©  2014  Visier™

The Top HR Stories to Tell with Data: Templates that Wow Business Leaders

September 10, 2014 Dave Weisbeck, CSO, Visier

Page 2

WORKFORCE INTELLIGENCE SOLUTIONS. SMART. INTUITIVE. COMPLETE.

Page 3

SOME OF OUR AMAZING CUSTOMERS

Page 4

TODAY’S  AGENDA

What  is  driving  the  “datafication”  of  HR? What are the top stories you can tell with data? How can HR use data to become a strategic force?

Page 5

CUSTOMER VALUE

A growing number of corporate boards, CEOs, and CHROs understand that by applying data-driven solutions to improve decisions about talent, they can improve revenues and profits.”

Harvard Business Review, 2014

Page 6

FORCES DRIVING HR TRANSFORMATION

Hire Right

Demographic Shift

Retain Top

Talent Skills

Shortages

Ensure Planning

Agility Economic Flux

Optimize Spending

Competitive Pressures

more than ever before HR can play a critical role in driving business performance.

Page 7

“THE  WAR  FOR  DATA  IS  ON” JOSH BERSIN

Level 1: Reactive – Operational Reporting Ad hoc, reactionary

Level 2: Proactive – Advanced Reporting Routine, benchmarking, dashboards

Level 3: Strategic Analytics Segmentation, analysis, people models

Level 4: Predictive Analytics Predictive models, scenario planning

4%

10%

30%

56%

If you are not investing in an integrated analytics capability  within  HR… you’re  going  to  fall  behind.

Bersin by Deloitte, October 2013.

Page 8

POLLING QUESTION

Where  would  you  rank  your  organization’s  analytics maturity today? 1 – Level 1 – Reactive – Operational Reporting 2 – Level 2 – Proactive – Advanced Reporting 3 – Level 3 – Strategic – Strategic Analysis 4 – Level 4 – Predictive – Predictive Analysis

Page 9

“DATAFICATION”  INCLUDES  METRICS  AND  ANALYTICS

Metrics

A system or standard of measurement E.g. Turnover

Analytics The connecting and analysis of data E.g. Who is at risk of leaving?

Page 10

How can HR leverage data to become a strategic force?

Page 11

High High

Low High

CHOOSE TOPICS THAT HAVE BOTH HIGH IMPORTANCE AND HIGH BUSINESS IMPACT

11

Business Impact of Findings

Impo

rtanc

e of

Top

ic

Page 12

TELL STORIES ABOUT YOUR INSIGHTS, USING VISUALIZATIONS

Align

Act

Analyze

• Measure past trends and present realities

• Connect data points to achieve insights and predict future events

Analyze

• Articulate your findings • Share your strategy • Collaborate and gain buy-in

Align

• Act on workforce decisions • Develop and implement

credible workforce plans • Balance costs with budgets

Act The Workforce Intelligence Cycle

Page 13

Imagine you have 30 minutes with your  business  leader….

Page 14

DO YOU PRESENT THIS?

14

Page 15

Fundamentals – Where are we today?

Page 16

This is a common view most would recognize as the type of metrics you are bringing to a business leader to review. Overall a good dashboard, but a business leader wants to use information to make decisions. For this context is key.

BUSINESS LEADER REVIEW DASHBOARD

Page 17

One of the most important points of context is: how have things changed? If you think about headcount reporting. How do you go beyond to relate how the organization is changing?

MOVEMENT IN/OUT/WITHIN THE ORGANIZATION

Page 18

How, invariably leads to why - or at least what is driving the change. Is it people joining? Leaving, leaving voluntarily, being replaced?

WHERE DID THE CHANGE COME FROM?

Page 19

Business leaders invariably want to know where the money is going.

WHAT IS THE BREAKDOWN OF ALL COMPENSATION EXPENSES YEAR TO DATE?

Page 20

Acquiring Talent

Page 21

One of the challenges with hiring, is that it is a process. There is flow and movement. How do you see that?

ACQUIRING TALENT

Page 22

Visualization can be critical. Here we can see the core metrics we are used to - like time to fill - but we see those in context to the hiring process. What this also helps us to balance out is the workload behind acquiring talent. Often the question with a business leader is about balancing speed and cost. Business leaders want their key hires sooner, how can you help them see what is involved and what it takes.

HOW TO SEE THE BIG PICTURE ON HIRING?

Page 23

How do we relate to the business that cost, speed and quality invariably have an impact on each other when it comes to acquiring talent.

SPEED OR QUALITY OF HIRE?

Page 24

Keeping Talent

Page 25

The first place to start with retaining talent is to make sure you have your eye on regrettable turnover. Not all turnover is bad. In fact, turnover can be good. New people bring new ideas. Bad fits, find better fits elsewhere.

ARE WE KEEPING THE PEOPLE WE DON'T WANT TO LOSE?

Page 26

With attrition, one of the most common questions people pose is: why? How do you find root causes for something as complex as people leaving an organization? Is it because they weren't engaged? Their manager? Their career was stalled? Didn't fit in? Been there so long they needed a change? Felt rewards didn't match productivity?

WHAT ARE THE LEADING INDICATORS OF TURNOVER? WHAT PATTERNS EXIST IN OUR RESIGNATIONS?

Page 27

BIG DATA APPROACH TO FINDING TRENDS

Page 28

BIG DATA APPROACH TO FINDING WHO IS AT RISK

Page 29

Developing Talent

Page 30

What is the average time since promotion broken down by performance and potential – the 9-box.

ARE WE DEVELOPING OUR BEST AND BRIGHTEST FASTER THAN EVERYONE ELSE?

Page 31

Who is promoting into their team, and whose employees are being promoted into roles outside of their team?

WHO IS ACQUIRING TALENT FROM THE REST OF THE ORGANIZATION, AND WHO IS DEVELOPING TALENT?

Page 32

The Real Cost of the Workforce

Page 33

Alongside managing our compensation expenses we need to consider our total costs of workforce and manage areas where costs may be increasing. This is especially important as we shift from fewer employees and more contingent staff. We might control compensation costs but add to overall organizational costs through our contingent labor practices. Total Cost of Workforce will help us to understand and manage this.

HOW IS OUR TOTAL COST OF WORKFORCE CHANGING?

Page 34

Managing costs is about knowing what they are and being able to drill down into which groups / teams or business units are increasing most rapidly. Having the ability to look at the same data through multiple views allows you to communicate the most important answers and then back them up with details.

WHICH GROUPS ARE INCREASING THEIR TOTAL COST OF WORKFORCE MOST?

Page 35

Reducing Unnecessary Workforce Costs

Page 36

Benchmarking costs internally gives clear insight into where cost reduction is possible and allows you to focus your work and track your progress. Presenting results that show a like for like measure - absence costs per FTE and compares across different business units, organizational functions locations etc makes this answer clear and compelling. Managing absence costs is a clear and tangible way that HR can support the organization to achieve its overall financial goals. Not all absence costs can be eliminated however reductions in this area can lead to substantial overall cost savings.

COMPARING ABSENCE COSTS TO IDENTIFY REDUCTIONS

Page 37

The costs associated with supplemental pay are also an important place to monitor. These costs fluctuate and it is often the case that as other costs are reduced then overtime or supplemental pay increases to cover the short fall. Being able to monitor the year over year change with regard to these costs and compare them to changes in in your base pay is crucial.

HOW WELL ARE WE MANAGING OUR OVERTIME AND OTHER SUPPLEMENTAL PAY COSTS?

Page 38

Performance

Page 39

Performance management and the analysis of performance is crucial within an organization. Much as these systems are criticised it is often the lack of analysis of the outcomes that leads them to be poorly executed. Being able to show the distribution of performance for employees and compare that to managers

PERFORMANCE DISTRIBUTIONS FOR EMPLOYEES AND MANAGERS

Page 40

Compensation changes are a necessary part of organizational life. The key questions for the executive is are these changes going to the right people and are they supporting improvements to the overall productivity and capability of our organization? Being able to demonstrate the comp increases are going to high performers and / or high potential employees demonstrates that HR is effective in driving pay for performance and that the increased compensation dollars are going where they will most benefit the business.

DRIVING PERFORMANCE THROUGH COMPENSATION CHANGES.

Page 41

Diversity

Page 42

Overall diversity is one thing, however it is more insightful to be able to benchmark the diversity of your functional work groups against those of your industry peers. Knowing whether or not the different job groups within your organization are more or less diverse than your competitors changes the focus of your diversity initiatives away from purely compliance and towards the more valuable area of organizational performance and differentiation. Benchmarking against the Equal Employment Opportunities Commission database gives the most accurate and update comparison of based on labor participation and data that is 14months old at worst.

HOW DIVERSE ARE WE ACROSS OUR DIFFERENT FUNCTIONAL GROUPS?

Page 43

Leadership diversity is as important to track as overall organizational diversity. Some might argue it is even more important. Being able to show the organization that diversity initiatives do not just apply to individual contributors but are bringing a diversity of experience, thought and decision making to the leadership group has important impacts for the organization. Leadership decisions drive results and a more diverse leadership group is more likely to build a diverse organization. Hence this comparison of the diversity of managers to total population will inform how and where you can further your organizations diversity initiatives and build better results.

HOW DIVERSE IS OUR LEADERSHIP GROUP?

Page 44

Diversity is not a static state. It is constantly changing as people join and leave the organization. The most important thing to understand to ensure business results are driven from organizational diversity is the make up of your succession pool / candidates. All the work that has been done to build a diverse leadership group can be undone if your succession candidates are not as diverse as your current leadership. Hence showing the executive that your future senior leadership pipeline will maintain or build the diversity that supports better results it crucial to demonstrating the strategic contribution of HR.

WILL WE MAINTAIN LEADERSHIP DIVERSITY?

Page 45

You need a plan

Page 46

BUT WHAT IS THE PLAN? The most important comparison against your business is how you are doing against what you said you would do – your plan. To create real impact you need to know where you are going, and then monitor that you are doing what you said you would do. This means analyze, plan, measure, and adjust is a constant way of life – an HR transformation.

Page 47

Being able to tell the story of how headcount is matched to plan is one thing. When you can communicate both headcount and overall costs provides the full picture that the organization needs in order to balance the people required to deliver the goals and the financial resources required to support the people. Costs without people, which is what finance reports, is only half the picture. In the same vein headcount, without costs, which is often what HR reports is the other half. Reporting the two deliver the type of insight executives need to be confident in the results and manage staffing and costs towards the short term and long term goals.

WHAT DID WE PLAN TO SPEND?

Page 48

KEY QUESTIONS TO ANSWER

48

Where are we to plan – what risks should be be aware of?

How can we optimize

employee movement to

drive performance?

What are our actual labor costs, and

what is driving change?

How healthy is our recruiting

pipeline?

What are our best

performing sources for top

talent?

Why are people

resigning, and who is at risk of leaving?

How can we improve on

team development?

What is our Total Cost of Workforce,

and how can we optimize it?

Are our people investments

generating the outcomes we

want?

How can we leverage

diversity to drive business

outcomes?

HR TRANSFORMATION

BUSINESS PRIORITIES PEOPLE PRIORITIES

Page 49

Dave Weisbeck, CSO, Visier dave.weisbeck@visiercorp.com www.visier.com

Q&A