Empowering Success With Big Data-Driven Talent Acquisition


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  • I have a long history of creating innovative HR strategies for Fortune 100 companies. My background includes pioneering HR Technology, HR Operations, and Talent Acquisition roles at PeopleSoft, Solectron, and Hitachi, start-up company leadership defining Internet based HR solutions. Today, I lead eQuest’s Big Data analytics division. We study the performance and effectiveness of job postings on job boards and social media sites. This critical data enables organizations to make better-informed decisions about their Talent Acquisition and Sourcing strategies.I also am responsible for developing our consulting business solutions that help our customer’s create the competitive advantage they require in today’s fierce talent market. These solutions support our customer’s pursuit to become proactive, to tie their Talent Acquisition activities to their workforce planning efforts, and to support them in improving their company’s performance.
  • What is happening in the marketplace…what we’ve seen - increased focus on HR and Analytics - shift from just reporting and metrics...spiking interest in TA and BIG DATA show Social Ears Graphs
  • Classic Example - Obama’s winEveryday new stories of how organizations of all sorts are winning in business with the insights they are getting from BD Analysishttp://finance.yahoo.com/blogs/big-data-download/The real value - Find blindspots, mitigate under-performance sooner, and improved forecasting accuracy
  • ? Definition, Hallmarks, and What makes it so special? Let’s better understand this phenomena
  • Just over 10 years ago, early internet based applications were beginning to emerge. Looking back now, it was then that the seeds for today’s Big Data capabilities were being planted. It was the linking of people, applications, and databases through the internet backbone that was that has created the phenomena that we are now referring to as “Big Data.” Big Data is an inevitable outcome in the evolution of the utilization of the internet. Ironically, an evolutionary step is giving rise to a revolutionary way to achieve business outcomes. …but before I get ahead of myself, let me first establish some basic understanding. In order to understand how to leverage it, lets first back up to understand what is Big Data? What does it really mean and why should HR start to care about it?....
  • So, the question is…Does HR really have access to big data? And…if so, how and where does that exist and how can the principles of Big Data analysis be applied to drive improved business outcomes?
  • - Increase need to be Strategic. Understanding the need to be “analytic.” The Creative Tension….- Recent CEO study found, though, that only 38% of CEO’s are indicating that their senior HR leader is fulfilling this new role adequately.The value is in the outcome. Big Data is more than a technology solution. Tying the pursuit of Big Data to business goals and objectives is key.Big Data consulting means at eQuest will be advising our customers on the insight found in the patterns contained within the data. Enabling the customer to make informed decisions quickly and take action quicker is the key to creating their competitive advantage.
  • Enterprise Readiness:We have leadership who asks, “What does the data tell us? Our leadership is willing to let data override their initial hypothesis.Organizational/Department Readiness:We have at least one person our team who is responsible for data and analytics that spends at least 50% of their time on those activities. We use a tool other than Excel for our data analysis.Personal Readiness:I have taken at least one basic statistics course. I am interested in understanding how to apply advanced analytics to enable me to perform my job better.
  • According to a recent survey from the Human Capital Institute, 43 percent of companies still rely on spread sheets or other manual reporting systems to capture and analyze human capital management, or HCM, data, and less than 20 percent strongly agree that HR possesses the ability to collect, aggregate and derive insight from HCM data. So while software vendors are busy building Big Data tools to help companies make better, faster and cheaper workforce decisions, HR leaders need to think about how they will make the most of these tools and data they promise to analyze. That means hiring and developing the staff who understand HR analytics, and investing in technology that will enable data to flow more freely between systems, - If you are not in a position to wait for your company to get up to speed? Outsourcing is a really viable option here. You can just plug in to companies like eQuest who have both the infrastructure and expertise to be able to analyze your data and apply the insights derived directly to your business activities. 
  • Talent is KeyGetting Talent Quickly is keyNot having talent = missed or delayed business opportunities (PwC)If you could only invest in improving one segment of HR, the function with the greatest opportunity to impact the bottom-line of the business is the Talent Acquisition function (BCG study).
  • It is no longer sufficient to perform as best as you can within the existing approaches
  • No longer sufficient to be the best within the existing operationsPrevious – high value placed on the customer serviceMoving forward – higher value on Smart, Strategic, Planning,
  • Talent is a differentiator. Without a pipeline you can’t recruit. It is critical to be able to develop robust pipelines to be able to be able to meet the hiring needs of the company. Let’s face it – companies do not hire for sport. There are critical business outcomes that are at risk if positions go unfilled or take prolonged periods to hire for. Attrition back-fills are critical to sustain current productivity. Net new hires are needed to support the company’s growth objectives. You can also leverage Big Data Insights for Operational Efficiencies to ensure performance is on track, and be able to mitigate sooner if not.
  • In the past six or seven years, the number of usable communications channels exploded. All of a sudden, there are opportunities to communicate where none used to exist.
  • According to Bersin by Deloitte’s 2012 Talent Acquisition Factbook study, The average time to hire by talent acquisition teams” is 55 daysAnd ..the average recruiting spend per hire is $3325 per employee – which is up by 6% over 2011. In the Manufacturing and Business Services industries, the spend is even significantly higher.Last – despite this increased spend, 1st year turnover rates also increased from 12.6% in 2011 to 14.5% in 2012 – critically impacting the ability of those companies to meet their business objectives. A key hallmark of High Impact Talent Acquisition teams is their ability to adequately build and maintain the talent pools; especially for their mission critical jobs.The study also found that Top Performing TA functions are 3 times more likely to engage in some sort of Workforce planning and use analytics to support their activities. And, by using these analytics, they are 3x more effective in making workforce decisions, 2x more effective at building at a seat at the table, and 3x more effective at the timeliness and the quality of their hires.
  • • Avoid Talent Gaps• Develop Candidate Pipelines Workforce planning is a critical differentiator for companies operating in today's competitive, global economy. It is crucial that companies have the skills and tools in place that allow them to understand which roles drive profitability and results. Tying that understanding into Talent Acquisition gives a company the ability to proactively and timely build those talent pipelines. BD in TA enables the function to be strategic and proactive in filling those roles. TA teams do not have the luxury of engaging in a wait and see exercise to only later learn their sourcing efforts have not produced enough viable candidates. As the cliché goes, “It’s all about getting the right people, in the right place, at the right time.” This is key way that HR can lead the company in creating competitive advantage for the businesses they operate in.
  • - show the funnel and how HR can use it for operational and competitive advantage
  • Big Data Doesn’t Have To Be HARD to do..The opportunity is clear, but so is the challenge. As the celebrated statistician and writer Nate Silver put it, “Every day, three times per second, we produce the equivalent of the amount of data that the Library of Congress has in its entire print collection. Most of it is...irrelevant noise. The challenge for HR is to be able to have the right skills in place to be able to extract the relevant signals from the noise.A fool with a tool is still a fool.
  • My father used to always remind me,“If you don’t know where you’re going, how will you know when you get there?”
  • Identify 18 profiles who are qualifiedThat will net 8 conversationsThat will produce 3 qualified candidates who interviewThat will get us 1 hireUse this type of information to help you identify what kind of activity is necessary to get a complete slate, and identify how much of a workload the sourcing team can manage**The information you can get from measuring the right things will help you take steps to improve your processes and increase your team’s efficiency!
  • Achieved “fully staffed” status for first time ever Candidate volume up over 600% Y/Y Reduced time spent interviewing by nearly 70% Turnover cut in half, reduced to 27% Time to start reduced over 60%, averaging 35 days Hiring related decisions based on data Meeting staffing demands, eliminated over $500K in OT costs
  • Tell a story – Recruiter A – Always recruiting in reactive mode (frustrating) Recruiter B - What proactive/planning based recruiting looks like
  • Who here is familiar with the Post and Pray or the Post and Spray strategy?Talent Acquisition Teams are faced with a plethora of online sourcing options – which ones to use, for which positions, in which marketsConfusion, Time delays, mis-spend of $
  • Which pond?…and getting to the good pond before the others!
  • It’s all about timing – be ahead of the competition!
  • Building your talent pipeline with the right talent – quickly is key
  • Empowering Success With Big Data-Driven Talent Acquisition

    1. 1. Empowering Success With Big Data-Driven Talent Acquisition David Bernstein – VP Data Analytics July 15, 2013
    2. 2. Background 2
    3. 3. Market Interest In… 3
    4. 4. Huge Interest in “Big Data” 4
    5. 5. Why Is There So Much Interest? • The promise of what you can do with Big Data • Golden opportunity to contribute to the success and profitability of the business • A new way to look at data and business issues – Real time, patterns and trends, and forecasting 5
    6. 6. So, What is Big Data? 6
    7. 7. What is Big Data? Buzz phrase – Squishy….no single definition • Official Oxford Definition (2013) - data of a very large size, typically to the extent that its manipulation and management present significant logistical challenges • Unofficial definition: Convergence is building around the following: » Gartner’s 3 “V’s – A data set that is created through the combination of high Volume and Velocity from a Variety of sources » IBM’s 4th V – Veracity • Technical Component - Due to the enormity of the data traditional data acquisition, storage, and processing tools will not suffice • Paradigm Shift: Traditional Structured vs. Creative Discovery Models ===================================================================== • Key Facets- Big, Fast, and “Different” – Blended together, Allowing for Predictive/Forecasting and Real-Time Analysis • Layman’s definition is emerging. Less focus on “what it is.” Instead the focus is shifting to “why it is important?” and “how it can be used?” » i.e. “Big Data” is collection of activities that center around the analysis of large sets of data to determine if there are any Patterns that could be used to Predict Performance.
    8. 8. Hallmarks of Big Data • Data in Motion - Streaming vs. Snapshot – See the “story” unfolding. Able to mitigate if needed • Discovery - Pattern and Trend Analysis – Leverage those insights faster • Statistical Analysis – Hindsight to Foresight – Correlation and Causation – Predictive Analytics 8
    9. 9. Question…Does HR Really Have Big Data? 9 • Volume – Does not have to be terabytes – Thousands of candidates, Hundreds to tens of thousands of employees • Velocity – Does not have to be data created every second – HR data is created on daily, weekly, monthly, and quarterly cycles • Variety – Does not have to be from hundreds of sources – Numerous HR systems (ATS, HR, Comp, Benefits, Payroll, LMS, Performance, etc.) , Non HR internal sources (Social Media, Web logs, Financial Performance, etc.) and external sources (Government, Social, Vendors, etc.) Answer: Yes. The volume, velocity, and variety are therefore relative to the business function of HR. The quantity, speed, and variety of the sources that comprise HR Big Data are relative to the business cycles, transactions, and the size of the business that HR is operating in.
    10. 10. Big Data in HR Examples of where Big Data can and is being used by HR today: • Compensation Benchmarking – Common • Workforce Planning – Nascent/Emerging • Selection Testing – Moderate • Areas ripe for “Big Data” analysis: – Team Performance – Learning & Development 10
    11. 11. Evolution of HR 11 HR’s role is participating in and creating business strategy. 80% of HR Leaders now report to the CEO. What stories does the data tell? What insights can be derived and applied?
    12. 12. HR’s Big Data Challenges • No clear understanding of what it is or how to apply it • Lower comfort level with metrics and analytics in general • Skills gap • Bandwidth issues - Daily Priorities • Limited Budgets And Yet – A Growing Understanding of the Need to “Speak” the Language of Business – $’s and Data 12
    13. 13. Analytic & Big Data Readiness Let’s Go To The Polls… 13
    14. 14. The Facts • Only 6% of HR organizations report that they have excellent analytic skills internally. Most have not yet invested the time it takes to build a holistic analytics function. Due to limited headcount, priority is given to core responsibilities. • Only 8% of companies report that they have begun to implement a Predictive Analytics strategy into their HR Strategy and Planning activities. • Most reporting has been focused on HR Operational metrics vs. using data to drive planning and decision making. • The United States alone faces a shortage of 140,000 to 190,000 people with analytical expertise and 1.5 million managers and analysts with the skills to understand and make decisions based on the analysis of big data. The Opportunity: • Companies in the top third of their industry in the use of data driven decision making were, on average, 5% more productive and 6% more profitable than their competition.
    15. 15. Who Said This? “Today, many companies are reporting that their number one constraint on growth is the inability to hire workers with the necessary skills.” 15 Peter Capelli– Professor of Management, The Wharton School Of Business - Present William Jefferson Clinton – President of the United States of America 1993 - 2001 John Francis “Jack” Welch, Jr. – Chairman and CEO of General Electric 1981 - 2001
    16. 16. Why Applying Big Data To Talent Acquisition Matters 16 • Talent Is Clearly A Differentiator • Talent is what drives innovation • “War for Talent / Competitive Talent Acquisition • Candidates can only take on job at a time • • Talent Constraint Issues • PwC Study • Boston Consulting Group Study
    17. 17. Paradigm Shift 17
    18. 18. Moving From a JIT/Customer Service Orientation 18 To Being Proactive and Strategic
    19. 19. Value Propositions for Talent Acquisition • Paradigm Shift– – Proactive and Foresight driven • Talent needs assessment – What, When & Where – Focus on building talent sourcing strategies that align to the business plan – Increase focus candidate and hiring manager engagement vs. transactional aspects of the process – Tied to a “Workforce Plan” • Smarter Spend – – Reduced Cost Per “Applicant” and “Hire” – Ability to reduce or get broader coverage with the marketing budget • Precision and Speed – – Know before you begin – Sources and Difficulty – Narrow casting – No more Post & Pray/Spray – Timeliness
    20. 20. What if you could accurately predict the outcome? 20
    21. 21. What If? • What would you be able to do if you could… – More accurately forecast which channels to source from, how long the sourcing cycle will take and how much candidate flow you can anticipate? – Be able to use that information to be “proactive” in your talent acquisition activities? – To understand the effectiveness of any mitigation actions you’ve taken in real-time? – To have the competitive “talent” intelligence regarding how well your marketing efforts are working, in real-time? – Have insight into the available supply and demand for talent? • “Recruitability Index” and “Poaching Protection” – Could tie Sourcing to future Performance and Retention Think about how these insights and being proactive can give you a competitive advantage. Make faster, evidenced-based decisions. Take quicker actions. 21
    22. 22. Talent Acquisition Sources 22 The Number of Communication Has Exploded
    23. 23. Sources Greatest Scrutiny Should Be Put Where Money is Spent!
    24. 24. Applying Big Data To Talent Acquisition In Your Shop • Start With The End in Mind – Decide What You Want to Address – Reduced Attrition, Align TA with Business Objectives (Growth, Pace of Business, Smarter Budget/Spending) • Workforce Planning / Talent Needs Assessment – Focus on Mission Critical Positions – Keep it Simple • Formula: (# of Incumbents x Attrition Rate) + (# of Incumbents x Growth %) /12 • Know Your Typical Conversion Funnel – By Job and Source 24
    25. 25. Applying Big Data To Talent Acquisition
    26. 26. Big Data Doesn’t Have To Be Hard! 26
    27. 27. 27 Big Data Doesn’t Have To Be Hard! Begin With The End In Mind!
    28. 28. 28 Big Data Doesn’t Have To Be Hard! • Start with your internal data in your core ATS and HR systems • Review your Employment Site weblogs • Benchmark – Compare the above metrics with external sources – i.e. consulting firms, peer companies, consortiums, etc. • Work with your job boards to capture the key metrics they have about your company – i.e. how often your company is searched for, how often your jobs are viewed, how often they are clicked on, etc. • Know your Candidate Conversion Funnel Metrics – including cost per milestone • Subscribe to data services – i.e. Web traffic data, Google Ad-Words, Vendor and Government Labor Data, etc. • Social Data/Sentiment Analysis – measure your Facebook, Twitter, and LinkedIn Traffic – i.e. number of Likes, Follows, Re-Tweets, etc. and determine if there is a correlation with your employer brand and recruitment marketing efforts • Partner with your outsourced vendors who are supporting any of your transactional activities to capture the data they capture and blend with your analysis.
    29. 29. 18 Sourced 8 Responses 3 Interviewed 1 Hired Sample Conversion Funnel
    30. 30. Sentiment Analysis - LinkedIn
    31. 31. Sentiment Analysis - Facebook
    32. 32. Avoid Creating Dashboard Dizziness 32 Create The Right Visuals That Reveal The Right Story!
    33. 33. Big Data & Talent Acquisition In Action – Brief Case Studies • Manufacturing employer – Achieved “fully staffed” status for their hourly workers for the first time ever by determining attrition patterns and adjusting their sourcing strategy accordingly • Software and services employer – Determined skills gaps and built out training and talent acquisition strategies that enabled them to meet customer demands • Financial services employer – Increased recruitment marketing coverage, reduced number of media outlets, increased quality of candidate ratio, and reduced time to hire – all without increasing their spend 33
    34. 34. Appendix 34
    35. 35. A Tale of Two Recruiters 35
    36. 36. Can You Relate? 36 Barely Able To Keep Up With The Requisition Load And Resume Flow
    37. 37. Then, Another Hiring Manager Calls And Says, 37 “I Finally Got My Requisition Approved. How Soon Can We Get Someone To Start?”
    38. 38. And There You Are… 38 Trying To Remain Cool & Calm
    39. 39. Your Management Thinks… 39
    40. 40. But In Truth, I Feel Like This… 40
    41. 41. How Will I Market This Job? 41
    42. 42. Too Many Choices 42 Not Enough Time
    43. 43. Which Pond To Fish In? 43
    44. 44. Talent Acquisition Is Competitive – I Know It Is Critical That I Can… 44 Market My Message In The Right Places, The First Time… Ahead Of The Competition
    45. 45. I Wish There Were An Easier Way 45
    46. 46. I Wish I Could 46 Work Smarter Not Harder!
    47. 47. I Wish I Had Better Tools 47
    48. 48. Put Big Data To Work For You 48
    49. 49. No More Just Using The Usual Outlets 49
    50. 50. 50 No More Relying On Single Sources
    51. 51. No More Posting And Spraying 51
    52. 52. The Talent Pipeline Challenges 52 How To Build It? Will It Have The Talent?
    53. 53. A Tale of Two Recruiters 53 Which One Would You Rather Be?
    54. 54. In the end – it’s all about …. 54 Find Candidates, Fill Jobs Faster, Spend Smarter!
    55. 55. Questions?
    56. 56. David Bernstein VP – Big Data for HR 925-275-8102 David.Bernstein@eQuest.com Blog: www.equest.com/news/floating-point LinkedIn Profile: www.linkedin.com/in/davidsethbernstein LinkedIn Group: http://linkd.in/VMZzqm Twitter: www.twitter.com/dbernste 56