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The role of People Analytics in recruiting

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The slides from my keynote at Social Recruiting Days in Berlin in September 2017.

The speech covered:
- What is people analytics and why is it growing in importance
- 'Best' practices of companies that are leading the way with people analytics
- Case studies from the likes of IBM, Cisco, LinkedIn and Virgin Media
- Trends in people analytics and digital HR
- Ethics, privacy and trust

There is also a video recording of the speech, which can be accessed here: https://www.youtube.com/watch?v=lk6ZK5vHdE0

Published in: Recruiting & HR
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The role of People Analytics in recruiting

  1. 1. 1 THE ROLE OF PEOPLE ANALYTICS IN RECRUITING David Green | #SRD17 | Berlin | 12 September 2017 linkedin.com/in/davidrgreen @david_green_uk #SRD17
  2. 2. 2 “Analytics is no longer a ‘good idea’ for HR - it is now mandatory” Josh Bersin #SRD17@david_green_uk
  3. 3. AGENDA THE WHAT WHAT IS PEOPLE ANALYTICS? THE WHY WHY IS PEOPLE ANALYTICS GROWING IN IMPORTANCE? WHY IS RECRUITING AT THE FOREFRONT? THE HOW WHAT IS BEST PRACTICE IN PEOPLE ANALYTICS? EXAMPLES THE FUTURE WHY IS PEOPLE ANALYTICS CENTRAL TO THE FUTURE OF HR? 3#SRD17@david_green_uk
  4. 4. 4 “…the use of data and analytic tools to identify insights on people that enable faster, more accurate, and more confident business decision-making” Sources: 1. Wharton School, People Analytics Coursera online course; 2. IBM Smarter Workforce Institute white paper ‘Starting the Workforce Analytics Journey PEOPLE ANALYTICS IS… 4#SRD17@david_green_uk
  5. 5. Level 4: Predictive Analytics •  Development of predictive models, scenario planning •  Risk analysis; integration with workforce planning Level 3: Advanced Analytics •  Segmentation; statistical analysis; development of ‘people models’ •  Analysis of dimensions to understand cause, correlation, dimensions Level 2: Proactive - Advanced Reporting •  Operational reporting for benchmarking and decision-making •  Multi-dimensional analysis and dashboards; data dictionary Level 1: Reactive - Operational Reporting •  Ad-hoc operational reporting; lots of running around •  Reactive to business demands; data in isolation and difficult to analyze Can we predict which candidates will stay / perform? Why did they leave? How many of our 2016 hires left within six months? 86%14% REPORTING IS NOT ANALYTICS Source – Bersin by Deloitte 5 #SRD17@david_green_uk
  6. 6. AGENDA THE WHAT WHAT IS PEOPLE ANALYTICS? THE WHY WHY IS PEOPLE ANALYTICS GROWING IN IMPORTANCE? WHY IS RECRUITING AT THE FOREFRONT? THE HOW WHAT IS BEST PRACTICE IN PEOPLE ANALYTICS? EXAMPLES THE FUTURE WHY IS PEOPLE ANALYTICS CENTRAL TO THE FUTURE OF HR? 6#SRD17@david_green_uk
  7. 7. 2005 2013 7 #SRD17@david_green_uk
  8. 8. 2005 Change has never happened this fast before, and will never be this slow again 8 #SRD17@david_green_uk
  9. 9. 70%of Fortune 1000 companies in 2004 do not exist today 9xgreater data collected in last two years than previously collected in all of humanity 90%of organisations believe their industries will be totally disrupted by digital trends Sources: (l-r), Gartner, Bersin by Deloitte, MIT/Deloitte DIGITAL HAS CHANGED EVERY SINGLE BUSINESS MODEL 9 #SRD17@david_green_uk
  10. 10. $439m $1.29b 2015 2022 THE GLOBAL MARKET FOR PEOPLE ANALYTICS IS SET TO TRIPLE BY 2022 Source: Stratistics MRC (http://www.strategymrc.com/report/workforce-analytics-market)10 #SRD17@david_green_uk
  11. 11. 11 Workforce productivity Performance management and evaluation Employee engagement and commitment Sourcing and recruiting Talent retention 2013 2015 19% 16% 8% 15% 9% 14% 7% 14% 13%13% “With predictive analytics, we’ll be able to explore ‘what might happen’ rather than looking at ‘what has happened” Lucien Alziari, CHRO, A.P.Moller Maersk, Denmark Source: IBM CHRO Study @david_green_uk #SRD17 ADOPTION OF PEOPLE ANALYTICS BY CHROs IS RISING
  12. 12. Analytics pays back $13.01 for every Dollar spent Source: Nucleus Research #SRD17@david_green_uk
  13. 13. Source: Bersin by Deloitte higher employee engagement 2x 2x 3x 2.5x more likely to improve their recruiting efforts more likely to realise cost reductions /efficiency gains more likely to improve mobility - right people, right jobs The share prices of organisations with mature people analytics capability outpaced the S&P 500 by 30% over a three year period 2x more likely to improve their leadership pipelines CHARACTERISTICS OF ORGANISATIONS WITH MATURE PEOPLE ANALYTICS CAPABILITIES 13 #SRD17@david_green_uk
  14. 14. 2008 2009 2010 2011 2012 2013 2014 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Source: Glassdoor / WSJ.com $3,185 $2,210 S&P 500 Best Places to Work Good Place to Work = Good Place to Invest Value of $1,000 invested in the S&P 500 Index and invested in companies that were rated the “Best Places to Work” by Glassdoor WHY ARE INVESTORS INTERESTED IN PEOPLE ANALYTICS? 14 #SRD17@david_green_uk
  15. 15. Source: BCG RECRUITING HAS THE BIGGEST BUSINESS IMPACT OF ALL HR TOPICS #SRD17@david_green_uk 1 2 3 4 5 6 Delivering on recruiting Onboarding of new hires and retention Managing talent Improving employer branding Performance management and reward Developing leadership 3.5x 2.0x Revenue growth Profit margin 2.5x 1.9x 2.2x 2.1x 2.4x 1.8x 2.1x 2.0x 2.1x 1.8x Other Topics: Mastering HR Process; Global people management and international expansion; Enhancing employee engagement; Providing shared services and outsourcing HR; Managing diversity and inclusion; Managing change and cultural transformation; Actively using web 2.0 for HR and managing associated risks; Strategic workforce planning; Delivering critical learning programs; Managing corporate social responsibility; Transforming HR into a strategic partner; Health and security management; Managing flexibility and labor costs; Restructuring the organization; Managing work-life balance; Managing an aging workforce
  16. 16. AGENDA THE WHAT WHAT IS PEOPLE ANALYTICS? THE WHY WHY IS PEOPLE ANALYTICS GROWING IN IMPORTANCE? WHY IS RECRUITING AT THE FOREFRONT? THE HOW WHAT IS BEST PRACTICE IN PEOPLE ANALYTICS? EXAMPLES THE FUTURE WHY IS PEOPLE ANALYTICS CENTRAL TO THE FUTURE OF HR? 16#SRD17@david_green_uk
  17. 17. © David Green 2017 They focus on the business They have a CHRO who is fully involved They have an inspirational leader They have a balanced set of skills and capabilities They leverage resources from outside HR They have a clearly defined strategy & vision They get the basics right They have a methodology designed on producing actionable insights They use stories and visualisation to compel action They know analytics is a long-term investment They put the employee at the centre They make analytics part of the DNA They communicate their successes They seek to continually learn and aren’t afraid to fail They keep one eye on the future They don’t forget the ‘H’ in HR WHAT DO COMPANIES THAT EXCEL AT PEOPLE ANALYTICS DO? #SRD17@david_green_uk
  18. 18. SIX SKILLS NEEDED FOR PEOPLE ANALYTICS #SRD17@david_green_uk Source: The Power of People: Sheri Feinzig, Nigel Guenole and Jonathan Ferrar (Pearson FT Press – 2017) BUSINESS ACUMEN §  Financial literacy §  Political astuteness §  Internal awareness §  External awareness CONSULTING §  Problem definition §  Hypothesis building §  Project management §  Solution development §  Change management §  Stakeholder management HUMAN RESOURCES •  HR sub-functions •  HR interdependencies •  International HR •  Privacy and ethics •  HR “sixth sense” WORK PSYCHOLOGY §  Industrial psychology §  Organisational psychology §  Research design and analysis DATA SCIENCE §  Quantitative: mathematics and statistics §  Computer Science: databases and programming §  Data awareness COMMUNICATIONS §  Storytelling §  Visualisation §  Writing §  Presenting §  Marketing
  19. 19. 1/3 + = 1/3 1/3 Out of 100 DocuLove ScoreHiring manager experience Candidate experience + Leaderboard @david_green_uk #SRD17 Source: Tony Truong, ex-DocuSign CASE STUDY: UNDERSTAND & MEASURE RECRUITER METRICS THAT MATTER Deliver results Provide a great experience Be a trusted business partner Make the recruiter better
  20. 20. @david_green_uk #SRD17 $$$ $$ $ $ $$$ Boston (4,818) NYC (6,731) Raleigh (2,201) Atlanta (2,465) Austin (3,062) Source: Ian Bailie | Cisco Dallas (4,557) Bay Area (16,092) Seattle (9,727) CASE STUDY: USING EXTERNAL DATA TO SUPPORT HIRING & SITE STRATEGY NB: Illustrative data only Using external talent supply, demand and compensation data…
  21. 21. Compensation Investment Attrition Cost Labour Market ~200% ROI ~$300M Net benefits OBJECTIVE: Proactively identify top talent at risk of voluntarily leaving the organisation and take appropriate action in time to actually affect such employee departures, avoiding financial and knowledge losses. ~25% Reduced attrition CASE STUDY: PREDICTING REGRETTABLE ATTRITION 21 #SRD17@david_green_uk
  22. 22. CASE STUDY: QUANTIFYING CANDIDATE EXPERIENCE 7,500 Customers left Virgin Media as a result of a poor candidate experience 18% of candidates are also Virgin Media customers $6m lost revenue from poor candidate experience $7.7m potential new customer revenue stream by getting candidate experience right 22 #SRD17@david_green_uk Source: hros.co
  23. 23. 2014 2015 2016 2017 Source: LinkedIn (https://www.linkedin.com/pulse/roi-talent-analytics-lorenzo-canlas?trk=prof-post 5X Cost of team Impact on Operating Margin Investment vs. Return of People Analytics Team 7X 10X CASE STUDY: WHAT IS THE ROI OF PEOPLE ANALYTICS? 23 #SRD17@david_green_uk
  24. 24. AGENDA THE WHAT WHAT IS PEOPLE ANALYTICS? THE WHY WHY IS PEOPLE ANALYTICS GROWING IN IMPORTANCE? WHY IS RECRUITING AT THE FOREFRONT? THE HOW WHAT IS BEST PRACTICE IN PEOPLE ANALYTICS? EXAMPLES THE FUTURE WHY IS PEOPLE ANALYTICS CENTRAL TO THE FUTURE OF HR? 24#SRD17@david_green_uk
  25. 25. PEOPLE ANALYTICS IS THE CENTREPIECE OF A DIGITAL AGENDA FOR HR 25#SRD17@david_green_uk
  26. 26. Digital transformation AI | Machine learning Personalisation New organisation of work New / emerging data sources New ways to analyse data Democratisation of data Ethics, privacy & trust TRENDS IN PEOPLE ANALYTICS = THE FUTURE OF HR 26#SRD17@david_green_uk
  27. 27. of people analytics projects are jeopardised by ethics and privacy concerns 81% TRUST IS THE MOST IMPORTANT ELEMENT OF PEOPLE ANALYTICS 27 #SRD17@david_green_uk 19% Often or sometimes Rarely or never Q: To what extent do privacy and/or ethical concerns hinder or delay people analytics projects? 81% Source: Insight222
  28. 28. 28 Don’t forget the ‘H’ in ‘HR’ 28#SRD17@david_green_uk DATA + JUDGEMENT = BETTER DECISIONS
  29. 29. 29 danke schön Enjoy the rest of the conference linkedin.com/in/davidrgreen @david_green_uk #SRD17 green.dr@gmail.com

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