The Evolution of People & Workforce Analytics

July 2019

Matthew MeeDirector, Workforce Intelligence - EmsiCIPD Gloucestershire Branch Treasurer

Agenda

• Setting the scene

• Business context & drivers

• Measures & Standards

• Models & Approaches

• TechStack

• Skills & CPD

• Case Studies & Resources

Plus a couple of practical breakout sessions as time allows

Setting the SceneThe Journey so far

The Rise of Intangible Assets

What drives value & shareholder returns?

• IP

• Brand

• Data

• Workforce

• Research

• Quality Systems

• Customer Advocacy

• Knowledge

Approx 85% of Company value based on intangibles

3 Waves of Evolution

1. Early Thinkers &

Shapers

1980’s through early 2000’s

• If you don’t measure it, you can’t

manage it – Drucker school

• Rise of Psychometrics

• Jac Fitz Enz – How to measure

HRM (1984), ROI Human

Capital (2000)

• Ulrich 3 Box HR Transformation

• Saratoga Institute

• Sears Model – CSPC

• Roberts, Boudreau, McBassie

• OLAP tools

• SaaS Best of Breed – Data Silos

2. Analysts & Early

Adopters

2005 to 2016

• Bersin & Associates, Inostix,

HCMI

• OLAP Mass adoption – Cognos,

Business objects etc.

• Gartner, Fosway – The Analysts

• Value after ERP and CRM?

• Rise of ‘Intangible’ MarCap

• Adopters: Google,Facebook

Merck, ABN Amro, Shell, ING

• People Analytics born

• Launch of AI – Watson

3. Innovators & the

Future

2016 to today & Beyond

• Mainstream People Analytics

• Specialist Tech:

• ONA – Org net analysis

• SLP – semantic lang proc

• People BI 2.0

• Engagement 3.0

(Listening)

• Rise of DS, ML and AI

• Specialist Consultancies

• Today’s Thought Leaders

• IoT, Blockchain – coming soon

The People Analytics Industry 2019

• Predicted to become a US$2.5bn dollar industry by 2020

• CAGR of 16% per annum – 4 key industry segments

Technology & Innovation

Management Consulting

Training & Education

Research & Thought

Leadership

Ever Changing Business Context

Thinking like a CEO

Wh

at ke

ep

s y

ou

r C

EO

Aw

ake

? CEO mindset• Regulation

• Terrorism

• Political uncertainty

• Cyber threats

• Availability of Key Skills

• Speed of Change

• Populism

Workforce Insights Lens• Workforce ROI & Productivity

• Skills & Talent

• Change & Agility

• Risk & Regulation

• Value creation – Customer and Commercial

What is Driving People Analytics?

• People Analytics strategies need to reflect your organisational culture & context – defining what information is needed, when and for what purpose.

• Typically, insights will be designed around 3 key drivers:

Creating Value

• Workforce ROI

• Shareholder returns

• Revenue per Employee

• Improving Productivity

• Improving Service

• Competitive Advantage

• Customer Advocacy

• Enabling Scale & Growth

Monitoring Compliance

• Legislative Compliance

• Regulatory requirements

• Policy compliance

• Audit

• Ethics• Code of Conduct

• Transparency

• GDPR

Mitigating Risk

• Manage costs

• Risk Register

• Due diligence

• Litigation & Tribunals

• Brand & Reputation

• Employee turnover

• Customer Retention

• Protecting Revenue

• Protecting Market Share

Value, Risk & Compliance

• Let’s explore some tangle examples of these insights:

• Historically organisations have been more focused on Risk and Compliance reporting –but with the advent of new technology this is evolving rapidly

Creating Value

• Revenue per Employee

• Profit per Employee

• Return on Human Capital

Investment $

• Customer Advocacy levels

by Employee Groups

• Productivity levels by

Employee Groups

• Most influential &

impactful employees

• Leadership Trust rating

Monitoring Compliance

• Living Wage compliance

• Gender Pay status

• GDPR Compliance

• Modern Slavery Act

Compliance

• CEO Pay Ratio

Mitigating Risk

• HR Expenditure as a %

total revenue

• Employee tribunals #

• Glassdoor rating #

• Turnover rate for High

Performing employees or

Business Critical roles

• Customer Retention rates

by Employee segment

Le

gis

latio

n &

Tra

nsp

are

ncy

Metrics & StandardsWhat should we measure?

Hu

ma

n C

ap

ita

l M

etr

ics

Inte

rna

tio

na

l S

tan

da

rds

ISO

/DIS

30414

Business Critical Measures – Fitz-Enz

Space left here for presenter

From industry research and members of the People Analytics Program we have also crowd sourced the Top 5 People Measures used by organisations globally

#1 Business Critical Turnover

#2 Total cost of Workforce as a % Revenue & Profit

#3 Expenditure & ROI on L&D

#4 Impact of Engagement on Productivity

#5 Perceptions of Leadership & Culture by Employees

Models & ApproachesWhere and how to start

Ma

turity

Mo

de

ls:

WA

RN

ING

Still relatively low maturity levels – but adoption is increasing as business benefits are being realised

In general sector experts discourage use of these models. Space left here for

presenter

Ma

turity

Mo

de

ls

Ma

turity

Le

ve

ls

Insight222 – 9D-EiPA

3 KEY QUESTIONS: How can we:

IMPROVE IMPACT | CREATE VALUE | WHAT SHOULD WE DO???

Managing effective change

Nation Market2018

Population

Mid-Range

Labor

Supply

Global

Occupation

Profiles

Skill-

Specific

Profiles

Skill-

Specific %

of Profiles

GBR London 14,756,705 307,082 216,947 413 0.19%

GBR Manchester 2,814,751 38,930 28,370 28 0.10%

GBR Reading 913,121 28,933 21,594 27 0.13%

GBR Birmingham 2,551,484 30,962 26,042 19 0.07%

GBR Kirklees 991,202 9,600 10,891 15 0.14%

People & Talent Analytics UK job market

Online ProfilesJob Postings

Rising demand for People Analytics skills across the UK

Te

rmin

olo

gy T

ren

ds

ImpactIs People Analytics getting results?

Busin

ess Im

pact of

Pe

ople

An

aly

tics

Fin

an

cia

l Im

pa

ct

Wo

rkfo

rce

In

sig

hts

#1 WORKFORCE

PLANNING

#2 ORGANISATION

DESIGN

#4 EMPLOYEE

ENGAGEMENT &

EXPERIENCE

#3 RECRUITMENT &

SELECTION

#5 WORKFORCE

PRODUCTIVITY /

DIVERSITY & INCLUSION

CIPD Hidden Figures Research

2018

Breakout:1. What is the most important business challenge (or opportunity) where you think improved workforce insight can add value / reduce risk / or improve compliance?

2. What are the top 3-5 Workforce metrics that might help impact or inform this problem?

3. What Analytics ‘Projects’ could we build to test our hypotheses?

4. Who in the business Executive team would be engaged to sponsor and support this work?

TechStackSeriously Disruptive Marketplace

Dis

rup

tive

Te

ch

no

log

y

Tech & Events you should know about

Te

ch

no

log

y A

do

ptio

n

Skills & CPDA New Era of HR Skills

Skill

s f

or

Su

cce

ss

Insight222 – Keys to success

• Code of Conduct in place for ethical People Analytics

• Group of people who meet to prioritise Analytics projects

• Executive sponsorship from the business

• A CHRO who is passionate and invests in Analytics

• An Analytics leader who has the skills to drive value

• Analytics Projects measure ROI

• HRBP’s who are data literate and use data to drive value

Clean Data | Business Aligned Metrics | ROI & Value mindset

Build | Buy | Borrow | Bind

Breakout:

1. What technology would enable the greatest impact on our People Analytics journey?

2. What capability gaps would I need to fill to undertake this project? How would I approach this – build, buy or borrow?

Thought Leaders & Resources

Tra

inin

g &

To

ols

Case studies

• Experian – Predictive Attrition model - $14m saved over 2 years

• Hitachi – Mental health to Absence model

• ISS – Linking Engagement to business performance

• Shell – Cyber security profiling

• Clarks – Engagement and business performance

• 15 hr-analytics-case-studies

• Unleash case studies

Problem: Absence within the sales force due to lack of engagement.

Solution:

• Identified the group most ‘at risk of leaving’ or ‘taking leave’ using our platform.

• Ingested both absence data and historical Employee Engagement verbatim

questions/free text results for that population

• Analysed weather pattern data to validated patterns we were seeing in language

• Using our market-leading Natural Language Processing tool we identified that group

were talking about the “poor weather” & the “cold & wet” making it hard to serve

customers.

Results:

• Virgin invested in rain coats & umbrellas, creating £1.8m per annum of Value for

Customer.

44

Reducing attrition through rain jackets & umbrellas

Problem: Female population suffering with high absence rates in a particular high-

population firm, causes unclear.

Solution:

• Targeted pulse survey to the female population, including open text questions to be

used in NLP analysis.

• Analysed associated quantitative absence metrics

Results:

• The population in question talked significantly around “work life balance” and

“childcare”

• Women specifically complained about the lack of ability or willingness to

accommodate childcare issues, and therefore absence from work was the only

option.

• The customer implemented a flexible working option for workers in this region to

accommodate for childcare challenges.

• Insights achieved a 42% reduction in absence, and significant financial savings.

45

Improving Female attrition through NLP

Resources

Online

• people-analytics-starter-kit-richard-rosenow

• ISO 30414 Standards

• Patrick Coolen

• David Green – Digital HR Leaders podcast

Books

WorkRules – Bock | Power of People – Ferrar | Data Driven HR –Marr | People Analytics for Dummies – West | Competitive People Strategies – Green | Human Capital Metrics Handbook - Higgins

Thank youQuestions & discussion