This document outlines an agenda for a presentation on making workforce analytics initiatives stick. The presentation covers establishing a business case for workforce analytics, common roadblocks and challenges, and strategies for ensuring initiatives have lasting impact. It recommends aligning analytics with business strategy, conducting executive-level reporting that dollarizes metrics, developing a strategic communication plan, prioritizing quick wins, and piloting programs.

1. Jameson Greiner
Director, EPM Business Development & Client Engagement
Making Workforce Analytics Stick: Pitfalls,
Challenges, and Stick-and-Stay Strategies

2. • Welcome & Introductions
• The Business Case for Workforce Analytics
• Workforce Analytics: What It Is & What It Isn’t
• Common Roadblocks, Challenges & Pitfalls
• Making It Stick
• Lessons Learned
• Discussion / Q&A
Agenda
2

3. • EPI-USE established in 1984, SAP Practice since 1994
• The EPI-USE Group is privately held and made up of a number of
separately branded entities/organizations
• Global, World-Class Services and Software Organization to large multi-
nationals
• Specialists in Human Capital Management Consulting
• “Special Expertise Partner” for SAP HR and recently established as a
Success Factors Global Partnership
• Completed over 600 HCM projects and a team of
About EPI-USE
Niche HCM Service Provider with SAP as the Core!
3

4. The Business Case For Workforce Analytics

5. Are you making decisions about your people with the same
rigor, logic and confidence as your decisions about money,
customers, products and technology?
0%
-5%
-1%
11%
4%
4%
-6% -4% -2% 0% 2% 4% 6% 8% 10% 12%
Using Reporting&
Analytics
NotUsing
Revenue
per FTE
Profit per FTE
Employee
Performance
The Case for Workforce Analytics
THE WORKFORCE MAKES UP 60-80%
OF YOUR OPERATING EXPENSES
“
“
DR. BOUDREAU, USC CENTER FOR EFFECTIVE ORGANIZATIONS
(Aberdeen, “Intelligent Human Capital Management”, 2010) 5

6. The Workforce Analytics Journey
• Reactive Information
• Focus on Accuracy
• Basic List Reports
LOW Impact
• Data Manipulation
Capabilities
• Report Automation
• Scorecards and KPI
Reporting
Growing Sophistication
• Proactive Insights
• Analytically Drives
Actions for Business
Success
• Data-Driven HR Function
HIGH Impact
Data Vision Action
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7. 0 50 100
Information is Important
Receives Sufficient Information
Executives Lack the Data Needed
to Make Investments in Talent
A Minority of CEOs Receive Comprehensive Data on Their Workforce
Percentage of CEOs Who Believe Information is Important and Sufficient for Decision-Making, PwC Survey, n=1,258
Source: PwC, 15th Annual Global CEO Survey, 2012
Percentage of CEOs
Labor costs
Return on investment
in human capital
Assessments of
internal advancement
Employees’ views
and needs
Costs of employee
turnover
Staff productivity
7

8. Workforce Analytics:
What It Is & What It Isn’t

9. A Definition of Workforce Analytics
Workforce analytics is a methodology for
creating insights on how investments in
human capital impact business outcomes.
This is done by applying statistical methods
to integrated HR, talent management,
financial, and operational data.
9

10. 10
Link Corporate Strategy to Measurable Business Impact
ACTION IMPACT
Grow 20%
Expand new markets
Cut operating costs
Improve service
Cut time to market
Innovate
Do we have the talent to
execute on our strategy?
Where are future talent gaps?
Are we maximizing new hire
investments?
In which workforce segments
does increases in voluntary
turnover present greatest risk?
Are we retaining our high
performers?
Which workforce programs have
the highest projected financial
impact?
Do we pay for high
performance?
Manager tenure
Staff turnover
Quality of hire
Pay distribution
Workforce planning
Optimize
pay distribution
Change
on-boarding
Growth
Cost reduction
Effective
leadership
Productivity
ASK THE RIGHT
QUESTIONS
INSIGHTSTRATEGY
BASE
ANSWERS ON
FACTS VS. GUT
FEELINGS
KNOW THE
IMPACT OF YOUR ACTIONS
CHALLENGES
1. What business
outcomes are we
trying to impact?
2. What are the
human capital drivers
of these outcomes?
3. What is our current
state compared to the
optimal state?
4. What talent
strategies drive
these outcomes?

11. A Simple Definition of the Terrain
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Value/Impact
Reactive Proactive
Strategic
Reporting: WHAT is
happening with our
workforce today?
Workforce
Analytics: WHY are
those trends occurring?
Workforce
Planning: HOW
should we respond
today to build the
workforce needed for
the future?

12. Which phase of the Workforce Analytics Maturity
Model best describes your organization?
1. Workforce Reporting
2. Workforce Analytics
3. Workforce Planning
Discussion Question #1: Show of hands…
12

13. Roadblocks, Challenges, & Pitfalls

14. Do We Have A Workforce Analytics Strategy?
14
“There's no reason to become alarmed, and we hope
you'll enjoy the rest of your flight. By the way, is there
anyone on board who knows how to fly a plane?”

15. Common Year 1 Roadblocks
Selecting KPIs aligned
with strategy
Standard
metrics
definitions
Data
quality and
credibility
Center of
excellence
Generating
actionable
insight
Without standard
definitions for
metrics, there is
misunderstanding
and inconsistency.
Both external
(industry) and
internally.
Without reduces or
invalidates the
value of the
results.
Data discussions
are more focused
on source of
inputs, formulas,
and calculations
rather than results.
Differences
between systems
(e.g., Finance
headcount vs.
HRIS).
Provides the
foundation for
consistent
reporting and
analytics.
Delivers insights
of strategic impact
to the business.
Just measuring
and reporting data
is not enough.
Data needs to be
communicated
effectively to
generate action.
Provide solutions
not problems.
Must be aligned
with HR or
corporate strategy.
If not, KPI’s
unlikely to be
valued by the
business.
15

16. Turnover of key leader or analytics team member
Lack of dedicated resources
HR lacks analytics skills & culture
Difficulty measuring business impact
Workforce data not reaching executives
Common Year 3 Challenges
16

17. What is the biggest challenge your organization has
encountered in your workforce reporting, workforce
analytics, or workforce planning efforts?
Discussion Question #2
17

18. Making It Stick

19. Best Practices for Making It Stick
Alignment
with
Business
Strategy
Executive Level
Reporting
Dollarize
Reporting
Strategy
Communication
Plan
Quick Wins
Pilot Program
19

20. Strategic Alignment:
Prioritize Workforce and Business Issues For Analysis
A Top-Down Approach A Bottom-Up Approach
• Branding and advertising
• Improve customer satisfaction
• Improve employee satisfaction
• Improve service delivery
• Access new markets
• Voluntary Termination Rate
• Employee Retention Index
• Managerial Quality Index
• Training Hours/FTE
Corporate
Strategy
Business
Drivers
Human
Capital
Metrics
Functional
Strategy
Increase Market Share
Customer
Retention
Customer
Acquisition
Requests for Data Analysis
Request: Investigate company age profile
Reason: Anticipated spike in retirements by 2015
Business Case: Increased costs
Loss of knowledge
Staffing shortages
Summary: High Priority
Request: Generate headcount reports for 5 largest
business units
Reason: Concern over discrepancies between HR
and Finance headcounts
Business Case:?
Summary: Low Priority
20

21. The “Right” Set Of Metrics for Executive Reporting
Group #1: Core Workforce Facts:
– Headcount/FTE
– Terminations
– Diversity, by Gender and Ethnic Background
– Workforce Age Profile
Group #2: Financial Workforce Metrics:
– Operating Revenue per FTE
– Operating Profit per FTE
– Return on Human Capital Investment Ratio
– Cost of Turnover
Group #3: Productivity and Performance:
– Workforce Productivity (Measured in outputs relevant to the specific firm)
– Workforce Availability/Absenteeism
– Executive Compensation/Pay Comparison
Group #4: Talent Development and Succession:
– Leadership Quality (Current and Bench)
– Staffing Rate – High Performers
– Staffing Rate – High Potentials
Group #5: Human Capital Risk:
– Succession Risk (Absence of Ready-Now Successors)
– Staffing Shortages in Critical Roles
– Current vs. Future Competency Gaps
– Churn (hires vs. terminations) Rates
– Knowledge & Transition Risk (of an aging workforce)
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22. • Cost of Turnover = Average Salary x # of Exiting Employees
• Multipliers (e.g., High Performer Multiplier = 1.5 x regular employees)
• Building The Case (e.g., Headcount Spend as a % of Revenue)
• Calculators: COT, COH, ROI
• Back Of The Envelope Calculations (e.g., Average Salary of Employee in X Job
Role x # of Hours Spent On X Project)
• Training ROI = Productivity Gains – Productivity Losses
Money Talks: Quantify and Dollarize
22

23. Reporting Strategy
Annual Strategy Kick-Off
• Analyze key outcomes from prior year
• Communicate strategic initiatives and plans for current year
• Suggest metrics and data analysis used to measure success of each initiative
• Present updated workforce plans
Monthly HR Strategy Review
• Present results and analysis of workforce
KPIs
• Identify emerging issues to investigate
Quarterly Senior MGMT Meeting
• Review human capital scorecard
• Suggest themes and metrics for Board
meeting and external communication
• Provide overview of external labor market
trends impacting current workforce
23

24. Build a Communication and Feedback Plan
Format for Delivery
(Presentations, email or portal)
Timing
(Quarterly, monthly or
ad-hoc)
Audience
(HR, business lines or
executives)
Message
(Content, rationale or
preferred action)
Communication
Planning
24

25. Analysis of your organization’s Strengths, Weaknesses, Opportunities, and Threats will
help identify quick wins and prioritize resources towards problem areas.
Identify Quick Wins
• Leadership support
• End-user receptivity to dataStrengths
• HRBPs lack analytical skills
• Poor quality dataWeaknesses
• No workforce plan exists
• High-cost of call center t/oOpportunities
• Cannot demonstrate ROI
• Data analysts leaveThreats
Include in Mission
Statement
Top Priorities:
Training & Data
Quality Review
Complete Phase
One Review by
End of 2013
Include ROI in all
Analyses; Build
Pipeline
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26. 2013 Research Agenda
• In the last four years, has workforce
productivity increased, decreased or
remained the same?
• How will increased retention affect our
cost of turnover and cost of hiring over
time?
• What is the depth and quality of the
successor pool for key positions?
• What recruiting sources provide the
highest performing employees?
• Other strategically aligned questions for
analytic investigation
Pilot Program
Step 1: Identify business leader or
champion to partner with
Step 2: Initial debrief session to identify
top 1-3 business challenges
Step 3: Analytic investigation
Step 4: Executive Briefing with key
findings and recommended action
Step 5: Action plan and ongoing
monitoring
Step 6: Communicate success
Get Creative
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27. Lessons Learned

28. A Different Approach:
100 Critical Human Capital Questions
Workforce Demographics and Diversity
What is our ratio of customer-facing or revenue-generating staff to back-office staff? In the last five years has
it increased, decreased or remained the same?
Workforce Productivity
Is the ROI on Human Capital higher than the ROI on working capital, invested capital or plant and equipment?
Workforce Health and Safety
What is the dollar cost impact of short- and long-term disability absences and claims?
Workforce Relations and Satisfaction
What percentage of our employees are fully engaged and are “doing their best work” at all times? How does
this vary across functions and lines of business?
Workforce Turnover and Mobility
What percentage of our workforce moves internally each year between lines of business or functional areas?
Workforce Planning
What is the magnitude of competency “gaps’ between needed and actual capabilities?
Staffing and Recruiting
Do our new hires continually increase the overall quality and productivity of our workforce?
Workforce Compensation and Benefits
Based on our workforce demographic, could we be offering a benefits packages that is both more attractive
and less expensive than the current offerings?
Workforce Training and Development
How have leadership development programs impacted productivity, profitability or employee satisfaction?
HR Function
What is the ROI of our daily HR activities?
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29. Answer Questions Important to the Business
Human Capital Question
Essential for
Measuring…
Example Related
Metrics
What is our revenue and profit per
employee?
…the financial impact of workforce
performance
Operating Profit per FTE or Return
on Human Investment Ratio
What percentage of our employees are
fully engaged and are “doing their best
work” at all times?
…employees’ emotional
commitment to the firm
Employee Engagement Index or
Voluntary Turnover Rate
What percentage of our workforce will
retire in the next year or next five
years?
…the risk of staffing shortages
Staff Rate: Approaching Retirement
Eligibility
What percentage of our workforce
moves internally each year between
lines of business or functional areas?
…career-path effectiveness
Career Path Ratio or Internal
Mobility Rate
What is our voluntary turnover rate
among top performers and what is the
cost to the business?
…the bottom-line impact of losing
“stars”
Cost of Turnover or Quality of Hire
Which recruiting sources provide the
highest performing employees?
…the ROI of talent acquisition
Staff Rate: High Performers by
Recruitment Source
What is the percent increase in
employee performance as a result of
every one percent increase in pay?
…the link between compensation
and performance
Performance Based Pay
Differentials or Unscheduled
Absence Rate
29

30. Example of a KPI Framework
Maximise Return
on Assets
Business Drivers
Workforce
Implications
Improved Quality
of Service
Market Expansion
Become a
Preferred Employer
Workforce
Availability
X% Unscheduled Absence Rate
Retention Rate of High
Performers
Workforce
Productivity
Workforce
Capability
Customer
Focused
Return on Human Investment
Ratio
Engaged
Employees
People Management Initiatives
Management Performance
Performance Management
Employee Relations
Flexible Working Options
Employee Satisfaction Survey
results
Managerial Performance Rating
Distribution
% uptake of Flexible Options
KPIs
30

31. Exercise
Become a
Preferred Employer
Business Drivers
Workforce
Implications
Market Expansion
Workforce
Capability
Engaged
Employees
People Management Initiatives KPIs
31
Customer
Focused

32. Critical Decision Points for Metric Success
Data-DrivenMomentum
Time
Data producers
and consumers
are identified
and “trained”
Data utilization
begins
Supporting HR staff
job roles are redefined
to incorporate data
usage
HR leaders use data as
part of decision-
making processes
Stakeholders &
champions are
unsure of the
program’s purpose Data producers are
bogged down by
low-value data
mining
Quick wins are not
capitalized upon
Skeptics point to
the lack of ROI
metrics
Data producers are
supported with training
and development
opportunities
32

33. • Strategic Alignment: What are the Metrics that best answer the questions that
drive the business?
• 3M’s: Measure, Monitor, Manage
• 3R’s: Re-evaluate, Rebrand, Relaunch
• Executive Level Reporting
Key Takeaways
33
Does Your Workforce Analytics Program
Incorporate The Following?

34. Facilitated Discussion
34

35. Questions
35

36. 1. Can you describe how your organization currently conducts workforce reporting
& analytics? For example, what workforce reporting & analytics activities does
your HR team perform? What metrics are currently tracked?
2. Who conducts these activities? A Center of Excellence? HRIS staff? HR
Business Partners?
3. To what extent are these activities meeting your needs for the utilization of data
and metrics?
4. What are 2-3 decisions you need to make to improve your workforce
reporting/analytics activities?
5. For what talent management topic is there the biggest opportunities for WFA?
Turnover? Learning? Career-Pathing
6. Are you doing Benchmarking? Internal vs. external?
Key Consideration Questions: WFA & Reporting
© 2013 EPI-USE America, Inc. All Rights Reserved. 36

37. Jameson Greiner
Director, EPM Business Development & Client Engagement
Mobile: 678.978.4147
Email: jameson.greiner@us.epiuse.com
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