WORKPLACE HEALTHSCAN. springbuk.com 2016 SPRINGBUK. ALL RIGHTS RESERVED.

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1 What s the HR Organization of the Future? WORKPLACE HEALTHSCAN 2016 SPRINGBUK. ALL RIGHTS RESERVED.

2 WHAT S THE HR ORGANIZATION OF THE FUTURE? HR s New Seat at the Table For today s CEO, acquiring and retaining human capital is the top priority. And, it can be one of the biggest challenges. The fact is, over two-thirds of employees are less than satisfied with their positions, and they re quitting at the highest levels in a decade. 1 Put another way, since annual benefits and training can easily equal salary, losing an employee is like writing off a $100,000+ capital asset. And that doesn t even consider the employee s contribution to the business. Employers can t solve this problem by simply throwing money at it. Higher pay doesn t translate to greater commitment, and stakeholders expect every dollar spent on the workforce to deliver measurable business outcomes. So, how does today s employer get the right people, surround them with the right culture, and support their wellbeing so that their contribution to the business is maximized? These complex, high-stake challenges demand a strategic HR presence at the executive table: welcome to the dawn of the data-driven Chief Human Resources Officer (CHRO). Armed with powerful data sets and predictive analytic tools, the HR executive of the future is freed from many of the transactional and administrative tasks of the traditional HR role. The new HR organization partners with business leaders to shape short-term employee performance, guide long-range planning, and make investment decisions in the workforce. It s a unique contribution, and one that only HR can make. Are you, and your organization, ready for this shift? 1 Bolste 2016 Industry & Productivity Report, February 2016 Bureau of Labor Statistics Economic News Release 2

3 The Roadmap for HR s Transformation Transforming the traditional HR team into leaders of workforce strategy and performance is a four-step process: 1 Step 1: Align HR Priorities with Business Goals Currently, barely 25% of business leaders - and fewer than 10% of HR leaders - think HR meets the needs of the business. Even HR team members agree: only 1 in 4 think they understand the connection between the workforce and the organization s bottom line. 2 This dismal consensus must change, and quickly, or HR will be permanently marginalized. Employers, under constant pressure from customers, competitors and investors, demand data-driven strategic insight from their HR organization. For example: The ability to manage the workforce as a true asset, capitalizing on opportunities to maximize its return by protecting and enhancing employee wellbeing Mitigation of risks like high turnover, dissatisfaction with job responsibilities or culture, and employee population health trends Metrics and analytics that let leaders optimize workforce contributions to near-term organizational performance Knowing which vendor partner to engage, and when their efforts can be maximized Direct measurement of the impact of specific productivity and wellness initiatives on revenues, profits, operational costs, and position in the marketplace Fortunately, these expectations aren t pipe dreams. Outsourcing, automation and self-service technologies have sharply reduced many of HR s historical resource drains, including administration of recruiting, hiring, benefits, and regulatory compliance. As HR reinvests these cost savings in analytics platforms, it s already produced remarkable data-driven results in environments as varied as call centers, casinos and manufacturing companies. 2 Deloitte 2014 Human Capital Trends, CEB Global Assessment Trends Report 3

4 2 Step 2: Build On Historical HR Strengths HR s historical strengths offer a strong foundation for the strategic capabilities that CEOs now demand: A WIDE VIEW Only HR explicitly focuses on workforce performance across the entire organization. Virtually everyone else from Sales to Customer Service to Legal has a siloed, departmental perspective. SELECTING AND MANAGING KEY BUSINESS PARTNERS HR has historically led the way in selecting and managing high-stakes business partners, from HRIS vendors to benefits administration outsourcing and corporate wellness providers. Its expertise in establishing vendor requirements, fully exploiting vendor capabilities and measuring vendor results becomes even more valuable as it acquires new vendors, data and analytics platforms. ALIGNING WORKFORCE AND ORGANIZATIONAL GOALS HR s core competencies typically include the design of employee performance processes that clearly link individual performance to departmental objectives. The natural next step is designing systems to quantify the contribution of employee health, engagement and productivity to overall business performance. PARTNERING WITH FINANCE HR s historically strong collaboration with Finance to manage labor costs and headcount provides an opportunity to test real-dollar scenarios for maximizing the value of the workforce to the bottom line. These organizations are uniquely positioned to use analytics to reframe the workforce as a monetized asset whose value can be actively managed, rather than as a cost to be minimized. 3 Step 3: Reskill The HR Organization The shift to a strategic role requires new capabilities and mindsets: Data is the language of business. It s not, however, the conventional language of human resources. CRITICAL THINKING AND ANALYSIS SKILLS: Using analytical results to develop and test hypotheses about how to enhance performance and achieve objectives. Historically, people initiatives have struggled to build business cases, relying instead on leaps of faith. have enhanced workforce contribution more if we had invested it in healthy meal subsidies in the cafeteria? Now, HR can actually answer these questions using population health analytics and other HR tools that leapfrog dueling opinions and cut to the chase: quantified, data-driven scenarios and results. Did holiday parties and the company softball team really increase employee commitment, and ultimately, bottom-line contributions to the business? Would that money 2016 SPRINGBUK. ALL RIGHTS RESERVED. 4

5 DATA-DRIVEN PROBLEM SOLVING: The ability to interpret data from both traditional and new sources in order to identify population-level opportunities and risks. Today s CHRO develops workforce strategies informed by data from recruiting, retention and turnover trends; employee satisfaction surveys; compensation, claims and clinical data; mobile employee wellness apps and wearables; company financial and productivity data, and more. Employers can move beyond limited departmental perspectives. Predictive analytics quickly reveal potential risks and opportunities and make it much easier to test alternative solutions and prioritize next steps. For example, a retailer who depends on a successful holiday season can use simple yet sophisticated cohort analysis to identify workforce risks that jeopardize performance from seasonal illness and injury to winter commutes. With this knowledge, HR can then partner with operational managers to tailor interventions to drive outcomes like on-time deliveries. A CAN-DO CULTURE: Finding ways to enable innovation while helping the organization mitigate the risks of change. To fill that seat at the executive table, HR has to lead with creative solutions supported by hard numbers and insightful analysis, not with legalistic concerns and fears of employee pushback against change. Talent management analytics have already produced dramatic recruiting improvements. Predictive health analytics offer the same opportunity. The most common wellness goal has historically been simply educating employees on benefits of living healthy. 3 Analytics allow the CHRO to achieve far more meaningful employee wellness results. 4 Step 4: Use Data to Maximize Workforce Contribution Data enables HR to lead enterprise-wide initiatives to build the organization s future workforce by: Data-driven decision-making is the hallmark of the strategic HR organization. Today s employer uses data to diagnose, manage and improve nearly every aspect of the business. From inventory control to supplier cost trends to corporate rents and leases, data has improved how different departments make business decisions. Yet, the data of HR has lagged behind, even though the people component is the most important aspect of operations. Selecting analytics tools which offer both powerful insights and ease of use, accelerating the payoff and minimizing the need for formal analytical training and consultants Providing actionable insight that leads to prompt decisions and targeted engagement, rather than pages of old-school reports that lead to paralysis of analysis Capitalizing on a 360-degree view of the employee-spouse-dependent population to identify and optimize specific opportunities to improve business results 2016 SPRINGBUK. ALL RIGHTS RESERVED Healthiest Employer Strategic Assessment.

6 The Payoff: Using Analytics to Set People Priorities In this new world, HR leads the people conversation instead of reacting to it. The CHRO asks and answers both strategic and tactical questions like: What does our retention and turnover data tell us about smarter ways to recruit and retain in-demand engineers? How can we combine employee satisfaction data with clinical and business performance data to identify the most valuable wellness investments? What if we could forecast turnover and employee attrition risks, before it becomes costly to address? Would across-the-board salary increases or adding healthier meal choices and an onsite gym contribute most to business results? How can we connect the dots between employee feedback on supervisors with data on employee stress, so that our culture optimizes productivity instead of undermining it? These insights move the workforce and HR to the center of the conversation in entirely new ways, treating it as the strategic asset it truly is. Ready to put your data to work? Get Demo Learn More SPRINGBUK. ALL RIGHTS RESERVED. *2016 HEALTHIEST EMPLOYER STRATEGIC ASSESSMENT