Control the Hidden Costs
In Talent ManagementWorkforce Intelligence
PRESENTED BY DANNY A. NELMS
The Work Institute
MEET YOUR SESSION LEADER
Mr. Danny A. Nelms, MBA
SVP & Managing Director
The Work Institute
� Co-author of The Why Factor: Winning With
Workforce Intelligence
� Agent of change, thought leader, and expert in
helping companies forge new directions with 20
years of experience and insight into human capital
dynamics
� Bachelor of Business Administration from Georgia
State University
� Masters of Business Administration from the
Massey School at Belmont University
� Adjunct faculty member at Lipscomb University in
Nashville, Tennessee
KEY TOPICS FOR DISCUSSION
� Overview of Talent Management
� Overview of Talent Analytics
� Making the Case: Workforce Intelligence
� The Next Horizon in HR Analytics
� We Believe Every Word Counts
Overview of Talent
Management
“Talent Intelligence could be a key lever in today’s hyper-competitive
world. As ‘business intelligence’ captures, extracts and analyzes key
data on an organization’s traditional hard assets, ‘talent intelligence’
centers on key data on its people assets to generate insights that can
drive improved decision-making and performance.”
- Human Capital Institute
DEFINING TALENT MANAGEMENT
Talent Management is the science of using strategic HR to
improve business value and make it possible for companies
and organizations to reach their goals.
KEY TALENT MANAGEMENT COMPONENTS
Acquire
Develop
Reward
Retain
TIMING IS EVERYTHING
Employees’ views change
during the employment life-
cycle, so it’s important to
collect valuable intelligence
from employees at varying
times throughout the
employment experience.
Overview of Talent
Analytics
“Not having the right talent in the right place is a leading threat to
growth for many CEOs. One in four CEOs said they were unable to
pursue a market opportunity or have had to cancel or delay a
strategic initiative because of talent constraints.”
- PricewaterhouseCoopers International
MEASUREMENT IS KEY
CURRENT HR ANALYTICS
STATIC VIEW
SNAPSHOT OF METRICS
WORKFORCE ANALYTICS GIVE US A
PICTURE OF THE ORGANIZATION
The metrics we report gauge a function versus a
capturing process. They only allow us to see
trends or measure versus a target.
Typically current HR analytics provide us with
metrics about the HR function and how it
operates, whether it’s efficient, or what it costs.
MISSING A CONNEC TION
We need to turn our lens from a myopic view to
a wider perspective of what these measures
mean to our business.
FUTURE HR ANALYTICS
COMPREHENSIVE VIEW
IDENTIFY TRENDS
WORKFORCE ANALYTICS GIVE US A
PICTURE OF THE ORGANIZATION
Will provide a wide array of metrics and
measures that are comprehensive and business
oriented.
Trends allow us to see what has happened, but
more importantly provide the ability to predict
what will happen.
CONNECTED TO BUSINESS OUTCOMES
When the business understands the impact on
the business, leaders will focus on improving
and impacting employee bahaviors.
LOOKING INSIDE THE ORGANIZATION
MOST CEOs AREN’T GETTING COMPREHENSIVE INFORMATION ON TALENTMOST CEOs AREN’T GETTING COMPREHENSIVE INFORMATION ON TALENT
For those areas important to you, how adequate is the information that you currently receive?
Source: PricewaterhouseCoopers
0 10 20 30 40 50 60 70 80 90 100
Costs of employee turnover
Labor costs
Employees' view and needs
Assessments of internal advancement
Staff productivity
Return on investment on human capital
Comprehensive Adequate but would like more Not adequate Do not receive this information/Don't know
Making the Case:
Workforce Intelligence
in Action
“Leading-edge companies are increasingly adopting sophisticated
methods of analyzing employee data to enhance their competitive
advantage. If you want better performance from your top
employees – who are perhaps your greatest asset and your largest
expense – you’ll do well to favor analytics over your gut instincts.”
- Competing on Talent Analytics, Harvard Business Review, October 2010
WORKFORCE INTELLIGENCE @ 50,000 ft.
� Increased productivity
� Engaged employees
� Improved company performance
� Preferred employer status
THE RESULT:
THE SITUATION
� Fortune 100 technology and
manufacturing company
� Candidates were primarily
engineers in high demand
making six figure incomes
� Acceptance rate for job offers
declined were declining
� Cost of hire increasing
� Time to hire increasing
PRELIMINARY ASSESSMENT
Human Resources felt that
COMPENSATIONwas THE major driver in the increased rate of declined offers.
Proposed salary increase of 10% would equal
over $2 million annually.
INDENTIFYING HUMAN CAPITAL METRICS
� Time to hire
� 120 days
� Historical avg. 100 days =
20% increase
LEVEL 1:
CALCULATING HUMAN CAPITAL FINANCIALS
� Cost of hire
� $50,000
� Historical Avg. $42,000 = 19%
Increase
LEVEL 2:
THE MISSING ELEMENT WORKFORCE RESEARCH
� HR decided to conduct a
recruitment study prior to making
decisions in order to determine
the REAL reasons why candidates
were declining offers
� 200 candidates who had declined
offers were contacted
� 100 candidates responded and
agreed to provide feedback
MAXIMIZING WORKFORCE RESEARCH
� 60% of candidates cited the
interview process as the major
factor in declining the offer
� poor communication
� cancelled interviews
� interviewers being available at
scheduled times
� phone calls not returned in a
timely manner
� overall lack of organization
LEVEL 3:
Only 10% cited
compensation as the most
important reason for
declining the offer
REVISED ASSESSMENT
The
INTERVIEW PROCESSis the major driver in the increased rate of declined offers.
.
Examine and revise the recruitment and
interview process.
THE RESULT
� Acceptance rate for job offers
increased
� Cost of hire decreased
� Time to hire decreased
THE IMPACT OF WORKFORCE INTELLIGENCE
� The cost avoidance to the
company by improving the overall
recruitment process equaled
more than $2 million annually
� HR had established an evidence-
based approach to understanding
workforce issues.
$2,000,000
FUTURE HR ANALYTICS
COMPREHENSIVE VIEW
IDENTIFY TRENDS
WORKFORCE ANALYTICS GIVE US A
PICTURE OF THE ORGANIZATION
Will provide a wide array of metrics and
measures that are comprehensive and business
oriented.
Trends allow us to see what has happened, but
more importantly provide the ability to predict
what will happen.
MISSING A CONNEC TION
We need to turn our lens from a myopic view to
a wider perspective of what these measures
mean to our business.
The Next Horizon in
HR Analytics
“A good spy movie never ends with the agents capturing the
intelligence; it starts with it. Good intelligence makes for a good,
action-filled plot. It should do the same in your workplace.”
- Danny Nelms, The Why Factor: Winning with Workforce Intelligence
TURNING OUR LENS TO A WIDER VIEW
� What are the significant issues going on in your
organization?
� What initiatives do you believe are strategic
imperatives?
� What initiatives have a direct financial impact on the
organization?
� Is there a correlation between our snapshot of the
metrics, employee feedback and the business results
wit the experiences in our organization?
FOCUSING ON WORKFORCE INTELLIGENCE
WINNING WITH WORKFORCE INTELLIGENCE
Typical Approach = Another HR Program
WORKFORCE INTELLIGENCE APPROACH = STRATEGIC BUSINESS IMPERATIVE
� Analytics need to be combined with financial measures and workforce
research to yield intelligence we can use to specifically and intentionally
intervene and impact business practices and results.
� If we don’t consider the employee’s perspective and feedback as well as
the organization’s financial resources, we are limiting our ability to be
effective to assumptions and predictions and leaving out the critical answer
to the question “Why?” – the question only our employees can answer.
Q & A
“Judge a man by his questions rather than by his answers.”
- Voltaire
We Believe Every
Word Counts
“While quantitative surveys may provide you a compass to
understand direction, The Work Institute methodology is a GPS! We
can hone in on the key actionable information so you drive your
organization and achieve your goals with confidence.”
- Danny Nelms, The Why Factor: Winning With Workforce Intelligence
Discover a better approach to gathering and
understanding workforce intelligence, and get results
that give you a competitive advantage.
� proprietary, customized solutions to get to the root of
how people respond to your organization
� emphasis on mixed method research – we get the best
information, so we can give you the best information
� a commitment to meeting clients where they are,
matching research and analysis to the client’s needs,
and asking the right questions
The Work Institute gives your organization the power to
improve overall satisfaction, reduce cost, and promote
growth.
Leading national and international
organizations rely on The Work Institute
to gather actionable data to help
manage talent, improve performance
and mitigate risk.
Stop wondering. Start knowing. Start winning!
ABOUT THE WORK INSTITUTE
UNDERSTAND YOUR EMPLOYEES.
MANAGE MORE EFFECTIVELY.
COMPETE AT THE HIGHEST LEVEL.
The Work Institute | 1620 Westgate Circle, Suite 100 | Brentwood, TN 37027
Toll Free: 1-888-750-9008 | Phone: 615-777-6400
www.WorkInstitute.com