A Quarterly Research eBook on HR Strategy and Analytics

1. A Quarterly Research eBook on HR Strategy and Analytics
Talent Acquisition
Learning and Development
Management and Leadership
Pulse
Talent
Research n #HCIresearchHCI

2. About HCI Talent Pulse Research
Talent Pulse from the Human Capital Institute (HCI) is a quarterly research e-book that explores the latest trends
and challenges in managing talent. The following HCI disciplines are annually examined:
n HR Strategy Analytics
n Talent Acquisition
n Learning Development
n Management Leadership
Statistically rigorous, expert data analysis is conducted and supplemented with in-depth thought leader
interviews. Each quarter, a new report is released in conjunction with one of the four HCI disciplines. Topics
for each quarter’s analysis are determined by survey responses of HR and business professionals. This report
focuses on the Patient Protection and Affordable Care Act, HR data analytics and workplace agility.
Talent Pulse is designed to provide practitioners and decision makers with prescriptive methods to rehabilitate the
health and wellness of human capital, and empower employees and leaders to effectively address future challenges.
Key Takeaways:
n HR Leaders are not worried about Patient Protection and Affordable Care Act (PPACA) implementation
despite popular press coverage of the unfavorability of the law. Is it too soon to gauge the impact? What will
the rollout 2018 bring (e.g., the “Cadillac Tax”)?
n Two-thirds of business leaders are not satisfied with HR analytics capabilities, yet they are not requesting
more sophisticated analyses or taking measures to implement them. Do business leaders need more of an
education in talent analytics than HR does?
n Smaller organizations report being significantly more agile, flexible and adaptable than larger
organizations. Can agile talent and processes penetrate large organizations or will agile talent and
innovation ultimately reside in small firms?
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
Find your pulse, find your power.
Copyright © 2014 Human Capital Institute. All rights reserved.

3. Research Partner
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
Founded in 1997, Saba (NASDAQ: SABA ) is the premier global provider of strategic human capital
management (HCM) software and services. Saba’s people management solutions are used by more than
1,300 organizations and over 17 million end users worldwide. Saba’s solutions increase organizational
performance by aligning workforce goals with organizational strategy; developing, managing and
rewarding their people; and improving collaboration.
Saba product offerings address all aspects of strategic HCM and are available both on-premise and
OnDemand. To ensure long-term customer success, our global services capabilities and partnerships
provide strategic consulting, comprehensive implementation services and ongoing worldwide support.

4. Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
Research Methodology
HCI surveyed 358 individuals who ranged from individual contributor to C-level positions at their organization.
The majority of respondents are North American (88 percent) and work within the Human Resources (62 percent),
executive management (12 percent) or recruiting function (10 percent). Of the job titles of participants, 54 percent
are at the director level or above.
n Less than 100
n 101-499
n 500-999
n 1,000-2,499
n 2,500-4,999
n 5,000-7,499
n 7,500-9,999
n 10,000-19,999
n More than 20,000
Figure 1: Number of Employees (n=355)
20.5%
14.3%
9.3%
11.0%
12.6%
2.5%
2.5%
8.7%
18.5%
n Less than $10 million
n $10-50 million
n $50-100 million
n $100-500 million
n $500-750 million
n $750 million-$1 billion
n $1-10 billion
n $10-50 billion
n $50-100 billion
n More than $100 billion
19.8%
13.2%
14.9% 8.3%
3.0%
4.0%
5.9%
3.6%
20.1%
7.3%
Figure 2: Revenue 2013 (n=302)

5. Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
Research Methodology
We interviewed 15 thought leaders and conducted secondary research which included white papers, articles,
books, interviews and case studies. Among the practitioners and thought leaders interviewed for this report:
n Pooja Anand, Workforce Strategy Lead of Talent
Acquisition–US/Americas at Siemens Corporation
n Mike Brown, Senior Director of Talent Acquisition–
US/Americas at Siemens Corporation
n Donald Currier, Senior Business Analyst HR
Strategy at Experian
n Erika Duncan, Vice President of Human Resources
at Metro Health
n Marlene Ferris, Director of Organization Development
at Connecticut Children’s Medical Center
n Tina James, Human Resource Generalist at High
Liner Foods
n Dan Lapporte, Senior Manager of HR Information
Management Reporting and Analytics at Kaiser
Permanente
n Lisa Maronski, Director of Global Talent
Management at John Hancock/Manulife
n Sandi Moletteri, Senior Director of Human
Resources at Arcadia Solutions
n Todd Noebel, Director of Hiring and Professional
Development at the Institute for Humane Studies
and Mercatus Center at George Mason University
n Paula Radloff, Vice President of Human Resources
Direct to Consumer at Nike
n Jude Reser, Director of Human Resources at
Marriott International
n Mahesh Subramony, Ph.D., Associate Professor
at Department of Management Northern Illinois
University
n Barbara Trautlein, Ph.D., Principal and Founder at
Change Catalysts, LLC
n Christopher G. Worley, Ph.D., Professor of
Management at Pepperdine University
In addition, a pilot study survey was distributed to a sample of HCI members (n=44). Organizational agility/change
management was the number one rated issue in importance (79 percent rated it as higher importance this
year compared to previous year). Respondents indicated complying with the Patient Protection and Affordable
Care Act and effectively using HR data and analytics are higher in importance this year as well. Based on these
responses, we determined the top three topics to cover in this edition of Talent Pulse.

6. Implications of the Affordable Care Act on Organizations
Background
There is little surprise that compliance with the Patient Protection and
Affordable Care Act (PPACA) is identified as a major point of focus in
organizations. According to the law, organizations with at least 100 employees
must provide health insurance for all employees who work at least 30 hours a
week beginning in 2015, whereas smaller organizations with 50-99 employees
who work at least 30 hours a week must provide coverage effective 2016.1
Certain employers who do not provide health insurance for their employees after these dates will have to pay a
financial penalty.2
The continuing high cost of employee health care coverage and implementation of health care legislation are the
top two trends for HR professionals.3
U.S. CFOs cited rising healthcare costs as their top concern. Three-fourths
of CFOs surveyed said their company is completely or mostly ready to comply with the rules and regulations of
the PPACA. Fifty-three percent of CFOs said their labor costs will increase, and 77 percent plan to increase the
amount employees must contribute toward their health care expenses to offset these costs.4
The PPACA has been received with mixed opinions, as 50 percent of Americans have an unfavorable view
of the law, 34 percent have a favorable view and 16 percent don’t know enough to give an opinion.5
HR and
benefits specialists are lacking confidence in understanding the PPACA requirements. According to one study,
professionals reported being extremely or very confident in only 20 percent of small companies, 17 percent of
medium sized companies and 41 percent of large companies.6
The effects of the healthcare law have already been observed in some organizations. UPS has removed health
insurance benefits from employees whose spouses offer health insurance.7
Companies such as Target, Home
Depot and Trader Joe’s have eliminated healthcare benefits for part-time employees.8
A survey of organizations
suggests that 30 percent of employers will no longer offer employer-sponsored insurance after 2014.9
Although
there are economic and social incentives for sponsoring health insurance, it may be cheaper for organizations to
pay the fine for not offering health insurance for its employees and offer increased wages.10
Additionally, employers are concerned with and focused on changes to the excise tax, or Cadillac tax, which
goes into effect in 2018.11
This tax penalizes companies that offer high-end health insurance.12
Steve First, a
benefits executive at Pfizer, expresses his concern with the law. “I’m actually much more focused on the Cadillac
tax in 2018 than 2014…For us, 2018 is a challenge,” he said.13
Indeed, 58 percent of survey participants indicated
that they would trigger the excise tax if it were in effect at the time of the survey in 2012.14
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
TALENT PULSE PODCAST
Carolyn A. Pellegrini
Associate
Montgomery McCracken
Walker Rhoads LLP
TALENT PULSE PODCAST

7. INSIGHT 1:
No Worries for HR Leaders in Midst of PPACA Implementation
When asked about their preparedness for the changes as a result of the PPACA, 50 percent of participants in this
study report being “Very much prepared” or “Quite a bit prepared” to navigate the changing healthcare environment.
With regards to personal attitudes towards the PPACA, 40 percent of participants indicate that they are neutral or
unable to judge the PPACA. This would support the notion that professionals simply do not know enough about
the law, that they are waiting to see what the impact will be or they are not affected by the PPACA. It may also be
that individuals do not want to disclose their political feelings.
n Very unfavorable
n Unfavorable
n Neutral/unable to judge
n Favorable
n Very favorable
Figure 3: Describe your personal attitude
toward the Patient Protection and
Affordable Care Act (n=358)
15.7%
15.2%
39.6%
20.2%
9.3%
Figure 4: How prepared is your HR department
to navigate the changing health care
environment for your organization? (n=358)
n Not at all prepared
n A little bit prepared
n Somewhat prepared
n Quite a bit prepared
n Very much prepared
n Not sure/not applicable
3.6%
5.3%
19.6%
28.8%
21.2%
21.5%
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix

8. INSIGHT 2:
Proactive HR: Most Organizations Have Addressed
the Impact of ACA on Talent Issues
Only a small majority of participants are concerned with compliance, expenditures per employees and the ability
to predict costs. Only 15 percent of organizations are worried about cutting employee hours.
Understanding the law
Ability to predict costs
Expenditures per employee
Health care quality
Adhering to compliance and regulations
Attractiveness of benefits package
Communicating changes to employees
The unforeseen and unknown impact
Sustainability of the law
Implementing wellness programs
Retention of employees
Impact on employee engagement
Evaluating alternative coverage options
Changes to the workforce strategy
Employer penalities
Changes to your contingent workforce
Determining full-time employee status
Cutting hours
88.0%
77.0%
83.2%
79.6%
91.5%
87.2%
88.6%
53.5%
61.5%
73.7%
59.6%
44.0%
43.7%
43.2%
43.0%
40.1%
39.9%
39.8%
39.3%
38.1%
32.0%
31.3%
14.6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
n Addressed the issue
n A great deal/quite a
bit concerned
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
73.1%
33.5%
80.7%
30.5%
65.0%
70.5%
28.9%
81.7%
24.6%
66.7%
24.6%
79.6%
23.7%
Figure 5: Has your organization addressed this issue?—and—
How concerned is your organization about these issues?

9. INSIGHT 3:
Preparedness and the Unknown
We asked respondents to report the frequency of time spent working on issues related to the Patient Protection
and Affordable Care Act. Half of HR leaders work on PPACA related issues on a monthly basis or less. Fifteen
percent of HR leaders (and 18 percent of HR staff) never work on PPACA related issues. Participants were asked
what they are doing to address the concerns regarding the PPACA.
Of the responses, increasing employee communication and education
about the law, consulting with external experts and adding or adjusting
employee benefits are the top three actions taken by organizations.
Thirty-nine percent of participants are very concerned with the unknown
impact of the PPACA. It may be too soon to tell what kind of impact the
law will have on organizations. Participants also expressed concern over
the sustainability of the law. As one participant commented:
“For the most part, we are not concerned by the Affordable Care
Act because we are committed to providing our employees very rich
benefit plans. So in large part, the Affordable Care Act doesn’t have
an immediate, direct negative impact on our employees or staffing/
retention plans. What is nerve racking to some extent is the unforeseen.
Will the Act still be around next year or after the next election?”
Figure 6: What is your
organization doing to
address any concerns
around the PPACA?
(n=106)
Communication and education
No action needed—satisfied with current status
Consulting external experts
Adding or adjusting employee benefits
In research phase
Nothing
Implementing a wellness program
Delaying action
Other
Monitoring employee hours
23%
20%
20%
12%
8%
4%
4%
4%
3%
3%
0% 5% 10% 15% 20% 25%
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
“We set up reporting to be
able to track hours in the way
they have to be measured,
to avoid being penalized. We
have sent communications to
our employees, which have
created a lot of confusion,
since we don’t know all the
implications of the legislation
yet and cannot answer all the
questions they have.”
—Survey Respondent

10. The HR Imperative: Connecting Talent Data
to Business Strategy
Background
A survey of company leaders indicates that data analytics will become
increasingly more important in the near future.15
Of the participants, 58
percent say data analytics are important to their organizations now, whereas
82 percent say they will be important in five years.16
Data analytics are
particularly important for organizations, as “Big Data” helps companies make
informed decisions.17
“Big Data” analytics are expected to generate $3.7
trillion and 4.4 million new jobs by 2015.18
Most companies have big data
already, but lack the analytic experience and skills required to perform the right analysis.19
Organizations are starting to link employee performance to business goals. However, metrics that establish
return on investment for HR practices are infrequently used.20
Likewise, there is not enough emphasis on
external market metrics, such as market
performance and unemployment
numbers, which prevents HR from
being strategic and future-focused.21
According to a survey of American
employers, 56 percent do not measure
the return they are receiving on their
talent investments.22
Findings from
this research support this notion that
organizations are not establishing the
value of talent management programs
via data analytics. Within the last year,
only 32 percent of participants report
measuring the return on investment for
employee training and only 53 percent
report measuring revenue per employee.
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
TALENT PULSE PODCAST
Dan Lapporte
Senior Manager HR
Information Management
Reporting and Analytics
Kaiser Permanente
TALENT PULSE PODCAST

11. INSIGHT 1:
Big Data, Better Decisions
Most organizations operate within a low maturity model of talent analytics. Of the participants in the research, 54
percent state their HR metrics measure key issues relevant to business. Twenty-three percent agree that they
have connected employee data for the entire talent lifecycle. Thirty-four percent agree that business leaders are
satisfied with HR metrics. Thirty-seven percent agree that HR metrics are regularly used to make decisions about
human capital. Nineteen percent report that they are proficient at predictive analytics.
Talent Analytics Champions, who make up 30 percent of the participants in this research, are those who report
doing at least five of the eight analytics factors well. The factors include basic compliance reporting, analytics of
single-source data, analytics using multiple-source data, predictive analytics, measuring key issues relevant to
the business, connecting employee data for the entire talent life cycle, having business leaders who are satisfied
with HR metrics and regularly using HR metrics to make decisions about human capital. They are more likely
to report that their organization and HR function is adaptable, flexible, resilient and agile, the focus of the next
chapter of Talent Pulse.
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
Analytics using multiple-
source of data (37.9%)
Analytics of single-source data (58.1%)
Basic compliance reporting (80.7%)
Predictive
analytics (19.3%)
Figure 7: HCI survey
respondents indicate
their proficiency
level within Bersin
and Associates (2012)
Talent Analytics
Maturity Model
(n=357)

12. Headcount of full-time employees
Cost of benefits/compensation per employee
Turnover rate
Compliance with government regulations
Length of employment
Employee satisfaction/engagement
Time to fill a position vacancy
Percent of HR goals met per year
Cost per hire
Revenue per employee
New hire failure rate
Quality of hire
High-performer turnover rate
Turnover cost
HR costs as a percentage of revenue
Diversity turnover rate
Labor productivity ratio
Leadership bench strength satisfaction
Employee training ROI
Dollar value on increase workforce productivity year to year
HR technology implementation ROI
97.2%
84.9%
83.4%
78.7%
77.6%
70.2%
70.1%
67.4%
61.9%
53.0%
49.0%
48.5%
46.7%
46.5%
45.1%
42.6%
31.9%
41.6%
26.2%
37.5%
25.2%
77.8%
77.2%
60.7%
56.3%
68.5%
58.4%
61.0%
50.5%
51.8%
37.6%
48.2%
40.8%
43.4%
39.6%
31.6%
30.4%
43.4%
26.8%
44.0%
24.9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
93.9%
INSIGHT 2:
Despite Perceived Lack of Value, Traditional HR Metrics
Dominate Workplace Data
Traditional HR metrics are prevalent in organizations. A minority of business
leaders are asking for return on investment data. Talent Analytics Champions are
more likely to conduct all of these analyses more often except for headcount and
cost of benefits. The biggest gaps for what business leaders want and what is
measured are leadership bench strength and labor productivity ratio. With regards
to sharing and reporting data, on average, 66 percent of respondents report that HR metrics are shared with
business leaders once a month or less. Talent Analytics Champions share data with business leaders more often.
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
“Senior business leaders
do not yet realize the
importance of HR data.”
—Survey Respondent
n Measured in last
12 months
n Data requested
by business
leaders
Figure 8: Was
this measured
in the last 12
months?
—and—
Was this
requested by
business leaders
within the last
12 months?

13. Working with business
leaders to determine the
analytics important to them
(59.7%)
Integrating disconnected
data systems or storage
(24.6%)
Hiring data scientists
or statisticians
(5.3%)
Implementing a plan for
sharing and reporting HR
data with business leaders
(43.4%)
Providing training on data
analytics to HR staff
(23.8%)
Investing in more
sophisticated HRIS
technologies
(38.4%)
Providing training on
communicating analytics
results to HR staff
(18.8%)
INSIGHT 3:
How to Improve (or Start) HR Analytics Capabilities
The flow chart below describes best practices to become more effective at talent data analytics. The percentage
in each step represents the proportion of research participants who report utilizing each strategy within their
organization. The chart begins with what most organizations are implementing and progresses to what the
fewest organizations are doing. Eighteen percent of participants in this study report doing nothing to become
more effective at data and analytics.
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
Figure 9: What is your HR function doing to
become more effective at talent analytics?
(Select all that apply.) (n=357)

14. Agile HR Delivery
Background
Agility, the ability to proactively and fluidly respond to change, is a vital
characteristic for employees to have today. An agile workplace is described
as necessary for organizational sustainability and progression.23
Agile
organizations adopt transparent information systems and decision-making
processes. Behind change management and attracting, recruiting, and
developing, becoming agile is the third highest business priority of senior leaders.24
Additionally, 60 percent of
companies with successful new initiatives report high agility, whereas 27 percent report of companies with low
agility report successful new initiatives.25
However, organizations report that their organizations are less agile in
2012 than they were in 2008.26
Agility appears to be a valued characteristic for organizational processes and
successes, but currently does not flourish within businesses.
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
TALENT PULSE PODCAST
Barbara A. Trautlein, Ph.D.
Principal
Change Catalysts
“An organizational redesign process often
unearths fundamental and often unspoken
assumptions. If we’re able to move in redesigns
from fear to freedom, it often can spark creative
thinking through brainstorming and collaborative
team efforts that span multiple departments and
functions and levels, instead of everyone in their
silo and their traditional space. It opens up new
opportunities and new venues for conversations
that hadn’t previously happened.”
—Barbara Trautlein, Ph.D.
Principal, Change Catalysts, LLC

15. Introduction
Methodology
Research
Findings
Conclusions
Appendix
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
INSIGHT 1:
Organizational Agility Desired and Defined
Agility is the ability to proactively and fluidly respond to change and to address needs on a continuous versus
episodic basis. Sixty-three percent of participants agree that learning/training is a continuous process rather than
episodic processes in their organizations. Fifty-one percent agree that employee performance feedback at their
organizations is a continuous process rather than episodic.
Seventy-two percent of participants agree that agility is valued at their organizations. Sixty-five percent of participants
report that their senior leaders want a more agile HR function. Finally, 84 percent of participants agree that their
senior leaders want more agile talent.
Agility is related to greater financial successes (see Figure 10). We validated a section of our sample (n=33) of large,
publicly traded companies’ year-over-year revenue growth compared to its industry and found the same trend.
Organizations that perform financially better also report more continuous processes and higher agility.
0.00 1.00 2.00 3.00 4.00 5.00
3.5
3.2
3.9
3.5
Employee performance
feedback at our organization
is a continuous process
Learning at our organization
is a continuous process
Recruiting at our organization
is a continuous process
Our HR processes/systems
adapt to change
3.6
4.0
3.7
3.3
n 6 percent revenue growth or more (n=85)
n 5 percent revenue growth or less (n=163)
• Our HR processes/systems adapt to change. (56.3%)
• Recruiting at our organization is a continuous process
rather than episodic. (69.3%)
• Learning/training at our organization is a continuous
process rather than episodic. (62.3%)
• Employee performance feedback at our organization is
a continuous process rather than episodic. (50.1%)
Agility
Practiced
• Agility is valued at my organization. (71.4%)
• My company’s senior leaders want a more agile HR
function. (64.5%)
• My company’s senior leaders want more agile talent.
(83.9%)
Agility
Supported
Figure 10: Agreement to the Statements on a Scale of 1,
Strongly Disagree to 5, Strongly Agree.

16. n Large (5,000 to 20,000 employees, n=114)
n Medium (500 to 4,999 employees, n=116)
n Small (under 500 employees, n=124)
Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
INSIGHT 2:
Workplace Agility Challenges
Agility is related to the size and hierarchy of businesses. Organizations that operate in a less hierarchical
management structure report being more agile compared to organizations that are more hierarchical. Agility is
more of a challenge for organizations with more people and processes. Smaller organizations are more agile,
resilient, flexible and adaptable than
medium and large organizations. Smaller
organizations report their organizations
being significantly higher than medium and
large organizations in all of these categories
with the exception of resilience. Overall, it
appears that smaller businesses and smaller
hierarchies have the benefit of facilitating an
agile work environment.
“Spending more money on upgrading our technology
and accessibility to collaborative technologies.
Delegating the authority to make decisions at lower
levels of management with fewer layers of unnecessary
upper middle management involvement. Empowering
associates to take ownership of their positions, teams
and final product and customer service delivery.”
—Survey Respondent
Figure 11: To what
extent do the following
describe your
organization? (Not
at all descriptive=1 to
exactly descriptive=5)
Agile
(i.e., move quickly)
Resilient
(i.e., recover quickly)
Flexible
(i.e., easily modified)
Adaptable
(i.e., willing to adjust)
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00
2.5
2.6
3.1
3.0
3.1
3.2
2.4
2.6
3.1
2.8
2.9
3.3

17. Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
INSIGHT 3:
Uncovering Agility
It is the responsibility of the organization
to strip away processes and systems
that may hinder agility in its employees.
Uncovering natural agility within
employees can be done via the
following methods (see Figure 12).
Participants in this study were given
the opportunity to express, in detail,
their methods to facilitate agility within
their organizations. Respondents cited
communication and collaboration as
well as organizational change and
redesign as their top methods.
“We use a matrix structure. We are very agile in responding
to our client’s needs as well as upsizing or downsizing. We
cross-train heavily and always maintain a high level of
experienced staff to train new employees. We keep a finger
on the pulse of the market and watch leading economic
indicators closely. We have built scenarios and contingency
plans, both good and bad. Constant education of senior
HR leadership and constant briefings of senior management.
Open communication with staff and management. Watch
internal metrics, financial and nonfinancial.”
—Survey Respondent
Increase communication and collaboration
Organizational redesign
Nothing
Continuous improvement interventions
(e.g., Six Sigma)
Developmental opportunities
Technology and information systems
Currently in research phase
Strategic workforce planning
Selecting agile talent
23%
21%
13%
13%
11%
7%
5%
4%
4%
0% 5% 10% 15% 20% 25%
Figure 12: What is
your organization
doing to become more
agile? (n=120)

18. Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
HR Delivery
All HR initiatives are aligned to business objectives.
Workforce Planning
HR analyzes gaps in current workforce capability and uses predictive
modeling to identify skills needed to accomplish business goals.
HR Design
Has effective talent initiatives that support the entire employee cycle from
recruitment and retirement.
Technology
Has fully integrated and effective talent systems (e.g., recruiting,
leadership, development, performance management and succession) and
HR systems (e.g., payroll and benefits).
Data and Analytics
Meaningful data is collected, analyzed and summarized to influence
decisions about talent.
Flexible Work Solution
HR implements flexible talent solutions to meet its employees’ needs (e.g.
virtual work, contract arrangements, work/life benefits) and measures their
effectiveness.
Global, Virtual Workforce
HR attracts, connects, and develops global talent that helps them
successfully navigate global markets.
HR Strategy and Analytics Scorecard
This study asked participants how well their organizations execute the following topics within the HCI HR
Strategy and Analytics community on a five-point scale. Participants rate their organizations as most effective
at tying HR initiatives to business objectives and implementing flexible talent solutions. Participants rate their
organizations as least effective in data and analytics and having a global, virtual workforce.

19. Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
Prescribe and Apply
This premier publication of HCI’s Talent Pulse explores three issues that are momentous to business professionals:
The Patient Protection and Affordable Care Act, the progression of talent data analytics and workplace agility.
Affordable Care Act
n Continuously review the healthcare laws
• Business leaders need to be well informed
regarding the implications of the healthcare
laws to ensure their organization’s benefits and
operations are within the confines of the law.
Business leaders may find it difficult to construct
a business plan around litigation that could be
amended or overturned within a matter of years.
n Analyze your organization’s current benefits and
determine the needs of your workforce
• Survey your employees regarding their
satisfaction with the benefits and programs
currently offered and determine their most
important needs.
n Communicate and be transparent with employees
• Inform your employees of the organization’s
plan of action and strategy for handling the
requirements of the law.
• Reinforce your organization’s commitment
to promoting and supporting the health and
wellness of its employees.
HR Analytics
n Gain support from senior leaders for the
development of its data analytics program
• Data analysis requires accumulation of data and
analysis over time to be effectively utilized and to
demonstrate its value.
• It takes about three to five years for a talent
analytics team to become effective.27
n Develop skills to analyze talent data within your
organization
• Hire professionals with an educational
background and experience in data analysis (e.g.
I-O psychologists, statisticians, IT professionals).
• Hire consultants to instruct your current
employees in data analysis techniques.
n Decide what technology is necessary for your
organization’s data analysis needs
• Organizations should evaluate their statistical
needs before choosing a statistical tool, such as
customized dashboards, Excel, SAS, SPSS and
other advanced data analysis systems.
Agile HR Delivery
n Create less standardized jobs and job descriptions
• Organizations may want to staff employees who
can determine their own roles and tasks on various
projects and can function well within teams.
n Provide technology for collaboration
• Agility can be facilitated by employees sharing
experiences, innovative ideas, news stories,
scholarly articles, etc.
n Utilize continuous feedback
• Feedback, when utilized for developmental
purposes, promotes learning enhances
performance improvement.28
By not offering
continuous feedback, organizations may be
missing out on prime opportunities to actively
help their employees prepare for erratic tasks
and projects.

20. Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
Supplemental HCI Content
Talent Data and Analytics
Big Data Mistakes—Why They Happen
and How to Avoid Them
Align Human Capital Metrics with
Organizational Goals for Optimal Success
Tying Talent Analytics to Financial
Performance
A Doesn’t Always Lead to B—
Avoiding Pitfalls in HR Big Data
I’m Now In Charge of What?!?
Analytics in Action: Driving Business Performance
through the Application of Talent Data
The Value of Human Capital Intelligence
Implications of the Affordable Care Act
What You Need to Know to Understand
the ACA
The Changing Employment Deal and
U.S. Health Reform
Which Path to Pursue: HR and the PPACA
Agile HR Delivery
The Driving Force behind Agile HR
Service Delivery
How to Run HR Shared Services like a
Thriving Business
Aligning HR and Business Strategies
High-Impact HR: Challenges and Opportunities
Related to Building an Effective, Strategic and
Influential HR Function
Change Management Lessons from a
Global HR BPO Rollout
HR Transformation at McGraw Hill: Balancing
Centralized Global Strategy with Decentralized
Regional and Business Unit Needs
Deploying Talent across Diverse Industries and
Business Functions with Agility and Flexibility
Webcast
Podcast
Executive Interview
HCI Research
Blog
Enterprise Content

21. Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
Appendix: Demographics
SENIORITY Percent
Director 30.7
Manager/Team Leader 27.9
C-level (CEO, CHRO, CIO, etc.) 9.8
Team Member 9.5
Vice President 8.9
Analyst 6.1
Executive Vice President/
Senior Vice President
4.2
Other 2.8
FUNCTIONAL AREA Percent
Human Resources 62.6
Executive Management 12.0
Recruiting 9.5
Other 8.7
Operations 2.8
Sales 1.4
Research and Development 1.1
Marketing .8
Finance/Accounting .6
IT .3
Customer Service .3
GEOGRAPHIC LOCATION Percent
North America 88.8
Central/South America 1.7
Africa 1.7
Middle East .8
Asia/Pacific 3.9
Europe 3.1

22. Introduction
Affordable
Care Act
Analytics
Agile HR
Delivery
Conclusions
Appendix
Appendix: References
1. Kennedy, K. (2014, February 10). Another part of the affordable care act
delayed for a year. USA Today. Retrieved from http://www.usatoday.
com/story/news/nation/2014/02/10/aca-no-longer-applies-to-50-
employees-and-under-in-2015/5370055/
2. See note 1 above.
3. Schramm, J. (2013). SHRM workplace forecast. Society for Human
Resource Management. Retrieved from http://www.shrm.org/research/
futureworkplacetrends/documents/13-0146%20workplace_forecast_
full_fnl.pdf
4. George, J. (2013, December 10). CFOs Confident, Anticipate Sales
Growth and Readiness for Healthcare Reform, According to the Bank
of America Merrill Lynch 2014 CFO Outlook [Press release]. Retrieved
from http://newsroom.bankofamerica.com/press-releases/commercial-
and-middle-market-banking/cfos-confident-anticipate-sales-growth-
and-readi
5. Kaiser health tracking poll: January 2014 (2014, January). Kaiser Family
Foundation. Retrieved from http://kff.org/health-reform/poll-finding/
kaiser-health-tracking-poll-january-2014/
6. HR compliance: Are employers ready for health care reform? (2012).
ADP, 1-16. Retrieved from https://www.adp.com/tools-and-resources/
adp-research-institute/insights/~/media/RI/whitepapers/ADPRI-ACA-
Study081312.ashx
7. Will companies drop healthcare coverage because of ACA?
(2014, January). Chief Executive Magazine. Retrieved from http://
chiefexecutive.net/will-companies-drop-healthcare-coverage-
because-of-aca
8. Wayne, A. (2014, January 22). Target to drop health insurance for
part-time workers. Bloomberg. Retrieved from http://www.bloomberg.
com/news/2014-01-21/target-to-drop-health-insurance-for-part-time-
workers.html
9. Singhal, S., Stueland, J., Ungerman, D. (2011). How US health care
reform will affect employee benefits. McKinsey Quarterly, 1-11.
10. See note 7 above.
11. Chasan, E. (2013, March 22). 2018 ‘Cadillac tax’already a focus for
corporate health care. [Web log post]. Retrieved from http://blogs.wsj.
com/cfo/2013/03/22/2018-cadillac-tax-already-a-focus-for-
corporate-healthcare/
12. Abelson, R. (2013, May 27). High-end health plans scale back to
avoid ‘Cadillac tax’. New York Times. Retrieved from http://www.
nytimes.com/2013/05/28/business/cadillac-tax-health-insurance.
html?pagewanted=all_r=0
13. See note 12 above.
14. Health care changes ahead (2012). Towers Watson, 1-7.
Retrieved from www.towerswatson.com
15. American Management Association, 1-24. Conquering big data.
(2013). Retrieved from http://www.amanet.org/uploaded/Conquering-
Big-Data-Survey-Web.pdf
16. See note 15 above.
17. See note 15 above.
18. Bersin, J. (2013). Big data in human resources: Talent analytics
comes of age. Forbes. Retrieved from http://www.forbes.com/sites/
joshbersin/2013/02/17/bigdata-in-human-resources-talent-analytics-
comes-of-age/
19. See note 18 above.
20. Filipkowski, J., N. (2013). High impact HR: Challenges and
opportunities related to building an effective, strategic, and influential
HR function. Human Capital Institute. Retrieved from http://www.hci.
org/files/field_content_file/Successfactors%20Report_10-1.pdf
21. See note 20 above.
22. Starner, T. (2013). Is 2013 the year HR takes analytics seriously?
Retrieved from http://www.hreonline.com/HRE/view/story.
jhtml?id=534354878
23. Worley, C. G., Lawler III, E. E. (2010). Agility and organization design:
A diagnostic framework. Organizational Dynamics, 39 (2), 194-204.
doi:10.1016/j.orgdyn.2010.01.006
24. Gartside, D., Gossage, W., Silverstone, Y. (2013). Trends reshaping
the future of HR. Accenture, 1-16. Retrieved from http://www.
accenture.com/SiteCollectionDocuments/PDF/Accenture-
Future-of-HR-Trends-Agile-Organizations.pdf
25. Organizational agility. (2012). Project Management Institute, 1-11.
Retrieved from http://www.pmi.org/~/media/PDF/Research/
Organizational-Agility-In-Depth-Report.ashx
26. See note 25 above.
27. Bersin, J. (2012). Big data in HR. Bersin Associates, 1-84.
Retrieved from www.bersin.com
28. Smither, J. W., London, M., Reilly, R. R. (2005). Does performance
improve following multisource feedback? A theoretical model,
meta-analysis, and review of empirical findings. Personnel
Psychology, 58, 33-66. doi:10.1111/j.1744-6570.2005.514_1.x

23. Human Capital Institute (HCI)
HCI is the global association for strategic talent management and new economy leadership, and a
clearinghouse for best practices and new ideas. Our network of expert practitioners, Fortune 1000
and Global 2000 corporations, government agencies, global consultants and business schools
contribute a stream of constantly evolving information, the best of which is organized, analyzed and
shared with members through HCI communities, research, education and events.
For more information, please visit www.hci.org.
205 Billings Farm Road, Suite 5
White River Junction, VT 05001
866-538-1909
www.hci.org
#HCIresearch
Copyright © 2014 Human Capital Institute. All rights reserved.