HR Analytics - A Pathway to Business Impact

HR Analytics – A Pathway to Business Impact You can listen to today’s webinar using your computer’s speakers or you may dial into the teleconference. If you would like to join the teleconference,please dial 1.408.600.3600 and enter access code: 921 655 826 # You will be on hold until the seminar begins. #TMwebinar

HR Analytics – A Pathway to Business ImpactSpeaker: Charles Goretsky Principal Consultant Bersin & AssociatesModerator: Kellye Whitney Managing Editor Talent Management magazine #TMwebinar

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HR Analytics – A Pathway to Business Impact Kellye Whitney Managing Editor Talent Management magazine #TMwebinar

Today’s Webinar is Sponsored by: Unified Comprehensive Solution Employees Collaboration Recruit Develop Perform Succeed & Onboard & Connect & Pay & Extend Customers &Candidates Partners Recruiting Learning Performance Extended Cloud Cloud Cloud Enterprise Cloud www.csod.com Copyright © 2012 Bersin & Associates. All rights reserved. Page 6

HR Analytics – A Pathway to Business Impact Charles Goretsky Principal Consultant Bersin & Associates #TMwebinar

HR Analytics – A Pathway to BusinessImpactCharles Goretsky Sponsored by:Principal ConsultantSeptember 18, 2012 Copyright © 2012 Bersin & Associates. All rights reserved. Copyright © 2012 Bersin & Associates. All rights reserved. Page 8

Bersin WhatWorks® Membership Program Learning & Talent Leadership Talent Human Development Management & Succession Acquisition Resources Research and Tools Frameworks, Maturity Models, High Impact® Research Programs, Factbooks®Member Success Program Scorecards, checklists, forms, RFP’s, selection guides, case studies, solution provider library Advisory Services Ask the Experts®, Business Impact Workshops Analyst Advisory Calls, Webinars Networking and Professional Development Member Roundtables, Peer Connection®, IMPACT Conference, Bersin Lexicon®, Analyst Blogs Consulting Services Strategy Development, Executive Alignment, Benchmarking, Systems Selection and Roadmap, Measurement Strategy and Programs Copyright © 2012 Bersin & Associates. All rights reserved. Page 9

TopicsThe importance and impact of quality HR measurementon talent and business outcomesHow analytics helps address critical talent challengesorganizations face todayHow to evolve and mature your analytics capabilityHow current technologies can be readily leveraged tobuild an analytics capability that enhances both theprioritization and outcome achievement of your humancapital initiatives. Copyright © 2012 Bersin & Associates. All rights reserved. Page 10

Analytics is a Well-Known Discipline Businesses Measure What Matters Finance & Logistics Customer & Marketing Talent & Leadership Integrated ERP Predictive and Financial Predictive CustomerThe Waves of Analytics Talent Models Behavior Business Analytics Integrated Supply Web Behavior Business-driven Chain Analytics Talent analytics 1980s Customer Integrated TM Financial and Segmentation and Workforce Budget Analytics Shopping Basket Planning Logistics and Customer Recruiting, Learning, Supply Chain Analytics – CRM Performance Analytics (Data Warehouse) Measurement The Industrial The Financial The Customer The Talent Economy Economy Economy and Web Economy Steel, Oil, Railroads Conglomerates, Financials, Customer segmentation, Globalization, Engineering Personalized products Demographics, Leadership and Skills Shortages Early 1900’s 1950’s- 60’s 1970’s-80’s Today Copyright © 2012 Bersin & Associates. All rights reserved. Page 11

HR Organizations are Not Ready What percentage of HR organizations believe they have strong skills in data analysis and interpretation? 6% rate themselves “High” 56% - “Poor”Bersin & AssociatesHigh-Impact HR Organization® 2011 and 2010, n=741 organizations Copyright © 2012 Bersin & Associates. All rights reserved. Page 12

The Lowest Rated HR Skill Relative Strengths of HR Skills and Capabilities Attracting and selecting the right talent 17% Promoting health and wellness 15% Onboarding new talent 7% Fairly allocating compensation 6% Understanding skills needed by role 4% Encouraging innovation and collaboration 1% Creating a high-performance culture -4% Enabling a learning organization -5% Measurement and analytics Identifying and developing future leaders -6% are the lowest-rated capabilities for HR teams Driving internal mobility -11% today Developing workforce analytics for management -12% Measuring HR program effectiveness -18%Bersin & AssociatesHigh-Impact HR Organization® 2011 and 2010, n=741 organizations Copyright © 2012 Bersin & Associates. All rights reserved. Page 13

Impact on HR HR Best Practices HR Framework Area HR Impact1. Implement Governance & Planning * HR Strategy & Business Planning 39%2. Invest in Quality Workforce Planning HR Service Models 28%3. Create the “Right” HR Philosophy HR Strategy & Business Planning 27%4. Reduce HR BP Administrative Work HR Service Models 25%5. Create a Flexible HR Org Structure Organization & Governance 20%6. Improve Key Audience Facing Tools Technology and Infrastructure 19%7. Measure Workforce & HR Ops * Measurement 19%8. Develop Internal HR Skills * Governance & Organization 13%9. Outsource Strategically Service Models 10%10. Improve Line Manager Capabilities * Audience & Stakeholders 10%Source Bersin & Associates HIHR Survey N=720HR Impact =‘s Opportunity for improved efficiency, effectiveness, •Negative impact if not implementedand business alignment well Copyright © 2012 Bersin & Associates. All rights reserved. Page 14

HR Business Partners Activities# 1 Differentiator of HIHR organizations over 15,000 employees What does the HR Business Partner role do? Providing Decision Support 66% 37% Employee Relations 48% 45% Workforce Strategy 28% 20% Manager Inquiries 28% 41%Coaching executives & Managers 22% 16% Employe Inquiries 21% 18% HR Program Training 10% 19% Data Gathering & Reporting 7% 12% Performance Management 3% 15% 3% High Impact HR All Others Orientation 5% Copyright © 2012 Bersin & Associates. All rights reserved. Page 15

Poll:What does your organization measure today? Process Efficiencies CPH, TTF, HR headcount/ee, Learning $/ee Process Effectiveness % Satisfied with class, 70/20/10 %’s Talent Outcomes% HiPo’s promoted, % Ready-now successors, speed-to-productivity Integrated Talent/Business Coached leader revenue increase, # sales staff needed to open Shanghai office Copyright © 2012 Bersin & Associates. All rights reserved. Page 16

Talent Processes vs. Talent Outcomes: How to Communicate, Prioritize, Execute and Measure Talent Processes Talent Outcomes Succession Management, Leadership Leadership Pipeline Development Two-deep+ all key roles* Career Development, Internal Job Talent Mobility Postings, Learning & Development 70% hi-po’s with cross-BU/functional assignments/experience* Employee Engagement, Performance Critical Talent Pools Management, Learning & Development Segments identified; High Performer retention rate, % with high quality development plans Talent Planning, Learning & Skill Gaps Identified, being Development, Competency Management closed 65% critical skill Partners with necessary competency levels** Sample goal Copyright © 2012 Bersin & Associates. All rights reserved. Page 17

Decision Support:Focus on Solving Business Problems Why is turnover high in some areas? What drives sales productivity? Why is their fraud in some branches? What sales or service processes drive account renewal? What is the training of hiring profile we need to drive greater revenue per customer? How do we assess the “right” candidates for sales? What will our talent gaps be next year based on retirement rates? Copyright © 2012 Bersin & Associates. All rights reserved. Page 18

Cases in Point:Driving Business Value & Impact with Analytics Major Retailer developed integrated “people model” to correlate relationship between engagement, rewards, leadership capabilities, tenure, skills and revenue Major Insurance Company statistically validated 30+ factors in recruiting which led to 20%+ improvement in sales performance and completely revamped recruiting process Major Food Service Company identified key drivers of account renewal and upgrade and developed statistically valid measures which have been used to create company-wide dashboard which measures risk on a weekly basis Major Retail Bank correlated dozens of workforce measures against engagement and branch financials to develop risk management dashboard for small and large branches Copyright © 2012 Bersin & Associates. All rights reserved. Page 19

Progression of HR/TM Measurement Business Metrics & Develop a TM Measurement Integrated Analytics Strategy TM Metrics Employee Engagement Basic Workforce Performance Metrics Movement HR & Talent Metrics analyzed against Performance Talent business metrics Ratings Mobility Basic HR Metrics Competency Drives business Pipelines Gaps decisions & Budget Enterprise supports forecasts Recruiting Career Paths Hiring Turnover Learning Plans Talent Plans Employee Employee Workforce Satisfaction Diversity PlansMeasure Workforce Metrics & HR Operations : Bersin’s HIHR, 2010 Copyright © 2012 Bersin & Associates. All rights reserved. Page 21

HR Measurement FrameworkDashboards and Scorecards HR and L&D Organizational Talent Supply Manager and Scenarios Effectiveness Readiness Workforce Planning Employee Dashboards & Future Planning Business Translation & Analysis People Performance & Business Outcomes External HR Benchmarks Internal HR Measures Talent and Leadership Workforce Engagement & Wellness Workforce Demographics HR Program and COE Process Technology Systems – Data Warehouses, Reporting and Analytic Tools Workforce Planning Applicant Tracking | Performance & Learning Compensation System Recruiting System Talent System Management System System(s) Third party data HRMS’s – Employee Demographic and System of Record Data Copyright © 2012 Bersin & Associates. All rights reserved. Page 22

Build an Analytics FunctionNot a set of tools Measurement as a Measurement as an Project Process “Build a dashboard that “Go out and continuously measure & 20% correlates analyze the retention with reasons for Analysis engagement,turnover of my competency sales people” 80% scores and other measures” Analysis 80% Data Capture 20% Data Capture Copyright © 2012 Bersin & Associates. All rights reserved. Page 23

Keys to Success Transparency of business and workforce information Analytics as a journey, not an end Develop culture of data-driven decision-making Empower line leaders, not just HR and L&D Myth: Build an HR Data Warehouse Reality: Deliver Actionable Business Information Copyright © 2012 Bersin & Associates. All rights reserved. Page 25

Poll:What are the barriers to quality HR measurement and analytics in your organization? Systems Process Staff Skills Management Support Other Copyright © 2012 Bersin & Associates. All rights reserved. Page 26

Weakness in HR Systems Solutions How would you rate your LMS’s ability to obtain the information you need to measure training programs? 3% Excellent 17% Good 63% Fair or Poor How would you rate your Talent Management System’s ability to deliver the talent measures you need? 2% Excellent 17% Good 72% Fair or Poor How would you rate your HRIS system’s ability to deliver the measures you need? 1% Excellent 14% Good 82% Fair or Poor Copyright © 2012 Bersin & Associates. All rights reserved. Page 28

Deliver Tools that Make a Difference Percentage of improved HR effectiveness based on tool investmentsWeb Social Networking Recruiting 19.6% Manager Dashboard 19.6% Knowledge Sharing 18.6% Succession Management 17.3% Performance Management 14.5% Aplicant Tracking 14.4% Compensation 13.9% Eployee Self Service 13.7% Manager Self Service 13.6% HRMS 13.2% Learning Management 11.8% Copyright © 2012 Bersin & Associates. All rights reserved. Page 29

Systems Support the Reduction of Tactical Workloads Positive 10.0% Impact on HR Negative 8.0% Impact on HR 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% Data Workforce Employee Decision Manager Gathering Strategy & Coaching Relations Support Sr. Inquiries & Mobility Executives Resolution Managers Reporting Planning Efficiency -4.0% -2.0% -2.7% 3.0% 3.1% 5.7% Effectiveness 1.3% -2.5% -1.0% 5.4% 6.8% 8.2% Business alingment -4.0% -1.0% -4.1% 1.0% 2.7% 4.3%Best Practice 4: Reduce HR BP Administrative Work Copyright © 2012 Bersin & Associates. All rights reserved. Page 30

Progression of Measurement Technology HCMS with integrated TMS, analytic packages, intuitive user interface Data Warehouses, auto-loaded data from different HRIS generates systems, “cubes” ‘10’s via Crystal Reports, Business Objects, PC’s, Excel; SAS, SPSS ‘00’s data transferred manually from files or records to Excel ‘90’sEmployee files,hand-written We’re in a new era – one that requires new information, integrated datarecord keeping ‘80’s and leverages new technologies and data sources ‘70’s Copyright © 2012 Bersin & Associates. All rights reserved. Page 31

TALENT MANAGEMENT SCORECARD (Q2 2011) 1 Diversity Representation 2 Pipeline Readiness 3 Manager Effectiveness Index (As of 6/17/2011) (2010 Succession Planning: VPs and Above) 100% 100% VPs/Equivalent by Title 2.7 90% 80% 80% 70% TBS-Non-Minority SVP and above 2.7 60% 60% 50% 40% 40% 30% TBS-Minority 20% Mgr/Equiv by Title 3.0 20% 10% 0% 0% Ready Ready in Ready in Ready in Ready in Ready in Too New Dirs/Equivalent by Title 3.2 DiversityInc- Minority Now 6 12 18 2 years 3 years To Rate months months months or N/A 0.0 1.0 2.0 3.0 4.0 5.0 DiversityInc-Non- Minority Too New To Rate Under‐Performing Well‐Placed Average of EE Engagement, Perf. Ratings, Promos Out of Hierarchy, and Num. of Percentages may not add to 100% Growth Potential Highly Promotable due to rounding Terminations 4 Gender/Ethnicity Representation in LDPs 5 Executive Leadership Development 6 1st Qtr 2011 - Training Expense per FTE (YTD 2011) Outcomes 100% 100% 200 90% (YTD 2011) 90% 80% 150 80% New Promotion 51% 70% Position 70% 66% 20% 100 60% 4% 60% Suspensio 50 50% 50% 40% n 1% 1% 0 40% 30% 8% 30% 20% No 49% 18% 20% 10% Change Job Title 0% 6% 74% 10% Change 0% 1% ASIAN BLACK HISPA Female Male PACIF WHITE Dollars per FTE ASTD/Bersin Benchmark 7 1. Disparity in minority population amongst leadership; non-managers and other positions split approximately 50/50 2. On average, over half of VP+ talent assessed during 2010’s Succession Planning process are ready to assume a new role within the next 12 months 3. Manager effectiveness: SVP & above below current 3.0 average- most likely due to rating scale difference (VPs and above receive either a 1, 2, or 3 numeric rating value whereas ratings for Directors and below can include a decimal value) 4. Males/females represented almost equally in leadership development programs, however, non-minorities still represent more than half of 2011 YTD participants 5. The majority of leadership development program participants experienced no change in job role after participating in one or more programs 6. Turner overall has spent less on training per employee during Q1 as compared to the ASTD/Bersin combined average benchmark (average $81.94/employee across Turner vs. $147/employee) 7. Turner is currently spending .02% of its YTD profit on learning & development; the ASTD benchmark is approximately .4% of quarterly profits Copyright © 2012 Bersin & Associates. All rights reserved. Page 32

Critical Analytics & TechnologyQuestions Is it easy to understand and implement? Does it deliver reliable and credible information? Does it deliver actionable information? Is it inexpensive to operate and maintain? Is it flexible to implement and change over time? Is it relevant to your organization’s specific strategies? What do organizations do with their HCM Metrics? How are metrics integrated into HR & Business scorecards? Who makes use of the HC metrics in the organization? To whom are HR metrics reported? Copyright © 2012 Bersin & Associates. All rights reserved. Page 34

Thank You!Questions or Comments? email : charles.goretsky@bersin.com : charles goretskyFor more information about our WhatWorks® Membership, contact us today at info@bersin.com Copyright © 2012 Bersin & Associates. All rights reserved. Copyright © 2012 Bersin & Associates. All rights reserved. Page 35

Join Our Next TM WebinarEffective Leadership Assessment: Strategies, Tools & Tips for Success Tuesday, September 25, 2012 • TM Webinars start at 2 p.m. Eastern / 11 a.m. Pacific Register for upcoming TM Webinars at www.talentmgt.com/events Join the Talent Management magazine Network http://network.talentmgt.com/ #TMwebinar

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HR Analytics - A Pathway to Business Impact

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