hr / talent analytics

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HR / Talent Analytics orientation given as a guest lecture at Management Institute for Leadership and Excellence (MILE), Pune. This presentation covers aspects like: 1. Core concepts, terminologies & buzzwords - Business Intelligence, Analytics - Big Data, Cloud, SaaS 2. Analytics - Types, Domains, Tools 3. HR Analytics - Why? What is measured? - How? Predictive possibilities 4. Case studies 5. HR Analytics org structure & delivery model

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  • HR Analytics - Akshay Raje
  • Agenda 1. Core concepts, terminologies & buzzwords Business Intelligence, Analytics Big Data, Cloud, SaaS 2. Analytics Types, Domains, Tools 3. HR Analytics Why? What is measured? How? Predictive possibilities 4. Case studies 5. HR Analytics org structure & delivery model
  • Core concepts and terminologies Decision Analytics =Business Intelligence
  • Core concepts and terminologies Business intelligence (BI) is a set of theories, methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information for business purposes. Business analytics (BA) refers to the skills, technologies, applications and practices for continuous iterative exploration and investigation of past business performance to gain insight and drive business planning. 1. Business Intelligence Success Factors: Tools for Aligning Your Business in the Global Economy. Hoboken, N.J: Wiley & Sons. ISBN 978-0-470-39240-9. 2. Beller, Michael J.; Alan Barnett (2009-06-18). "Next Generation Business Analytics". Lightship Partners LLC
  • History of BI and Analytics Decision support systems (DSS) began in the 1960s as computer-aided models created to assist with decision making and planning. From DSS, data warehouses, Executive Information Systems, OLAP and finally Business Intelligence came into focus beginning in the late 80s. Because of the rigidness of enterprise level BI tools, analytics started gaining traction in mid 00 Logistics & Supply Chain Analytics 1980s Financial & Budget Analytics Integrated Supply Chain Integrated ERP & Financial Analytics Customer Analytics, CRM & Data Warehousing Customer Segmentation and Shopping Basket Web Behavior Analytics Predictive Customer Behavior Recruiting, Learning, Performance Management Integrated Talent Workforce Planning Business-driven Talent Analytics Predictive Talent Models HR Analytics Early 1900s 1950s-60s 1970s-80s Today Industrial Economy Financial Economy Consumer & Web Economy Talent Economy Steel, Oil, Railroads Conglomerates Segmentation & Personalization Globalization, Diversity, Skill & Leadership shortages Source:Bersin&Associates
  • Buzzwords #BigData #Cloud #SaaS
  • Agenda 1. Core concepts, terminologies & buzzwords Business Intelligence, Analytics Big Data, Cloud, SaaS 2. Analytics Stages, Types, Domains, Tools 3. HR Analytics Why? What is measured? How? Predictive possibilities 4. Case studies 5. HR Analytics org structure & delivery model
  • Stages of Analytics Reporting What happened? Analysis & Monitoring Why did it happen? What is happening now? Predictive Analytics What can happen? Complexity Businessvalue
  • Types of Analytical Models Reporting Analysis & Monitoring Predictive Analytics Past Data Current Data Future PREDICTS PREDICTS PREDICTS Drawing Conclusions or Inferences Representation of Data and Summarizing INFERENTIAL ANALYTICS DESCRIPTIVE ANALYTICS REPORT PREDICTIVE ANALYTICS
  • Analytics Domains Retail Sales Analytics Financial Services Analytics Risk & Credit Analytics Talent / HR Analytics Marketing Analytics Consumer Behavior & Cohort Analytics Collections Analytics Fraud Analytics Pricing Analytics Telecom Analytics Supply Chain Analytics Web Analytics
  • Tools, Matrices, Software Reporting Metric Types Description Rate Proportion of one or more parts to a whole of 100% Ratio One number relative to another, often expressed as a reduced fraction Composition Breakdown of a whole into its parts, showing the number or percentage allocated to each Index Weighted combination of disparate data into one number relative to a scale or anchor Volume Number of people or units with a characteristic, or occurrences of an event Cost Organizational expenses, revenues, profits, or value Time Process cycle time, volume of time invested, or timeliness of events Quality Performance of people, processes, or systems Satisfaction Participants subjective perceptions of a process, program, or experience Typical tools / software: Microsoft Excel (max used) BI reporting tools ERP reporting tools, dashboards
  • Tools, Matrices, Software Analysis & Monitoring Typical tools / software: Microsoft Excel (limited usage) BI reporting tools Statistical software like SAS, R etc Representation of Data: Frequency Distributions: Relative and Percent Frequency Graphs: Bar, Pie, Dot Plot, Histogram, Ogive Cumulative Distributions Measures of central tendency: Mathematical: Arithmetic / Geometric / Harmonic Mean Positional: Median, Mode Measures of dispersion: character of variability in data Absolute: Range, Quartile / Mean / Standard Deviation Relative: Coefficient of Range / QD / MD / variation Correlation: degree or extent to which two or more variables fluctuate with reference to one another Pearson Correlation: Correlation for Continuous data Spearman Correlation: Correlation for Ordinal Data DESCRIPTIVE ANALYTICS
  • Tools, Matrices, Software Analysis & Monitoring Typical tools / software: Statistical software like SAS, R etc Survey tools Sampling Types: Random Systematic Sampling Stratified Cluster Sampling Statistical inference: Inference about a population from a random sample drawn Confidence Intervals: Using standard error (SE) for applying confidence intervals to estimates Hypothesis Testing: Assertion regarding the statistical distribution of the population INFERENTIAL ANALYTICS
  • Tools, Matrices, Software Predictive Analytics Typical tools / software: Statistical software like SAS, R etc Regression: Linear Regression Non Linear Regression Factor Analysis Cluster Analysis
  • Over to Dilbert
  • Agenda 1. Core concepts, terminologies & buzzwords Business Intelligence, Analytics Big Data, Cloud, SaaS 2. Analytics Stages, Types, Domains, Tools 3. HR Analytics Why? What is measured? What can be measured? Predictive possibilities 4. Case studies 5. HR Analytics org structure & delivery model
  • Why HR Analytics? Measure & Manage Return on Investment Linkage of Business Objectives and People Strategies Performance Improvement What gets measured, gets managed; What gets managed, gets executed - Peter Drucker The business demands on HR are increasingly going to be on analysis just because people are so expensive - David Foster To clearly demonstrate the interaction of business objectives and workforce strategies to determine a full picture of likely outcomes HR Dashboards - SAP Global organizations with workforce analytics and workforce planning outperform all other organizations by 30% more sales per employee. - CedarCrestone
  • Steps in HR Analytics Hindsight Insight Foresight Gather data by Reporting Make sense of data by Analysis and Monitoring Develop predictive models
  • What is generally measured/tracked today? 63% 52% 48% 45% 37% 31% 30% 27% 27% Employee Engagement Performance Ratings Retention / Turnover HIPOs & HIPO pipeline % employees with dev plans Readiness for job Internal hire %age Diversity of workforce Level of expertise / competance Source: Bersin & Associates 2012 US research
  • What should/could be measured? HR Matrices Recruitment Retention Performance & Career Management Training Comp & Benefits Workforce Organization effectiveness
  • Recruitment Recruitment Internal Movement Staffing Effectiveness 1. Employment Brand Strength 2. External Hire Rate 3. Net Hire Ratio 4. New Position Recruitment Rate 5. New Position Recruitment Ratio 6. Recruitment Source Breakdown 7. Recruitment Source Ratio 8. Rehire Rate 1. Career Path Ratio 2. Cross-Function Mobility 3. Internal Hire Rate 4. Internal Placement Rate 5. Lateral Mobility 6. Promotion Rate 7. Promotion Speed Ratio 8. Transfer Rate 9. Upward Mobility 1. Applicant Interview Rate 2. Applicant Ratio 3. Average Interviews per Hire 4. Average Sign-On Bonus Expense 5. Average Time to Fill 6. Average Time to Start 7. Interviewee Offer Rate 8. Interviewee Ratio 9. New Hire Failure Factor 10. New Hire Performance Satisfaction 11. New Hire Satisfaction Offer Acceptance Rate 12. On-Time Talent Delivery Factor 13. Recruitment Cost per Hire 14. Recruitment Expense Breakdown 15. Referral Conversion Rate 16. Referral Rate 17. Sign-On Bonus Rate
  • Retention Turnover Employee Engagement Cost of Turnover 1. Involuntary Termination Rate 2. New Hire Turnover Contribution 3. Retention Rate 4. Termination Breakdown by Performance Rating 5. Termination Reason Breakdown 6. Voluntary Termination Rate 1. Employee Commitment Index 2. Employee Engagement Index 3. Employee Retention Index 4. Market Opportunity Index 5. Offer Fit Index 1. Average Termination Value 2. Average Voluntary Termination Value 3. Termination Value per FTE 4. Turnover Cost Rate< 1-Year Tenure
  • Performance & Career Management Performance Management Career Management 1. Average Performance Appraisal Rating 2. Employee Turnaround Rate 3. Employee Upgrade Rate 4. High Performer Growth Rate 5. Peer Review Rate 6. Performance Appraisal Participation Rate 7. Performance Rating Distribution 8. Performance-Based Pay Differential 9. Performance Contingent Pay Prevalence 10. Self Review Rate 11. Upward Review Rate 1. Cross-Function Mobility Managers 2. Employee Satisfaction with Leadership 3. LDP Prevalence Rate 4. Manager Instability Rate 5. Manager Quality Index 6. Positions Without Ready Candidates Rate 7. Successor Pool Coverage 8. Successor Pool Growth Rate
  • Training & Development Training Education & Development 1. Average Training Class Size 2. E-Learning Abandonment Rate 3. Employee Satisfaction with Training 4. Training Channel Delivery Mix 5. Training Course Content Breakdown 6. Training Expense per Employee 7. Training Hours per FTE 8. Training Hours per Occurrence 9. Training Penetration Rat