People Analytics Foundation
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Teradata Summit. Melbourne and Sydney August 2016
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People Analytics Foundation
- 1. Westpac Banking Corporation ABN 33 007 457 141. PEOPLE ANALYTICS FOUNDATION TERADATA SUMMIT AUGUST 2016 DAMIEN DELLALA
- 2. About me Internet Banking eSecurity Digital Adoption Digital Strategy Digital Analytics Human Capital Analytics Sabbatical
- 3. About Westpac Group Source: Westpac Group Sustainability Performance Metrics 2015 39,700 HEADCOUNT 4,214 NEW STARTERS 95% HIGH PERFORMER RETENTION 63% FLEXIBLE WORK 13mil. CUSTOMERS MULTIPLE BRANDS & REGIONS CONSUMER | BUSINESS | WEALTH | INSTITUTIONAL | WESTPAC NEW ZEALAND CONSUMER & BUSINESS SERVICES | GROUP TECHNOLOGY | TREASURY | HR & CORPORATE AFFAIRS 50 / 50 GENDER
- 4. Global workforce trends Source: Human Capital Trends 2016 | The new organization: Different by design | Deloitte University Press Copyright © 2016 Deloitte Development LLC. All rights reserved. https://www.youtube.com/watch?v=JS7duITSEO8 (will be embedded or played)
- 5. Transacting Relationship Who they are What they need What they are doing Personalised “In the next evolution of shared services employees will be viewed as customers with a focus on providing superior employee experiences” Accenture: Consumerized Employee Services 2014:
- 6. Data has been labelled many things … • new oil… • new currency… • new gold… • new black • new bacon…
- 7. Employee Interactions: People Property Technology Data The new asset class Source: Westpac Group Annual Report 2015 $0.9b $1.7b $$$$4.6b
- 8. Acquisition HR Record Learning Health & Safety Social & Surveys Performance Retention Building blocks A S T E R 4Predictive2 Network 3 Internal Labour Market1 Path E D W ACQUISITION ONBOARD LEARN LEAVE PERFORMANCE MOBILITY ATTRITION Reporting Path and pattern Analysis Time Series Analysis Text and Sentiment Connection/ Network Analytics Predictive Modelling Statistics and Data Visualisations Insights
- 9. What is possible – path to exit team leave Exits Pre exit eventsEvents role change changed manager training on boarding large team changes Note: illustrative only
- 10. What is possible – Network Analysis Node: Employee Node size: Connectedness Colour: Cluster Line: Post replies
- 11. What we prototyped Source: Mercer - Internal Labour Market Analysis. © 2015 Internal Labour Market Analysis ®
- 12. Partner with business Why Advanced Analytics? I N I T I A T E1 I D E N T I F Y D A T A O P E R A T I O N A L I S E2 B U I L D3 4 AT T RI T I O N 50 - 200% Replacement cost of salary 2 WELLBEI NG 45% of Australians reported being stressed about work 1 NEW START ERS 4,214 Sources: 1. Australian Psychological Society. Wellbeing at Work 2014. 2. Visier Inc. ACQUISITION ONBOARD ANNUAL LEAVE PERFORMANCE ATTRITION Data sources Data Enrichment Model Build Predictive models Master Outcome Variable table Reduce / split Model1a Model 1b Model 2a…. Operationalise Review Probability score Compare, identify predictor variables Baseline Monitor
- 13. “The payoff is vast: improved workforce productivity, greater employee engagement and retention, and further cost reduction” Share prices of organisations with mature people analytics capability outpaced the S&P 500 by 30% over a three year period 3x improvement in cost reductions & efficiency gains 24% Higher net operating income growth $18.9M in savings for every $1Billion in revenue Accenture. Consumerized Employee Services 2014
- 14. 1. Think of your employees like customers 2. Treat your data like an asset - it has a return 4. Sponsorship and very close relationship with business 3. Don’t have to try and do it all yourself
Editor's Notes
- Background in Digital starting at NAB for 7 years - although wasn’t called Digital back then. 8 years at Westpac Group. Digital Adoption Programs, Digital Strategy and establishing the Digital Analytics function 1 year career break, living in Kathmandu, Nepal. Time with family, helped establish a small NGO for street kids, dirt bike riding and travelling, wife is a Nepali actress, daughter at school learning both languages When I came back, landed role in HR, awesome opportunity. Deloitte paper recommends hiring “scary” people in HR. Maybe this was me Oracle. Source: Oracle 10 Ways to Prepare Human Capital Management for a New Era of Growth : The Foundation for Modern HR in the Cloud I love data and the water – walk on Manly beach each morning with my fitbit
- 13 million customers across X5 Brands Call out the key People Metrics from the 2015 Westpac Group Sustainability Performance Metrics report Almost 40,000 headcount across 9 Business Units 63% work flexibly. Some of the ways I work flexibly are purchase additional annual leave, parental leave, career leave (as per previous slide) and flexible work patterns and mobile working.
- We heard in the opening video about the external influences that impact the Future of Work (AI, Robotics, Automation), Labour Market, STEM etc However there are internal dynamics that make workforce and people analytics complex and interesting! Organisational = Culture, Employee Value Proposition Leadership = Engagement, Retention, Acquisition Team = Productivity, Projects and Performance Human or People = Wellbeing, Career, Learning
- Our response to this is to start viewing employees like we do our customers Much like the digital strategy, moving from Transactional to Personalised to Relationship From a data perspective… Transactional Focus – what our employees are doing Transactions (Payroll, leave, promotions, resignations) Interactions (with systems and processes) like performance, talent, learning Personalised Focus – who they are Profile & demographics Career history and aspirations Behavioural Relationship Focus – what our employees and business partners need Great career and digital experiences Great service – just like customers. Aligned to Service Revolution and Workforce Revolution
- Data has been labelled many things The new currency… The new oil… The new gold… The new black… The new bacon… My favorite is “asset” and here is why – next slide
- When our people come to work, they interact with property and technology – this generates a lot of data Salaries and other staff expenses are recorded as Operational Expenses in our annual report. We invested $4.6b in 2015 or we invest 54% of our operational expenses. This is consistent with many organisations And further $0.9b in Property (Could this be the beginning of Internet of Things for the workforce?) We invest 1.7b in Technology (Systems & Processes) People are our greatest asset and we now need to begin treating data as an asset too
- So what are the building blocked we laid for the foundation? Find your data. Hunting and gathering exercise. Create a plan, share the idea and people what is in it for them. Our people data was sitting in silos and typically analysed in isolation Bring it together. We ingested numerous data source from multiple systems for the first time into EDW and Aster Model it to create the connections and relationships of the data aligned to the employee experience -. From Acquisition to Retention and everything in between. Identify and prioritise foundation use cases. From initial 8 week POV to complete the foundation program in 6 months. We have now set up a comprehensive data driven analytics strategy and program to support Workforce Revolution, a key pillar in the Group strategy
- We started with a simple use case of first year journey to establish what could be possible using the data we had available. The business case - It can range from anywhere between 50- 200% of an employees annual salary on replacement costs. Both direct and indirect. The path is a description of what happened. It can highlight focus areas for diagnostics and develop hypotheses for predictive Path analysis for employee is very similar to the digital marketing product customer lifecycle. Sources of talent (Where we advertise roles - Linkedin or agency) = is like referring traffic (e.g. SMH or Google) Steps in the Job application process (Taleo) = Is like the product origination funnel steps Hired = is like account opened On boarded = is like product being draw down You can segment your employees based on demographics, talent and performance etc etc
- We all know what an typical org structure looks like, although doesn’t show how people are connected, interact and collaborate around work. We used internal social media data from yammer to enable a very early understanding of informal networks Very quick explanation of what is shows…. Data represents: Each node is employee Size of the dot indicates how connected a user is Colour of the dot represents the cluster they belong to The line represents a user sending a message or replying to a post The in the future, clusters of employees could be linked to performance, projects and other business outcomes
- “Mercer’s proprietary Internal Labour Market (ILM) Analysis® provides a fact-based platform for making many decisions about the workforce It examines the flow of people into, through, and out of an organization and it a simple visualsation of the organisational hierarchy (could be reporting to, cost centre or even a job family framework Who is hired What advances (Internal Mobility) Who stays Cab uncover areas of high turnover, low promotions, buying in at management levels and bottlenecks in structure Can segment by demographics, performance, labour costs or anything that makes sense Can identify critical roles and forecast out if keeping hiring and exit as same rate to assist with Strategic Workforce Planning. Assess workforce gaps and surpluses and decide on buy build, or borrow talent I call it actionable FTE which is typically reported in table and rows (actual plan and variance). Headcount or FTE is the net result of hired and exits.
- Predict performance of new hire or reduce time to hire. Hilton Worldwide used data & predictive analytics with HireVue to help move away from sifting through thousands of interviews by stack ranking top candidates through data driven recommendations to find and hire their top candidates - 85% faster (6 Weeks to 6 Day) We spend a third of our lives at work, so it is crucial to our health and wellbeing that this is a positive experience. Problems at work can have an enormous impact on our mental health and wellbeing, as findings from the . Australian Psychological Society Stress and Wellbeing surveys have found in 2014. 45% of Australians reported being stressed about In 2014 Credit Suisse reduced attrition by 1% and moved 300 employees, many of whom might otherwise have left, into new positions. estimates that it saved $75 million to $100 million in rehiring and training costs HBR. September 2016 issue We partnered with the Head of Health, Safety & Wellbeing to lay the foundation of our first predictive modelling efforts We looked at various data sources to identity signal and indicators of positive and negative wellbeing Use a number of modelling techniques and methods. E.g. Regression and Decision Trees Delivered Tableau dashboards We are in the process of optimising and operationalizing the models and testing Interventions which could be strategic or policy, leader led or even personalised e.g. We are also using data from the predictive model to curate the right learning content to employees We are monitoring leave patters to see how the interventions can change outcomes
- Deloitte says The share prices of organisations with mature people analytics capability outpaced the S&P 500 by 30% over a three year period Visier says 12% greater talent outcomes 30% higher stock returns compared to S&P 500 3x improvement in realizing cost reductions & efficiency gains Oracle says: 58% Higher sales per employee 24% Higher net operating income growth $18.9M in savings for every $1Billion in revenue
- In closing, we are at really at the beginning the journey and have laid a strong foundation for the future. We know that there is so much we could do, however our focus is on delivering value to support our employees and business partners. Hope this this has provided some insights into what is possible. Think of your employees like customers Treat your data like an asset - it has a return Don’t have to try and do it all yourself, partner where it makes sense. Teradata Digital Marketing Servian Mercer Lever Sponsorship and very close relationship with business. Very important given HR’s Business Partner relationship model
- Background in Digital starting at NAB for 7 years - although wasn’t called Digital back then. 8 years at Westpac Group. Digital Adoption Programs, Digital Strategy and establishing the Digital Analytics function 1 year career break, living in Kathmandu, Nepal. Time with family, helped establish a small NGO for street kids, dirt bike riding and travelling, wife is a Nepali actress, daughter at school learning both languages When I came back, landed role in HR, awesome opportunity. Deloitte paper recommends hiring “scary” people in HR. Maybe this was me Oracle. Source: Oracle 10 Ways to Prepare Human Capital Management for a New Era of Growth : The Foundation for Modern HR in the Cloud I love data and the water – walk on Manly beach each morning with my fitbit