the new hr math: dumbing downhr analytics for everyday hr & talent acquisition pros
DESCRIPTION
It all started with a great premise: Let’s teach kids an easier way to understand math so they won’t end up hating it. We can all buy into that, right!?What came out was a classic organizational nightmare of project-gone-wrong, in a way only HR can truly understand—the Common Core was born. Now, there you sit at the kitchen table trying to show your kid how to do basic multiplication, but you really have no clue on how to do it the “new-math” way.In a similar way, it used to be HR and Talent Acquisition could just run some spreadsheets, make a three-color pie graph, drop it in the middle of the conference table and—BAM—our job was done.But, not anymore! Now you’re expected to take your people analytics and make evidence-based decisions, and prove we actually know what we’re talking about, eliminating the art and “feel” of classic HR and Talent practices.We feel your pain, and we can’t multiply the new way either. That’s why our May installment of the FOT webinar is entitled, The New HR Math: Dumbing Down HR Analytics for Everyday HR and Talent Pros. we’ll help you understand how to deploy the “new-math” principles in HR that allow you to use predictive analytics to position yourself as the expert you are.TRANSCRIPT
FIGURING OUT THE BIG FIVE FOR THE SPOTS ON YOUR TEAM
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2Presenter Info
Kris DunnCHRO at Kinetix (RPO, Recruiting)Founder of Fistful of Talent , The HR Capitalist Hoops Junkie
Tim Sackett President of HRU Technical Resources (Technical contract staffing)Founder of the Tim Sackett ProjectWorlds foremost expert on Hugs#HireVue
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8The 5 HR and Talent Analytics You Should Stop Measuring Immediately!9Why Days to Fill isnt working for youWhy is 45 days to fill better than 90 days to fill?Faster doesnt mean better Speed without quality costs the organization more in the long runGive it business contextDont focus on the mean (Average); its basically meaningless. Look at the distribution
How are you using this metric to prioritize? Do you know your cost of Vacancy vs. pushing a bad hire through?
How long is it taking to hire your best employees/by position? How long did it take you to hire your highest turnover hires? What happens to your time to fill at various critical points across your process (we missed interviewing by day 20, this extends us by 14 days, etc.). 10Department Satisfaction doesnt add upBased around flawed concept of Customer Satisfaction.
It sets the bar too low.
Gallup research shows that emotion drives satisfaction results more than actual rational considerations.
There is giant difference between being Totally satisfied and just Satisfied Xerox found totally satisfied customers are six times more likely to buy again than just satisfied customers. Customer sat only registers to buy again if theyre Wowed.
Measuring methods for satisfaction are flawed when only using a lickert scale must analyze verbal to really understand how and why too many variables.11Absentee Rate isnt telling you anythingFlawed assumption that absenteeism is costing your business.
Your measuring for wrong reasons.
Give people a no claims bonus and see what happens.
Historically, HR measured Absenteeism because it was easier to fire someone for failing policy than just bad performance.
12Quality of Hire isnt qualitySubjective at best.
Cant compare against industry or competition.
Takes too long to really discover.
Is this really a measure of HR and Talent Acquisition?
Can speak more to your lack of development and poor leadership than TAs ability to bring in good candidates. 13Employee Engagement doesnt correlate! You cant connect the dots.
Best places to work examples are leading you down the wrong path.
Engagement does not equal productivity or output.
Emotion or behaviors?
Havard Study no direct connection between high engagement and profits. You have to connect the dots to get there.
Best places to work type info is flawed. Its chicken or the egg. First become a great operating company, then worry about engagement. All these companies were first great companies. Its easier to be engaged working for Google, then for Walmart. BTW both make a ton of money.142
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15The 5 HR and Talent Analytics You Should Start Measuring Immediately!16#1 Most Valuable Employee (MVE) What it is:An ROI metric on which employees bring the most value to your org.
What you need:Revenue per employee by position.
Why it will make a difference:Think of it in way you think about professional sports teams.
17#2 Leadership Birth Rate (LBR)What it is:A metric that shows which leaders are growing new leaders.
What you need:Leader pipeline and succession data.
Why it will make a difference:The most important thing a leader can do is develop new leaders for the organization.
18#3 Organizational Fit (FAT)What it is:How well will a potential new hire fit into our culture and organization.
What you need:Pre-hire data: personality, likes/dislikes, tendencies, etc. (HireVue Insights!)
Why it will make a difference:You dont need a college degree to be talented Laszlo Bock But you better fit in!
19#4 Internal Mobility (MOVE)What it is:A metric that shows you who your best employees are going to work for in your organization.
What you need:Employee performance data, internal mobility data.
Why it will make a difference:Your employees will tell you a lot who your best leaders are, who your worst leaders are, etc.
20#5 Health Care Claims Per Capita (SIC)What is it: Its a touchy subject, but after fixed employee costs, health care costs are one of the biggest line items HR departments manage and present the most downside risk.What you need: Reporting Health Care Claims Per Capita (HCCPC) is easy simply take the total $$$ in health care claims vs. your plan and divide by the number of employees. Why it will make a difference:The resulting awareness helps in two ways: 1) It gives you leverage so there are no surprises if you have to reduce the quality of the medical coverage to stay even, and 2) It helps fund (with no budget) remedial, mid-stream solutions within the plan year designed to reduce total claim $$ (examples of products in the past Tele-Doc, etc.
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22Why HR and Recruiting Pros Need to SHIFT/LEAN FORWARD When It Comes to Using Data23
To Be Strategic, HR has to StopReporting and Start PredictingThe HR Standard for reporting has traditionally been about what has happened in the pastToo little focus has been placed on predictive use of dataYou might not have true predictive analytics, but how comfortable are you and your team at using data to directionally predict the future and identify gaps?
26Cops Report and EnforceAssassins Use Leverage To Get ChangeYouve got dataPeople like HireVue give you increased visibility and access to dataMOMENT OF TRUTH: What are you reporting on, how do you position the data and how do you use the data to drive behavioral change in your organization?
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28The 3 BEST HR Practices you can use right now with your analytics29
Begin Asking What-if questionsOld Math: Whats our turnover?
New Math:Whats our turnover if we eliminate a certain popular, but costly, benefit?
32Make Connections Between Related MetricsOld Math: Lets look at out demographics to see who might be retiring in the next three years. New Math: Analyze expected leader turnover and leader pipeline data. Do we have a problem or not?
Hi-Po turnover and Hi-Po succession33Uncover Root Cause and Discover the Why Behind Your AnalyticsOld Math: Lets analyze our Resignation rate (those leaving on their own).Report on findings.
New Math: First lets cut it up (R-rate of Hi-pos, R-rate of those below the midpoint, etc.)Then, why are we having the problems were having in those areas?
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35HEY NOSTRADAMUS!
Whats Next Once You Have the Data and are Broadcasting the Data?36
Step 1 - Scoreboard the Data and Make People Change Their View of HRThe Data weve focused on isnt about HR, its about the business.You dont win unless youre willing to keep score and tell the world whos winning.The business will respect you more in the morning if you dont treat them equal.Report on winners and losers, but be quick to offer help to those who arent winning.
38 Step 2 - Use Experiments and A/B Testing to Prove the Things You Want to Spend Money On Actually WorkYour reporting on data sets the baseline.Smart talent pros with confidence understand that provides a perfect opportunity to experiment.Do experiments, measure the outcomes.Get early wins that give you more rope to experiment in the future and get you funded.
39Step 3 Get Strategic with Departmental Leaders by Consulting on Their Teams WeaknessesThe reporting you do in public doesnt have to include individual manager level.The reporting you do in private MUST include and focus on individual manager level.Youre looking to share the data with the leaders, prove you understand the business and gain their trust to help them fix the problems.Consulting 101 Data-driven, then recommendations.
40Step 4 Use Individual Scores to Apply Pressure Whenever Its NeededLets face it theres a lot of people out there who dont care about peopleThose people cause a lot of harm to the business and create employee relations issues everywhere they goEven if they get decent business results, the way they manage should show up in the way you measure the business (think turnover, HMBA, etc.)Sometimes you have to play Hardball instead of Moneyball thats what scoreboards and you developing relationships with leaders based on data are for.
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42Thank you to our webcast sponsor:
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Kris:[email protected]: @kris_dunnLinkedIn: www.linkedin.com/in/krisdunn
Tim:[email protected]: @timsackettLinkedIn: www.linkedin.com/in/timsackett
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