Leveraging HR Technology. (For Competitive Advantage)

Transcription

1 Leveraging HR Technology (For Competitive Advantage)

2 Objectives 1. Why is HR Tech a Business Imperative? Important Terminology 2. Learn How to Leverage HR Technology Six Steps 3. Examples Increased Efficiencies HR Metrics and Analytics Dashboards

3 Who Is This Guy? HR Strategist HR/Payroll Systems Expert Trusted Advisor Social Media Advocate Self-Professed Geek Early Adopter

4 Terminology HR Technology Acronym Soup SHRM Core Discipline David Ulrich, University of Michigan Primary HR Competency Domain

5 Terminology - Big Data Business Buzzword Voluminous amount of structured and unstructured data. Mined for information Big Data Analytics Uncover patterns Find trends Unknown correlations

6 Terms - Metrics vs. Analytics Metrics Measurements Track Activity Analytics Examine Effect of Metrics Look for Patterns, Similarities Become Predictive

7 HR Analytics Data Decisions Metrics Dashboards Analytics Knowledge Information Data

8 Business Value Stages of Analytics Predictive Analytics What can happen? Analysis/Monitoring Why did it happen? What is happening now? Reporting What happened? Complexity

9 Why Is This Important? Labor Costs Increasing Multi-Generational Workforce Growing Contingent Workforce Time to Fill Longer Voluntary Turnover Higher Growing Impact of Intangible Assets

10 Why Is This Important? Voluntary Turnover Higher 80% of employees expect to stay with employer in the next year, however 31% not satisfied with their jobs 65% actively or passively looking for new work Why? Lack of career progress Fair/poor training/development programs Lack of job challenges

11 Why Is This Important? Intangible Asset Asset that is not physical in nature Intellectual Property Copyrights Patents Non-Ownable Company Culture Knowledge People

12 Why Is This Important? Rising Importance Market Valuation Drive Competitive Advantage Impact organization s effectiveness Impact costs, revenues Impact customer satisfaction Affect Bottom Line Maintain Strategy

13 Leveraging HR Technology Six Steps to Leveraging HR Technology

14 Six Steps to Leverage HR Tech ONE: Reduce Social Work Activities Utilize Technology to Alleviate: Employee Self Service Automated Forms and Workflow Business Alerts Automated Reporting Use as Opportunity to Change HR

15 Employee Self Service

16 Self Service Workflow

17 Surveys/Reviews

18 Automated Alerts/Exports

19 Six Steps to Leverage HR Tech TWO: Serve the Business Human Capital Management Plan Understand Mission, Vision, Goals, Objectives HR Goals HR Metrics Corporate Goals Business Decisions Correlate Human Capital to Business Performance

20 Six Steps to Leverage HR Tech Long-Term Big Picture Thinking Company Goals/Objectives Value/Outcome Focused TWO: Serve the Business

21 HR Technology Efficiencies Reduce Administrative Burden Better Reports/Distribution Better Compliance Better Talent Management Efficiency Improved Labor Relations

22 Analytics HR Opportunities Organizational Strategic Planning Bottom Line Impact of HR Best Practices Be More Strategic! Empower Managers to Make Better Decisions HR & Corporate Strategy Alignment

23 Six Steps to Leverage HR Tech Speak the Language of Business What are CxO s concerns? What are priorities? Understand Talent Its impact Its worth Integrate Data with Other Systems

24 Six Steps to Leverage HR Tech Corporate Objective Aligned HR Goals Increase Productivity Increase EE engagement Provide training to employees Speed up onboarding process Improve Competitiveness Strategic compensation Retention of top performers Performance management Reduce Costs Risk Mitigation Increase EE retention Manage benefit costs Better Reporting Assessment TWO: Serve the Business

25 Six Steps to Leverage HR Tech THREE: Measure the Right Things Baby Steps K.I.S.S. Few, But Layered Limit and prioritize Start With the End in Mind

26 Six Steps to Leverage HR Tech Potential Right Things : Who are our top performers? Is our ratio of top performers vs. all others increasing or decreasing? What is the cost of employee turnover? Do we have sufficient bench strength in key skills and areas of the organization? Is employee engagement increasing? Are hiring, development, and retention strategies addressing skills gaps?

27 Six Steps to Leverage HR Tech FOUR: Measure Value, Not Activity KPI s Scorecards Analysis Training Attendees/Month Training Effectiveness

28 Six Steps to Leverage HR Tech So That Insight on our employees Better quality hires Better retention Boost motivation Engagement is increased Turnover is reduced FOUR: Measure Value, Not Activity

29 Six Steps to Leverage HR Tech FIVE: Inquiry, Not Intuition Get Answers From Metrics Bust Myths Use Standardized, Accurate Data Measure Consistently... when HR uses fact-based decision making instead of intuition or best guesses the group becomes a more credible partner to the business it serves. Fact-based decisions help HR improve HCM practices, recruit and deploy the right talent, cut costs, contribute to business performance and provide evidence of those contributions. - BusinessWeek Research Services

30 HR Analytics Examples Turnover Ratio 20% 18% 16% 14% 12% 10% Turnover 8% Turnover 6% 4% 2% 0%

31 Six Steps to Leverage HR Tech SIX: This is a Process, Not a Project Continuous Review Ongoing Correlations Incorporate Dashboards, etc. 20% Analyzing data 80% Capturing, aggregating, manipulating data 80% Analyzing data 20% Capturing data

32 Measurements to Leverage Recruitment External Hire Rate Rehire Rate Applicant Ratio Offer Rate Cost Per Hire Time to Fill Yield Ratio Retention Turnover Ratio Termination Cost Top Performer Loss Retention Rate Termination by Performance Performance Perf Rating by Top Performer Growth Rate Manager Quality Index Succession Pool Growth Rate Training Quality

33 Measurements to Leverage Compensation Human Capital Cost Profit per FTE OT per FTE Compensation Satisfaction Salary/Revenue Increase Ratio Benefits Benefit Cost/EE Benefit Total Comp Rate Absence Rate Benefit Cost as % of Revenue Workforce Staffing by Age Span of Control Average Tenure Intangible Asset Value per FTE Promotion Rate Retirement Eligibility %

34 HR Analytics Examples Turnover Modeling Predicting future turnover Risk Management Candidates with higher risk of leaving Employees performing below standard Talent Forecasting Predict which new hires are likely to become top performers

35 Sample Dashboard

36 Sample Dashboard

37 Sample Dashboard

38 In Summary HR Technology can drive business results. Leverage HR technology, such as ESS and automated reporting, to increase efficiencies. Build metrics and strategies with the business in mind. Measure value. Leverage analytics to predict future trends.

39 Thank You!