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Applying Workforce Analytics: Data-Driven Insights to Inform Talent Decisions

Mick Collins & Marcus Joseph, SuccessFactors

LEHRN Conference, March 6, 2014

Introduction

3 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.

Executives Lack the Data Needed to Make Effective Talent Decisions

0 50 100

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

Information is Important

Receives Sufficient Information

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.


Are We Investing in Technology for Reporting….or Analytics…or Something Else?

Source: Adapted From Thomas Davenport, Competing on Analytics: How Business Intelligence

Drives Performance, HR Technology Conference Presentation, October 10, 2007.

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eti

tive A

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High

Low

Decision Optimization: What’s the best that can happen?

Predictive Analytics: What will happen next?

Forecasting: What if these trends continue?

Statistical Models: Why is this happening?

Alerts: Where is action needed?

Research/Drill Down: What exactly is the problem?

Ad-Hoc Reports: How many, how often, where?

Standard Reports: What happened?

Rep

ortin

g

An

aly

tics


Common Roles in Building and Utilizing Workforce Analytics Technology

Technology

Producers (HRIT)

Technology

Consumers (HR, Line)

Infrastructure

Architecture

Security

Maintenance

Training

Organizational

Structure

Business

Priorities

Talent Management

Expertise

Governance

Information

Retailing

Multi-Channel

Delivery

Empowering

the User

Integrated Data

Functional

Roles

Functional

Roles


Write Down Your Answer

I would like to know whether my firm’s investment in

_________________ has resulted in

______________________?

Examples

I would like to know whether my firm’s investment in virtual customer service

training has resulted in higher adoption of store loyalty cards?

I would like to know whether my firm’s investment in universal benefits

coverage has resulted in better retention rates for part-time staff?

How Could Better Data-Driven Insights Help Your Organization?

About SuccessFactors


Best of Breed HCM Suite

Content Integration Extensibility

Recruiting

Core

HR

Onboarding

Learning Succession

& Development

Performance

& Goals

Workforce

Planning

HR

Analytics

Social

Collaboration

Payroll Compensation


Global Leaders Choose SuccessFactors for Workforce Analytics & Strategic Workforce Planning

http://en.wikipedia.org/wiki/Image:Wellpoint_logo.jpg

http://www.williams.com/

http://www.c-a-m.com/forms/Index.aspx

1. Governance


What is a Data Governance Program?

Definition: • Encompasses the people, processes,

and information technology required to create a consistent and proper handling of an organization's data across the business enterprise.

• The goals of implementing a data governance program include: o Increasing consistency and confidence

in decision-making o Decreasing the risk of regulatory fines o Improving data security o Designating accountability for information

quality

• Implementing a data quality management program will necessitate the measuring, monitoring, and tracking of data quality.

Questions to Ask:

1. Who will write the data governance program &

who is responsible for keeping it up to date?

2. Who supports & enforces the program?

3. Do staff members (both technical and

business) know that the data governance

program exists?

4. What does the governance program state?

5. Is someone mentoring your staff on what it

means to adhere to the program?

6. Is someone making certain that the program is

followed?

Source: SuccessFactors, Data Quality Management Workshop, 2009.


Business Rules

Data Storage Environment

Process for Data Management (ETL)

Source Systems

Point of Access Determines how the Executive Team, Business Units, Support

Teams and People Leaders get access to Human Capital data &

the views they see

Determines how data will be managed,

controlled and validated once it has left its

original source system

This is the matrix of agreed rules that govern the use and

interpretation of data in relation to the data controls, quality

measures and governance applied to its handling once leaving

original source systems

This is the staging environment that manages

data once it has left its original source system

Describes the technical processes for extracting, transforming &

loading data into the Data Storage Environment

The analytics application manages data from

a large number of sources – we are seeking

access to the original source rather than

downstream application data

Reporting Platform

Data Governance is Multi-Faceted

Sample Data Governance Model

Source: SuccessFactors Workforce Analytics Customer Presentation.


Example: Cross-Functional Governance of Tools & Data

Goal Problems Solutions Outcomes

Create a

“Metrics Culture”

Business initiatives

& drivers

consistently and

rigorously have

metrics and

analytics built into

their design to

support and provide

insight into success

of the initiative

Implemented an

EDW:

Expensive & rigid,

with complicated

reporting and a lack

of agreement on

core standards

Deployed SFSF

Workforce

Analytics:

Metrics standards

were across HR only

– other functions

maintained their own

metrics data and

formulas

Link HR, HRIT, and

Finance:

Commenced an

executive-sponsored

“metrics standards”

activity

Removed all

reporting from HR

Business Partners:

Consolidated

centrally with a

“standard catalog” of

reports

Consolidation and

standardization

provided

consistent

outcomes and

reliable data

Standards work has

quieted issues of the

“right” set of

numbers

Source: SuccessFactors Workforce Analytics Customer Presentation.

2. Integrated Data


Every Day, Your Leaders Ask Hundreds of Talent Questions – What Data is Needed to Answer Them?

Will adding staff

increase profitability?

What’s our mix of

non-full time staff?

Are we over-staffed

in certain disciplines?

What are our exit

rates for talent pools?

Which skills will be in

highest demand?

Where are our

talent pools?

What % of our staff

will retire in 5 years?

Which LoBs are

losing knowledge?

Is this mix

optimal?

What % of staff move

internally to fill gaps?

Are these skills

available externally?

Should we hire more

from internal teams?

What’s the cost of

filling the gaps?

What % of critical

roles are unfilled?

How big are the skill

gaps?

Workforce Planning

Questions Workforce Analytics

Questions

What’s our ratio of

high/low performers?

How engaged is our

critical talent?

Is our span of control

too high?

How productive is

our workforce?

Are we paying for

performance?

What career paths

are most successful?

Are we succeeding in

hiring Millenials?

Is our workforce

diverse?

What’s the cost of

turnover?

Which roles face a

succession risk?

What are our best

sources of hire?

How effective is our

skills training?

Do we suffer from

high absence rates?

Are staff achieving

their goals?

How many staff will

we need in 5 years?


Executive Dashboards Require Data From a Myriad of Sources

Core Workforce Facts:

• Headcount or FTE

• Terminations

• Diversity, by Gender and Ethnic Background

• Workforce Age Profile

Productivity and Performance:

• Workforce Productivity

• Workforce Availability/Absenteeism

• Executive Compensation/Pay Comparison

Talent Development and Succession:

• Leadership Quality (Current and Bench)

• Staffing Rate – High Performers

• Staffing Rate – High Potentials

Human Capital Risk:

• Succession Risk (Lack of RN Successors)

• Staffing Shortages in Critical Roles

• Current vs. Future Competency Gaps

• Churn (hires vs. terminations) Rates

• Knowledge & Transition Risk

Financial Workforce Metrics:

• Operating Revenue per FTE

• Operating Profit per FTE

• Return on Human Capital Investment Ratio

• Cost of Turnover

Metrics for the Board of Directors In Boxes, Data Sources Required

Source: SuccessFactors, Workforce Data in the Boardroom, IHRIM Workforce Solutions Review, September, 2011.

HRIS Data

Performance

Compensation

Financials

Succession

Recruiting

Learning & Development


Educating the Organization About Data Quality

Timeliness Timeliness

Comments Accuracy

Accuracy

Comments Applicability

Applicability

Comments

Reporting

A set of standard

reports is created for

weekly line

management meetings

and must be ready one

day in advance

Reports should be

produced with an accuracy of +/- 5%.

The reports are not

applicable to any

specific business

issue; rather, they contribute to

ongoing operational

management

Analytics

Analytics occur on an

as-needed basis and examine broad trends;

Timeliness is only

considered in terms of

establishing context

Data accuracy

should be within a

threshold of +/-

10%.

Analysis should be

conducted on high-

priority workforce

segments

Modeling /

Forecasting

Each quarter’s HR

ExCom meetings

include headcount

forecasts; the data

used to populate the

models must be

updated 7 days in

advance

Data accuracy

should be within a

threshold of +/-

10%.

Data relevant to the

aging workforce

profile should be

prioritized

Strategic

Decision-

Making

The annual Strategic

Planning Workshop

requires a full year of

historical data; given

the seniority of

attendees, timeliness is important

Data accuracy

should be within a threshold of +/-

10%.

Data that is

applicable to the

strategic goals of

the organization is

critical; HR should

define the data link

3. Multi-Channel Delivery


Know Your Audience: Their Needs and Access Points

“Is there a positive

correlation between pay

and performance?”

“Which managers are talent

hoarders and which are

talent promoters?”

ANALYST EXECUTIVE HRBP

“How is my BU comparing

to others across our talent

KPIs?”

Need: A focused set of

talent KPIs to determine if

workforce strategy is helping

to execute business strategy

Channel: iPad Metrics

Need: A flexible application

that delivers metrics,

analysis, and statistical

tools to investigate talent

trends and identify issues

that should be addressed

Channel: Analytics

application

Need: Desktop metrics to

monitor tactical aspects of

workforce efficiency,

effectiveness, and impact,

with internal benchmarks

and recommended actions

Channel: Pre-Built Metrics

Dashboard


10-Minute Discussion – Pick 1 or 2 Questions

1. What data management (storage, transfer, maintenance) issues might

hinder your use of workforce analytics, and what cross-functional

governance models have worked/could work to address them?

2. Which of your firm’s data sources (not “systems”) contain data with the

highest and lowest data quality? Why? What challenges have you faced

with creating a “single version of the truth” – standard sources, formulas,

business logic, etc.?

3. What channels does your organization use currently to deliver data to

end-users? What channels would you like to see adopted, that will drive

utilization?

4. Information Retailing


Manufacturer or Retailer?

V.


Being an Information Retailer Requires New Skills, Techniques & Tools

Sales & Influence

Marketing

Change Management

Graphic Design

Data Visualization

Story Telling

Training

Etc.

Key Areas of

Recent Growth


Example: Headlines

5. Empowering the User


Org Agility Requires Mass Customization

“[Mass Production concerns] the technologies and systems to deliver

goods and services that meet individual customers’ needs with near mass

production efficiency.”

Tseng & Jiao

Source: Tseng, M. & Jiao, J. (2001). Mass customization. In G. Salvendy (ed.), Handbook of industrial engineering. New York: Wiley, 684‐709

Competitive

Forces

Expectations

of Technology

Individual

Users

Business

Strategy

Adjust with Changes to: Top Line

Bottom Line Without Increasing Costs


From Tour Guide to Curator

Source: Star Tribune


Predefine or Self-Determine

Predefine Self-Determine

Information Narrow Broad

Segmentation Limited Guided

Visualization Static Dynamic

Access Method Pushed Pulled

Frequency Monthly On-Demand


10-Minute Discussion

1. Think of an example you’ve experienced where data was

turned into a story that was successfully marketed to the

target audience. What characterized the final product?

2. What is an example of a solution that you have experienced

where enabling you as the end-user greatly enhanced the

resulting impact?

Resources You Can Use


Write Down Your Answer

I would like to know whether my firm’s investment in

_________________ has resulted in

______________________?

Examples

I would like to know whether my firm’s investment in virtual customer service

training has resulted in higher adoption of store loyalty cards?

I would like to know whether my firm’s investment in universal benefits

coverage has resulted in better retention rates for part-time staff?

How Did You Answer the Question?


Setting Priorities for Workforce Analytics: The Cost of a Poor Decision

Consists of 25 common “HR

Executive” decisions about

talent management strategy

Rating the “cost of a poor

decision” can be used to assess

priorities for workforce

analytics & planning

Thank You


Mick Collins

[email protected]

Twitter: mickcollins

Marcus Joseph

[email protected]

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