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• State of the Market
Josh Bersin
Principal and Founder
Bersin by Deloitte
October, 2015
People Analytics
State of the Market
The Geeks have arrived … but are we really there yet?
Copyright © 2015 Deloitte Development LLC. All rights reserved.3 People Analytics: State of the Market – Josh Bersin
People Analytics: State of the Market
1. People Analytics is even more important than we thought.
2. The market will grow exponentially, but we are still in the early days.
3. Companies still don’t understand what this “IS” and what it “ISNT”
4. Data Management remains the biggest barrier.
5. Modelling is valuable, but implementing the model is key.
6. Tools and platforms are here, but still no Unicorns or Gorillas.
7. Geeks will rule this world, but not by themselves.
8. Humans have become the “internet of things” and open feedback has arrived
9. Your middle name will become “security and anonymity”
10. It’s still early days, we have to work together.
Ten Things I’ve Learned
Copyright © 2015 Deloitte Development LLC. All rights reserved.4 People Analytics: State of the Market – Josh Bersin
Culture and engagement
Leadership gaps
Learning and development
HR Skills and capability
87%
86%
86%
80%
% VERY IMPORTANT
50%
51%
40%
39%
35%
34%
29%
26%
20%
14%
Top Business and HR Trends
Deloitte Human Capital Trends- Culture is #1
Workforce capability
Performance management
HR and people analytics
Simplifying work
Machines as talent
People data everywhere
71%
57%
52%
80%
75%
75%
#1. People Analytics is even more important than we thought.
Copyright © 2015 Deloitte Development LLC. All rights reserved.5 People Analytics: State of the Market – Josh Bersin Copyright © 2015 Deloitte Development LLC. All rights reserved.5 Global Human Capital Trends 2015
Barriers
between
work
and life
dissolve
Talent
in high
demand
Millennials
make up
50% of workforce
Global
transparency
in job
market
Copyright © 2015 Deloitte Development LLC. All rights reserved.6 People Analytics: State of the Market – Josh Bersin
Transparency is here
Companies are swimming naked
60% of HR and business leaders do not
have an adequate program to measure and
improve engagement.
Only 12% have a program in place to define
and improve culture.
Only 7% rate themselves excellent and
driving and improving retention
Copyright © 2015 Deloitte Development LLC. All rights reserved.7 People Analytics: State of the Market – Josh Bersin
Average
3.1
What are these
companies
doing??
Glassdoor Data
Employee engagement: it’s not easy.
Copyright © 2015 Deloitte Development LLC. All rights reserved.8 People Analytics: State of the Market – Josh Bersin
Exploding role of culture
“Culture” is the New Black
<5% of candidates value
compensation over
culture
95% of candidates
believe culture is more
important than
compensation
Copyright © 2015 Deloitte Development LLC. All rights reserved.9 People Analytics: State of the Market – Josh Bersin
Culture, Value, Leadership, and Career (The Big Four)
The issues that matter to employees
0.00
0.12
0.13
0.22
0.28
0.30
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35
Year founded (age)
Compensation & benefits
Work life balance
Career opportunities
Senior leadership
Culture and values
Correlation of Employment Factors to Glassdoor Recommendations as Place to Work
Culture and leadership are 3X more
important than salary in your
employment brand.
Career development and learning
are almost 2X more important than
work environment.
Copyright © 2015 Deloitte Development LLC. All rights reserved.10 People Analytics: State of the Market – Josh Bersin
HR and people analytics
We appear to be stuck in neutral
No major year-
over-year improvement
in analytics capabilities
Yet, 31% have
increased staff, and
19% are buying new
tools.
of
respondents
rate analytics
important.. but
only 8% are
“strong”
75%
#2. The market will grow exponentially, but we are still in the early days.
Copyright © 2015 Deloitte Development LLC. All rights reserved.11 People Analytics: State of the Market – Josh Bersin
People Analytics
Exponential growth starts slow
Maybe we
are about
here
Copyright © 2015 Deloitte Development LLC. All rights reserved.12 People Analytics: State of the Market – Josh Bersin
There is historic precedent for this market.
In 1900 Taylor demonstrated the first
“data driven” approach to steel
manufacturing, driving output from 7
to 50 bars per day.
Copyright © 2015 Deloitte Development LLC. All rights reserved.13 People Analytics: State of the Market – Josh Bersin
Then we realized people were capable of learning
Personality matters
“Worker Selection”
In 1920s Jung realized that “how
people think” and how they interact
with other creates engagement,
performance, and happiness.
Resulting in MBTI.
Copyright © 2015 Deloitte Development LLC. All rights reserved.14 People Analytics: State of the Market – Josh Bersin
WW1: Testing Goes Mainstream
Copyright © 2015 Deloitte Development LLC. All rights reserved.15 People Analytics: State of the Market – Josh Bersin
1930s Hawthorne Studies
Copyright © 2015 Deloitte Development LLC. All rights reserved.16 People Analytics: State of the Market – Josh Bersin
1950s Assessment Centers
Copyright © 2015 Deloitte Development LLC. All rights reserved.17 People Analytics: State of the Market – Josh Bersin
1960s-70s HR Data Warehouse
Copyright © 2015 Deloitte Development LLC. All rights reserved.18 People Analytics: State of the Market – Josh Bersin
1970s-80s ATS Parses Candidate Data
Copyright © 2015 Deloitte Development LLC. All rights reserved.19 People Analytics: State of the Market – Josh Bersin
2000s: Big Data meets Talent Management
Copyright © 2015 Deloitte Development LLC. All rights reserved.20 People Analytics: State of the Market – Josh Bersin
Today: Instrument Everyone and Everything!
Location
Location
Travel
HeartrateLocation
Heartrate
Biology
Location
Team
Mates
Location
Emails
Phone calls
Today: Instrument Everything
Copyright © 2015 Deloitte Development LLC. All rights reserved.21 People Analytics: State of the Market – Josh Bersin
Learning from History of Business Analytics
Logistics &
Purchasing
Financial &
Budgeting
ERP &
Supply Chain
Finance & ERP
Customer Analytics
(Data Warehouse)
Customer
Segmentation
Market Basket
Web Buying
Behavior
Consumer & CRM
Recruiting
Learning
Performance
Talent Mgt
Workforce
Planning
Predictive
Models for
Talent / HR
Talent, Leadership, HR
v
Industrial Economy Financial Economy Customer Economy and Web Talent Economy
Early 1900s 1950s–60s 1970s–80s Today
Steel, Oil, Railroads Conglomerates,
Financial Engineering
Customer Segmentation,
Personalized Products
Globalization, Demographics
Skills and Leadership Shortages
Copyright © 2015 Deloitte Development LLC. All rights reserved.22 People Analytics: State of the Market – Josh Bersin
The context of people analytics has changed
Recruiting &
Workforce
Planning
Comp and
Benefits,
Rewards
Performance
Succession
Engagement
Learning &
Leadership
HRMS
Employee
Data
Engagement &
Assessment
+
Sales Revenue
Productivity
Customer
Retention
Product Mix
Accidents,
Errors, and Fraud
Quality
Downtime
Losses
Groundbreaking new insights and tools for
managers to make better decisions (not HR)
Data management, Analytics, IT,
and Business Consulting Expertise
+
=
This is NOT HR ANALYTICS!@
#3 Companies still don’t understand what this “IS” and what it “ISNT”.
Location,
Travel,
Meeting Time
Organizational
Network Analysis
Sentiment, Heart
rate, Voice
+
Copyright © 2015 Deloitte Development LLC. All rights reserved.23 People Analytics: State of the Market – Josh Bersin
Bersin Talent Analytics Maturity Model
4%
Level 4: Predictive Analytics
• Development of predictive models, scenario planning
• Risk analysis, integration with workforce planning
10%
Level 3: Advanced Analytics
• Segmentation, statistical analysis, development of “people models”
• Analysis of dimensions to understand cause, correlation, dimension
30%
Level 2: Proactive—Advanced Reporting
• Operational reporting for benchmarking and decision-making
• Multi-dimensional analysis and dashboards, data dictionary
56%
Level 1: Reactive—Operational Reporting
• Ad-Hoc operational reporting, lots of running around
• Reactive to business demands, data in isolation and difficult to analyze
#4. Data Management remains the biggest barrier.
Copyright © 2015 Deloitte Development LLC. All rights reserved.24 People Analytics: State of the Market – Josh Bersin
The Difficult Tipping Point
Level 2
Strategic Reporting
Level 3
Advanced Analytics
Level 4
Predictive Analytics
Level 1
Operational Reporting
Level of Effort
Level of Value
Choke point for many
organizations
Copyright © 2015 Deloitte Development LLC. All rights reserved.25 People Analytics: State of the Market – Josh Bersin
The Ugly Part
Visual
Dashboards
Advanced
Analytics
Predictive
Models
Data
Integration
Data
Dictionary
Data
Quality
Time and
Seasonality
Big Data
Tools
Data Governance
Ownership
Reporting
Tools
Disparate
Systems
Visual
Skills
Stats and
Data Skills
The Ugly Side: Data Management
Copyright © 2015 Deloitte Development LLC. All rights reserved.26 People Analytics: State of the Market – Josh Bersin
Today, the 14% of HR Organizations believe they “regularly use data to make talent and
HR strategy decisions” are:
Despite the challenge, the investment pays off…
2X
as likely to believe
they are excellent
at selecting
the right
candidates
2X
as likely to believe
they are delivering
a strong
leadership
pipeline
Generating
30%
higher stock
returns than the
S&P 500 over the
last three years
3X
as likely to believe
they are efficiently
operating HR
Bersin by Deloitte High-Impact Talent Analytics® 2014
Copyright © 2015 Deloitte Development LLC. All rights reserved.27 People Analytics: State of the Market – Josh Bersin
Models can change thinking
Reporting
“What’s happening?”
Analysis
“What’s going on?”
Predictive
“What is likely to happen?”
Prescriptive
“What should we do?”
Product quality
Success behaviors
Retention risk
Sales productivity
Career development
Compliance risk
Future skills gaps
Toxic employees
Fraud
Leadership assignments
Career success
Leadership pipeline
Engagement
Comp strategy
Coaching
Customer Service
Grievances
Learner satisfaction
Headcount
Performance
Ratings
Absence
Turnover
Leadership gaps
Comp budget
Spans and layers
Training compliance
Training compliance
Skills levels
Skills levels
Spans and layers
Engagement
Diversity
Demographics
Development plans
Candidate pool
Prehire assmts
Source quality
Time to fill
Compliance risk
Retention
Leadership gaps
Exit interviews
Mobility
Career progression
Compa ratio
HR Op costs
Service delivery
L&D spending
Unplanned absence
Quality of hire
Leadership pipeline
Skills gaps
L&D waste
Retirement projections
Accident rates
Candidate pools
Cost to hire
Engagement
Advertising
#5. Modelling is valuable, but implementing the model is key
Copyright © 2015 Deloitte Development LLC. All rights reserved.28 People Analytics: State of the Market – Josh Bersin
What Will Reduce Fraud?
Copyright © 2015 Deloitte Development LLC. All rights reserved.29 People Analytics: State of the Market – Josh Bersin
How Do We Improve Client Retention
Copyright © 2015 Deloitte Development LLC. All rights reserved.30 People Analytics: State of the Market – Josh Bersin
How Do We Develop Leaders in China?
Copyright © 2015 Deloitte Development LLC. All rights reserved.31 People Analytics: State of the Market – Josh Bersin
How to Manage Unplanned Absences?
Copyright © 2015 Deloitte Development LLC. All rights reserved.32 People Analytics: State of the Market – Josh Bersin
Where Should Bankers Spend their Time?
Copyright © 2015 Deloitte Development LLC. All rights reserved.33 People Analytics: State of the Market – Josh Bersin
Will platform vendors take over?
#6. Tools and platforms are here, but no Unicorns or Gorillas yet
Clearly Created Data Definitions, Standards, and Validation
Database, Data Store, Hadoop, Analytics Technology, Cloud Services
Clean, Organized Data Flow and Harmonized Processes
Embedded Analytics Tools, Easy to Visualize, User Security
Sophisticated Modeling, Statistics, Mathematics
Many Clients to Learn From, Test, and Validate Models
Engineering Team, Data Scientists, Strong IT Skills1
2
3
4
5
6
7
Copyright © 2015 Deloitte Development LLC. All rights reserved.34 People Analytics: State of the Market – Josh Bersin 34
Not yet, but buyers: BEWARE!
We are
here
Copyright © 2015 Deloitte Development LLC. All rights reserved.35 People Analytics: State of the Market – Josh Bersin
The role of consultants
Consultants are badly needed.
Copyright © 2015 Deloitte Development LLC. All rights reserved.36 People Analytics: State of the Market – Josh Bersin
The Multi-Disciplinary Team – a New COE
Connected
To IT
Connected
to Finance and
Operations
Connected
to Executives
Connected to
External
Data
Know the
business
well
Consultant
with
business
Statistical
rigor
Good with
numbers
Understand
data
privacy
Visual
storytelling
Strong data
management
Process
oriented
The People
Analytics
Team
#7. Geeks will rule this world, but not by themselves
Copyright © 2015 Deloitte Development LLC. All rights reserved.37 People Analytics: State of the Market – Josh Bersin
VP Human Capital
Analytics
Director
Org Diagnostics &
Design
Sr. Consultant ODD
Program Manager
Director
Workforce
Analytics &
Research
Manager
Workforce
Planning
Sr. WFA Analyst
Manager
Employee Research
Analyst Employee
Research
Manager
Learning Analytics
Consultant
Learning
Measurement
Analyst
Learning Analytics
Consultants
Business
Operations
Retailer
Evolution of the Function
VP Comp
and Benefits
Copyright © 2015 Deloitte Development LLC. All rights reserved.38 People Analytics: State of the Market – Josh Bersin
Years 5-6
Advanced Statistics & Social Research Acumen;
Engineering Degree;
Customer Research Background; Statistics & Data Mining
Critical Thinking;
Story Telling; Data Visualization;
Ability to see data, and decipher insights
Years 3-4
Business Acumen; HR, Finance, Economics Degree;
Quantitative Research Design & Analysis
Passion for Data & Analytics; Strong Technical skills
Consulting & Presentation Skills;
Analytical Curiosity; Problem Solving;
Collaborative; Teamwork; Networking Skills
Years 1-2
Solid Understanding of HR; I/O Psychology Degree;
Employee Research Background;
Qualitative Research Design & Analysis; HRIS; SPSS
Strong Communication & Interpersonal Skills;
Detail Oriented ; Project Management
The Evolution of Data Skills and Competencies
Large Retailer
A Journey of Expertise Development
Copyright © 2015 Deloitte Development LLC. All rights reserved.39 People Analytics: State of the Market – Josh Bersin
New types of data, new ways of analyzing it
#8. Humans have become the “internet of things” and open feedback has arrived
Text Analysis | Sentiment Analysis | Organizational Network Analysis | Feedback Systems
Copyright © 2015 Deloitte Development LLC. All rights reserved.40 People Analytics: State of the Market – Josh Bersin
Email monitoring: employers own this data
And the market gets “creepier”
“Big Data Doesn’t Mean ‘Big Brother’”, Conference Board, September, 2015
Monitor your
email
metadata
“Analysis of email and Outlook calendar data showed
that managers of high-performing teams spent twice as
much time as other managers coaching their
employees. Their internal and external social networks
were 50% broader, and their sales were 31% higher.
#9. Data security, reliability, and anonymity will become your job
Copyright © 2015 Deloitte Development LLC. All rights reserved.41 People Analytics: State of the Market – Josh Bersin
Are people getting spooked? Yes.
“63% of employees lack confidence that their employer is
keeping data about them private…
…and 72% believe their companies are not telling them what
data they are collecting.”
“Big Data Doesn’t Mean ‘Big Brother’”, Conference Board, September, 2015
Copyright © 2015 Deloitte Development LLC. All rights reserved.42 People Analytics: State of the Market – Josh Bersin
Do you have the security you need? Probably not.
#10.
This is still early days.
Let’s all work together.
Thank you.. .. and thanks to HiQ for bringing us together.

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People Analytics: State of the Market - Top Ten List

  • 1. • State of the Market Josh Bersin Principal and Founder Bersin by Deloitte October, 2015 People Analytics State of the Market
  • 2. The Geeks have arrived … but are we really there yet?
  • 3. Copyright © 2015 Deloitte Development LLC. All rights reserved.3 People Analytics: State of the Market – Josh Bersin People Analytics: State of the Market 1. People Analytics is even more important than we thought. 2. The market will grow exponentially, but we are still in the early days. 3. Companies still don’t understand what this “IS” and what it “ISNT” 4. Data Management remains the biggest barrier. 5. Modelling is valuable, but implementing the model is key. 6. Tools and platforms are here, but still no Unicorns or Gorillas. 7. Geeks will rule this world, but not by themselves. 8. Humans have become the “internet of things” and open feedback has arrived 9. Your middle name will become “security and anonymity” 10. It’s still early days, we have to work together. Ten Things I’ve Learned
  • 4. Copyright © 2015 Deloitte Development LLC. All rights reserved.4 People Analytics: State of the Market – Josh Bersin Culture and engagement Leadership gaps Learning and development HR Skills and capability 87% 86% 86% 80% % VERY IMPORTANT 50% 51% 40% 39% 35% 34% 29% 26% 20% 14% Top Business and HR Trends Deloitte Human Capital Trends- Culture is #1 Workforce capability Performance management HR and people analytics Simplifying work Machines as talent People data everywhere 71% 57% 52% 80% 75% 75% #1. People Analytics is even more important than we thought.
  • 5. Copyright © 2015 Deloitte Development LLC. All rights reserved.5 People Analytics: State of the Market – Josh Bersin Copyright © 2015 Deloitte Development LLC. All rights reserved.5 Global Human Capital Trends 2015 Barriers between work and life dissolve Talent in high demand Millennials make up 50% of workforce Global transparency in job market
  • 6. Copyright © 2015 Deloitte Development LLC. All rights reserved.6 People Analytics: State of the Market – Josh Bersin Transparency is here Companies are swimming naked 60% of HR and business leaders do not have an adequate program to measure and improve engagement. Only 12% have a program in place to define and improve culture. Only 7% rate themselves excellent and driving and improving retention
  • 7. Copyright © 2015 Deloitte Development LLC. All rights reserved.7 People Analytics: State of the Market – Josh Bersin Average 3.1 What are these companies doing?? Glassdoor Data Employee engagement: it’s not easy.
  • 8. Copyright © 2015 Deloitte Development LLC. All rights reserved.8 People Analytics: State of the Market – Josh Bersin Exploding role of culture “Culture” is the New Black <5% of candidates value compensation over culture 95% of candidates believe culture is more important than compensation
  • 9. Copyright © 2015 Deloitte Development LLC. All rights reserved.9 People Analytics: State of the Market – Josh Bersin Culture, Value, Leadership, and Career (The Big Four) The issues that matter to employees 0.00 0.12 0.13 0.22 0.28 0.30 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 Year founded (age) Compensation & benefits Work life balance Career opportunities Senior leadership Culture and values Correlation of Employment Factors to Glassdoor Recommendations as Place to Work Culture and leadership are 3X more important than salary in your employment brand. Career development and learning are almost 2X more important than work environment.
  • 10. Copyright © 2015 Deloitte Development LLC. All rights reserved.10 People Analytics: State of the Market – Josh Bersin HR and people analytics We appear to be stuck in neutral No major year- over-year improvement in analytics capabilities Yet, 31% have increased staff, and 19% are buying new tools. of respondents rate analytics important.. but only 8% are “strong” 75% #2. The market will grow exponentially, but we are still in the early days.
  • 11. Copyright © 2015 Deloitte Development LLC. All rights reserved.11 People Analytics: State of the Market – Josh Bersin People Analytics Exponential growth starts slow Maybe we are about here
  • 12. Copyright © 2015 Deloitte Development LLC. All rights reserved.12 People Analytics: State of the Market – Josh Bersin There is historic precedent for this market. In 1900 Taylor demonstrated the first “data driven” approach to steel manufacturing, driving output from 7 to 50 bars per day.
  • 13. Copyright © 2015 Deloitte Development LLC. All rights reserved.13 People Analytics: State of the Market – Josh Bersin Then we realized people were capable of learning Personality matters “Worker Selection” In 1920s Jung realized that “how people think” and how they interact with other creates engagement, performance, and happiness. Resulting in MBTI.
  • 14. Copyright © 2015 Deloitte Development LLC. All rights reserved.14 People Analytics: State of the Market – Josh Bersin WW1: Testing Goes Mainstream
  • 15. Copyright © 2015 Deloitte Development LLC. All rights reserved.15 People Analytics: State of the Market – Josh Bersin 1930s Hawthorne Studies
  • 16. Copyright © 2015 Deloitte Development LLC. All rights reserved.16 People Analytics: State of the Market – Josh Bersin 1950s Assessment Centers
  • 17. Copyright © 2015 Deloitte Development LLC. All rights reserved.17 People Analytics: State of the Market – Josh Bersin 1960s-70s HR Data Warehouse
  • 18. Copyright © 2015 Deloitte Development LLC. All rights reserved.18 People Analytics: State of the Market – Josh Bersin 1970s-80s ATS Parses Candidate Data
  • 19. Copyright © 2015 Deloitte Development LLC. All rights reserved.19 People Analytics: State of the Market – Josh Bersin 2000s: Big Data meets Talent Management
  • 20. Copyright © 2015 Deloitte Development LLC. All rights reserved.20 People Analytics: State of the Market – Josh Bersin Today: Instrument Everyone and Everything! Location Location Travel HeartrateLocation Heartrate Biology Location Team Mates Location Emails Phone calls Today: Instrument Everything
  • 21. Copyright © 2015 Deloitte Development LLC. All rights reserved.21 People Analytics: State of the Market – Josh Bersin Learning from History of Business Analytics Logistics & Purchasing Financial & Budgeting ERP & Supply Chain Finance & ERP Customer Analytics (Data Warehouse) Customer Segmentation Market Basket Web Buying Behavior Consumer & CRM Recruiting Learning Performance Talent Mgt Workforce Planning Predictive Models for Talent / HR Talent, Leadership, HR v Industrial Economy Financial Economy Customer Economy and Web Talent Economy Early 1900s 1950s–60s 1970s–80s Today Steel, Oil, Railroads Conglomerates, Financial Engineering Customer Segmentation, Personalized Products Globalization, Demographics Skills and Leadership Shortages
  • 22. Copyright © 2015 Deloitte Development LLC. All rights reserved.22 People Analytics: State of the Market – Josh Bersin The context of people analytics has changed Recruiting & Workforce Planning Comp and Benefits, Rewards Performance Succession Engagement Learning & Leadership HRMS Employee Data Engagement & Assessment + Sales Revenue Productivity Customer Retention Product Mix Accidents, Errors, and Fraud Quality Downtime Losses Groundbreaking new insights and tools for managers to make better decisions (not HR) Data management, Analytics, IT, and Business Consulting Expertise + = This is NOT HR ANALYTICS!@ #3 Companies still don’t understand what this “IS” and what it “ISNT”. Location, Travel, Meeting Time Organizational Network Analysis Sentiment, Heart rate, Voice +
  • 23. Copyright © 2015 Deloitte Development LLC. All rights reserved.23 People Analytics: State of the Market – Josh Bersin Bersin Talent Analytics Maturity Model 4% Level 4: Predictive Analytics • Development of predictive models, scenario planning • Risk analysis, integration with workforce planning 10% Level 3: Advanced Analytics • Segmentation, statistical analysis, development of “people models” • Analysis of dimensions to understand cause, correlation, dimension 30% Level 2: Proactive—Advanced Reporting • Operational reporting for benchmarking and decision-making • Multi-dimensional analysis and dashboards, data dictionary 56% Level 1: Reactive—Operational Reporting • Ad-Hoc operational reporting, lots of running around • Reactive to business demands, data in isolation and difficult to analyze #4. Data Management remains the biggest barrier.
  • 24. Copyright © 2015 Deloitte Development LLC. All rights reserved.24 People Analytics: State of the Market – Josh Bersin The Difficult Tipping Point Level 2 Strategic Reporting Level 3 Advanced Analytics Level 4 Predictive Analytics Level 1 Operational Reporting Level of Effort Level of Value Choke point for many organizations
  • 25. Copyright © 2015 Deloitte Development LLC. All rights reserved.25 People Analytics: State of the Market – Josh Bersin The Ugly Part Visual Dashboards Advanced Analytics Predictive Models Data Integration Data Dictionary Data Quality Time and Seasonality Big Data Tools Data Governance Ownership Reporting Tools Disparate Systems Visual Skills Stats and Data Skills The Ugly Side: Data Management
  • 26. Copyright © 2015 Deloitte Development LLC. All rights reserved.26 People Analytics: State of the Market – Josh Bersin Today, the 14% of HR Organizations believe they “regularly use data to make talent and HR strategy decisions” are: Despite the challenge, the investment pays off… 2X as likely to believe they are excellent at selecting the right candidates 2X as likely to believe they are delivering a strong leadership pipeline Generating 30% higher stock returns than the S&P 500 over the last three years 3X as likely to believe they are efficiently operating HR Bersin by Deloitte High-Impact Talent Analytics® 2014
  • 27. Copyright © 2015 Deloitte Development LLC. All rights reserved.27 People Analytics: State of the Market – Josh Bersin Models can change thinking Reporting “What’s happening?” Analysis “What’s going on?” Predictive “What is likely to happen?” Prescriptive “What should we do?” Product quality Success behaviors Retention risk Sales productivity Career development Compliance risk Future skills gaps Toxic employees Fraud Leadership assignments Career success Leadership pipeline Engagement Comp strategy Coaching Customer Service Grievances Learner satisfaction Headcount Performance Ratings Absence Turnover Leadership gaps Comp budget Spans and layers Training compliance Training compliance Skills levels Skills levels Spans and layers Engagement Diversity Demographics Development plans Candidate pool Prehire assmts Source quality Time to fill Compliance risk Retention Leadership gaps Exit interviews Mobility Career progression Compa ratio HR Op costs Service delivery L&D spending Unplanned absence Quality of hire Leadership pipeline Skills gaps L&D waste Retirement projections Accident rates Candidate pools Cost to hire Engagement Advertising #5. Modelling is valuable, but implementing the model is key
  • 28. Copyright © 2015 Deloitte Development LLC. All rights reserved.28 People Analytics: State of the Market – Josh Bersin What Will Reduce Fraud?
  • 29. Copyright © 2015 Deloitte Development LLC. All rights reserved.29 People Analytics: State of the Market – Josh Bersin How Do We Improve Client Retention
  • 30. Copyright © 2015 Deloitte Development LLC. All rights reserved.30 People Analytics: State of the Market – Josh Bersin How Do We Develop Leaders in China?
  • 31. Copyright © 2015 Deloitte Development LLC. All rights reserved.31 People Analytics: State of the Market – Josh Bersin How to Manage Unplanned Absences?
  • 32. Copyright © 2015 Deloitte Development LLC. All rights reserved.32 People Analytics: State of the Market – Josh Bersin Where Should Bankers Spend their Time?
  • 33. Copyright © 2015 Deloitte Development LLC. All rights reserved.33 People Analytics: State of the Market – Josh Bersin Will platform vendors take over? #6. Tools and platforms are here, but no Unicorns or Gorillas yet Clearly Created Data Definitions, Standards, and Validation Database, Data Store, Hadoop, Analytics Technology, Cloud Services Clean, Organized Data Flow and Harmonized Processes Embedded Analytics Tools, Easy to Visualize, User Security Sophisticated Modeling, Statistics, Mathematics Many Clients to Learn From, Test, and Validate Models Engineering Team, Data Scientists, Strong IT Skills1 2 3 4 5 6 7
  • 34. Copyright © 2015 Deloitte Development LLC. All rights reserved.34 People Analytics: State of the Market – Josh Bersin 34 Not yet, but buyers: BEWARE! We are here
  • 35. Copyright © 2015 Deloitte Development LLC. All rights reserved.35 People Analytics: State of the Market – Josh Bersin The role of consultants Consultants are badly needed.
  • 36. Copyright © 2015 Deloitte Development LLC. All rights reserved.36 People Analytics: State of the Market – Josh Bersin The Multi-Disciplinary Team – a New COE Connected To IT Connected to Finance and Operations Connected to Executives Connected to External Data Know the business well Consultant with business Statistical rigor Good with numbers Understand data privacy Visual storytelling Strong data management Process oriented The People Analytics Team #7. Geeks will rule this world, but not by themselves
  • 37. Copyright © 2015 Deloitte Development LLC. All rights reserved.37 People Analytics: State of the Market – Josh Bersin VP Human Capital Analytics Director Org Diagnostics & Design Sr. Consultant ODD Program Manager Director Workforce Analytics & Research Manager Workforce Planning Sr. WFA Analyst Manager Employee Research Analyst Employee Research Manager Learning Analytics Consultant Learning Measurement Analyst Learning Analytics Consultants Business Operations Retailer Evolution of the Function VP Comp and Benefits
  • 38. Copyright © 2015 Deloitte Development LLC. All rights reserved.38 People Analytics: State of the Market – Josh Bersin Years 5-6 Advanced Statistics & Social Research Acumen; Engineering Degree; Customer Research Background; Statistics & Data Mining Critical Thinking; Story Telling; Data Visualization; Ability to see data, and decipher insights Years 3-4 Business Acumen; HR, Finance, Economics Degree; Quantitative Research Design & Analysis Passion for Data & Analytics; Strong Technical skills Consulting & Presentation Skills; Analytical Curiosity; Problem Solving; Collaborative; Teamwork; Networking Skills Years 1-2 Solid Understanding of HR; I/O Psychology Degree; Employee Research Background; Qualitative Research Design & Analysis; HRIS; SPSS Strong Communication & Interpersonal Skills; Detail Oriented ; Project Management The Evolution of Data Skills and Competencies Large Retailer A Journey of Expertise Development
  • 39. Copyright © 2015 Deloitte Development LLC. All rights reserved.39 People Analytics: State of the Market – Josh Bersin New types of data, new ways of analyzing it #8. Humans have become the “internet of things” and open feedback has arrived Text Analysis | Sentiment Analysis | Organizational Network Analysis | Feedback Systems
  • 40. Copyright © 2015 Deloitte Development LLC. All rights reserved.40 People Analytics: State of the Market – Josh Bersin Email monitoring: employers own this data And the market gets “creepier” “Big Data Doesn’t Mean ‘Big Brother’”, Conference Board, September, 2015 Monitor your email metadata “Analysis of email and Outlook calendar data showed that managers of high-performing teams spent twice as much time as other managers coaching their employees. Their internal and external social networks were 50% broader, and their sales were 31% higher. #9. Data security, reliability, and anonymity will become your job
  • 41. Copyright © 2015 Deloitte Development LLC. All rights reserved.41 People Analytics: State of the Market – Josh Bersin Are people getting spooked? Yes. “63% of employees lack confidence that their employer is keeping data about them private… …and 72% believe their companies are not telling them what data they are collecting.” “Big Data Doesn’t Mean ‘Big Brother’”, Conference Board, September, 2015
  • 42. Copyright © 2015 Deloitte Development LLC. All rights reserved.42 People Analytics: State of the Market – Josh Bersin Do you have the security you need? Probably not.
  • 43. #10. This is still early days. Let’s all work together. Thank you.. .. and thanks to HiQ for bringing us together.

Editor's Notes

  1. (c) Bersin and Associates
  2. 10 human capital trends for 2015 Percentage of respondents who say the topic is “important” or “urgent”   1.      Culture and engagement – Create meaningful work  (87%) 2.       Leadership – Develop global leaders at all levels (86) 3.       L&D – Reinvent the learning experience (86) 4.       On-demand workforce  – Engage all workers (80) 5.       Reskilling HR – Align HR with business goals (80) 6.       Performance management – Shift from evaluators to coaches (75) 7.       People analytics – Need long-term commitment (75) 8.       Simplifying work – Focus on what matters (71) 9.       Machines as talent – Look for opportunities  (57) 10. People data – Leverage inside and outside data (52)  
  3. Today’s global organizations must navigate a “new world of work” that has turned traditional assumptions about talent management upside down. In this new world, the barriers between work and life have been all but eliminated. Talent is in high demand, and many organizations cannot keep up. Millennials will soon make up 50 percent of the workforce—and they have different values than previous generations do. From a macroeconomic perspective, the world has entered a period of stronger economic growth.
  4. The findings Data and analytics are key to solving many of the top challenges we identify in these trends: engagement, leadership, learning, and recruitment. Still too few organizations are actively implementing people analytics capabilities to address complex business and talent needs. Three in four companies (75 percent) believe using people analytics is important, but just 8 percent believe their organizations are “strong” in this area—almost no change over 2014.   Why is this? Leading companies are using analytics to gain a competitive advantage by understanding all elements of the workforce, including to: Understand and predict retention Boost employee engagement Expand talent sources and improve quality of hires Profile high performers in sales and customer service Yet, our survey confirms that most organizations have been slow to get started, showing very little progress in implementing analytics. In fact, this year’s study shows that there has been little year-over-year improvement in analytics capabilities. What’s needed? People analytics, a capability built over years, is one of the biggest differentiating factors for high-performing HR organizations today. Without early, substantial investments, it is difficult to get traction. Companies must therefore make a serious commitment to this discipline, search for robust solutions from their core system vendors, and hire people into HR who have an interest and background in analytics and statistics.
  5. In the last 1800s a mechanical engineer by the name of Fredrick Taylor started the datafication of HR. He applied scientific principles to the business of making steel, and performed what are now called “time and motion studies.” By carefully measuring what workers did, he found that laborers who carried typical pigiron billets which were 75 pounds each were less productive overall than those who carried billets which were 45 pounds. Why? Because the ones carrying the heavier loads had to rest more and ultimately produced less work. His book, which you can download and read for free, is a fascinating scientific look at the data behind work. Not only did Taylor unlock many secrets to labor productivity, but he also started to understand that people don’t only work for money, but also for psychological reasons – giving early birth to the industry now known as Industrial and Organizational Psychology. So the origins of using data in HR started more than 110 years ago.
  6. In the early 1900’s when Sigmund Freud was unlocking the secrets of our ego and id, a brilliant psychologist by the name of Carl Jung, who was a friend of Freud, figured out that psychology had a big impact on work. Jung, who is now credited with the original thinking behind many of the tools we use to assess people, came up with the idea of “social intelligence” – the fact that we actually are all a little different and the way we interact with others can be measured and used to help improve the workplace. Jung created the concept of “types” of people, which was later turned into the MBTI or Myers Briggs assesment in the 1940s – now the most widely used personality assessment in the world. Which is basically a data driven decision-making tool. At the same time a psychologist by the name of Hugo Munsterburg, who is credited with starting the field of I/O psychology, studied the performance of trolly car operators in Philadelphia and actually created a simulated trolly car to study performance. He learned that selection of people was among the most important things testing could do – and set in place an enormous industry of data collection using testing and assessment. Hugo Munsterberg publishes Psychology and Industrial Efficiency (1913) Worker Selection – The Trolly Car Drivers
  7. The real explosion of testing started in world war 1, when the US army came up with a test called the “alpha test.” The idea of the “alpha” was to see whether a typical rural young soldier, who may not have been taught to read or write or use math, could learn to shoot a gun. The alpha test was a simple IQ test and was used to help decide who made it into battle. More than a million young men were tested and this set off a huge data collection process which then moved into business.
  8. Of course this approach to testing then made it into the busienss world and starting in the 1950s companies started many types of testing and data collection about people. The old “in box test,” which may wife actually took when she got promoted at Pacific Bell, was intended to see how well you could handle the workload of executive or management life. These tests were numerically coded and statistics were used to figure out how well you could manage as a leader. In the early days these tests and the pre hire testing data was stored in notebooks and analyzed by analysts. But then in the 1960s something big happened: computers.
  9. The birth of the mainframe computer set off a new era of data science in HR. In fact the first application of the mainframe was the US census, which in some ways is an HR data science project. Within ten years of the birth of mainframes, companies like IBM, ADP, Tesseract, Integral, and later many others started to process payroll records and then store employee data in the computer. Which soon led to huge databases about people. Nobody was using the data very strategically at that time (except for the Army and a few leading companies) but soon the testing industry, which was evolving on its own, started to develop the concepts of a “pre-hire assessment.” In 1978 when I graduated from Cornell I interviewed at Procter and Gamble as well as at the US Navy Nuclear Program and took a battery of such tests. In both cases I felt like I had been through a very rigorous evaluation. So the data collection process in HR got even more advanced and then in the early 1980s another innovation occurred: the emergence of the applicant tracking system.
  10. Originally applicant tracking systems were used to store the deluge of resumes which appeared on fax machines, but soon these software companies realized they could scan the data and actually score candidates. SO here again, data about people become even more valuable. We had no idea that these simple systems would later become as powerful as they are today – and this evolution, which started only 25 years or so ago, created the enormous market for pre-hire assessment data, leadership assessment data, testing data, and other forms of people-related data. The academic world exploded with research and during the 1970s and 1980s and beyond we built an entire industry of psychologists trained in advanced testing and statistics.
  11. One final point. There is an unrefutable history that every business process goes through a 10-15 years maturity of becoming “datafied” once it becomes strategic to the business. IN the 1970s and 1980s supply chain and integrated financials become strategic and companies spent billions of dollars building ERP systems and financial and manufacturing analytics systems which are now widely used around the world. In the 1980s and 1990s a similar transition took place in marketing, customer relationship management, and now advertising. These business functions now are very data-driven and we have tools and service providers (and an industry of experts) that know how to collect, manage, and analyze data about customers, buyers, and advertising. Today, with talent as the #1 priority on the minds of CEO’s, the same pressure is being applied to HR. So in my mind the trend is inevitable.
  12. Our research showed that the hardest part of this process is levels 1 and 2: aggregating, cleaning, and rationalizing data so we have business and HR data in one place.
  13. We just completed two years of research in this area and found that yes, a small number of HR organizations (14% in fact) are well ahead of the curve and have effectively “datafied” their operation. These unique companies are seeing tremendous improvements in business performance: they are two times better at recruiting, twice as capable of building the right leadership pipeline, their HR organizations are typically 3X more efficient, and their stock prices rose 30% higher than the average of the S&P 500 over the last three years. The question one has to ask is who are these companies and how did they get here?
  14. Let me start with a little history, to try to explain why the topic of data science is so fundamental to HR itself.