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workforce analytics_whitepaper[2]

  1. 1. WHITE PAPERWORKFORCE ANALYTICS:The Critical Factor to Improve YourCompany’s Performance, Profitabilityand Human Capital Investment
  2. 2. DEFINING “BEST-IN- CLASS” PERFORMERS In the Aberdeen Group’s study, “The 2011 HR Executive’s Agenda,“ companies that earned the designation of best-in-class performers relied significantly on the use of workforce analytics and achieved the following:OUTPERFORM WITH • 87% of employees rated themselves as “highly engaged.”WORKFORCE ANALYTICS • 78% of key positions have ready and willing successors identified.Overview • 12% year-over-year improvement in hiring manager satisfaction.According to industry research, companies usingworkforce analytics outperform those that do not. It isthat simple.In a 2010 report, “Analytics: The New Path to Value,”researchers from MIT revealed that top-performingcompanies are three times more likely to be advanced THE BIG SHIFT TOusers of workforce analytics than lower-performingcompanies. As well, these top-producing companies STRATEGIC HRare two times more likely to cite workforce analytics astheir competitive differentiator. With workforce analytics, HR professionals can play a more pivotal role in their organizations to helpThis is a definitive statement to the power of workforce direct senior management and hiring managers inanalytics as a core driver of an organization’s success. connecting the dots between their company’s overall performance and their investment in their workforce.Similarly, the Aberdeen Group’s recent 2011 study,“The HR Executive’s Agenda,” clearly shows that Workforce analytics empower HR professionals to shiftorganizations integrating workforce analytics with from being an operational function to becoming morebusiness performance analytics are nearly three times of a strategic role within their organization. Workforcemore likely to achieve best-in-class performance status analytics uncovers deep insights into workforce dataover those that do not. (See the callout, “Defining by drilling down into the data and highlighting both‘Best-in-Class’ Performers.”) Aberdeen’s research also patterns of success to be repeated and patterns ofindicates that organizations using workforce analytics failure that could lead to risk and impact.experienced a 14% year-over-year improvement inrevenue per employee, compared to just 5% for those Equipped with powerful workforce metrics, HR leaderscompanies that do not. can clearly identify and communicate to the “powers that be” precisely where their company’s investmentClearly, for organizations that want to achieve best- in human capital is paying off and, more importantly,in-class status and maximize their performance and where it is falling short and why.profitability, workforce analytics have become a “musthave.” In such a competitive landscape, workforce Companies must align their people strategy withanalytics are no longer a “nice to have.” their business strategy in order to be successful and profitable. visier | WHITE PAPER | 2
  3. 3. “With the help of [analytics] tools, companies can shift time and attention away from HR administration to the more value-added aspects of HR, such as talent strategy. For example, in the financial services arena, savvy smaller players have been recruiting top loan producers from big banks, greatly increasing loan volumes.” Source: PricewaterhouseCoopers, “10 MinutesWithout deep insight into their workforce data, how on Transforming HR,” March 2010can business leaders make informed and effectivebusiness decisions for their organization as they relateto human capital and talent management?Indeed, the October 2010 Harvard Business Review(HBR) article, “Competing on Talent Analytics,” makes it HR leaders must educate senior executives and line-clear that high-performance companies use workforce managers as to the true value of workforce analytics toanalytics to align their business strategies with their help them succeed as an organization. By failing to gethuman capital strategies. “These companies have company-wide support, a workforce analytics initiativetaken the guesswork out of employee management will fail, and HR will continue to fall short of being moreby leveraging analytics to improve their methods strategic players in their own organization.of attracting and retaining talent, connecting theiremployee data to business performance, differentiatingthemselves from competitors, and more,” the article WHERE TO BEGIN:states. HR is a critical partner in these strategic efforts,providing the analytics these organizations need to THE KEY THREEenhance the overall value delivered by their workforce,and to earn a solid financial return on their human The obvious questions are, “What metrics should I becapital investment. tracking?” and “Which KPI’s will provide me and my organization with the greatest value?”Of course, accessing and measuring workforceanalytics is only part of an HR professional’s equation When getting started with workforce analytics, HRwhen looking to implement workforce analytics. To professionals must be clear on what the top drivingbe truly successful, HR leaders must generate the initiatives are from a corporate perspective—whatappropriate organizational support among critical are the overall business objectives? HR must identifystakeholders, from the top down. In fact, a company’s and measure those workforce metrics that are mostworkforce analytics initiative should be looked upon impactful to your organization. As your organizationas a corporate initiative (not just an HR initiative) matures and evolves, metrics too will evolve, adapt andand include critical input and buy-in from various change but you need to identify a baseline of metricsdepartments. Sales, finance, operations, and IT, as as they relate to your initial workforce strategies andwell as front-line managers, all can provide HR with requirements.critical feedback regarding their unique workforcerequirements and how decisions about the workforce HBR’s “Competing on Talent Analytics” article showsimpact the business strategy. that high-performance companies track a wide range of metrics from basic human capital factsBusiness leaders need people to do the work and they (headcount, cost-per-hire, etc.) to more sophisticatedneed HR to supply real-time accurate data to help them performance data (how workers are impacting actualmake smarter decisions about their workforce. business results). Global food-service giant, Sysco, for example, began its workforce analysis with threeHR leaders must communicate with senior-level gross measures for each operating unit: work climate/executives and front-line managers to determine the employee satisfaction, productivity and’s future strategies and focus their efforts to The article’s authors note that Sysco “has drilledfill these roles with the right talent to achieve those deeper to understand, measure, and manage sevenobjectives. visier | WHITE PAPER | 3
  4. 4. other dimensions of the work environment, including Focusing initially on these fundamental workforcefrontline supervisor effectiveness, diversity, and quality areas will not only help you position HR as a trueof life.” strategic partner but also to deliver a variety of bottom-line advantages to your colleagues such asWhether your organization is just starting out with providing unprecedented insights into productivity andworkforce analytics or using some form of workforce performance levels of their direct reports, highlightinganalytics but looking to expand the maturity of your functions and roles that may require special attention,metrics, it is strongly recommended that you focus on and enabling greater profitability through betterthree fundamental HR areas—Turnover, Recruiting and workforce cost control for their departments.Employee Performance—before moving onto moreadvanced workforce metrics. WORKFORCE ANALYTICS —1. Turnover—Identify who is leaving the organization voluntarily and why. Is it related to TOOLS AND TECHNOLOGIES onboarding, training or management issues? Do particular functions or locations account for a It wasn’t all that long ago when employers were forced significant portion of your overall turnover rate? to make human capital decisions without solutions designed exclusively for accessing, measuring, Use your findings to address performance or and reporting workforce analytics. Many leading training gaps and improve your investment in organizations today still do not use a formal workforce human capital. analytics solution to help manage their HR metrics. According to a 2012 Visier Inc.-sponsored survey of2. Recruiting—Identify the top talent common over 150 U.S.-based employers, a growing number of characteristic traits for each position in your organizations are in fact using some type of solution organization—especially those that drive to manage their workforce data. 78% of the survey’s business performance—and map them to your participants state they employ some type of method internal and external recruiting strategies. to manage their workforce analytics. (See the callout, “Tools Companies Use To Manage & Report Workforce Use the data to determine the types of skills and Analytics.”) However, 32% are dissatisfied with how abilities that you need to actively recruit for both they are using workforce analytics, and 36% plan to immediate and long-term success. increase their workforce analytics investment in the next 6 to 12 months.3. Performance—Identify who are the under- performers and why. Understand when and These findings indicate that a majority of employers where productivity fluctuates and why. Align believe in the power and importance of managing compensation and incentive programs with and reporting workforce analytics but a significant performance. portion of respondents are still figuring out how best to access and measure the data more effectively. One Use this information to improve performance problem that often stands in their way—especially by deploying better management, training, when organizations use multiple, disparate HR systems incentives, etc. to track HR data—is that they cannot get a unified and comprehensive 360 degree view of their true workforce data—and delivering the true ROI of their human capital management. visier | WHITE PAPER | 4
  5. 5. THE TOOLS COMPANIES ARE USING TO MANAGE & REPORT WORKFORCE ANALYTICS Spreadsheets . . . . . . . . . . . . . . . 62%More companies today are waking up to the fact Integrated analytics from HRMS/HRIS . . . 39%that people are the most expensive asset to theirorganization. Executive leaders and HR professionalare seeking alternative ways to help their organizations Analytics from financialanswer and address critical workforce questions and be solution (e.g., ERP) . . . . . . . . . . . . 14%more pro-active in their HR approach. Corporate/IT-deliveredData doesn’t lie. By implementing a complete, end-to- business intelligence system . . . . . . 12%end workforce analytics solution, organizations canget an accurate birds-eye view of their workforce and Other . . . . . . . . . . . . . . . . . . . . 10%use the data to guide them in fact-based human capitaldecisions and strategies. Dedicated business intelligence for HR . . . 8%In considering a workforce analytics solution, here are Dedicated workforce analytics solution . . 7%four key recommendations to look for: Source: Visier Inc. 2012 Survey of U.S.-Based1. Make sure it easily integrates HR data across Employers; conducted by Fisher Vista all HR systems. Streamline reporting efforts for your HR professionals to extract, analyze, understand and report on large amounts of complex data from disparate HR systems. Eliminate the need to “piece together” 2. Look for solutions that help predict trends workforce data housed in multiple, expensive and outcomes. Organizations that use basic and complex HR systems and provide a true and reporting methods such as Excel spreadsheets accurate representation of workforce insights to are at a huge disadvantage with the opportunity stakeholders and decision-makers—saving your to use automated solutions that identify organization both valuable time and money. patterns of behavior and characters to help determine failure or success. It is essential that employers create recruiting and development plans that ensure they have the “right” talent required to achieve business goals. This means they need solutions that offer predictive and modeling capabilities. Using advanced clustering techniques empowers you to uncover hidden patterns of behavior or common characteristics, help predict future plans and outcomes and make better, more informed decisions—based on past and present data. visier | WHITE PAPER | 5
  6. 6. 3. That it offers an intuitive user experience. As a growing body of industry research continues to Workforce analytics must actually be put to use highlight, workforce analytics tools—and the array to be of real value. The broader the adoption of insights they provide—are essential to companies of the workforce analytics solution, the seeking to outperform their competitors and maximize broader the adoption of fact-based decisions their profitability. By integrating workforce analytics to improve your workforce. User-adoption with business analytics, you will not only improve your in an organization is the key to success or human capital ROI but you will also increase the value failure for your workforce analytics initiative. that your workforce delivers to your organization’s Therefore, it is imperative that the solution be performance. HR leaders have always understood that user-friendly and intuitive. This not only ensures people are the most critical and important element to higher adoption rates but it also reduces a company’s success. With workforce analytics, those implementation and training costs, with a leaders finally have the tools necessary to turn that solution that is simple to use. knowledge to action.4. It enables analytics to be reported easily and compellingly. As a true strategic partner in your organization, HR must share their data in a way that influences decision-makers into action (e.g., to recruit specific types of talent, to reduce headcount tactically, to develop certain individuals within the organization). The most powerful analytics solution should present information with clarity and visual appeal. Using PowerPoint to re-create visual representations and reporting of your HR data can often be time-consuming. Solutions that can easily and seamlessly export data and create visual representations in one easy step are advantageous, especially if you are reporting monthly or quarterly with extensive data and must refresh data on an on-going basis. Sharing findings in a collaborative, easy way with stakeholders can reduce costs, shorten decision times and achieve greater alignment. visier | WHITE PAPER | 6
  7. 7. About VisierWorkforce AnalyticsVisier Workforce Analytics is an end-to-end, cloud-based application designed for HR professionalsto easily identify and improve the ROI of theirorganization’s human capital. Reduce costs,improve productivity, attract and retain top talentand implement a workforce strategy that supportsthe business strategy. Visier Workforce Analyticsis a powerful, intuitive and interactive solutionthat uncovers deep insight into the core metrics ofyour workforce, by answering the most critical andfundamental questions facing HR professionals abouttheir workforce, and more importantly, with predictivewhat-if analysis helps to predict and plan for theirfuture needs.Founded in 2010 by business intelligence veterans,including former Business Objects CEO, John Schwarz,the leadership team has a proven track record oftechnical, operational and strategic managementsuccess with companies including Business Objects,Crystal Decisions, SAP, IBM and Symantec. visier | WHITE PAPER | 7
  8. 8. WANT TO LEARN MORE?Contact us at 1-888-277-9331 or info@visiercorp.comRequest more information at and see first hand how Visier WorkforceAnalytics can help you make better decisions for your workforce—starting today.Visier Inc. | +1-888-277-9331 | |©2012 Visier Inc. All rights reserved. Visier and the Visier logo are registered trademarks of Visier Inc.All other brand and product names are trademarks or registered trademarks of their respective holders. visier | WHITE PAPER