How can HR move the needle for the business?
The competition for talent has gone global; turnover is rising; and employee engagement is stagnant at best. Companies have never had a greater need to understand with precision what it takes to recruit, retain, and motivate employees. As a result, never before has HR had such an opportunity to move the needle for the business it supports.
As highlighted in a recent Harvard Business Review paper, HR Joins the Analytics Revolution, “a growing number of corporate boards, CEOs, and CHROs understand that by applying data-driven solutions to improve decisions about talent, they can improve revenues and profits.” But what does this “datafication of HR” mean for the HR Business Partner and Practitioner?
View the full webinar recording here:
http://www.visier.com/lp/hr-can-move-the-needle-for-business/
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TODAY’S AGENDA
HOW CAN HR: More efficiently find the skills and expertise needed at the right time for the best price? Retain star performers more cost effectively? Decode workforce planning and “dollarize” the people strategy?
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CUSTOMER VALUE
A growing number of corporate boards, CEOs, and CHROs understand that by applying data- driven solutions to improve decisions about talent, they can improve revenues and profits.”
Harvard Business Review, 2014
7. Page 7 Increased complexity of the workplace
24/7 business, global competition, fading time/place boundaries, risk and compliance Increased complexity of the workforce
Offshoring, global mobility, contingent workers, generational divides, war for talent New technologies
Social media, smart phones, Cloud, always-on Cost pressures
Every function must justify itself with ROI
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WHAT IS DRIVING THE CHANGE?
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EXTERNAL FORCES DRIVING HR TRANSFORMATION
Hire Right
Demographic Shift
Retain Top Talent
Skills Shortages
Ensure Planning Agility
Economic Flux
Optimize Spending
Competitive Pressures
more than ever before HR can play a critical role in driving business performance.
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COMPANIES THAT ARE LEADERS IN WORKFORCE INTELLIGENCE…
“… stock market returns are 30% higher than the S&P 500, they are twice as likely to be delivering high impact recruiting solutions, and their leadership pipelines are 2.5X healthier.”
Josh Bersin, October 2013
“…have a hard-to-replicate competitive advantage.”
Harvard Business Review Competing on Talent Analytics, October 2013
“… improve talent outcomes by 12%, leading to a 6% improvement in gross profit margin, which translated into $18.9M in savings for every $1B in revenue.
CEB, Analytics Survey, 2013
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POLL: WHY IS THE “DATAFICATION OF HR” IMPORTANT TO YOU? PICK ONE.
1.To respond to business leader requests for information faster.
2.To have better workforce conversations with business leaders.
3.To allow HR to have a greater impact on business results.
4.To align workforce decisions with the business strategy.
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How can HR move the needle for the business?
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HR TODAY: BUILT TO REACT AND SERVE
Comp & Benefits
Recruiting
Learn & Develop.
Talent Mgmt
Field / BPs
Market Comp Surveys
Applicant Tracking System
HR Management System
Learning Management
Performance Management
Engagement Surveys
Reporting
BUSINESS
DEMANDS
HR FUNCTIONS
HR SYSTEMS & PROCESSES
Hire
Pay
Train
Retain
Comply
Report
REQUEST
REACT
BUSINESS NEEDS
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HR TOMORROW: TRANSFORMED
Comp &
Benefits
Recruiting
Learn &
Develop.
Talent
Mgmt
Field / BPs
Market Comp Surveys
Applicant Tracking System
HR Management System
Learning Management
Performance Management
Engagement Surveys
WORKFORCE INTELLIGENCE
Wkforce
Intel
BUSINESS
STRATEGY
Margins
Customer Sat.
Geo Expansion
Innovation
Cost Control
New Channels
PEOPLE STRATEGY
(ALIGN)
ANALYZE
ACT
HR TRANSFORMATION
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DEFINING WORKFORCE INTELLIGENCE
Align
Act
Analyze
•Measure past trends and present realities
•Connect data points to achieve insights and predict future events
Analyze
•Articulate your findings
•Define, refine & share your strategy
•Collaborate and gain buy-in
Align
•Act on workforce decisions
•Develop and implement credible workforce plans
•Create impact on the business results
Act
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RECRUITING React:
Request, approve, fill position
Focus on metrics like Time to Fill Analyze:
What are the bottlenecks in the hiring process?
What sources are best? What candidates succeed? Align:
What roles are critical to business success?
Who to backfill, what supports new initiatives? Act:
Implement and measure plan based on criticality.
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RETENTION React:
Deliver dashboard with turnover by role, location, and department Analyze:
Where can we expect departures? Why are people leaving?
Where are departures welcomed? Align:
What is actually regrettable? By ‘top talent’, and by key business initiative. Act:
Take on root causes to retain the talent you need
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ANALYZE: MOVE FROM WHAT HAPPENED TO WHAT WILL HAPPEN
MICRO VIEW: Who are we likely to lose?
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ANALYZE: MOVE FROM WHAT HAPPENED TO WHAT WILL HAPPEN
MACRO VIEW: How many, and where will we lose people?
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ALIGN & ACT: RETENTION
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Think of retention in terms of: CAPACITY:
Will we have the staffing levels required to sell, produce, serve,…
How will retention impact our productivity? CAPABILITIES
Do we have the right mix of skills and talent across the organization. How will retention impact this?
Think of retention as part of your plan. Measure attrition against your plan.
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Moving the Needle for the Business: “Dollarize” your People Strategy
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TOTAL WORKFORCE COSTS React:
Run a compensation review process Analyze:
What is contributing to compensation increases?
Where are costs going – move beyond compensation. Align:
What is the budget? What should the budget be?
Where do we want to invest, or reduce, costs? Act:
Regularly (monthly!) forecast your workforce – hiring, headcount and total costs – and stay on track.
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ACT : FORECAST MONTHLY
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RECOMMENDATIONS:
Most compensation analysis by HR is annualized – dig into actuals, it isn’t just for finance
Forecast – take actuals plus intended hires & costs and project to where you will end the year – then evaluate if you are on target
Review this monthly with leadership