Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

TLC Manchester - Russell Beck, Impellam


Published on

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

TLC Manchester - Russell Beck, Impellam

  1. 1. Big Data and the factors impacting employee attrition Russell Beck Head of Consulting May 2014
  2. 2. The cost of attrition Cost to UK business due to attrition £42bn UK’s average attrition rate 10.4% In 2010 Cost to UK business due to attrition £63bn UK’s average attrition rate 15% In 2013 Direct costs Direct + Indirect costs
  3. 3. References The following were references for this presentation: • Wikipedia • Forbes – “Big Data in Human Resources: A World of Haves And Have-Nots” • Deloitte Bersin – “Big data in HR – Talent Analytics comes of age” • REC/Markit - labour data • Evolv - Workforce performance report • Job Openings and Labor Turnover survey – Bureau of Labor Statistics • Freakonomics - website, book and podcast • Dan Ariely - “What makes us feel good about our work?” TED talk • David Mendoza - ‘Futurecasting: How the rise of Big Social Data is set to transform the business of recruiting’ • Gerry Crispin – CarrerXRoads - Data on mechanical engineers • Various data points from: CEBR, ONS, OBR, CBI, Reed • Impellam data - varied
  4. 4. Who are Impellam? 5th Largest in the UK Structure Multi- brand 2,500Managers and consultants £1.2bn Turnover 75,000Placed into work each week 270+ Outsourced & Managed services contracts £1.6bn Recruitment spend under management 10,000UK customers
  5. 5. What is ‘big data?’ Big data is about "building new analytic applications based on new types of data, in order to better serve your customers and drive a better competitive advantage" Big Data as the three ‘Vs’: Volume, Variety and Velocity As a business example….. 100 to 1
  6. 6. How does this apply to attrition…? Data analysis of: Hourly workers: 60% 18 13121m Attrition rate: upto 50% 16% 11% 54% 11% 8% Macro Economic factors Company Practices Workforce Relationships Job Characteristics Worker Characteristics
  7. 7. The economy has recovered… In Feb 2014, staff availability fell at its fastest rate for 10 years (Markitt) 48% of employers intend to increase temp headcount in the next 4-12 months The UK will be Europe’s largest economy by 2030 (CEBR) Unemployment will fall to 6.5% in 2015 (OBR) The UK will have the fastest growing economy of the G7 in 2014 (IMF) Job vacancies in Q1 2014 were 30% higher than a year before (Reed) >75% of employers intend to increase perm headcount in the next 3 months Demand in IT skills will increase by 85% in the next 3-5 years (CBI) Demand in manufacturing skills will increase by 72% in the next 3-5 years (CBI) Demand in retail skills will increase by 55% in the next 3-5 years (CBI)
  8. 8. 20 30 40 50 60 70 80 Dec-97 Jun-98 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Index of staff demand (seasonally adjusted) Macroeconomic factors 16% Period of recession Attrition costs will rise by 25% as resignations returns to historical norms
  9. 9. Skills shortages will get worse In the US, for every 100,000 students entering the 9th grade in 2013, only 68,000 will graduate from high school in 2016. Only 40,000 will then enter college that same year and when they graduate in 2021, less than 17,000 will get a degree. Of these graduates 800 will be engineers, of which 125 will be mechanical engineers. Source: Gerry Crispin - CarrerXRoads 4,300,000 5,375 11,157 100,000 125 5 15 of these will be women and less than 5 of them will remain working in that profession for more than 5 years.
  10. 10. Company Practices 11% 2. Job applicants know the system 1. Candidates stretch the truth… so do recruiters
  11. 11. Everything is available, if you look
  12. 12. Workforce relationships 54% “Employees do not leave their jobs, they leave their managers” Tenure Increase: 6x Who makes the hiring decisions…?
  13. 13. Motivation is easy to give, and very easy to destroy…. Name:…………………………….. Who did the most work and by how much…?
  14. 14. Worker characteristics 8%A workers previous job-related experience does not predict future performance or tenure… …aptitude and work style do.
  15. 15. Summary… • Your attrition will increase in 2014 and beyond • Do you know what good looks like? • Do you select based on this knowledge? • Are you honest in representing your roles? • Employees leave managers not jobs • Train your poor people managers • Learn what motivates your staff; recognition vs. financial • … or hire people who use Firefox or Chrome?
  16. 16. Thanks Russell Beck 07710 898904