Talent Pulse: May 2014 Edition

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A Quarterly Research eBook on HR Strategy and Analytics

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Talent Pulse: May 2014 Edition

  1. 1. A Quarterly Research eBook on HR Strategy and Analytics Talent Acquisition Learning and Development Management and Leadership Pulse Talent Research n #HCIresearchHCI
  2. 2. About HCI Talent Pulse Research Talent Pulse from the Human Capital Institute (HCI) is a quarterly research e-book that explores the latest trends and challenges in managing talent. The following HCI disciplines are annually examined: n HR Strategy Analytics n Talent Acquisition n Learning Development n Management Leadership Statistically rigorous, expert data analysis is conducted and supplemented with in-depth thought leader interviews. Each quarter, a new report is released in conjunction with one of the four HCI disciplines. Topics for each quarter’s analysis are determined by survey responses of HR and business professionals. This report focuses on the Patient Protection and Affordable Care Act, HR data analytics and workplace agility. Talent Pulse is designed to provide practitioners and decision makers with prescriptive methods to rehabilitate the health and wellness of human capital, and empower employees and leaders to effectively address future challenges. Key Takeaways: n HR Leaders are not worried about Patient Protection and Affordable Care Act (PPACA) implementation despite popular press coverage of the unfavorability of the law. Is it too soon to gauge the impact? What will the rollout 2018 bring (e.g., the “Cadillac Tax”)? n Two-thirds of business leaders are not satisfied with HR analytics capabilities, yet they are not requesting more sophisticated analyses or taking measures to implement them. Do business leaders need more of an education in talent analytics than HR does? n Smaller organizations report being significantly more agile, flexible and adaptable than larger organizations. Can agile talent and processes penetrate large organizations or will agile talent and innovation ultimately reside in small firms? Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix Find your pulse, find your power. Copyright © 2014 Human Capital Institute. All rights reserved.
  3. 3. Research Partner Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix Founded in 1997, Saba (NASDAQ: SABA ) is the premier global provider of strategic human capital management (HCM) software and services. Saba’s people management solutions are used by more than 1,300 organizations and over 17 million end users worldwide. Saba’s solutions increase organizational performance by aligning workforce goals with organizational strategy; developing, managing and rewarding their people; and improving collaboration. Saba product offerings address all aspects of strategic HCM and are available both on-premise and OnDemand. To ensure long-term customer success, our global services capabilities and partnerships provide strategic consulting, comprehensive implementation services and ongoing worldwide support.
  4. 4. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix Research Methodology HCI surveyed 358 individuals who ranged from individual contributor to C-level positions at their organization. The majority of respondents are North American (88 percent) and work within the Human Resources (62 percent), executive management (12 percent) or recruiting function (10 percent). Of the job titles of participants, 54 percent are at the director level or above. n Less than 100 n 101-499 n 500-999 n 1,000-2,499 n 2,500-4,999 n 5,000-7,499 n 7,500-9,999 n 10,000-19,999 n More than 20,000 Figure 1: Number of Employees (n=355) 20.5% 14.3% 9.3% 11.0% 12.6% 2.5% 2.5% 8.7% 18.5% n Less than $10 million n $10-50 million n $50-100 million n $100-500 million n $500-750 million n $750 million-$1 billion n $1-10 billion n $10-50 billion n $50-100 billion n More than $100 billion 19.8% 13.2% 14.9% 8.3% 3.0% 4.0% 5.9% 3.6% 20.1% 7.3% Figure 2: Revenue 2013 (n=302)
  5. 5. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix Research Methodology We interviewed 15 thought leaders and conducted secondary research which included white papers, articles, books, interviews and case studies. Among the practitioners and thought leaders interviewed for this report: n Pooja Anand, Workforce Strategy Lead of Talent Acquisition–US/Americas at Siemens Corporation n Mike Brown, Senior Director of Talent Acquisition– US/Americas at Siemens Corporation n Donald Currier, Senior Business Analyst HR Strategy at Experian n Erika Duncan, Vice President of Human Resources at Metro Health n Marlene Ferris, Director of Organization Development at Connecticut Children’s Medical Center n Tina James, Human Resource Generalist at High Liner Foods n Dan Lapporte, Senior Manager of HR Information Management Reporting and Analytics at Kaiser Permanente n Lisa Maronski, Director of Global Talent Management at John Hancock/Manulife n Sandi Moletteri, Senior Director of Human Resources at Arcadia Solutions n Todd Noebel, Director of Hiring and Professional Development at the Institute for Humane Studies and Mercatus Center at George Mason University n Paula Radloff, Vice President of Human Resources Direct to Consumer at Nike n Jude Reser, Director of Human Resources at Marriott International n Mahesh Subramony, Ph.D., Associate Professor at Department of Management Northern Illinois University n Barbara Trautlein, Ph.D., Principal and Founder at Change Catalysts, LLC n Christopher G. Worley, Ph.D., Professor of Management at Pepperdine University In addition, a pilot study survey was distributed to a sample of HCI members (n=44). Organizational agility/change management was the number one rated issue in importance (79 percent rated it as higher importance this year compared to previous year). Respondents indicated complying with the Patient Protection and Affordable Care Act and effectively using HR data and analytics are higher in importance this year as well. Based on these responses, we determined the top three topics to cover in this edition of Talent Pulse.
  6. 6. Implications of the Affordable Care Act on Organizations Background There is little surprise that compliance with the Patient Protection and Affordable Care Act (PPACA) is identified as a major point of focus in organizations. According to the law, organizations with at least 100 employees must provide health insurance for all employees who work at least 30 hours a week beginning in 2015, whereas smaller organizations with 50-99 employees who work at least 30 hours a week must provide coverage effective 2016.1 Certain employers who do not provide health insurance for their employees after these dates will have to pay a financial penalty.2 The continuing high cost of employee health care coverage and implementation of health care legislation are the top two trends for HR professionals.3 U.S. CFOs cited rising healthcare costs as their top concern. Three-fourths of CFOs surveyed said their company is completely or mostly ready to comply with the rules and regulations of the PPACA. Fifty-three percent of CFOs said their labor costs will increase, and 77 percent plan to increase the amount employees must contribute toward their health care expenses to offset these costs.4 The PPACA has been received with mixed opinions, as 50 percent of Americans have an unfavorable view of the law, 34 percent have a favorable view and 16 percent don’t know enough to give an opinion.5 HR and benefits specialists are lacking confidence in understanding the PPACA requirements. According to one study, professionals reported being extremely or very confident in only 20 percent of small companies, 17 percent of medium sized companies and 41 percent of large companies.6 The effects of the healthcare law have already been observed in some organizations. UPS has removed health insurance benefits from employees whose spouses offer health insurance.7 Companies such as Target, Home Depot and Trader Joe’s have eliminated healthcare benefits for part-time employees.8 A survey of organizations suggests that 30 percent of employers will no longer offer employer-sponsored insurance after 2014.9 Although there are economic and social incentives for sponsoring health insurance, it may be cheaper for organizations to pay the fine for not offering health insurance for its employees and offer increased wages.10 Additionally, employers are concerned with and focused on changes to the excise tax, or Cadillac tax, which goes into effect in 2018.11 This tax penalizes companies that offer high-end health insurance.12 Steve First, a benefits executive at Pfizer, expresses his concern with the law. “I’m actually much more focused on the Cadillac tax in 2018 than 2014…For us, 2018 is a challenge,” he said.13 Indeed, 58 percent of survey participants indicated that they would trigger the excise tax if it were in effect at the time of the survey in 2012.14 Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix TALENT PULSE PODCAST Carolyn A. Pellegrini Associate Montgomery McCracken Walker Rhoads LLP TALENT PULSE PODCAST
  7. 7. INSIGHT 1: No Worries for HR Leaders in Midst of PPACA Implementation When asked about their preparedness for the changes as a result of the PPACA, 50 percent of participants in this study report being “Very much prepared” or “Quite a bit prepared” to navigate the changing healthcare environment. With regards to personal attitudes towards the PPACA, 40 percent of participants indicate that they are neutral or unable to judge the PPACA. This would support the notion that professionals simply do not know enough about the law, that they are waiting to see what the impact will be or they are not affected by the PPACA. It may also be that individuals do not want to disclose their political feelings. n Very unfavorable n Unfavorable n Neutral/unable to judge n Favorable n Very favorable Figure 3: Describe your personal attitude toward the Patient Protection and Affordable Care Act (n=358) 15.7% 15.2% 39.6% 20.2% 9.3% Figure 4: How prepared is your HR department to navigate the changing health care environment for your organization? (n=358) n Not at all prepared n A little bit prepared n Somewhat prepared n Quite a bit prepared n Very much prepared n Not sure/not applicable 3.6% 5.3% 19.6% 28.8% 21.2% 21.5% Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix
  8. 8. INSIGHT 2: Proactive HR: Most Organizations Have Addressed the Impact of ACA on Talent Issues Only a small majority of participants are concerned with compliance, expenditures per employees and the ability to predict costs. Only 15 percent of organizations are worried about cutting employee hours. Understanding the law Ability to predict costs Expenditures per employee Health care quality Adhering to compliance and regulations Attractiveness of benefits package Communicating changes to employees The unforeseen and unknown impact Sustainability of the law Implementing wellness programs Retention of employees Impact on employee engagement Evaluating alternative coverage options Changes to the workforce strategy Employer penalities Changes to your contingent workforce Determining full-time employee status Cutting hours 88.0% 77.0% 83.2% 79.6% 91.5% 87.2% 88.6% 53.5% 61.5% 73.7% 59.6% 44.0% 43.7% 43.2% 43.0% 40.1% 39.9% 39.8% 39.3% 38.1% 32.0% 31.3% 14.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% n Addressed the issue n A great deal/quite a bit concerned Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix 73.1% 33.5% 80.7% 30.5% 65.0% 70.5% 28.9% 81.7% 24.6% 66.7% 24.6% 79.6% 23.7% Figure 5: Has your organization addressed this issue?—and— How concerned is your organization about these issues?
  9. 9. INSIGHT 3: Preparedness and the Unknown We asked respondents to report the frequency of time spent working on issues related to the Patient Protection and Affordable Care Act. Half of HR leaders work on PPACA related issues on a monthly basis or less. Fifteen percent of HR leaders (and 18 percent of HR staff) never work on PPACA related issues. Participants were asked what they are doing to address the concerns regarding the PPACA. Of the responses, increasing employee communication and education about the law, consulting with external experts and adding or adjusting employee benefits are the top three actions taken by organizations. Thirty-nine percent of participants are very concerned with the unknown impact of the PPACA. It may be too soon to tell what kind of impact the law will have on organizations. Participants also expressed concern over the sustainability of the law. As one participant commented: “For the most part, we are not concerned by the Affordable Care Act because we are committed to providing our employees very rich benefit plans. So in large part, the Affordable Care Act doesn’t have an immediate, direct negative impact on our employees or staffing/ retention plans. What is nerve racking to some extent is the unforeseen. Will the Act still be around next year or after the next election?” Figure 6: What is your organization doing to address any concerns around the PPACA? (n=106) Communication and education No action needed—satisfied with current status Consulting external experts Adding or adjusting employee benefits In research phase Nothing Implementing a wellness program Delaying action Other Monitoring employee hours 23% 20% 20% 12% 8% 4% 4% 4% 3% 3% 0% 5% 10% 15% 20% 25% Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix “We set up reporting to be able to track hours in the way they have to be measured, to avoid being penalized. We have sent communications to our employees, which have created a lot of confusion, since we don’t know all the implications of the legislation yet and cannot answer all the questions they have.” —Survey Respondent
  10. 10. The HR Imperative: Connecting Talent Data to Business Strategy Background A survey of company leaders indicates that data analytics will become increasingly more important in the near future.15 Of the participants, 58 percent say data analytics are important to their organizations now, whereas 82 percent say they will be important in five years.16 Data analytics are particularly important for organizations, as “Big Data” helps companies make informed decisions.17 “Big Data” analytics are expected to generate $3.7 trillion and 4.4 million new jobs by 2015.18 Most companies have big data already, but lack the analytic experience and skills required to perform the right analysis.19 Organizations are starting to link employee performance to business goals. However, metrics that establish return on investment for HR practices are infrequently used.20 Likewise, there is not enough emphasis on external market metrics, such as market performance and unemployment numbers, which prevents HR from being strategic and future-focused.21 According to a survey of American employers, 56 percent do not measure the return they are receiving on their talent investments.22 Findings from this research support this notion that organizations are not establishing the value of talent management programs via data analytics. Within the last year, only 32 percent of participants report measuring the return on investment for employee training and only 53 percent report measuring revenue per employee. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix TALENT PULSE PODCAST Dan Lapporte Senior Manager HR Information Management Reporting and Analytics Kaiser Permanente TALENT PULSE PODCAST
  11. 11. INSIGHT 1: Big Data, Better Decisions Most organizations operate within a low maturity model of talent analytics. Of the participants in the research, 54 percent state their HR metrics measure key issues relevant to business. Twenty-three percent agree that they have connected employee data for the entire talent lifecycle. Thirty-four percent agree that business leaders are satisfied with HR metrics. Thirty-seven percent agree that HR metrics are regularly used to make decisions about human capital. Nineteen percent report that they are proficient at predictive analytics. Talent Analytics Champions, who make up 30 percent of the participants in this research, are those who report doing at least five of the eight analytics factors well. The factors include basic compliance reporting, analytics of single-source data, analytics using multiple-source data, predictive analytics, measuring key issues relevant to the business, connecting employee data for the entire talent life cycle, having business leaders who are satisfied with HR metrics and regularly using HR metrics to make decisions about human capital. They are more likely to report that their organization and HR function is adaptable, flexible, resilient and agile, the focus of the next chapter of Talent Pulse. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix Analytics using multiple- source of data (37.9%) Analytics of single-source data (58.1%) Basic compliance reporting (80.7%) Predictive analytics (19.3%) Figure 7: HCI survey respondents indicate their proficiency level within Bersin and Associates (2012) Talent Analytics Maturity Model (n=357)
  12. 12. Headcount of full-time employees Cost of benefits/compensation per employee Turnover rate Compliance with government regulations Length of employment Employee satisfaction/engagement Time to fill a position vacancy Percent of HR goals met per year Cost per hire Revenue per employee New hire failure rate Quality of hire High-performer turnover rate Turnover cost HR costs as a percentage of revenue Diversity turnover rate Labor productivity ratio Leadership bench strength satisfaction Employee training ROI Dollar value on increase workforce productivity year to year HR technology implementation ROI 97.2% 84.9% 83.4% 78.7% 77.6% 70.2% 70.1% 67.4% 61.9% 53.0% 49.0% 48.5% 46.7% 46.5% 45.1% 42.6% 31.9% 41.6% 26.2% 37.5% 25.2% 77.8% 77.2% 60.7% 56.3% 68.5% 58.4% 61.0% 50.5% 51.8% 37.6% 48.2% 40.8% 43.4% 39.6% 31.6% 30.4% 43.4% 26.8% 44.0% 24.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 93.9% INSIGHT 2: Despite Perceived Lack of Value, Traditional HR Metrics Dominate Workplace Data Traditional HR metrics are prevalent in organizations. A minority of business leaders are asking for return on investment data. Talent Analytics Champions are more likely to conduct all of these analyses more often except for headcount and cost of benefits. The biggest gaps for what business leaders want and what is measured are leadership bench strength and labor productivity ratio. With regards to sharing and reporting data, on average, 66 percent of respondents report that HR metrics are shared with business leaders once a month or less. Talent Analytics Champions share data with business leaders more often. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix “Senior business leaders do not yet realize the importance of HR data.” —Survey Respondent n Measured in last 12 months n Data requested by business leaders Figure 8: Was this measured in the last 12 months? —and— Was this requested by business leaders within the last 12 months?
  13. 13. Working with business leaders to determine the analytics important to them (59.7%) Integrating disconnected data systems or storage (24.6%) Hiring data scientists or statisticians (5.3%) Implementing a plan for sharing and reporting HR data with business leaders (43.4%) Providing training on data analytics to HR staff (23.8%) Investing in more sophisticated HRIS technologies (38.4%) Providing training on communicating analytics results to HR staff (18.8%) INSIGHT 3: How to Improve (or Start) HR Analytics Capabilities The flow chart below describes best practices to become more effective at talent data analytics. The percentage in each step represents the proportion of research participants who report utilizing each strategy within their organization. The chart begins with what most organizations are implementing and progresses to what the fewest organizations are doing. Eighteen percent of participants in this study report doing nothing to become more effective at data and analytics. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix Figure 9: What is your HR function doing to become more effective at talent analytics? (Select all that apply.) (n=357)
  14. 14. Agile HR Delivery Background Agility, the ability to proactively and fluidly respond to change, is a vital characteristic for employees to have today. An agile workplace is described as necessary for organizational sustainability and progression.23 Agile organizations adopt transparent information systems and decision-making processes. Behind change management and attracting, recruiting, and developing, becoming agile is the third highest business priority of senior leaders.24 Additionally, 60 percent of companies with successful new initiatives report high agility, whereas 27 percent report of companies with low agility report successful new initiatives.25 However, organizations report that their organizations are less agile in 2012 than they were in 2008.26 Agility appears to be a valued characteristic for organizational processes and successes, but currently does not flourish within businesses. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix TALENT PULSE PODCAST Barbara A. Trautlein, Ph.D. Principal Change Catalysts “An organizational redesign process often unearths fundamental and often unspoken assumptions. If we’re able to move in redesigns from fear to freedom, it often can spark creative thinking through brainstorming and collaborative team efforts that span multiple departments and functions and levels, instead of everyone in their silo and their traditional space. It opens up new opportunities and new venues for conversations that hadn’t previously happened.” —Barbara Trautlein, Ph.D. Principal, Change Catalysts, LLC
  15. 15. Introduction Methodology Research Findings Conclusions Appendix Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix INSIGHT 1: Organizational Agility Desired and Defined Agility is the ability to proactively and fluidly respond to change and to address needs on a continuous versus episodic basis. Sixty-three percent of participants agree that learning/training is a continuous process rather than episodic processes in their organizations. Fifty-one percent agree that employee performance feedback at their organizations is a continuous process rather than episodic. Seventy-two percent of participants agree that agility is valued at their organizations. Sixty-five percent of participants report that their senior leaders want a more agile HR function. Finally, 84 percent of participants agree that their senior leaders want more agile talent. Agility is related to greater financial successes (see Figure 10). We validated a section of our sample (n=33) of large, publicly traded companies’ year-over-year revenue growth compared to its industry and found the same trend. Organizations that perform financially better also report more continuous processes and higher agility. 0.00 1.00 2.00 3.00 4.00 5.00 3.5 3.2 3.9 3.5 Employee performance feedback at our organization is a continuous process Learning at our organization is a continuous process Recruiting at our organization is a continuous process Our HR processes/systems adapt to change 3.6 4.0 3.7 3.3 n 6 percent revenue growth or more (n=85) n 5 percent revenue growth or less (n=163) • Our HR processes/systems adapt to change. (56.3%) • Recruiting at our organization is a continuous process rather than episodic. (69.3%) • Learning/training at our organization is a continuous process rather than episodic. (62.3%) • Employee performance feedback at our organization is a continuous process rather than episodic. (50.1%) Agility Practiced • Agility is valued at my organization. (71.4%) • My company’s senior leaders want a more agile HR function. (64.5%) • My company’s senior leaders want more agile talent. (83.9%) Agility Supported Figure 10: Agreement to the Statements on a Scale of 1, Strongly Disagree to 5, Strongly Agree.
  16. 16. n Large (5,000 to 20,000 employees, n=114) n Medium (500 to 4,999 employees, n=116) n Small (under 500 employees, n=124) Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix INSIGHT 2: Workplace Agility Challenges Agility is related to the size and hierarchy of businesses. Organizations that operate in a less hierarchical management structure report being more agile compared to organizations that are more hierarchical. Agility is more of a challenge for organizations with more people and processes. Smaller organizations are more agile, resilient, flexible and adaptable than medium and large organizations. Smaller organizations report their organizations being significantly higher than medium and large organizations in all of these categories with the exception of resilience. Overall, it appears that smaller businesses and smaller hierarchies have the benefit of facilitating an agile work environment. “Spending more money on upgrading our technology and accessibility to collaborative technologies. Delegating the authority to make decisions at lower levels of management with fewer layers of unnecessary upper middle management involvement. Empowering associates to take ownership of their positions, teams and final product and customer service delivery.” —Survey Respondent Figure 11: To what extent do the following describe your organization? (Not at all descriptive=1 to exactly descriptive=5) Agile (i.e., move quickly) Resilient (i.e., recover quickly) Flexible (i.e., easily modified) Adaptable (i.e., willing to adjust) 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 2.5 2.6 3.1 3.0 3.1 3.2 2.4 2.6 3.1 2.8 2.9 3.3
  17. 17. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix INSIGHT 3: Uncovering Agility It is the responsibility of the organization to strip away processes and systems that may hinder agility in its employees. Uncovering natural agility within employees can be done via the following methods (see Figure 12). Participants in this study were given the opportunity to express, in detail, their methods to facilitate agility within their organizations. Respondents cited communication and collaboration as well as organizational change and redesign as their top methods. “We use a matrix structure. We are very agile in responding to our client’s needs as well as upsizing or downsizing. We cross-train heavily and always maintain a high level of experienced staff to train new employees. We keep a finger on the pulse of the market and watch leading economic indicators closely. We have built scenarios and contingency plans, both good and bad. Constant education of senior HR leadership and constant briefings of senior management. Open communication with staff and management. Watch internal metrics, financial and nonfinancial.” —Survey Respondent Increase communication and collaboration Organizational redesign Nothing Continuous improvement interventions (e.g., Six Sigma) Developmental opportunities Technology and information systems Currently in research phase Strategic workforce planning Selecting agile talent 23% 21% 13% 13% 11% 7% 5% 4% 4% 0% 5% 10% 15% 20% 25% Figure 12: What is your organization doing to become more agile? (n=120)
  18. 18. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix HR Delivery All HR initiatives are aligned to business objectives. Workforce Planning HR analyzes gaps in current workforce capability and uses predictive modeling to identify skills needed to accomplish business goals. HR Design Has effective talent initiatives that support the entire employee cycle from recruitment and retirement. Technology Has fully integrated and effective talent systems (e.g., recruiting, leadership, development, performance management and succession) and HR systems (e.g., payroll and benefits). Data and Analytics Meaningful data is collected, analyzed and summarized to influence decisions about talent. Flexible Work Solution HR implements flexible talent solutions to meet its employees’ needs (e.g. virtual work, contract arrangements, work/life benefits) and measures their effectiveness. Global, Virtual Workforce HR attracts, connects, and develops global talent that helps them successfully navigate global markets. HR Strategy and Analytics Scorecard This study asked participants how well their organizations execute the following topics within the HCI HR Strategy and Analytics community on a five-point scale. Participants rate their organizations as most effective at tying HR initiatives to business objectives and implementing flexible talent solutions. Participants rate their organizations as least effective in data and analytics and having a global, virtual workforce.
  19. 19. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix Prescribe and Apply This premier publication of HCI’s Talent Pulse explores three issues that are momentous to business professionals: The Patient Protection and Affordable Care Act, the progression of talent data analytics and workplace agility. Affordable Care Act n Continuously review the healthcare laws • Business leaders need to be well informed regarding the implications of the healthcare laws to ensure their organization’s benefits and operations are within the confines of the law. Business leaders may find it difficult to construct a business plan around litigation that could be amended or overturned within a matter of years. n Analyze your organization’s current benefits and determine the needs of your workforce • Survey your employees regarding their satisfaction with the benefits and programs currently offered and determine their most important needs. n Communicate and be transparent with employees • Inform your employees of the organization’s plan of action and strategy for handling the requirements of the law. • Reinforce your organization’s commitment to promoting and supporting the health and wellness of its employees. HR Analytics n Gain support from senior leaders for the development of its data analytics program • Data analysis requires accumulation of data and analysis over time to be effectively utilized and to demonstrate its value. • It takes about three to five years for a talent analytics team to become effective.27 n Develop skills to analyze talent data within your organization • Hire professionals with an educational background and experience in data analysis (e.g. I-O psychologists, statisticians, IT professionals). • Hire consultants to instruct your current employees in data analysis techniques. n Decide what technology is necessary for your organization’s data analysis needs • Organizations should evaluate their statistical needs before choosing a statistical tool, such as customized dashboards, Excel, SAS, SPSS and other advanced data analysis systems. Agile HR Delivery n Create less standardized jobs and job descriptions • Organizations may want to staff employees who can determine their own roles and tasks on various projects and can function well within teams. n Provide technology for collaboration • Agility can be facilitated by employees sharing experiences, innovative ideas, news stories, scholarly articles, etc. n Utilize continuous feedback • Feedback, when utilized for developmental purposes, promotes learning enhances performance improvement.28 By not offering continuous feedback, organizations may be missing out on prime opportunities to actively help their employees prepare for erratic tasks and projects.
  20. 20. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix Supplemental HCI Content Talent Data and Analytics Big Data Mistakes—Why They Happen and How to Avoid Them Align Human Capital Metrics with Organizational Goals for Optimal Success Tying Talent Analytics to Financial Performance A Doesn’t Always Lead to B— Avoiding Pitfalls in HR Big Data I’m Now In Charge of What?!? Analytics in Action: Driving Business Performance through the Application of Talent Data The Value of Human Capital Intelligence Implications of the Affordable Care Act What You Need to Know to Understand the ACA The Changing Employment Deal and U.S. Health Reform Which Path to Pursue: HR and the PPACA Agile HR Delivery The Driving Force behind Agile HR Service Delivery How to Run HR Shared Services like a Thriving Business Aligning HR and Business Strategies High-Impact HR: Challenges and Opportunities Related to Building an Effective, Strategic and Influential HR Function Change Management Lessons from a Global HR BPO Rollout HR Transformation at McGraw Hill: Balancing Centralized Global Strategy with Decentralized Regional and Business Unit Needs Deploying Talent across Diverse Industries and Business Functions with Agility and Flexibility Webcast Podcast Executive Interview HCI Research Blog Enterprise Content
  21. 21. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix Appendix: Demographics SENIORITY Percent Director 30.7 Manager/Team Leader 27.9 C-level (CEO, CHRO, CIO, etc.) 9.8 Team Member 9.5 Vice President 8.9 Analyst 6.1 Executive Vice President/ Senior Vice President 4.2 Other 2.8 FUNCTIONAL AREA Percent Human Resources 62.6 Executive Management 12.0 Recruiting 9.5 Other 8.7 Operations 2.8 Sales 1.4 Research and Development 1.1 Marketing .8 Finance/Accounting .6 IT .3 Customer Service .3 GEOGRAPHIC LOCATION Percent North America 88.8 Central/South America 1.7 Africa 1.7 Middle East .8 Asia/Pacific 3.9 Europe 3.1
  22. 22. Introduction Affordable Care Act Analytics Agile HR Delivery Conclusions Appendix Appendix: References 1. Kennedy, K. (2014, February 10). Another part of the affordable care act delayed for a year. USA Today. Retrieved from http://www.usatoday. com/story/news/nation/2014/02/10/aca-no-longer-applies-to-50- employees-and-under-in-2015/5370055/ 2. See note 1 above. 3. Schramm, J. (2013). SHRM workplace forecast. Society for Human Resource Management. Retrieved from http://www.shrm.org/research/ futureworkplacetrends/documents/13-0146%20workplace_forecast_ full_fnl.pdf 4. George, J. (2013, December 10). CFOs Confident, Anticipate Sales Growth and Readiness for Healthcare Reform, According to the Bank of America Merrill Lynch 2014 CFO Outlook [Press release]. Retrieved from http://newsroom.bankofamerica.com/press-releases/commercial- and-middle-market-banking/cfos-confident-anticipate-sales-growth- and-readi 5. Kaiser health tracking poll: January 2014 (2014, January). Kaiser Family Foundation. Retrieved from http://kff.org/health-reform/poll-finding/ kaiser-health-tracking-poll-january-2014/ 6. HR compliance: Are employers ready for health care reform? (2012). ADP, 1-16. Retrieved from https://www.adp.com/tools-and-resources/ adp-research-institute/insights/~/media/RI/whitepapers/ADPRI-ACA- Study081312.ashx 7. Will companies drop healthcare coverage because of ACA? (2014, January). Chief Executive Magazine. Retrieved from http:// chiefexecutive.net/will-companies-drop-healthcare-coverage- because-of-aca 8. Wayne, A. (2014, January 22). Target to drop health insurance for part-time workers. Bloomberg. Retrieved from http://www.bloomberg. com/news/2014-01-21/target-to-drop-health-insurance-for-part-time- workers.html 9. Singhal, S., Stueland, J., Ungerman, D. (2011). How US health care reform will affect employee benefits. McKinsey Quarterly, 1-11. 10. See note 7 above. 11. Chasan, E. (2013, March 22). 2018 ‘Cadillac tax’already a focus for corporate health care. [Web log post]. Retrieved from http://blogs.wsj. com/cfo/2013/03/22/2018-cadillac-tax-already-a-focus-for- corporate-healthcare/ 12. Abelson, R. (2013, May 27). High-end health plans scale back to avoid ‘Cadillac tax’. New York Times. Retrieved from http://www. nytimes.com/2013/05/28/business/cadillac-tax-health-insurance. html?pagewanted=all_r=0 13. See note 12 above. 14. Health care changes ahead (2012). Towers Watson, 1-7. Retrieved from www.towerswatson.com 15. American Management Association, 1-24. Conquering big data. (2013). Retrieved from http://www.amanet.org/uploaded/Conquering- Big-Data-Survey-Web.pdf 16. See note 15 above. 17. See note 15 above. 18. Bersin, J. (2013). Big data in human resources: Talent analytics comes of age. Forbes. Retrieved from http://www.forbes.com/sites/ joshbersin/2013/02/17/bigdata-in-human-resources-talent-analytics- comes-of-age/ 19. See note 18 above. 20. Filipkowski, J., N. (2013). High impact HR: Challenges and opportunities related to building an effective, strategic, and influential HR function. Human Capital Institute. Retrieved from http://www.hci. org/files/field_content_file/Successfactors%20Report_10-1.pdf 21. See note 20 above. 22. Starner, T. (2013). Is 2013 the year HR takes analytics seriously? Retrieved from http://www.hreonline.com/HRE/view/story. jhtml?id=534354878 23. Worley, C. G., Lawler III, E. E. (2010). Agility and organization design: A diagnostic framework. Organizational Dynamics, 39 (2), 194-204. doi:10.1016/j.orgdyn.2010.01.006 24. Gartside, D., Gossage, W., Silverstone, Y. (2013). Trends reshaping the future of HR. Accenture, 1-16. Retrieved from http://www. accenture.com/SiteCollectionDocuments/PDF/Accenture- Future-of-HR-Trends-Agile-Organizations.pdf 25. Organizational agility. (2012). Project Management Institute, 1-11. Retrieved from http://www.pmi.org/~/media/PDF/Research/ Organizational-Agility-In-Depth-Report.ashx 26. See note 25 above. 27. Bersin, J. (2012). Big data in HR. Bersin Associates, 1-84. Retrieved from www.bersin.com 28. Smither, J. W., London, M., Reilly, R. R. (2005). Does performance improve following multisource feedback? A theoretical model, meta-analysis, and review of empirical findings. Personnel Psychology, 58, 33-66. doi:10.1111/j.1744-6570.2005.514_1.x
  23. 23. Human Capital Institute (HCI) HCI is the global association for strategic talent management and new economy leadership, and a clearinghouse for best practices and new ideas. Our network of expert practitioners, Fortune 1000 and Global 2000 corporations, government agencies, global consultants and business schools contribute a stream of constantly evolving information, the best of which is organized, analyzed and shared with members through HCI communities, research, education and events. For more information, please visit www.hci.org. 205 Billings Farm Road, Suite 5 White River Junction, VT 05001 866-538-1909 www.hci.org #HCIresearch Copyright © 2014 Human Capital Institute. All rights reserved.

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