2016 human capital investment conference. talent... · 2016-11-13 · 2016 human capital investment...

2016 HUMAN CAPITAL INVESTMENT CONFERENCE RITZ-CARLTON CHICAGO | NOVEMBER 15-16, 2016

UTILIZING TALENT ANALYTICS AND METRICS TO MAKE BETTER WORKFORCE DECISIONS

Helen Friedman Workforce Analytics &

Planning, Global Practice Leader,

Willis Towers Watson

Rick M. Sherwood Client Relationship Director, Willis Towers Watson

Utilizing Talent Analytics and Metrics to Make Better Workforce Decisions

© 2016 Willis Towers Watson. All rights reserved.

Helen Friedman and Rick Sherwood

November 15, 2016

Agenda

© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson cl ient use only. 2

Context setting: We live in a world of change and variance

Establishing metrics that matter

Harnessing your data for evidence-based workforce management

The art of what’s possible: The Allina Health story

Taking the next step

Current outlook for Human Capital Risk:

Four near-term trends impacting talent productivity and quality…

1 Skill

Shortages

2 Contingent

Workforce

3 Alternative Work

Arrangements

4 Workforce

Wellness


Pace of change Time to reach 50 million users

Telephone Radio TV Internet Angry Birds Space

75 Years

38 Years

13 Years

4 Years 35 Days

Source: Attributed to Carl Benedikt Frey and Michael Osborne (Oxford Martin School, University of Oxford) and G. Kofi Annan, author; note: some figures disputed


Variance matters: What’s worth analyzing? Challenges attracting employees in key workforce segments remain high overall—even more so for organizations operating in emerging economies

Mature Markets Emerging Markets

28%

45%

55% 54% 56%

44%

57%

66%

77% 76%

20%

10%

0%

30%

40%

50%

60%

70%

80%

90%

All employees Diverse employee

populations

Critical-skill employees

High-potential employees

Top-performing employees

All employees Diverse employee

populations

Critical-skill employees

High-potential employees

Top-performing employees

Attraction Challenges

Nearly half (48%) of employers report

hiring activity increased


Source: Willis Towers Watson 2016 Talent Management & Rewards Survey

Establishing metrics that matter


What gets leadership attention?

2016 Wll1s T owers Watson All rights reseiVed Propnetary and Confidential For Willis Towers Watson and WilliS Towers Watso n client use only WillisTowerswatson 1•11111•1 7

Group discussion: Business/Organizational strategy


As you think about your organization overall and key priorities over the

next 2-3 years, what’s most important and why?

First, answer the question for your organization and then compare notes

with others at your table to see if they have similar priorities?


Group discussion: Customer value drivers

Which of the following are the primary drivers of customer experience and profitable

revenue growth for your organization (no more than four factors can be selected)?

Image

Having preferred

brand recognition

Quality

Being perceived as

having superior

services and

products

Speed

Acting quickly

Size / Scale

Being largest

provider of

services or

products

Breadth of

Services

Offering a wide

variety of services

and products

Customer Service

Being responsive;

having strong

relationships

Efficiency

Producing services

and products with

minimal wasted

effort

Cost

Offering the lowest

cost or “value” for

services or products

delivered

Reliability

Providing

consistent services

and products over

time

Other (please

specify):

Incremental

Innovation

Being able to

improve existing

services and

products

Proximity

Being easily

available to internal

and/or external

customers

Customization /

Tailoring

Meeting exacting

customer

requirements

Large-Scale

Innovation

Transforming the

landscape of

services and

products

When it comes to selecting metrics, focus should be on factors

where business value is driven

Each point of the talent life cycle presents a different lens in which organizations can

track and monitor key metrics and outcomes…

…..and the types and number of metrics that should be tracked depend on a variety of key factors, including :

How relevant is the metric to the overall organizational strategy?

What is the depth of the available data?

Will tracking the metric allow for meaningful impact on the organization?

Does the metric allow us to get better risk leverage?



Please identify the top-7 most influential factors to ensure that you have the right talent, at

the right time, in the right place, with the right skills at the right cost to drive organizational or business unit value.

Group discussion: Metrics that matter

Sourcing and

Selection

Assessment Development

and

Deployment

Rewards Engagement

and Retention

Leadership Operational

Efficiency /

Controls

Organizational

Outcomes

Number of

New Hires

Proficiency

Level

Attendance in

Training

Programs

Base Pay

Distribution

Engagement

Distribution

Managerial

Capability

Headcount Revenue per

Employee

Internal vs.

External Fill

Ratio

Promotion

Likelihood

Cost of Training Overtime Cost

and Volatility

Turnover by

Performance

Rating

Span of Control Vacancy or Run

Rate

(Percentage of

Open Positions)

Revenue per

Unit of

Compensation

Time to Fill Performance

Rating

Distribution

Internal

Transfers

Bonus

Distribution

Turnover by

Tenure

Performance

Distribution

Workforce

Effective

Capacity or

“Utilization”

Operating Profit

/ NOI per

Employee

Quality of Hire Potential (e.g.,

learning agility)

Rating

Cross-Function

/ Division

Transfers

Performance-

Based Pay

Change

Turnover in

Pivotal Roles

Time in Position Productivity per

Employee

Operating Profit

/ NOI per Unit of

Compensation

New Hire Pay

Premium

Percent on

Performance

Plans

Cross-

Geography

Transfers

Allocation of

Fixed vs.

Variable Labor

Cost

Turnover Cost Turnover and

Retirement Risk

Productivity per

Unit of

Compensation

New Customer

Volume per

Sales Rep

New Hire

Retention

Personality

Assessment

Time in Position Total Labor

Cost

Retirement by

Age/Service

Replacement

Risk

Error Rate by

Team Tenure

Average New

Sale per Unit of

Sales Rep

Compensation

Other: Other: Other: Other: Other: Other: Other: Other:

Group discussion: Metrics overall are interesting … metrics by

segments tend to be informative Looking at your top-seven metrics in combination, select the five highest value segments by

which to dissect these metrics overall. How do these selections compare to current segmentations being used by your organization?

Examples of Value-Based Segmentation


Basic Next-Generation Advanced

Structural Demographic Strategic

Business Unit Age Pivotal Role

Region / Location Service Performance Rating

Department /

Function

Time in Position Potential Rating

Grade / Level Diversity Growth Area

Job Family Education Talent Pools

Employee Type

(FLSA)

Lifestyle Choices Pipeline / Feeder

Role

Last concept: Sequencing … not all measures can or should be included in

Version 1.0

SAMPLE


Organizational Value

Fe

as

ibilit

y

High Low

Hig

h


Lo

w

Group discussion: Since we already picked metrics of high value,

how feasible is it to produce your selected metrics today?

Bringing it all together

Prioritization Identifying direct and

indirect representations of

workforce factors driving

strategy execution

Strategic Focus Focusing on business

drivers to both guide and

stress test metric selection

Sequencing Recognizing that—to be

strtegic in the long term—it

is critical to be practical in

the short term

Segmentation Telling the story behind the

story … looking for variance

that will materially change

overall results

Effective

Workforce

Dashboard


Harnessing your data for evidence-

based workforce management


Analytic methods can vary significantly

Outcome

Modeling/

Controlled

Evaluation Projections/

Future-State

Modeling

Trending

Bench-

marking

External

Reference Point

Directional Future Risk Outcome

Insight Management Optimization

Return on Investment

How are we performing

relative to benchmarks?

Foundational

Complex

Analytical

Sophisticatio

n

How are we

performing over time?

How do we predict

performance?

How do we drive

performance?

Predictive Analytics

How are we

performing today?

Internal

Tracking

Dashboard/

Metrics

Reporting

Global

Data

Warehouse

How do we access data

to monitor performance?

Data

Management

We started


Thinking broadly about data to provide insights on workforce

dynamics


Internal structured data: Informs current-state “shape” of the

organization and workforce movement by level, etc.

Outsourced function Typical Example: Manufacturing


Highly-technical job family

Internal unstructured data: Highlights potential future-state skills

needed and current-state gaps


Analytical oSpeed t

wo execution

rship

Business Acumen Relationship BuildingAgility

Leadershipmanagement risk taking

FlexibilityGlobal Mindset

TEAMWORK

CREATIVITY

Collaboration

External structured data: Identifies market benchmarks as reference

points to inform internal decision-making

Base Pay

Bonus

Total Rewards

Market competitiveness: Most think they are paid at or above market Overall, how do you think the value of each of the following compares to that offered for similar positions in

other organizations?

Pay fairness

Half think they are paid

fairly, but 1 in 5 disagree 50 %

Paid fairly compared to

others in other companies

51%

Paid fairly compared to

others in my organization



23% 38% 39%

33% 36% 31%

18% 43% 39%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Below Average Average Above Average

External unstructured data: Leverages market insights to identify

Growth in share

of non-employee talent expected over next three

years

25% 24% 54% 46%

emerging trends

The use of non-employee talent is increasing and having an impact on businesses



Of all managers

say they manage at least one contingent worker

on their team

Of all managers

say they manage at least one contractor

Of companies

report changing their workforce activities enabling

them to use more non-employee

talent due to technology now or in in the next

three years

Group discussion: What’s been your experience?


To what degree do you leverage:

Internal structured data

Internal unstructured data

External structured data

External unstructured data

What would be the one new dataset that you would consider based on this discussion?

Insert text

Insert text

Technology—like the WTW Talent Analytics Software—can and

should enable and scale your approach

Insert text

Review headcount trends, labor flows,

labor composition and key counts

Drill into various aspects of the employment

life cycle (including Sourcing and Selection,

Performance, Rewards, Development and

Retention), Diversity and Manager

Effectiveness

Support annual and multi-year workforce

planning activities, including automated

development of baseline assumptions

based on historical experience by major

role category

Create and publish additional

dashboards to support HR or business-

generated research questions or

address unique needs for specific

business areas (for Super Users)

Standard Workforce

Dashboard (Module 1)

Out-of-the-Box

Workforce Analytics (Module 1)

Standard Projections (Module 2)

Designer/Custom

Dashboards (Module 3)

Supports controlled evaluation to highlight

which individual variable “cause” various

workforce outcomes, all else equal

Outcome Modeling (Beta)


The art of what’s possible: The Allina

Health story


Allina Health leverages a strong workforce

to deliver exceptional health care and support services

to the people in its communities.

Allina Health operates

hospitals, clinics, home care and additional care services

in the Twin Cities metropolitan area and regional communities

throughout Minnesota and western Wisconsin.


27,000 Employees

6,000 Associated and

employed

physicians

4,000 Volunteers

Allina Health’s journey

Result Approach Key Issues Background

Use Willis Towers

Watson Talent Analytics

Software to show

where (and to what degree) we

are exposed to key workforce risks and the

consequences on key workforce

outcomes

Pronounced

critical-skill gaps

How do we attract

and retain the right talent?

Hard to

anticipate talent needs and identify

workforce risks

Complex

market environment

Where are we at

risk of losing key resources due to

upcoming

retirements?

Where do our labor

costs exceed targets based on

the way we’ve

sourced talent?

Ability to

identify and

interpret

workforce

risks quickly

and to take

targeted

actions has

become a key

competitive

advantage


Key learnings

Projections allowed us to

better understand the impact

of borrowing vs. buying talent

and led to a fundamental

change in how we approach

filling open positions

Understanding varying spans of

control across the organization

allowed us to identify potential

areas of risk with impacts to both

engagement and retention

Drilling into new hire turnover allowed

us to understand where to focus our

efforts in sourcing and onboarding

talent to get a better yield

SAMPLE OUTPUT


Taking the next step


Some “best practices”


Know that a TOOL is not equal to SUCCESS

Recognize that it is as much about CHANGE MANAGEMENT as it is

about workforce analytics

Manage expectations on data QUALITY vs. data quantity

Think about CONTIUOUS IMPROVEMENT rather than seeking out

perfection

Build in EDUCATION—e.g., don’t expect comfort with analytic

methods or drawing insights

Do not wait to do ANYTHING until you have perfect data on

EVERYTHING

Rely on internal and external BENCHMARKS only as potential

reference points

Make workforce analytics (e.g., dashboarding) SOMEONE’S JOB

Some framing questions to test business needs


Are business leaders asking for workforce analytics? … If not, what would you need to have to build the business case?

What workforce analytics are you doing today? … How are they being used by the business?

Do you already know the key metrics that deliver the highest yield? … If not, what steps could you take to identify potential high-yield metrics?

What are the major workforce pain points about which leaders are

concerned? … Have you looked at the data to identify the root cause of these workforce issues?

Questions?

2016 Wll1s T owers Wa tson All rights reseiVed Propnetary and Confidential For Willis Towers Watson and WilliS Towers Watson d 1ent use only WillisTowerswatson 1•11111•1 32

Contact information

Helen Friedman

[email protected]

+1 203 559 6882

Rick Sherwood

[email protected]

+1 312 201 5679


mailto:[email protected]







































2016 human capital investment conference. talent... · 2016-11-13 · 2016 human capital investment...

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