Way before anyone began using the term BIG to describe data, Human Resources professionals had been using HR Metrics. So why is Big Data such a Big Deal? In this session, we will discuss HR Metrics, Big Data and HR Analytics.
We’ll uncover the real reasons you really need HR Analytics and dissect a few myths that could be holding you back from making the shift. We will then take a tactical approach diving into some practical tips and best practices on how you can get your organization up and running with HR analytics.
A storytelling session, exemplified through data, will cover everything from a talent strategy overhaul, to implementing emerging technologies, and how to tenaciously keep shaking things up - even when things don't go as planned.
Practical tips to start using predictive HR analytics in your organization.
Creating a distinction between HR Metrics, Big Data and Analytics.
Big Data progression and how this can affect your department.
The Future of HR: From Metrics to Analytics [Webcast]
1. www.cut-e.com
From HR Metrics to Predictive Analytics
Craig Haas, PhD
cut-e USA Inc.
345 Park Avenue, 17th Floor
c/o Enterprise Ireland
NY, NY 10154
Mobile: +1-347-210-3811
Craig.Haas@cut-e.com
www.cut-e.com
3. www.cut-e.com
cut-e: global talent assessment
30+ Offices Worldwide
Assessments in 40+ Languages
12 Million Candidates per year
Assessments in 70+ Countries
Talent Assessment Talent Development Talent Management Talent Advisory
#HireToWin
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What is Big Data?
Structured Data Unstructured Data
Massive volumes of structured and/or unstructured data that we
collect through different channels and forms.
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Sources of Big Data in General
Also:
- Emails/texts
- Credit card
records
- CCTV
- Public transport
In HR, there has
been an explosion
of centralized
Talent Data now
available thanks to
HR Systems (ATS,
HRIS, LMS, etc.)
9. www.cut-e.com
Does your organization's HR department use metrics to
keep track of how HR contributes to business objectives?
39%
53%
8%
0%
10%
20%
30%
40%
50%
60%
Yes No Not sure
SHRM.org Survey of 357 Randomly Selected HR Pros
SHRM Survey Says…
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Myths (Excuses) Against Metrics
“You can’t measure what we do…”
Lack of clear purpose for measuring
Lack of cooperation between departments
Difficulty extracting data from multiple systems
Difficulty understanding and analyzing metrics
Numbers used to draw inaccurate conclusions
#HireToWin
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Importance of HR Metrics
Feedback is required for continuous learning
Accountability ‘What gets measured gets done’
Quantify the value of HR
Guide workforce strategies
Maximize HR’s return on investments
Show what HR contributes to business results
Make the business case for HR’s objectives
#HireToWin
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Does your organization use metrics/measurements to
keep track of the following? (Check all that apply.)
6%
13%
24%
29%
29%
29%
36%
45%
50%
61%
63%
0% 10% 20% 30% 40% 50% 60% 70%
Other
Training return on investment
Turnover costs
Time to fill
Promotions
Cost per hire
Retention rate
Absenteeism
Turnover rate
Cost of benefits
Health care costs per employee
SHRM.org Survey of 357 Randomly Selected HR Pros
SHRM Survey Says…
#HireToWin
14. www.cut-e.com
Typical Approach w/ Metrics
Choose a
core HR
Processes
to Track
Monitor with
Metrics
Show HR’s
Performance
Is this a good approach? Why or why not?
#HireToWin
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Formula:
The number of business days to fill a vacant
position. This is counted from the day the
position becomes vacant to the date a new
employee starts in the job.
Purpose:
Time to Hire shows length of time it takes to fill
vacant positions.
This metric is an indicator of organization's ability
to recruit and hire new employees.
Time to Fill?
#HireToWin
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Pros – What are some benefits of it?
Cons - What are some problems with it?
Examples
Any one have a Pro/Con example?
Here are two examples
Time to Fill?
#HireToWin
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Levels of HR Metrics
HR Metric
Levels
Recruiting Metric Examples
Impact Date Needed - Date opening must be filled to
prevent loss of revenue generation
Results – Potential Gain/Loss in revenue if
opening is/isn’t filled by date needed
Effectiveness
Quality of Hire Rating (90-days later)
Efficiency Time to fill – # of days from posting of job
until hired person starts
Activities Number of people hired last quarter
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Predictive Analytics uses statistics to help firms
address problems and make talent decisions.
While ~50% of companies are using Online
Assessments…just 14% of HR organizations in
the U.S are using predictive analytics to make
talent decisions.*
Most HR organizations have been slow to adopt
analytics – too slow, in fact, in the minds of
many impatient business leaders.
* Bersin by Deloitte’s study (2013)
What Are Predictive Analytics
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Can be used to Help Your Internal
clients’ solve critical problems and
answer burning questions
It is not a complex as it seems…
Predictive Analytics
#HireToWin
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Select a Column or Row: Left click on very top of
column (or far left end of row) and it will
highlight the whole column (or row).
Average Formula: = average(A1, A2, A3)
Correlation Formula: =CORREL(array1, array2)
Note: an Array is any column (or a row) you select.
Formulas can be copied/pasted but you want to use
‘$’ to lock down certain columns.
Excel Tips
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Online Application &
Qualifying Q’s (via ATS)
Online Assessments
(via ATS)
Phone/Video
Interview
Interviews
& ACs
Hire
Predictive Analytics to
Maximize ROI of Recruiting
#HireToWin
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Simple Reporting
Microsoft Excel (or equivalent)
Reports
Tables
Bar Graphs
Pie Charts
Scatter Plots
Warning:
Do not show your internal client a big
Excel file spread sheet with lots of data!
#HireToWin
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Execs Like Dashboards !
If you can visually present in an intuitive way the
impact that multiple variables have on a key
outcome, you will more easily make your point to
the Executive Leadership Team.
Remember they are accustom to looking at
Dashboards for the business.
MS Office or equivalent are fine…..there are also
some really “Geeky Cool” Data Visualization tools
available these days.
#HireToWin
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New Sales Goal Achievement
An Excel Bar Graph
Percentage of New Sales Target Achievement
High match score candidates achieved 98% of their sales target
Moderate match score candidates achieved 63% of their sales target
Low match score candidates only achieved 32% of their sales target
0%
20%
40%
60%
80%
100%
High Match Score Group Moderate Match Score
Group
Low Match Score Group
(averaged over 6 months)
High Match Moderate Match Low Match
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Closed Sales From Referrals
An Excel Pie Chart
Number of New Sales from Salesperson’s Registered Referral
Sources
High match score candidates closed 63% of all the referrals sales
Moderate match score candidates closed 32% of all the referral sales
Low match score candidates only closed 5% of all the referral sales
5%
32%
63%
Low Match Score Group
Moderate Match Score Group
High Match Score Group
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Difference in Tenure
PPT Special Font for Emphasis
The average tenure for both High
and Moderate match score
candidates was at least
that of the Low match score
candidates#HireToWin
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Get Started Now – Easy Steps
Find a leader with a problem
Persuade him/her to let you use analytics to help solve it
Figure out what metrics/outcomes may be relevant
predictors & then collect the data
Create a combined score (regression formula) that
predicts the desired outcome
Initiate the intervention based on what you have learned
and measure change of performance over time
44. www.cut-e.com
HR Analytics Team Wanted
Find a business leader who is willing to partner on an
analytics project to solve a problem (e.g. reducing turnover
or accidents)
Create a project team (e.g. borrow talent from other
departments, leverage the local Univ. or a supplier)
Get a small win and then promote its success
Repeat above process a few times to collect some small
wins and build credibility with business leaders
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Ask for resources to build an analytics team
Process must be owned by Executives,
Managers, HR, Finance, and IT
Review org strategy, objectives and then
discuss the leadership’s burning questions
about talent?
Select a problem or question to address
Figure out what data be used to predict it
Once You’ve Proven It Works
#HireToWin
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Questions? Let’s Chat…
Feel free to contact me to chat
about HR Metrics, Predictive
Analytics, etc.
I love networking with other HR
Pros and talking about this.
Let’s connect via LinkedIn
www.linkedin.com/in/craighaas
Craig Haas, PhD
cut-e USA Inc.
Mobile: +1-347-210-3811
Craig.Haas@cut-e.com
www.cut-e.com