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.
Don’t Be Left Behind… As HR
Shifts To A Data-Driven, High
Business Impact Approach
© Dr John Sullivan
45
These slides can ...
2
I’m from the Silicon Valley…
They asked me to highlight the most advanced
data-driven talent practices
• Obviously you c...
3
Let me be clear…
Its time to realize that its
all about the money!
HR is not exempt from the rules guiding
all other bus...
Does great Talent Management really have a
bottom line impact?
IBM
HP
Amazon
Microsoft
Google
Facebook
Apple
Which ...
Now let’s compare the difference in employee output
value at… “Top” vs. “Very Good” firms in tech
Note: Productive firms h...
ID your HR functions with the highest business impact
6Source: BCG/WFPMA - From Capability to Profitability: Realizing the...
Mid and lower impact HR functions
7
8
Conclusion
Provided that you manage the right way…
“Great Talent Management increases
workforce productivity and innovat...
9
A definition of
data-driven HR (ddHR)
10
A definition of data-driven HR (ddHR)
A strategic forward looking approach to HR
It replaces the currently common… op...
11
Replace them with…
I know
The data proves that…
This chart / graph proves it
Our algorithm shows it works
A predictive ...
12
2 quick examples of:
How data-driven HR can
improve… retention and
recruiting
Traditional HR would guess / speculate for
retention purposes… when do new hires quit?
Source: entelo.com using 1 million ...
14
During what month do most salespeople quit?
I
Source: Entelo 2015
Turnover seems even… until you add December
During wh...
15
Do you see how using data
can change you from “a guesser”…
to a “I can prove it” expert ?
16
More reasons why HR must shift
to a new data-driven model
17
Almost everyone agrees that HR must become
more strategic… and a ddHR approach can do that
When CEO’s and board-level e...
18
Almost everyone agrees that HR must increase its
business impacts and a data approach can do that
Of the 18 business fa...
19
Almost everyone agrees that HR doesn’t use many
analytics – so there is room for improvement
Where does HR rank in anal...
20
CEO’s do not have faith in our metrics
Only 12% of CEO’s are confident on the quality
of Human Capital metrics
20
AICPA...
Stop arguing against dramatic change
It’s time to drop the black phone approach to HR
Std. excuse -“our current model has ...
22
Let’s look at a quick case study
A snapshot of
how Google does ddHR
23
Learn from Google
Laszlo Bock VP at Google
24
ddHR goal # 3
Use data for all key people decisions
“All people decisions are based on data & analytics”
“We apply the...
25
Years of assuming that…
“what we have always done” was right…
can be proven to be “completely wrong” with data
Why we m...
Google data… revealed that they were wrong
about what predicts new hire success
“GPA’s
“Test scores
“Brainteasers
Inte...
27
ddHR goal # 4
Data-driven experimentation
Google has an R&D team that experiments
People & Innovation Lab (PiLab) - it...
28
An example of a data-driven experiment
1 email results in a 25% improvement in productivity
Each new hire’s manager is ...
29
ddHR goal # 5
Identify the highest impact actions/ solutions
Project Oxygen showed actions make good managers
1. Be a g...
30
Let’s finish up with…
more examples that cover the
remaining ddHR goals
31
ddHR goal # 6
It’s critical to convert HR’s results into their $ value
 Last year, a revised data-driven recruiting
pr...
What happened here?
Hockey stick approach
32
Turnover %
TimeOctober 2014
Steady turnover of 9 %
Personalized retention pla...
33
Conclusion – best practice sharing increases revenue by $250,000
a year, at a cost of $50,000, with an ROI of 4 to 1
Mo...
34
ddHR goal # 9
Calculate the added value of top performers
Prioritize your top performers
 The top 1% of your workforce...
35
ddHR goal # 10
Find out if you should give them a 2nd chance
Performance management Q – what is the cost / time
require...
36
ddHR goal # 11
Integrated data allows you to “connect the dots”
Don’t miss the costs of unintended consequences
Pocket ...
37
ddHR goal # 12
ddHR reveals the cost of slow
Last year they had only 110 vacancy days in loan
officer positions at thi...
38
ddHR goal # 13
Use data to influence (vs relationships)
Relationships are slow to build and are quickly
lost when one p...
39Source: Workday Insights Retention Analytics
An example - influence managers with data
by distributing ranked reports (r...
40
This is what data-driven retention looks like (Workday)
Source: Workday Insights Retention Analytics
Software makes dec...
ddHR goal # 14
Improve decision-making speed (GSK)
Open-office design improves decision-making speed
by 45% and cuts the c...
ddHR goal # 15
Predictive metrics alert you in time to act
42
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016 2...
43
Benchmark Google (read Work Rules)
Put together an HR analytics team
Hire HR pro’s with data/analytics skills
Work with...
44
My business impact elevator speech
Hi
I’m a productivity consultant… and I’m here to
increase employee productivity and...
Do we have time for questions?
45
Did I make you think?
These slides can be found at www.drjohnsullivan.com
Upcoming SlideShare
Loading in …5
×

of

Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 1 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 2 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 3 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 4 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 5 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 6 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 7 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 8 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 9 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 10 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 11 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 12 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 13 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 14 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 15 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 16 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 17 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 18 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 19 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 20 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 21 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 22 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 23 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 24 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 25 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 26 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 27 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 28 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 29 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 30 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 31 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 32 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 33 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 34 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 35 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 36 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 37 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 38 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 39 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 40 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 41 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 42 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 43 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 44 Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach Slide 45
Upcoming SlideShare
Recruiting Purple Squirrels
Next
Download to read offline and view in fullscreen.

2 Likes

Share

Download to read offline

Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach

Download to read offline

How data-driven HR can improve… retention and recruiting

Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach

  1. 1. Don’t Be Left Behind… As HR Shifts To A Data-Driven, High Business Impact Approach © Dr John Sullivan 45 These slides can be found at: www.drjohnsullivan.com • The most dramatic shift in HR in decades is occurring right now… and it will soon make your current HR approach obsolete. • You can welcome it or fear it, but this shift is inevitable
  2. 2. 2 I’m from the Silicon Valley… They asked me to highlight the most advanced data-driven talent practices • Obviously you can’t adopt all of them • So pick & choose and adapt whatever practices that you find are best for your organization
  3. 3. 3 Let me be clear… Its time to realize that its all about the money! HR is not exempt from the rules guiding all other business functions… the best / favored ones are more productive & innovative, and as a result… they show they create more revenue!
  4. 4. Does great Talent Management really have a bottom line impact? IBM HP Amazon Microsoft Google Facebook Apple Which of these firms have the best Talent Mgmt ? Which firms are the most innovative & productive? 4
  5. 5. Now let’s compare the difference in employee output value at… “Top” vs. “Very Good” firms in tech Note: Productive firms have a higher Rev. per Employee # Average rev per ee $208,000 USD IBM $238,000 (14% above the average) HP $363,000 (Nearly 1 ¾ times theaverage) Amazon $577,000 (Nearly 2 ¾ times the average) * Indicates it’s rank among the top most valuable firms in the world Microsoft* #4 $729,000 (Nearly 3 ½ times the average) Google* #3 $1,230,000 (Nearly 6 times the average) Facebook* #11 $1,360,000 (Nearly 6 ½ times the average) Apple* #1 Key learning – Apple could produce the same revenue as IBM with 9 times fewer workers (From 4/22/15 data from www.MarketWatch.com ) 5 $2,150,000 (Nearly 10 ¼ times the average) Your job… is to figure out which key HR actions cause these huge employee output differences -- Any Questions?
  6. 6. ID your HR functions with the highest business impact 6Source: BCG/WFPMA - From Capability to Profitability: Realizing the Value of People Management, 2012 Which HR function normally has the highest impact on profit? So the 1st ddHR goal is to…
  7. 7. Mid and lower impact HR functions 7
  8. 8. 8 Conclusion Provided that you manage the right way… “Great Talent Management increases workforce productivity and innovation to the point where Talent Management has the highest business impact on revenue of any business function” Any questions? Its all about the money!
  9. 9. 9 A definition of data-driven HR (ddHR)
  10. 10. 10 A definition of data-driven HR (ddHR) A strategic forward looking approach to HR It replaces the currently common… opinions, beliefs, intuition, hunches, speculation, trial & error learning & automatically continuing with past practices. It instead relies on… data, facts, analysis, charts, metrics, algorithms, science and predicted trends… to improve the accuracy, speed and business impacts of major people management decisions… that are made by managers and HR professionals. And finally, it reveals “why” programs work.
  11. 11. 11 Replace them with… I know The data proves that… This chart / graph proves it Our algorithm shows it works A predictive trendline shows An A/B test shows B is better Its cutting revenue by $23mil It’s a science (hard HR) ddHR goal #2 Outdated phrases I think/I believe/ I feel My opinion is… My gut tells me We tried that once… Historical metrics show We always do it this way Turnover is a problem It’s an art (soft HR) To learn to use the language of business ($ and #’s)
  12. 12. 12 2 quick examples of: How data-driven HR can improve… retention and recruiting
  13. 13. Traditional HR would guess / speculate for retention purposes… when do new hires quit? Source: entelo.com using 1 million resumes Waiting period ddHR can prove what causes these “turnover spikes” Employees that quit Years at the firm
  14. 14. 14 During what month do most salespeople quit? I Source: Entelo 2015 Turnover seems even… until you add December During what month should you start retention efforts?
  15. 15. 15 Do you see how using data can change you from “a guesser”… to a “I can prove it” expert ?
  16. 16. 16 More reasons why HR must shift to a new data-driven model
  17. 17. 17 Almost everyone agrees that HR must become more strategic… and a ddHR approach can do that When CEO’s and board-level executives rank business functions… which one is listed as the most strategic? Sales Where was HR ranked on the list? “the least strategic function” Source: DDI 17
  18. 18. 18 Almost everyone agrees that HR must increase its business impacts and a data approach can do that Of the 18 business factors that contributed the most to business outcomes… #1 - with the highest impact was… reducing operational cost structures “Talent was dead last” (#18) (source: KPMG / HfS research) 18
  19. 19. 19 Almost everyone agrees that HR doesn’t use many analytics – so there is room for improvement Where does HR rank in analytics usage compared to other bus functions? % of advanced users % of non-user 1.Finance 58% 7% 2.Executive team 51% 11% 3.Operations 48% 9% 4.R&D 44% 23% 5.Marketing 41% 16% 6.Sales 34% 20% 7.HR (last) 27% 23% Source: AMA/i4cp 2013
  20. 20. 20 CEO’s do not have faith in our metrics Only 12% of CEO’s are confident on the quality of Human Capital metrics 20 AICPA survey 2012
  21. 21. Stop arguing against dramatic change It’s time to drop the black phone approach to HR Std. excuse -“our current model has served for years and it seems like it works fine just the way it is” Answer… the old ways must be abandoned because • Every bus. function & many sports shifted long ago • Executives now expect more from HR • Technology/big data have much greater capabilities • Not using data is hurting your shareholders 21
  22. 22. 22 Let’s look at a quick case study A snapshot of how Google does ddHR
  23. 23. 23 Learn from Google Laszlo Bock VP at Google
  24. 24. 24 ddHR goal # 3 Use data for all key people decisions “All people decisions are based on data & analytics” “We apply the same level of rigor, analysis and experimentation on people as we do the tech side” Even their famous employee benefits are “broken down into crunchable, poll-able or graphicable data”
  25. 25. 25 Years of assuming that… “what we have always done” was right… can be proven to be “completely wrong” with data Why we must shift
  26. 26. Google data… revealed that they were wrong about what predicts new hire success “GPA’s “Test scores “Brainteasers Interviews – “many managers, recruiters, and HR staffers think they have a special ability to sniff out talent” “it’s a complete random mess”… “we found a zero relationship” (between interview scores and on-the-job performance) No value is added “after 4 interviews” College –“the proportion of people at Google without any college education…has increased over time” What predicts? – 26 are worthless as a criteria for hiring” are worthless” are a complete waste of time” Laszlo Bock, Senior VP of people operations at Google The New York Times “They’re wrong” “capability & learning ability”
  27. 27. 27 ddHR goal # 4 Data-driven experimentation Google has an R&D team that experiments People & Innovation Lab (PiLab) - it runs dozens of experiments on employees in an effort to answer questions about the best way to manage a large firm (on-boarding, diversity, pay, retirement savings & employee weight)
  28. 28. 28 An example of a data-driven experiment 1 email results in a 25% improvement in productivity Each new hire’s manager is sent a JIT on-boarding email… reminding them to do these 5 things Have a discussion on their role and responsibilities Match your new hire with a peer buddy Help your new hire build a social network Schedule onboarding check-ins once a month (6 mths) Encourage an open dialogue Result – time to minimum productive is 25% faster Source: Laszlo Bock, SVP Google
  29. 29. 29 ddHR goal # 5 Identify the highest impact actions/ solutions Project Oxygen showed actions make good managers 1. Be a good coach – have regular one on ones, and provide constructive feedback 2. Empower your team and don’t micromanage – give employees freedom and provide them with stretch assignments 3. Express interest in team members success and personal well-being – get to know employees as people, with outside lives 4. Don’t be a sissy: be productive and results- oriented – help the team prioritize work and remove roadblocks
  30. 30. 30 Let’s finish up with… more examples that cover the remaining ddHR goals
  31. 31. 31 ddHR goal # 6 It’s critical to convert HR’s results into their $ value  Last year, a revised data-driven recruiting program for salespeople was implemented  Because of the improved hiring process, newly hired salespeople now sell nearly 15% more (+ $5,100 a month or $61,000 per year)  With over 100 sales hires per year, the CFO calculated that the revenue impact exceeded $6.1 million  That amount is nearly 4X the total corporate recruiting budget and 15% of corporate revenue
  32. 32. What happened here? Hockey stick approach 32 Turnover % TimeOctober 2014 Steady turnover of 9 % Personalized retention plans were implemented 4 % turnover ddHR goal # 7 Use charts to prove that things work
  33. 33. 33 Conclusion – best practice sharing increases revenue by $250,000 a year, at a cost of $50,000, with an ROI of 4 to 1 Monthly sales Best practice sharing in sales started Sales up + 22.4% after 1 yr. of B. Practice sharing 1st Quarter $1.5 mil $1.4 mil $1.3 mil $1.2 mil $1.0 mil .02% change in sales in control group 2nd Quarter 3rd Quarter 4th Quarter Control group ddHR goal # 8 Use split samples to show programs work
  34. 34. 34 ddHR goal # 9 Calculate the added value of top performers Prioritize your top performers  The top 1% of your workforce produces what % of your total output ?  The top 5% produce  Bottom 5%... A top performer produces how much more than the average employee in the same job? - 10 times the average - 25 times more than average employee - 300 times more than the average - 1000 times more than the average GE, Netflix & Yahoo 5% Apple Google Microsoft 26% (5X) - U of Indiana study cost up to 2 ¼ X salary/ 1 day week
  35. 35. 35 ddHR goal # 10 Find out if you should give them a 2nd chance Performance management Q – what is the cost / time required to turn level 3 performers into level 1 performers? 1.The firm searched their records and they found that 2 years ago… 1,019 of their employees were rated #3, “needs improvement” 2.They calculated that they spent an average of $26,180 over those 2 years on improving their performance (training, coaching, counseling and manager time) 3. Now 2 years later they checked… the number that had improved to #1’s 4.That number was 0
  36. 36. 36 ddHR goal # 11 Integrated data allows you to “connect the dots” Don’t miss the costs of unintended consequences Pocket #1 – Froze safety training (Saved $50,000) But look at “other pocket” costs after one year… Pocket #2 – Accident rates doubled (+$400,000) Pocket #3 – Insurance rates up 23% (+$187,000) Pocket #4 – Turnover of safety ee’s +15% (+ $89,000) Other pocket costs = - $676,000 >
  37. 37. 37 ddHR goal # 12 ddHR reveals the cost of slow Last year they had only 110 vacancy days in loan officer positions at this Midwestern bank But then the COO cut the recruiting staff by 20% With fewer recruiters, it slowed hiring, so this year we had 100 more position vacancy days (210)  The CFO calculated that $5000 each day is the lost revenue when a loan officer position is vacant $5k times the 100 additional excess vacancy days equals a $500,000 loss per year The savings from the 20% recruiter cut was only $200,000 (a $300,000 net loss) OMG!
  38. 38. 38 ddHR goal # 13 Use data to influence (vs relationships) Relationships are slow to build and are quickly lost when one party leaves… so instead use data to influence managers “The best thing about using data to influence managers… is that it’s hard for them to contest it” “For most… just knowing that information… causes them to change their conduct” Source: Laszlo Bock
  39. 39. 39Source: Workday Insights Retention Analytics An example - influence managers with data by distributing ranked reports (retention flight risk)
  40. 40. 40 This is what data-driven retention looks like (Workday) Source: Workday Insights Retention Analytics Software makes decision-making easy
  41. 41. ddHR goal # 14 Improve decision-making speed (GSK) Open-office design improves decision-making speed by 45% and cuts the cost of delays / “doing nothing” 41Source: Forbes 2012
  42. 42. ddHR goal # 15 Predictive metrics alert you in time to act 42 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2014 2015 2016 2017 Yearly cost of turn will reach $10 mil Yearly cost of turn will reach $20 mil Yearly cost will reach $30 mil Yearly cost will reach $39 mil in 2017 Employee turnover projection alert (% of all employees likely to quit) The average turnover cost in our industry is $4 mil per year Our firm’s average yearly profit is only $15 mil per year
  43. 43. 43 Benchmark Google (read Work Rules) Put together an HR analytics team Hire HR pro’s with data/analytics skills Work with exec’s to prioritize HR areas Shift from historical to real-time and predictive metrics to alert Start with retention –predict who will quit Next rec. – ID factors that predict success Run a small split sample/ control group Use stats to ID what correlates with perf. Initial action steps to consider under ddHR
  44. 44. 44 My business impact elevator speech Hi I’m a productivity consultant… and I’m here to increase employee productivity and innovation to the point where it measurably increases corporate revenues by $46 million within 12 months, with a 89% success rate and a cost of under $400k. Do you care what my approach is called? 
  45. 45. Do we have time for questions? 45 Did I make you think? These slides can be found at www.drjohnsullivan.com
  • vijayrai

    Oct. 12, 2015
  • MPape23

    Apr. 23, 2015

How data-driven HR can improve… retention and recruiting

Views

Total views

1,897

On Slideshare

0

From embeds

0

Number of embeds

442

Actions

Downloads

65

Shares

0

Comments

0

Likes

2

×