STRIM Präsentation HR Analytics at the C-level


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Konkrete CEO Challenges and Strategies bilden den Ausgangspunkt der Überlegungen für HR Analytics.
Um dem prognostizierenden Element von HR Analytics gerecht zu werden, stehen leading indicators im Vordergrund. Nur im Zusammenspiel von leading und lagging indicators kann eine HR Scorecard die Strategieimplementierung unterstützen.
Mit Hilfe von HR Analytics wird die Wirkung („business impact“) initiierter HR Maßnahmen in monetären Größen ausgedrückt. Kausalität ist damit eine wichtige Voraussetzung für HR Analytics.
Personalrisiken beziehen sich vor allem auf Fähigkeiten und Kompetenzen sowie auf Führung resp. Nachfolgeplanung.

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STRIM Präsentation HR Analytics at the C-level

  2. 2. CONTENTS ► STRIM Focus Topics ► CEO Challenges and Strategies 2014 ► HR Analytics ► Maturity Levels ► How to approach the C-Suite ► Measuring RoI in relation to HR Risks ► The role of HR Benchmarking ► Young Talent Benchmarks & Analytics ► What measures the C-level cares about ► Key Take Aways 2July 3, 2014
  3. 3. STRIM FOCUS TOPICS July 3, 2014 3
  4. 4. CEO CHALLENGES AND STRATEGIES 2014 4July 3, 2014
  5. 5. CEO CHALLENGES AND STRATEGIES 2014 July 3, 2014 5
  7. 7. HR ANALYTICS HOW TO APPROACH THE C-SUITE (1/2) ►Tips for a successful first interaction ► Keep it short and simple („KISS“) ► Speak in terms of business outcomes and set clear expectations ►Prepare a business case ► Identify a compelling question, business need, or imperative (why) ► Provide facts based on credible analysis (what) ► Offer alternative assessments, including what happens if we do nothing (why) ► Relay what the organization will receive for what it will spend (what) ► Indicate the timing, resources, and process needed (when, where, how, who) July 3, 2014TCB Conference KeyNotes 7 „When you talk about engagement, talent, retention, think of a euro sign flashing in the executive´s head every six seconds.“
  8. 8. HR ANALYTICS HOW TO APPROACH THE C-SUITE (2/2) ►Anticipate C-level HR questions ► What workforce segments create most value? ► What is our workforce productivity? Is it improving? How do we rank? ► Where do our stars come from in Sales? In Operations? ► What skills will we need in the next five years? ► Is it better to build, buy or rent talent? What is the right workforce cost? ► How will business be impacted by impending retirements? ► How much is turnover costing, not just in euros, but also in lost productivity, innovation, or quality? ► How much money are we losing each day by having unfilled positions? ► Can we reach out goals with our current workforce? Can we get there better, faster, cheaper? ► Are leaders effectively managing human capital? Do leaders correlate to employee engagement, retention and performance? July 3, 2014TCB Conference KeyNotes, HCM Institute 8 „When you talk about engagement, talent, retention, think of a euro sign flashing in the executive´s head every six seconds.“
  9. 9. HR ANALYTICS MEASURING ROI IN RELATION TO HR RISKS (1/2) ►employee engagement ►learning & development ►… July 3, 2014STRIM-Blog: und 9 Managerial Leadership Training Human Capital Relational Capital Structural Capital Human Capital Effectiven. Retention of Key People Business Perfor- mance Knowledge Generation Employee Engage- ment Employee Satisfaction Employee Motivation Value Alignment Strategy Execution* Knowledge Integration Knowledge Sharing Human Capital Depletion 0,506 0,442 0,530 0,326 0,360 R2=68,2% R2=28,5% R2=44,1% R2=28,5% 0,751 0,358 0,307 0,475 0,4910,734 0,327 -0,337 0,543 0,439 0,456 0,429 0,394 0,430 0,285 -0,233 0,262 -0,372 Motivation Risk Failure and Availability Risk Occupational Skill Risk Integrity Risk Alignment Risk Resignation Risk
  10. 10. HR ANALYTICS MEASURING ROI IN RELATION TO HR RISKS (2/2) Human capital risks ranked by significance July 3, 2014Research Report, Managing Human Capital Risk 10 Top 5
  11. 11. HR ANALYTICS THE ROLE OF HR BENCHMARKING (1/3) July 3, 2014Project example of a transport and logistics company. STRIM-Blog: 11 Current Performance ► Human capital RoI ► Financial productivity ► Employee engagement ► Function & structure ► HR & People risk Future Performance Bringing in the right people Developing your people Motivation your people Efficiency and effectiveness of HR HR delivery model HR activity analysis HR capability Additional areas of measurement Talent management Innovation HR shared services Leadership Impact on Corporate Success … HR Function … Core Measures Formoreinformation,pleasevisitourblog: Revenue Revenue by business unit Revenue by country/ region Revenue by product line Full time equ. (FTE) Full-time v part-time Temps and casuals Contract workers Utilisation of overtime Management structure Excess absence Average remuneration Salary and wage levels Performance-related pay Benefits structure Social security costs Non-wage costs Material costs Facilities and overhead costs Costs of outsourced activities
  12. 12. HR ANALYTICS THE ROLE OF HR BENCHMARKING (2/3) July 3, 2014 12 Formoreinformation,pleasevisitourblog: Key Benchmark Lower 25-49th 50-74th Upper Profile Quartile Percentile Percentile Quartile Wealth Created per FTE Human Investment Ratio 64 Profit per FTE 82 Revenue per FTE 58 Costs per FTE 50 Remuneration/Revenue 94 Average Remuneration 85 Resignation Rate FTEs per HR Department FTE 9 HR Department Cost per FTE 83 HIGH LOW The KBP focuses on ►Financials ►Productivity & Value Added ►Behaviours ►Skills, and ►HR Function Project example of a major bank. STRIM-Blog:
  13. 13. HR ANALYTICS THE ROLE OF HR BENCHMARKING (3/3) July 3, 2014PwC Saratoga. Managing people in a changing world. Key trends in human capital, … 13 Formoreinformation,pleasevisitourblog:
  14. 14. HR ANALYTICS TALENT BENCHMARKS & ANALYTICS July 3, 2014STRIM Study on Career Guidance 2014 (DACH Region) 14 Formoreinformation,pleasevisitourblog: Kriterien für die Wahl des Ausbildungsplatzes nach Ländern
  15. 15. HR ANALYTICS TALENT BENCHMARKS & ANALYTICS July 3, 2014STRIM Study on Career Guidance 2014 (Extract Austria) 15 Wichtigkeit der Informationsquellen Dinge, die am häufigsten am PC, Smartphone, Tablet gemacht werden nach Geschlecht
  16. 16. HR ANALYTICS WHAT MEASURES THE C-LEVEL CARES ABOUT CREDIBLE DATA ►CEOs appreciate solid data. ►In determining whether data are credible, executives will look at ► the reputation of the source of data, ► motives of the researcher, ► type of data, ► audience bias, ► study methodology, ► etc. BUSINESS IMPACT ►CEOs are most interested in the businesss impact of their L&D programs, ►„all roads lead to RoI“ ►Top executives want to know the precise trajectory from learning to increased productivity and profits. July 3, 2014 16
  17. 17. KEY TAKE AWAYS ►Concrete CEO Challenges and Strategies form the starting point of the considerations for HR Analytics. ►To fulfill the forecast element of HR Analytics so called leading indicators are in the foreground. ►Only the interaction of leading and lagging indicators assures that an HR scorecard can support the strategy execution. ►With the help of HR Analytics action initiated HR activities are expressed in monetary terms (“business impact”). Causality is an important prerequisite for HR Analytics. ►Personnel risks relate mainly to skills and competencies, and respectively on leadership and succession planning (“short-term human capital”). July 3, 2014For more information (german): 17
  18. 18. YOU WANT TO KNOW MORE? 18July 3, 2014 Video (german) - HCA-Foren 2014 Website-Info (german) - HCA-Forum Wien (30.10.) CEO-Blog (german) - STRIMgroup AG
  19. 19. YOUR CONTACT PERSON ► President and CEO at STRIMgroup AG in Zurich ► Senior Fellow Human Capital at The Conference Board in New York ► Associate Professor at HTWG Constance / LCBS – MBA in Human Capital Management ► Selected professional positions: ► Global Head of HR Analytics at Deutsche Bank AG, and ► Senior Manager hrs at PricewaterhouseCoopers AG. 845 Third Avenue New York, NY 10022-6600 Phone: +49 (0)172 7590 688 Gütschstrasse 22 CH-8122 Binz (Zurich) Phone: +41 (0)43 366 05 58 19July 3, 2014