Workforce Optimization and Planning Dr. James Kelly & Dr. Marco Better

© 2014 OptTek SystemsDecember 10, 2014

OptTek’s Vision of Workforce Planning

OptForce® is a proven data-centric system that utilizes advanced statistics, simulation, and optimization to create actionable people analytics that improve organizational performance, reduce talent risk, and enrich the work experience.

Actionable People Analytics Organizational Performance - Productivity Reducing Talent Risk to Prepare for the

Future Enriched Work Experience through Talent

Alignment and Proactive Program Planning Simulation / Statistics/ Optimization /

Machine Learning Technology

 

Descriptive, Predictive, Prescriptive

Information

Simulation

Optimization

Descriptive Analytics

Predictive

Analytics

Prescriptive

Analytics

Hindsight

Insight

Foresight

More Valuable

Mor

e A

ctio

nabl

e

What happened? Why?

What will happen? What if…?

How do we make the best happen?

Adapted from Rose Business Technologies www.rosebt.com

OptForce : One Model / O

ne System

Question?

In the next year, my organization plans to utilize predictive analysis to support workforce planning.

a. Strongly Agreeb. Agreec. Disagreed. Strongly Disagreee. Not Sure

Workforce as a living, growing, changing organism

Workforce as a living, growing, changing organism

Recruitment

Workforce as a living, growing, changing organism

Recruitment

Voluntary Attrition

Workforce as a living, growing, changing organism

Recruitment

Voluntary Attrition

Involuntary Attrition

Workforce as a living, growing, changing organism

Recruitment

Voluntary Attrition

Involuntary Attrition

Retirement

Workforce as a living, growing, organism

Recruitment

Involuntary Attrition

Voluntary Attrition

Retirement

Talent Flow

Workforce as a living, growing, changing organism

The Future

Simulation and Predictive Statistics

Predictive Statistics use past data to predict the future.– Usually in the form of an equation yt = f(t,x)– Best when applied at a relatively high level– Excellent for stable trends and predictable cycles– Not appropriate for a changing system

Simulation uses past data and system structure to predict the future.– Model the actions of individual people as impacted by their

attributes and environment– Can provide insight at the individual level and/or high level– Excellent for stable trends and predictable cycles– Excellent for investigating the impact of system changes

Year 1 Year 2 Year 3

Recruitment Pool

Exec

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anag

emen

tN

on-m

anag

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Personnel Personnel PersonnelJobs Jobs JobsH

R P

rogr

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Pol

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U.S. Patent 8.386.300

WorkForce Demand – What You Will Need

MetricsHistory Operational

Demand

Machine Learning

Statistical/Math Model

WorkForce Demand – What You Will Need

MetricsHistory Operational

Demand

Predictions at the role

levels

Machine Learning

Statistical/Math Model

WorkForce Demand – What You Will Need

MetricsHistory Operational

Demand

How have roles tracked with products & services in the past?

Machine Learning

Statistical/Math Model

WorkForce Demand – What You Will Need

MetricsHistory Operational

Demand

Revenue, projects, orders, …

Machine Learning

Statistical/Math Model

WorkForce Demand – What You Will Need

MetricsHistory Operational

Demand

Bottom – up planning

Machine Learning

Statistical/Math Model

Too Few, Too Many, Just Right …Gap (Supply-Demand) Analysis

0 4 8 12 16 20 240

50100150200250300350

DemandSupply

Month

FTE

0 4 8 12 16 20 240

50100150200250300350

DemandSupply

Month

FTE

0 4 8 12 16 20 240

50100150200250300350

DemandSupply

Month

FTE

Major Components

Data Preparation Demand Analyses Attrition Analyses Recruitment Modeling Talent Flow Modeling Program/Policy Modeling Risk Analyses Scenario Simulations Reporting

Question?

If today you had a operational workforce planning system, which of the following areas would you address first?

(a) Demand Planning (b) Recruiting (c) Retention (d) Talent Flow (e) Other

Quality Assurance

DevelopAction Plans &

Deploy

Assess NeedsCollect Data

Simulate Scenarios

Assess Needs

Collect Data Validation against HistoryBuild Models

Support monthly cycle

Implementation 2 weeks to 3 months

OptForce Process Model

Use Cases and Web Application

Dr. Marco BetterVice President of Analytics Services

Use Case 1

Engineers in Plants 1 and 2 Demand growing in Plant 1 Demand decreasing in Plant 2 Certain roles in Plant 1 require special Expert

Systems certification

WHAT IF: we invested in training of Plant 2 engineers to be able to re-deploy them to Plant 1?

Use Case 2

Recently hired employees exhibit higher turnover than more seasoned personnel

We invest in new recruits only to lose them to competition

Talent shortage in the market is creating a growing demand gap

WHAT IF: we could improve onboarding to increase retention of new engineers?

Cost ComparisonBase (Do Nothing)

Base + Training

Cummulative Workforce Gap 463 152

Lost Revenue Cost 64,357$ 21,128$ Cost of Turnover 2,058$ 801$

Salaries 255,448$ 259,894$ Recruitment 28,687$ 19,601$ Training Program -$ 10,708$

Total Direct Costs 284,135$ 290,203$ Opportunity Costs 64,357$ 21,128$ TOTAL COST 348,492$ 311,331$ Net Savings 37,161$

Thank You!

OptTek Systems, Inc. 2241 17th StreetBoulder, CO 80302www.OptTek.com

www.OptForce.comU.S. Patent 8.386.300

Optimizing Your WorkforceDr. Marco Better better@opttek.com 303.447.3255 x 109

Dr. James Kelly kelly@opttek.com 303.447.3255 x 101