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Analytics: HR's Next Big Idea
1. Analytics: HR’s Next Big Idea
The ROI of Human Capital
Presented by:
Dr. Jac Fitz-enz Jeff Quinn
Founder & CEO Senior Director of Research
Human Capital Source Monster.com
Sponsored By:
June 16, 2010
2. TODAY’S OBJECTIVE
Discover the New Model of Human Capital
Management and How it Drives Organizational
Management (and Profitability)
20. • Enterprise Holdings, through its subsidiaries, owns and operates more than
1 million cars and trucks, the largest fleet of passenger vehicles in the
world today, under the Alamo Rent A Car, Enterprise Rent-A-Car and
National Car Rental brands.
• The company is run by chairman and CEO Andrew Taylor, whose father,
Jack Taylor, founded the Enterprise Rent-A-Car in 1957 on the simple
philosophy. "Take care of your customers and employees first, and profits
will follow."
• Enterprise’s business model is a direct result of Jack Taylor's simple, but
powerful, belief and of how that belief relates to customer satisfaction,
employee development, fleet growth, and profitability.
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21. Enterprise Business Situation
1. Approached Monster to help in the decision process of where
to locate a new customer contact center
2. Enterprise had considered dozens of various locations, and
believed that by using Monster’s real-time labor market
information, it could help determine the most effective city to
locate the new contact center
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23. 1. Identify business need and capabilities required
Monster proposed a multi-pronged analytical framework that included the
following steps, which can be applied to any business situation that involves
staff site selection
Analytical Framework:
• Projected occupational growth
• Typical candidate profiles for this occupation
• Sector-specific information that impacts hiring (e.g., increased outsourcing,
technology advances, generational makeup of the workforce, etc.)
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24. 2. Develop a short list of possible site locations
Qualitative and quantitative factors will be analyzed:
A short list of locations can also be created by identifying quantitative factors
for each location and then sorting a large list of locations on those factors
QUALITATIVE Factors Include: QUANTITATIVE Factors Include:
• The location of current company facilities/offices • Unemployment rate
• Locations that provide the company with a • Payroll change
competitive or business development advantage
• Rate of economic growth
• Ease and/or cost of site location
• Concentration of desired occupations in
• Company culture fit with a location each market
• Infrastructure (e.g., universities, public • Typical annual salary of desired occupation
transportation, commercial real-estate, airports)
• Local business and economic development
incentives
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25. 3. Evaluate the Talent Pool
After 3-6 locations have been selected for consideration, the first step is to evaluate
and compare the talent pool across locations.
Supply:
• Calculate the talent density
• Compare a national and local job search index
• Understand the talent profile for each location
Demand:
• Evaluate posting trends
• Calculate the Talent Demand Index for each occupation
• looking at supply versus demand for each of the markets
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26. 4. Analyze the economic situation
The following should be included in each market summary:
• Unemployment and payroll trends
• Major industries and employers of the region
• Rate of economic growth or decline in the market
• Basic demographics of the workforce
• Economic incentives for companies to locate in the region
• Cost of facilities/office space in the market
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27. 5. Identify the competition
Evaluate potential competitors in various ways:
• Use job posting trends to identify your close competitors’ presence
and recruitment activities in each location being considered
• Identify which industries hire the most for the occupation your
company will recruit
• Identify and profile top companies in each location being considered
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29. 1. Identifying The Business Need | Where do we start
10,000
Calls/Day
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30. 2. Develop List of Site Locations | Client selected (4) sites
Market A
Market B
Market C
Market D
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31. 2. Develop List of Site Locations | Picking the Location
Top 5 Job Seeker Locations within Customer Service, %
Change in Resumes
Ft. Myers-Naples 69%
Colorado Springs-Pueblo 63%
Orlando-Daytona Bch-Melbrn 29%
Mobile-Pensacola (Ft Walt) 26%
New Orleans 26%
0% 10% 20% 30% 40% 50% 60% 70% 80%
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32. 3. Evaluating the Supply & Demand | Supply
Market A
Source: Monster internal data
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33. 3. Evaluating the Supply & Demand | Supply
Locations with the Highest Resumes per
Posting within Customer Service & Call Center
• Monster ranked over 200 markets Top 20 U.S. Markets Rank
based upon the number of resumes Waco-Temple-Bryan, TX 1
Flint-Saginaw-Bay City, MI 2
per job posting Toledo, OH 3
Detroit, MI 4
• Additional analyses was conducted on Tallahassee-Thomasville, FL 5
South Bend-Elkhart, IN 6
the top 20 locations with the highest Huntsville-Decatur (Florence), AL 7
resumes per job posting within Wichita-Hutchinson Plus, KS 8
Atlanta, GA 9
customer service and call centers Shreveport, LA 10
Greenville-N.Bern-Washngtn, NC 11
Columbia, SC 12
Jackson, MS 13
Colorado Springs-Pueblo, CO 14
Charlotte, NC 15
Augusta, GA 16
Florence-Myrtle Beach, SC 17
Evansville, IN 18
Savannah, GA 19
Omaha, NE 20
Source: Monster internal data, 2007
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34. Market A
3. Evaluating the Supply
& Demand | Demand
Market A
Market (A) Analysis
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35. 4. Economic Conditions | Call Center Employment
• As an industry, dedicated call
centers had experienced a
dip in employment over the
past 10 years
• By the end of 2004, there
were approximately 2.1
million customer service
representatives employed in
the U.S. which was 1.5% of
the overall workforce.
• Projected employment growth
between 2004 and 2014 for
the customer service
occupation was 23 percent,
greater than the average of
all occupations
Source: Call Center Employment, 1997-2007 (source: BLS.gov)
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36. 4. Economic Conditions | Payroll and Unemployment
Market A metropolitan area
jobless rate had decreased to 4.7
percent in May (2007), down from
5.1 percent a year earlier
Payroll in Market A grew 1.1 percent
year over year in May (2007), slower
than the U.S. as a whole
Source: BLS.gov
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37. 5. Competition | Who are the players
1. Monster identified companies who had existing call centers or were in the
process of opening up such facilities within the considered markets
a. For example, the Market E and Market F markets (within 50 miles of the Market
D location under consideration) had become home to over 200 new customer
service centers
2. The competition and cost for talent in these markets were much higher
than in other markets and was a key influencer in Enterprise’s final
decision
3. The favorable competitive situation in Market A, combined with many other
factors, provided support for the recommendation that the client select
Market A as the location for its new customer service center
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38. In summary . . .
• Enterprise selected Market A for its contact center
• Enterprise chose Market A for several reasons, including strong labor supply relative to demand
• Enterprise also found Market A to be a good site for the contact center because of its
proximity to a university, which provides for a consistent source of educated and skilled
employees who are flexible with their schedules and in need of part-time opportunities
“The workforce here is great," said a local contact center director, "We're so lucky to be in a city
where we have access to a skilled, educated workforce.”
The Contact center began taking calls for Enterprise in April 2008. Employees at the new center now handle more than
10,000 reservations and customer service calls a day for Enterprise, National and Alamo
The performance of the contact center has been outstanding, with high customer resolution rates and high employee
and customer satisfaction. The care and diligence Enterprise exercised in analyzing all of the factors during the process
of selecting a site for its new contact center led to a successful site implementation and a desirable business outcome
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39. Thank You & Questions
FREE Resource Center: www.humancapitalsource.com
Papers: Workforce and Succession Planning
Leadership - Retention - Outsourcing
Predictive Management - Rebranding HR
Metrics and Analytics Cases (FutureThought series)
Commentaries and Blogs
Books: 12 on HR Strategy and Measurement
May 2010: The New HR Analytics
source@netgate.net
408 223 7750
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