Building an HR Analytics Team from Scratch! June 2015
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1 Building an HR Analytics Team from Scratch! June 2015
2 Company Demographics United Parcel Service, Inc. ( UPS ) was founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, UPS is the world s largest package delivery company, a leader in the U.S. less-than-truckload industry and the premier provider of global supply chain management solutions. We deliver packages each business day for 1.5 million shipping customers to 7.9 million receivers ("consignees") in over 220 countries and territories. In 2013, we delivered an average of 16.9 million pieces per day worldwide, or a total of 4.3 billion packages. There are over 424,000 employees worldwide that work at UPS. 2
3 How many people have we hired?! 3
4 Where to start? Data! ER Safety Benefits 22 Various Systems HRIS Retirement Comp Training
5 Project Identify Data Acquisition Internal External Workforce Analytics Program Project Define Data Governance Define Data quality Project H.R. Analytics Team Data Mining Data Analysis Business Analysts Store Data Stores SQL Data Repository TMS Data Mart EDM/Information Library PDM/FDM data views Leverage Ad Hoc Informational Non-Analytical Legal, PR, etc. Data Requests Tactical Reporting Dashboard Data Standard Reporting
6 Developing our HR Analytics Capability HR Information Maturity What is happening? Data & Basic Reporting What might be happening? Why is it happening? Consolidated Reporting Basic Analytics Dashboards & Portal Cross Process & Functional Analytics Data integrity & quality Basic Employee list & extracts Predictive/ Proscriptive Analytics Process specific analytics Data from a single source EE-Level Predictions Cause & effect Integrated analytics Data from multiple sources We are here Transactional Business Value Strategic
7 Data Analysis? Ad-Hoc Requests How it works Online data request form which allows customers to submit a question that is ed to the HR Systems Team Number of requests received Last year on average = 44/month (26% increase in requests vs 2013) This does not include those who call or to make requests, as well as, the monthly reports that are automatically generated. Who are our customers? Corporate Campus such as (but not limited to) SCS, Global Innovations, Legal, Inside Sales, BIA, I.E., PE, GBS and Public Relations. 7
8 Dashboards developed Twenty-eight active Dashboard/Process solutions. Hits monthly (consumption) Sites average a total of 125,000 hits per month. Tactical Information Delivery Customers and how the demand is growing Employee Relations Safety Workforce planning Benefits Finance/Compliance Plant Engineering Transportation HUB Air HR service center 8
9 Journey to Analytics Statistician Advanced Analytics Supervisor Ph.D. Physics Business Connection Data HR Systems Team SQL/MS Access skills Utilize all three contacts to tell the story and answer the question! ROI Customer SME 9
10 Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS. Segments of Data Analytics United Parcel Service of America, Inc. UPS, the UPS brandmark, the colorbrown and photos are trademarks of United Parcel Service ofamerica, Inc. All rights reserved.
11 Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS. Start with a Question! Are these reporting questions or analysis? What is the voluntary turnover rate among individuals in critical roles and what is the associated cost to the business? What is the voluntary turnover rate among top performers and what is the associated cost to the business? What percentage of our high performers are at risk for departure? Does our sourcing strategy target critical talent segments effectively? Do we effectively hire employee with emerging skill sets? Are we under staffed in areas, where if we added people, we would increase our profitability? What percentage of our workforce moves internally each year between lines of business or functional areas? What is our average position length of service? United Parcel Service of America, Inc. UPS, the UPS brandmark, the colorbrown and photos are trademarks of United Parcel Service ofamerica, Inc. All rights reserved.
12 Problem Statement Are Managers who score highly and have high leadership competency proficiency more likely to produce a higher operational result? IS there a correlation between High performing and High Results? Data required ERI Results Talent Data Competency Ratings Overall QPR score Managers Ratings Hogan Results Operational Data Trending over time Varies by operation? What is a good center? External Factors Union Environment Variables Operations Management vs. Staff Management Geography Aggregate Competency Score vs. Individual rating UPS Career (Assignments) Enterprise impact Should we spend resources developing target training for managers?
13 Challenges? Collection of Data Access to information Scrubbing/Validation Vendor data Set up contracts to include access to data Reporting versus Analytics Using Excel versus SPS What other issues? 13
14 Practice makes Perfect! Developing forecasting methods. Incorporate macro economic data. Socialize! 14
15 Testing takes time Various methodologies are important to test the algorithms. Try Again! 15
16 Profiles! Our most popular creation is 16
17 Where to go from here. Establish credibility with other functions. Get buy in from other business units talk the talk! Answer the right questions that provide context outside of HR and the duh (ie: volume increases, hiring increases) Socialize your analytical skills with Senior Management. Ask for questions that link to open PROJECTS What can you do to create visibility for HR Analytics?! 17
18 Thank you 81
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