This document discusses how companies can use performance management data to drive strategic decisions. It explains that combining HR data like performance ratings with other corporate data from finance, sales, customer surveys, and social media can provide valuable insights. This combined analysis can help understand relationships between high performance and employee engagement, customer satisfaction, financial performance, and more. The document urges companies to ensure they have performance systems that can export clean data and link to HR systems to facilitate such combined analytics. While few HR departments currently have strong analytics capabilities, it is an area that will grow in importance.

1. Using performance
management data to drive
strategic decisions and
company performance
CIPD HR Software Show
June 2013
Marc Bishop & Stuart Hearn

2. Today we will…
• Step back & understand the enormity of data
• Put it into an HR and performance context
• Give you some insight with regard to how other
companies use data
• Look at how to store your performance data

3. Data…we are bombarded by it
Data
Emails
Search
Social
Media
A staggering 204
million emails are sent,
two million Google
searches made and
100,000 tweets are
posted, every minute
of every day across
the globe.

4. This provides opportunity
• By understanding broader business requirements and
asking the right questions, HR teams can start to collect
data that can show the impact of people policies and
investment on the business.
• And by analysing data appropriately HR will be able to
predict future people needs and design and develop the
right interventions before there is a problem.

5. I don’t mean this…. (we can’t predict the future!)

6. Building the picture
• Typical sources of HR data:
Human Resource
Information Systems (HRIS)
– standard HR or employee
details such as age, gender,
job, function.
Reward data -
base salary,
bonus/commission earned.
Performance and talent
information – performance
and potential rating,
objectives set and achieved,
behavioural and
competency measurement.

7. Simple Performance Management analysis
• Typical examples of traditional performance
management analysis:
– Understanding the distribution of high & poor performers
– Establishing links between PM & Reward, for example
what % of the bonus pool or pay bill do your highest
performers receive?
– Some organisations may try to understand if a specific
gender, age group or ethnic background perform differently
• All of this is achievable by linking typical HR data
sources and analysing them to provide insight

8. Examples of performance data analysis
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Wow Great Good Nearly There Poor
NoofEmployees
%ofTotalRewardSpend
Employee Rating Distribution Vs. Reward Spend
Reward Spend Employee Count

9. Look at other Corporate data
• But what happens when you also combine HR data with
other sources of corporate data?
Finance, Sales & CRM Employee Engagement Survey
Social MediaCustomer Survey

10. Combining data will help you understand
• How engaged your high performers are > Link between PM & employee
engagement data
• Whether line managers’ perception of high performance correlates with
that of your customers > Link between PM & customer satisfaction data
• Are your departments with the highest performance ratings those
delivering the most bottom line profit? > Link between PM and finance /
sales data
• Will the analysis of candidate response patterns and job board
performance help me understand which job boards yield the best
performing candidates? > Link between job board performance & new
employee PM data
• How well networked are your high performers & does the network
sustain high performance? > Link between PM data & social media data

11. Example of combined data analysis
£0
£200
£400
£600
£800
£1,000
£1,200
0
10
20
30
40
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Wow Great Good Nearly There Poor
Sales-£
NoofEmployees
Employee Ratings Vs. Sales Achievement
Sales -£ per person Employee Count

12. Don’t be surprised by what you find
Recent research from Leadership IQ has discovered that
in 42% of organisations, low performers are actually more
engaged than high performers. It seems bizarre to believe
that your least productive performers are the most
engaged!

13. Managing your performance data
• You will need a performance
system!
• Your system will need to be able
to export raw data into CSV/Excel
• Hold relevant HR data within your
performance system:
– Organisation units
– Demographic data
• Ensure a simple and robust link
from your HR to your
performance system

14. So what?
• There is no question that HR will start to
advocate analytics in the coming years. Just as
marketing, finance, and supply chain functions
now rely heavily on analytics, so will HR.
• It will become an invaluable source of insight
which will continue you to support the business
and add value.

15. But are you ready?
• Research by Deloitte shows that only 6% of HR
departments believe they are "excellent" in
analytics and more than 60% feel they are poor
or behind.
• So that’s the challenge!
• And don’t forget.. ‘correlation does not imply
causation.’

16. For more information, contact
Marc Bishop | marc@plusHR.com
Stuart Hearn | stuart@plusHR.com