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People Analytics
sekou bermissbig.bright.minds.2018
Intuition vs EvidenceWhy do some teams
perform well when others suffer? Who are the “team players”? Are they under-
rewarded?
What can we do to better manage diverse workforce? What goes into creating an
inclusive work environment?
What is a fair way of evaluating the performance
of employees?
How do we attract high quality talent? How can we
get “better” employees?
What is the best way to incentivize our employees?
Will a bonus work?
Do virtual workers suffer from not interacting with their
boss as much?
How can we prevent our best employees
from leaving?
How can we create a culture that everyone
wants be around?
The Value of Analytics and Research
“Nothing that you will learn in the course of your studies will be of the slightest possible use to you in after life – save only this – that if you work hard and intelligently, you should be able to detect when a person is talking rot, and that, in my view, is the main, if not the sole, purpose of education”
John Alexander SmithProfessor, Moral Philosophy, Oxford, 1914
“It’s deja vu all over again”
§ Big data in the 1980-90’s§ “Scanners and UPC codes will do for marketing and
economics what microscopes did for biology”
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2009 2011 2015 2020
Zetta
bytes
Growth of Global Data in Zettabytes, 2009 - 2020
Human Resources Data
Science
GeneralManager
People Analytics Version 1
DataScience
GeneralManager
HumanResource
PeopleAnalytics
People Analytics Version 2
DataScience
GeneralManager
HumanResources
PeopleAnalytics
People Analytics Version 3
Companies need an experiment-focused, numerate, data-literate workforce.
- Jeanne Harris, HBR
Business Impact of People Analytics
30% increase in stock price
6% increase in gross margins
79% increase in
ROE
Bersin by Deloitte (2017). High-Impact People Analytics
People Analytics and Leadership
People Analytics
Strategic Human Capital
Job Design and Analysis
Recruitment and
Selection
Training and Socialization
Managing Diversity
Performance Management
Comp and Pay
Turnover (voluntary
and otherwise)
People Analytics and Leadership
People
Analytics
Strategic
Human
Capital
Job Design
and Analysis
Recruitment and Selection
Training and
Socialization
Managing
Diversity
Performance
Management
Comp and Pay
Turnover (voluntary
and
otherwise)
• You either love or hate your job, and
we blame our leader for both
• Hiring = easy, firing = harder
• Train ‘em so they don’t leave;
train ‘em so they do leave
• Can’t we all just get along?
• Employees don’t like to get
evaluations, and managers don’t like to
give them – yet, for some reason, we
keep doing them
• Pay is a manager’s worst nightmare –
there is always someone who feels
cheated
• The reality of being a leader never hits
you as hard as having to fire someone
• People leave leaders, not organizations
TWO EXAMPLESa.k.a.PEOPLE ANALYTICS #IRL
Credit Union Recruitment
Credit Union Recruitment§ Applicant Pool: Larger is better, right?
§ Empirical study with large credit union§ 10 years of personnel data § 5 years of job application data
§ Turnover rates for employees hired in a month with a large applicant pool are significantly more likely to departthan employees hired among a small applicant pool.
§ What does this mean?§ Recruitment timing matters!§ Selection issues?
Bermiss & Darnell (2018) Diving Headfirst into the Applicant Pool: How Employee Attraction Impacts Employee Retention
Selection Processes at Springfield-Clifton Unified School District
Background§ Recruiting high quality teachers is difficult§ Review hiring process and important criteria district
should be using for selection§ Outlines data – 17 variables
§ Skills§ Accomplishments§ Psychological assessments§ Student performance (standardized tests)§ Qualitative assessment of classroom environment
§ What criteria should SCUSD use for selection?
BRINGING IT ALL TOGETHER
Questions and Analyses§ The nature of the question determines the quality of your
answer?
Why…?
What if…?
How…?
Model for Selection
High Performing Employee
Improve test scores?Stays longer?
Deals with parents well?Handles difficult cases?
Actually says “yes”?
Attributes Skills
Behaviors
PersonalityIQ (GPA, Education)
SkillsExperience
Type of school?Resources available for
teaching?Parental involvement?
How are you defining “high performance”?
How are you measuring each dimension of
performance?
What characteristics of employees should lead to high performance?
(Look to best practices of other firms or academic literature)
How are you measuring each characteristic?
What other things could predict performance that has nothing to do
with these characteristics?(alternative explanations)
What analytics can statistically show this
relationship?
Any HR Function
Four Stages of People Analytics Maturity
Manual• Paper or
spreadsheet based.
Efficient• Transaction & report
based
Effective• Strategically
focused beyond simple reports
Transformational• Unique contributes
to competitive advantage
Visler (2018). People Analytics Survey
More Importantly…
§ Three mindsets that must be integrated together
§ Data sense – versed in extracting knowledge and insights from data
§ People sense – versed in interpreting data as it relates to human beings
§ Business Sense – versed in positioning insights within the constraints of the organization to change policy
