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2013 HR FLORIDA
Usin HR Anal tics to Ali n Your Workforce
with the Business Strategy
August 19 21, 2013
Hilton Bonnet Creek, Orlando, Florida
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Howard Tarnoff
Senior Vice President, Customer Success,
Ceridian
Joined Ceridian in March 2011
Ceridians customer success program for
North America
30-year veteran of the HR Technology
industry with companies including Workforce
Software Workbrain RedPrairie and Kronos
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Agenda
HR Analytics Defined
esearc - ase ew o na y cs
Aberdeen Group Study
1/3 Line of business (primarily VP/C-suite roles)
70% North American, 30% EMEA or APAC
A Case Study
Some Critical Takeaways
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HR Analytics Defined
Tools used in finding, retrieving and analyzing HR data.
oa s o u ma e y prov e s n e gence o managers
enabling them to make better decisions that impact HRstrategy and business objectives.
Applications Workforce optimization (short term)
Talent management / Workforce planning (long term)
Compensation
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Challenges
'initiatives?
Economic uncertainty forcing the organization to operate more
Organic growth (into new geographies, new channels, etc.) and
achieving organizational growth goals
Scarcity of key skills in the marketplace (domain/industry specific)
Changing employee needs and expectations (generational gaps,, , .
forcing new people management techniques
Regulatory compliance and reporting issues (employment law,
, . Changing customer needs and expectations
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ource: er an e nar o , pr
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Barriers to HCM Investments
Percentage of
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respondents
N = 439
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High-Level Strategies
Percenta e of
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respondents
N = 439
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Impact of Analytics on Business Metrics
Average reported
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performance
N = 103
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Impact of Analytics on HR Metrics
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respondents
N = 439
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Satisfaction with Solution
Percentage of
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Respondents
N = 439
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Key Organizational Capabilities
Percentage of
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N = 103
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Polling Question
a) Not practicing and have no plans to
b) Not practicing but plan to
c) In the process of defining metrics
d) Metrics defined; using Excel/manual tracking
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f) I dont know
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Adoption By Company Size
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Respondents
N = 449
Source: Aberdeen Group, December 2010 February 2011
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Polling Question
make a key operating decision. Which statement best represents
how you approach capturing the information?
a) Run a series of reports, download to Excel, and merge data to then completedetailed analysis
b) Make a quick decision based on your previous experiences due to limited
availability of technical resources to gather data needed for analysis
c e wor w your peers o un ers an w a ey ave one w en ace w
similar issues and limited time to complete detailed analysis
the findings of the data to gain insights; consider the pros and cons of solutions
and incorporate the best option into a plan
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A Case Study
Company profi le:
2,000 employeesBusiness strategy:
Human capital strategy:
Grow direct sales force
- ,
Business challenges:
Slowing revenue growth
HR Analytics can impact business performance
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HR Analytics Three Step Process
To provide real value, identify the issues related to your human capital that
impact your companys ability to execute on its strategic initiatives
Identify andAnal ze and Incor orate the
Step #1 Step #2 Step #3
ga er e a a o
gain visibility to
the issue
correlate data to
gain insights
findings into a
plan of action
Execute on the plan and monitor ongoing
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Step 1: Identify
a are our curren ea coun ren s
(headcount) is shrinking
Manufacturing capacity is
steady
Most terminations are voluntary
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Step 1: Identify
at can earn oo ng at term nat on rates y
job class?
oncen ra on o g
termination rates in salesforce (both straight
commission PG1 and salary
p us onus
Sales force shrinking while
increasing
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Step 1: Identify
terminations and hiring?
sales force terminations
Sales force termination rate
has increased
Most sales force
terminations are voluntary
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Summary of Step 1: Identify
Capacity and turnover issues with sales force
Rates are increasing over time
High voluntary termination
Current hiring campaigns are not keeping pace with terminations
Lack of sales force capacity inhibits revenue growth [assumption]
Identify and Anal ze and Incor orate the
gain visibility to
the issue
correlate data to
gain insights
findings into a
plan of action
Execute on the plan and monitor ongoing
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Step 2: Analyze
What is the tenure of our terminatin sales force?
Terminations are
hi hl concentrated
in the first years of
service
More than 75% term
in their first 2 years
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Step 2: Analyze
How does new hire experience levels relate to
terminations?
Experienced
hires are less
terminate
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Step 2: Analyze
What is the relationship between term rates and
comp plans?
Straight commissionreps (PG1) terminate
at a greater rate than
salary and bonus
plan reps (PG2)
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Summary of Step 2: Analyze
na yze corre at ons to ga n ns g t:
Terminations are highest in the first years of service.
Termination rates var considerabl b source of hire. Some sources actuall
produce a negative growth in capacity.
Experienced hires are more likely to stay. Majority of terminations are of entrylevel new hires.
commission salary plan.
Identify and Analyze and Incorporate the
gain visibility to
the issue
correlate data to
gain insights
findings into a
plan of action
Execute on the plan and monitor ongoing
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Some Critical Takeaways
HR must evolve
- Employee focused HR service
- Manage by the numbers
- Run HR like a business
-
- Prove our value to the bottom line
c on s eps
- Ensure clean data
- Work with Operations to define 3-5 key metrics
- Get buy-in from senior executives
- Roll-out to ensure alignment
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How Analytics Tools Can Help
Eliminates inaccurate, time-consuming consolidation processes
Allows trending and comparisons on a consistent basis
Drives effective decision-making
-
measures
Helps managers make informed decisions
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Brings all HR and Payroll data into a secure data source
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owar . arno cer an.com
Twitter: @htarnoff
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