticeArt of the Possible


Using a combination of analytics and data visualization tools, organizations are investing

in short-term deep-dive projects to identify millions of dollars in unnecessary Talent spend

Optimization of Spending/Investment in Talent Programs

Time &

Attendance

Organizational

Structure

Learning &

Development

RecruitingTotal Rewards

Analyzing a variety

of payroll data to

identify how

systems, process,

governance, and

policy are

contributing to

excess payroll

spend and identify a

path to improving

controls

Evaluating spans,

layers, and pay

bands to identify

opportunities to

standardize and

simplify structures

that have become

complex and costly

as the business has

grown.

Using text analytics

and other data

mining and

visualization

techniques to

identify cost savings

across the learning

organization,

curriculum,

technology, and

vendors

Assessing the

recruiting

organization’s

structure, processes,

and vendors to

identify cost savings

and opportunities to

acquire talent in a

more targeted and

efficient manner

Creating utility

curves using a

variety of analytical

techniques can

identify opportunities

to optimize benefit

options and reduce

duplicative and/or

ineffective rewards

spend.


What is retention analytics? What are the Organizational Benefits?

Understand the Importance of Retention Analytics Assess

Overall Attrition

Customize for Groups

Identify Risk by Individual

Estimate Total

Attrition Cost

Calculate Threshold

Retention analytics measures the risk of voluntary attrition in your

workforce down to the individual level. Retention analytics is

measured using both internal Human Resource (HR) and external

market data, such as economic factors

Improved, Customizable, Timely Data

Using advanced analytics to predict turnover risk, down to the

individual, can provide the lead-time needed to:

• Identify employees who are likely to leave by projecting attrition

for the whole organization, isolated sub-populations, and each

individual

• Understand the drivers behind why employees are likely to

leave and the tipping point for high risk levels

• Determine what to do, today, to reduce the risk of that employee

leaving in the future

Proactive Decisions and Better Planning

Retention analytics can enable organizations to better:

Implement plans to retain critical talent

• Prevent excessive attrition costs

• Align talent strategy with business objectives

• Customize strategies to meet the needs of target populations

A proactive approach to identifying and addressing retention issues and designing

interventions

Retention Risk Analytics


Analytics to inform Sourcing, Retention and Productivity of Customer Facing Resources

• Developed model to predict Customer Service Associate

success using12 internal and external data sources that

spanned 70+ disparate files and contained 100+ data

elements

• Amassed 6MM+ records across a three-year timeframe

to provide a single, multidimensional view of the

Customer Service population

• Developed a robust Pre-Hire model as a predictor of employee

success.

• Validated that representatives in the highest predicted success

group realized a 45% actual success rate versus 8% in the

lowest predicted success group

• In addition, a Post-Hire model was built that identified specific

post-hire attributes

Understanding the Pre- and Post-Hire success attributes enabled the Customer Service

organization to focus on specific interventions that could generate $324M annual opportunity

Building Workforce Analytics Capability


• Accurate, timely, and consistent information is critical to running the business,

understanding the workforce and driving management discussions

• The large amount of data through the various collection mediums create challenges

with the management, storage, retention and usage of the data

• Moving an organization from traditional (internal) to emerging data sources (social,

third party, mobile, etc.) for analytic analysis is not an easy journey

• Technology is an enabler and the investments need to be planned thoroughly

• Improving the manager experience requires improved analytics and innovative

technology. Individually they can only get you so far

• Knowing how and when to communicate change to users and customers takes

planning and strategizing

• Whenever changes are made, additional business risk is always introduced.

Understanding that risk allows for better decisions

• Managers and Business leaders need stable weekly reports with insights and current

information to drive trend analysis and comparisons

• Users want all the bells and whistles…yesterday!

“What technology do I need?”

“What data do I need?”

“What insights are available?”

???

?

?

?

??

?

“Is my organization and

customer ready?”

“I need it…when I need it.”

MON

Key Considerations

Define a Workforce Analytics Strategy


Define an insightful and action-oriented process

Business

Results

Facts

What workforce data

is required and can be

leveraged to

understand the HR

functions?

Understanding

What is currently

happening related to

our workforce and

why?

Actions

What should we do

based on the insights

available?

Workforce Issues

What are the

workforce challenges

at hand?

Enabled by Technology

Analytics Strategy

CRITICAL

QUESTIONS

Define a clear analytics strategy identify the business issue understand and use data to

uncover insights and create action plans.


Governance

OrganizationTechnology

ProcessDataWorkforce

Analytics

Capability

Dimensions

Workforce Analytics Governance Model

Decision-Making & Controls

Roles & Ownerships

Internal Governance Structure and Escalation

Operating Model

Organization Structure

Roles & Positions

Skills & Competencies

Technology Landscape

Talent Analytics

Technology

Data Sources & Fields

Measures & Metrics

Data Management

Key Processes

Process Integration

Desired Outputs (Reports,

Workforce Plans, Talent Analysis)

Five dimensions critical to implement an effective and sustainable Workforce Analytics

capability

Adopt a Workforce Analytics Capability Framework


Communications and Strategic Thinking

• Simplify analytical outputs

• Influence business stakeholders through effective communication

Industry Expertise

• Understand industry trends/key business drivers impacting profitability

• Evaluate business issues by applying data-driven approaches

Analytical and Visualization Tools

• Expertise in advanced analytics tools and techniques

Technology Expertise

• Knowledge of Infrastructure Management, Distributed Systems, Cloud Management and Systems Integration

Knowledge of Corporate Functions

• Work experience, knowledge and skill sets in specific corporate functions

Data Expertise

• Expertise in Data Architecture, Modeling, Extraction, Transformation, and Loading, Data Management / Quality / Governance

Functional CompetenciesEnterprise Competencies

Build key competencies & skillsNo individual person will have all enterprise and functional competencies

Closing Remarks


Build a multi-disciplinary team, combining employees (and third-parties) with business knowledge, talent awareness, technical, consulting and analytical skills

Show the return on investment by quantifying the value that better decision making is bringing to the organization

Start with the tools you have to analyze data that are too often underused

Do not let the perfect be the enemy of the good as it is better to do analytics based on less-than-perfect data and tools than to do no analytics whatsoever

Partner with IT to help build a program to clean up, rationalize, and continuously monitor data quality

Use analytics, modeling and visualization techniques on the HR organization’s services and operating model to demonstrate analytics’ potential

Focus on immediate business needs since analytics is a business priority, not merely an HR tool

Leverage embedded analytics by upgrading technology platforms and core HR systems

Lessons

learned that

expedite the

implementation

of Workforce

Analytics and

realization of

business value

Right Team IT

Usage

Prioritization

TechnologyTools

Data

ROI

Critical Success Factors

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