People analytics: Actionable insights are the new mandate The Dbriefs HR Executives series
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1 People analytics: Actionable insights are the new mandate The Dbriefs HR Executives series Lisa Disselkamp, Managing Director, Deloitte Consulting LLP David Fineman, Specialist Leader, Deloitte Consulting LLP Pat Russo, Principal, Deloitte Consulting LLP April 12, 2017
2 Discussion topics Context for people analytics People analytics in practice Building people analytics capability Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 2
3 The context for people analytics Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 3
4 Organizations are facing major disruptions in their businesses and in the workforce Businesses are being disrupted. The workforce is also undergoing radical changes with increasing worker expectations. Market Pressures Key Business Issues Massive business Disruptions Changing Workforce Demographics Managing Changing Workforce Demographics Developing Leaders Culture and Engagement New Organizational Models Driving Productivity Worker impact on company branding Worker Expectations of the Company Availability of Talent Required to Succeed Impacted Business Capabilities People Analytics can describe and help predict those factors that make for an engaged employee and that define the optimized organizational model and culture. Attraction What are the characteristics of high-performing leaders? How can we hire/promote people like them? Retention How can the organization retain top performers? Common Focus Areas for People Analytics Development How to assess if training programs are effective? Is the organization using training dollars effectively and efficiently? Engagement How does engagement correlate with business metrics? Organizational Design How will redesigning the organization structure help achieve strategic objectives? Productivity What are the characteristics of our most productive employees? Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 4
5 People analytics is acknowledged as one of the top ten 2017 Human Capital Trends Analytics provides insight into and helps identify program options for the other trend areas Source: Deloitte 2017 Human Capital Trends Report, March 2017 Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 5
6 71% of 2017 Human Capital Trends survey respondents say analytics is very important or important Source: Deloitte 2017 Human Capital Trends Report, March 2017 Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 6
7 Level setting: What do we mean by analytics? Not all issues require advanced analytics Predictive analytics: Scenario planning and risk mitigation Advanced analytics: Segmentation, statistical analysis, and development of people models Measures that help transform the business and define the future Measures and tools that help dramatically improve the business Advanced reporting: Measurement for benchmarking and decision making Operational reporting: Measurement for efficiency and compliance Measures that tell how we compare and can improve Measures that explain how we are allocating resources, and the state of our workforce and HR programs Source: Bersin by Deloitte Consulting LLP Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 7
8 Polling question #1 Where would you place your organization on the analytics maturity model that was just described? Primarily operational reporting Combination of operational and advanced reporting Some advanced analytics Some predictive models focused on major business issues Don t know/not applicable Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 8
9 People analytics can play a critical role in meeting the business challenges that firms face today Analytics provides insight into and helps identify program options for the other trend areas Business challenge Sustained revenue growth Profit growth & cost reduction Strategy execution capability Speed, flexibility & adaptability Employee loyalty/retention How people analytics can help Predict talent requirements, focus attention on highest-value current talent sources Mix customer data, pricing data, and labor data to enhance workforce development and deployment Retain top talent by proactively predicting attrition risk and identifying cost-effective interventions Provide analyses of labor spend by combining labor, compensation and finance data Anticipate potential leadership gaps and proactively develop a pipeline of top talent Provide the necessary data for HR to operate as a strategic partner to the business Monitor specific outcomes and make rapid adjustments to rewards programs to drive desired impacts Continually enhance HR processes and service delivery through fact-based decision making Identify, optimize, and monitor the unique levers that impact and drive employee lifetime value Understand employee acquisition and retention strategies Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 9
10 People analytics in practice Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 10
11 Workforce Information Maturity Match the data model to the level of analysis As organizations proceed along the analytics journey, the scope of data and level of complexity increases Type of Analysis External data expansion Intra-organization Description Integrates data from internal and external data sources Statistical engines build powerful behavioral and predictive models to test and validate alternate market scenarios Integrates data from HR and non-hr systems Integrates of structured and unstructured data sources Identify correlations across organization specific HR, business, operating & social attributes Enhances ability to model employee behavior Cross talent functions Integrates data from multiple talent pillars/modules Identify correlations and behavioral patterns across multiple data sources Beneficial for determining interaction between multiple Talent functions Talent function specific Limited to information contained within a single talent pillar or module Leverages out-of-the-box reporting capability within each Talent application Beneficial for workforce activity analysis and HR operational statistics Data standardization Deliver consistent timely and accurate data using common definitions, time periods and calculations across the organization Governance provided by unified data dictionary Generation of standard reports for targeted populations at regular intervals Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 11
12 People analytics insight framework This framework highlights the high-impact analytics focus areas that are frequently addressed Workforce management & planning Labor cost optimization Location strategy & selection Talent acquisition analytics Network analysis Global mobility Workforce productivity & performance Compensation, rewards, & recognition Benefits analytics Workforce Planning & Shaping Performance & Rewards People Analytics Recruiting & Staffing Talent Optimization Learning optimization Leadership development analytics Workforce retention analytics HR Service Delivery Culture & Engagement HR operations efficiency & optimization HR strategic planning/portfolio management Diversity & inclusion Organizational culture analysis Employee engagement & intervention Employee safety Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 12
13 Case Example Global Financial Services Company Recruiting & staffing Recruiting Understanding pre and post-hire success attributes identified interventions to generate significant annual savings Issue Organization transforming customer facing operating model sought an analytical approach to ensure that future workforce would be successful in the new model Current hiring practices and candidate screening criteria were not aligned with future state requirements - Sample output - Solution Developed model to predict customer service associate success using 12 internal and external data sources that contained 100+ data elements Amassed 6MM+ records across a three-year timeframe to provide a multidimensional view of the population Developed a robust pre-hire model as a predictor of employee success. Impact A predictive score determined probability of future employee/applicant success Visualization of recruiting model Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 13
14 Case Example Pharmaceutical Company Talent development & retention Retention Develop predictive analytical solution to address sales force retention issues - Sample outputs - Issue High turnover in a critical growth environment Aggressive growth targets that requires talent in place Need to implement strategies to retain key talent within pivotal roles Solution Collect and analyze internal and external data to identify at risk individuals and groups Develop insights (trends, metrics, attrition drivers) Recommend proactive and measureable action plans to retain the sales force Impact Determined attributes of attrition and developed action plans to address groups at highest risk for leaving the organization Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 14
15 Case Example Global Energy Company Talent development & retention Succession Identify characteristics of successful leaders and improve leadership pipeline Issue Perceived leadership gap within a geographic region Need to identify the attributes of a successful global leader and determine whether current workforce possesses identified attributes Solution Develop scoring model to identify attributes of success based on historical data Employees are scored by the algorithm Determine the top reasons driving the individual s score Impact Identified a set of data-driven improvement options Educated key executives on consistent and transparent high potential assessment and selection criteria - Sample output - A B C Employee segmentation opportunity scoring Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 15
16 Case Example Regional Health Care Provider Workforce planning & shaping Labor cost optimization Use labor cost optimization principles to identify opportunities to reduce excessive employee labor and overtime cost without negatively impacting service quality Issue Need for a change management centric approach for labor cost remediation Need to identify potential savings within the context of a larger HR transformation program - Sample output - Solution Collect details on timekeeping and scheduling system setup, usage, and data Assess quantitative impact of improvement recommendations Improvements to governance around policy, process and technology, harmonizing policies and pay practices and developing strategies for scheduling and configuration enhancements Impact Identified cost savings of up to 1.1% of total labor cost without a reduction in headcount or changing base wages or job rates Visualization of labor cost optimization dashboard Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 16
17 Case Example Global Financial Services Company Workforce planning & shaping Workforce optimization Use of multiple tools accelerates and deepens insights, providing granular and aggregate view of organizational structure and workforce data Issue Organization structure not responsive to external marketplace and internal operating conditions Inability to visualize and test current and alternative future organization skill and cost scenarios - Sample output - Solution Compile employee data from multiple, nonmatching, source systems Utilize software to identify organization and structure opportunity areas Visualize and model possible future state organization structures using alternative scenarios Impact Metrics and key performance indicators for individuals, teams, and the entire organization Ongoing capability to monitor and improve organization decision making Organization structure analyses and visualizations Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 17
18 Polling question #2 Within your organization, which one of the following talent focus areas would benefit the most from an advanced analytics program? Talent acquisition Employee retention Leadership/Succession Labor cost optimization Organization design Don t Know/Not applicable Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 18
19 Building a people analytics capability Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 19
20 The ugly part of people analytics Advanced analytics Predictive models Visual dashboards Data management Data integration Data Dictionary Data governance ownership Disparate systems Stats and data skills Reporting tools Data quality Time and seasonality Big data tools Visual skills Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 20
21 Key competencies for people analytics talent It is challenging to find one person who has all of these competencies at the enterprise or functional level Enterprise competencies Functional competencies Communications and strategic thinking Proficiency in simplifying analytical outputs and influencing key business stakeholders through communication Technology/IT expertise Knowledge of infrastructure management and systems integration Industry expertise Understanding of industry trends and business drivers and able to evaluate business issues via data-driven approaches Knowledge of corporate functions Possession of work experience, knowledge and skill sets in specific functions Analytical and visualization tools Expertise in advanced analytics and visualization tools and techniques Data expertise Expertise in data architecture, modeling, extraction, transformation, loading, quality and governance Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 21
22 Polling question #3 Within my organization, lack of the following skill is an inhibitor to making progress with analytics. Communications and strategic thinking Understanding of industry trends and business drivers Expertise with analytical and visualization tools Knowledge of IT infrastructure and/or systems integration Expertise in data extraction, modeling and governance Don t Know/Not applicable Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 22
23 Making analytics Organizational DNA Other leading practices Build an analytics community of practice Benefits of the community Builds analytics capabilities across the enterprise Creates a vast and virtual people analytics team Puts in place a governance model Provides a central repository for analytics resources Meet once a month to discuss Current analytics projects in hand Advanced analytics techniques Internally designed analytics tools New partnerships between HR and non-hr teams on analytics projects Opportunities to share data Design facilitated development opportunities Source: Scaling People Analytics Globally: Chevron Takes a Multipronged Approach to Building Organizationwide Analytics Capabilities (Part I), Bersin by Deloitte, Deloitte Consulting LLP/Madhura Chakrabarti, PhD, December Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 23
24 Making analytics Organizational DNA Other leading practices Build an in-house analytics curriculum Analytical thinking Provides mass upskilling of the entire (HR) population Little cost to the organization Step 1: Identify analytics competencies to be developed. Step 2: Map corresponding skills and behavioral outcomes. Step 3: Design/obtain relevant course materials. Step 4: Pilot curriculum and roll out. Planning: tactical, strategic Describe linkage between tactical plans and strategic direction and define metrics to monitor impact of tactical decisions on strategic milestones Business and financial acumen Understand key drivers of the business and how they tie to Financial and HR programs and metrics Effective communications & story telling Effectively deliver, receive and interpret ideas, information and needs to all levels of the organization Identify and describe a business problem and articulate alternatives for problem solving approaches using analytic methods Business analytics and statistics Understand business analytics and statistics and be able to determine the correct procedures to use in a given situation Data gathering, reporting and analytic tools Describe benefits and limitations of available data gathering, reporting sources and analytic tools and use to tell the business story Source: Scaling People Analytics Globally: Chevron Takes a Multipronged Approach to Building Organizationwide Analytics Capabilities (Part I), Bersin by Deloitte, Deloitte Consulting LLP/Madhura Chakrabarti, PhD, December Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 24
25 Polling question #4 In my organization, the following technique has been the most successful driver of our ability to build analytics capability Creating a community of practice Sending our employees to an external, third-party, analytics course Developing an in-house analytics curriculum Hiring employees into the function with data science skills Deploying a new HRIS application with advanced dashboards Don t know/not applicable Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 25
26 Leading practices for people analytics Assemble a team that is multidisciplinary Invest at a senior level in a business focused people analytics leader Right Team Leadership Translate information and findings into actionable solutions Prioritize clean and reliable data across HR and the organization Value & Impact Data Lessons learned that expedite the implementation of People Analytics and realization of business value Fluency Team Structure Increase analytics fluency throughout the organization Establish clear leadership within a single team initially, even if you eventually decentralize Strategy to integrate data from across HR, organizational, and external sources Integration Roadmap Develop a two- to threeyear roadmap for investment in analytics Source: Deloitte 2017 Human Capital Trends Report, March 2017 Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 26
27 Common pitfalls along the journey Well intentioned organizations have made decisions that had adverse impact on their people analytics program 01 Conducting analyses that are disconnected from the business need 04 Having resources with inappropriate skills 02 Garnering insufficient stakeholder support 05 Sharing inappropriate information and analysis findings 03 Starting too big and not delivering on commitments 06 Underestimating the time and effort it takes to create impactful analyses Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 27
28 Question and answer Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 28
29 Join us May 16 at 2 p.m. ET as our HR Executives series presents: Diversity and inclusion: Why training isn't enough Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 29
30 Eligible viewers may now download CPE certificates. Click the CPE icon in the dock at the bottom of your screen. CPE Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 30
31 This webcast has been approved for 1 (General) recertification credit hour toward PHR, SPHR and GPHR recertification through the HR Certification Institute. To obtain the program ID, click on the HRCI link in the Downloads and Links window and submit your request. The use of this seal is not an endorsement by the HR Certification Institute of the quality of the program. It means that this program has met the HR Certification Institute's criteria to be preapproved for recertification credit. Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 31
32 Contact information Lisa Disselkamp Managing Director Deloitte Consulting Connect with me on LinkedIn David Fineman Specialist Leader Deloitte Consulting Connect with me on LinkedIn Pat Russo Principal Deloitte Consulting LLP Connect with me on LinkedIn Stephen Redwood Managing Director Deloitte Consulting Connect with me on LinkedIn Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 32
33 This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation. Copyright 2017 Deloitte Development LLC. All rights reserved. People analytics: Actionable insights are the new mandate 33
34 About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the Deloitte name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see to learn more about our global network of member firms. Copyright 2017 Deloitte Development LLC. All rights reserved. 36 USC
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