how hr can move the needle for the business

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© 2014 Visier™ How HR can Move the Needle for the Business October 2, 2014 Dave Weisbeck, Chief Strategy Officer, Visier

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How can HR move the needle for the business? The competition for talent has gone global; turnover is rising; and employee engagement is stagnant at best. Companies have never had a greater need to understand with precision what it takes to recruit, retain, and motivate employees. As a result, never before has HR had such an opportunity to move the needle for the business it supports. As highlighted in a recent Harvard Business Review paper, HR Joins the Analytics Revolution, “a growing number of corporate boards, CEOs, and CHROs understand that by applying data-driven solutions to improve decisions about talent, they can improve revenues and profits.” But what does this “datafication of HR” mean for the HR Business Partner and Practitioner? View the full webinar recording here: http://www.visier.com/lp/hr-can-move-the-needle-for-business/

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Page 1: How HR Can Move the Needle for the Business

© 2014 Visier™

How HR can Move the Needle for

the Business

October 2, 2014

Dave Weisbeck, Chief Strategy Officer, Visier

Page 2: How HR Can Move the Needle for the Business

Page 2

WORKFORCE INTELLIGENCE

SOLUTIONS. SMART. INTUITIVE. COMPLETE.

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Page 3

SOME OF OUR AMAZING

CUSTOMERS

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TODAY’S AGENDA

HOW CAN HR:

More efficiently find the skills and expertise

needed at the right time for the best price?

Retain star performers more cost effectively?

Decode workforce planning and “dollarize” the

people strategy?

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Page 5

What’s driving the

datafication of HR?

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CUSTOMER VALUE

A growing number of corporate

boards, CEOs, and CHROs

understand that by applying data-

driven solutions to improve

decisions about talent, they can

improve revenues and profits.”

Harvard Business Review, 2014

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Increased complexity of the workplace

24/7 business, global competition, fading time/place

boundaries, risk and compliance

Increased complexity of the workforce

Offshoring, global mobility, contingent workers,

generational divides, war for talent

New technologies

Social media, smart phones, Cloud, always-on

Cost pressures

Every function must justify itself with ROI

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WHAT IS DRIVING THE CHANGE?

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EXTERNAL FORCES DRIVING

HR TRANSFORMATION

Hire Right

Demographic Shift

Retain Top

Talent

Skills Shortages

Ensure Planning

Agility

Economic Flux

Optimize Spending

Competitive Pressures

more than ever

before HR can

play a critical role

in driving

business

performance.

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Page 9

COMPANIES THAT ARE LEADERS IN

WORKFORCE INTELLIGENCE…

“… stock market returns are 30% higher than the S&P 500, they are twice as likely to be delivering high impact recruiting solutions, and their leadership pipelines are 2.5X healthier.”

Josh Bersin, October 2013

“…have a hard-to-replicate competitive advantage.”

Harvard Business Review Competing on Talent Analytics,

October 2013

“… improve talent outcomes by 12%, leading to a 6% improvement in gross profit margin, which translated into $18.9M in savings for every $1B in revenue.

CEB, Analytics Survey, 2013

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POLL: WHY IS THE “DATAFICATION OF HR”

IMPORTANT TO YOU? PICK ONE.

1. To respond to business leader requests for

information faster.

2. To have better workforce conversations with

business leaders.

3. To allow HR to have a greater impact on

business results.

4. To align workforce decisions with the business

strategy.

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How can HR move the

needle for the business?

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HR TODAY: BUILT TO REACT AND SERVE

Comp & Benefits

Recruiting

Learn & Develop.

Talent Mgmt

Field / BPs

Market Comp Surveys

Applicant Tracking

System

HR Management

System

Learning Management

Performance

Management

Engagement Surveys

Reporting

BUSINESS

DEMANDS

HR

FUNCTIONS

HR SYSTEMS &

PROCESSES

Hire

Pay

Train

Retain

Comply

Report

REQUES

T

REACT

BUSINESS

NEEDS

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HR TOMORROW: TRANSFORMED

Comp &

Benefits

Recruiting

Learn &

Develop.

Talent

Mgmt

Field / BPs

Market Comp Surveys

Applicant Tracking

System

HR Management

System

Learning Management

Performance

Management

Engagement Surveys

WORKFORCE

INTELLIGENCE Wkforce

Intel

BUSINESS

STRATEGY

Margins

Customer Sat.

Geo Expansion

Innovation

Cost Control

New Channels

PEOPLE

STRATEG

Y

(ALIGN)

ANALYZE

ACT

HR TRANSFORMATION

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DEFINING WORKFORCE INTELLIGENCE

Align

Act

Analyze

• Measure past trends and present realities

• Connect data points to achieve insights and predict future events

Analyze

• Articulate your findings

• Define, refine & share your strategy

• Collaborate and gain buy-in

Align

• Act on workforce decisions

• Develop and implement credible workforce plans

• Create impact on the business results

Act

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Moving the Needle

for the Business:

Recruiting

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RECRUITING

React: Request, approve, fill position

Focus on metrics like Time to Fill

Analyze: What are the bottlenecks in the hiring process?

What sources are best? What candidates succeed?

Align: What roles are critical to business success?

Who to backfill, what supports new initiatives?

Act: Implement and measure plan based on criticality.

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ANALYZE: RECRUITING IS A PROCESS

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ALIGN & ACT: WHO, WHERE, CRITICAL?

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Moving the Needle

for the Business:

Retention

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RETENTION

React: Deliver dashboard with turnover by role, location, and

department

Analyze: Where can we expect departures? Why are people

leaving?

Where are departures welcomed?

Align: What is actually regrettable? By ‘top talent’, and by

key business initiative.

Act: Take on root causes to retain the talent you need

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ANALYZE: MOVE FROM WHAT HAPPENED

TO WHAT WILL HAPPEN

MICRO VIEW: Who are we likely to lose?

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ANALYZE: MOVE FROM WHAT HAPPENED

TO WHAT WILL HAPPEN

MACRO VIEW: How many, and where will we lose people?

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ALIGN & ACT: RETENTION

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Think of retention in terms of:

CAPACITY: Will we have the staffing levels required to sell, produce, serve,…

How will retention impact our productivity?

CAPABILITIES Do we have the right mix of skills and talent across the organization.

How will retention impact this?

Think of retention as part of your plan. Measure attrition against your plan.

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Moving the Needle

for the Business:

“Dollarize” your People Strategy

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TOTAL WORKFORCE COSTS

React: Run a compensation review process

Analyze: What is contributing to compensation increases?

Where are costs going – move beyond compensation.

Align: What is the budget? What should the budget be?

Where do we want to invest, or reduce, costs?

Act: Regularly (monthly!) forecast your workforce – hiring,

headcount and total costs – and stay on track.

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ANALYZE : WHERE ARE COSTS GOING?

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ALIGN : MEASURE ALL OF THIS (AT LEAST WORK TOWARDS THIS)

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ALIGN : WHAT SHOULD WE BE SPENDING?

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ALIGN : WHAT DO WE EXPECT TO SPEND?

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ALIGN : WHERE WILL WE INVEST SPENDING?

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ACT : FORECAST MONTHLY

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RECOMMENDATIONS:

Most compensation

analysis by HR is

annualized – dig into

actuals, it isn’t just for

finance

Forecast – take actuals

plus intended hires &

costs and project to

where you will end the

year – then evaluate if

you are on target

Review this monthly

with leadership

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RESOURCES

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DISCUSSION

Dave Weisbeck

[email protected]