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The Datafication of HR: Building
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Analytics and Planning
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Speaker: Dave Weisbeck
Chief Strategy Officer
Visier
Moderator: Lauren Dixon
Associate Editor
Workforce magazine
The Datafication of HR: Building your
Business Case for Workforce
Analytics and Planning
#WFwebinar
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Frequently	
  Asked	
  Ques6ons	
  
#WFwebinar
	
   	
  
	
  	
  
Lauren	
  Dixon	
  
Associate	
  Editor	
  
Workforce	
  magazine	
  
The	
  Datafica6on	
  of	
  HR:	
  Building	
  your	
  
Business	
  Case	
  for	
  Workforce	
  Analy6cs	
  and	
  
Planning	
  
#WFwebinar
	
   	
  
	
  	
  
Dave	
  Weisbeck 	
   	
  	
  
Chief	
  Strategy	
  Officer	
  
Visier	
  
The	
  Datafica6on	
  of	
  HR:	
  Building	
  your	
  
Business	
  Case	
  for	
  Workforce	
  Analy6cs	
  and	
  
Planning	
  
The Datafication of HR:
Building your Business
Case for Workforce
Analytics and Planning
Dave Weisbeck, Chief Strategy Officer
JULY, 2015
Agenda
• The drivers behind the Datafication of HR
• How to build a Business Case for Workforce
Intelligence
• With examples of Workforce Intelligence in
action
Analyze
Go from data to insight
Align
Go from insight to plans
Act
Go from plans to outcomes
Maximize your Business Outcomes,
Through your People
Where are our
recruiting
bottlenecks?
How can we
retain critical
employees?
What if?
How well did we
plan?
How do our total
workforce costs
breakdown in our plan?
Should I give
my team
member a
raise?
What are our
total workforce
costs and how
are they
changing?
How can we connect
Total Rewards to our
bottom line?
How will
turnover
impact our
future
workforce?
Which workforce
scenario will
best meet our
business goals
and budget?
Where should we
allocate people to
support the
business?
Which Critical
Talent is at risk of
resigning?
Who should I
promote?
Workforce Analytics
Workforce Planning
Workforce
Intelligence
Enabling HR and the business with
Visier Workforce Intelligence solutions
could be the most impactful action you
take this year.
The Datafication of HR
Q: To capitalize on the top-three global trends which you believe will most transform your
business over the next five years, to what extent are you making changes, if any, to the
following areas?
CEOs Recognize Talent is the Key
Great HR Leads to Great Companies
“Eight years of research into Watson Wyatt's Human Capital Index® (HCI) has
consistently found a strong correlation between effective HR program design
and financial performance. Indeed, the link goes beyond correlation: Effective
HR programs are a leading indicator of financial performance.”
Towers Watson
We found that companies that are stronger in people management have
a correspondingly higher financial performance. … In contrast, companies
with the worst financial per-formance show a greater need for action across
virtually all 27 HR subtopics… This has been a consistent finding… it is clear
that the most successful people companies consistently outperformed
the market, by nearly 100 percent.
Boston Consulting Group
Changing expectations for HR leaders
Evolution from Process-Oriented Talent Management to
Data-Driven People Management
Analytic
Companies Win
Source: Sierra-Cedar, 17th Annual HR Systems
Survey
“… the effect of HR technologies for Top Performers as a
competitive advantage has minimized … So we dug deeper…”
Quantified
Organizations
have a 79%
greater Return on
Equity (ROE)
BersinbyDeloitte
Operational Reporting
Reactive Reporting of Operational & Compliance Measures •
Focus on Data Accuracy, Consistency, Timeliness
Advanced Reporting
Proactive Reporting for Decision-Making • Analysis of Trends
& Benchmarks • Customizable, Self-Service Dashboards
Advanced Analytics
Statistical Analysis to Solve Business Problems • Identification of Issues
& Actionable Solutions • Centralized Staffing & Integrated Data
Predictive Analytics
Development of Predictive Models • Scenario Planning •
Integration with Business & Workforce Planning • Data Governance Model
Level 1
Level 2
Level 3
Level 4
Source: Bersin by Deloitte, 2014
4%
10%
30%
56%
Bersin by Deloitte’s Maturity Model
Despite Demand, Organizations are “Stuck in Neutral”
5%
5%
4%
7%
8%
7%
Conducting multi-year workforce planning
Correlating HR data to business performance
Using HR data to predict workforce performance and
improvement
2015
2014
% of “excellent” ratings
Source: Global Human Capital Trends Study 2015, Deloitte
How to Build a Business Case
The Challenge
What makes creating a business case for Workforce Analytics and
Workforce Planning challenging?
§  The value in analytics comes in its application – not in, and of, itself
§  Planning value is generally long term
§  The potential applications are very broad reaching
§  Often, the value is only understand after the investment is made
§  Often the benefit is reduced risk, but how much?
Recommendation: Take a structured approach
The 5 Key Aspects of the
Workforce Intelligence Business Case
Start by:
1.  Creating excitement about the potential opportunity
Then determine:
2.  Efficiency gains
3.  Direct workforce benefits
4.  Business benefits
And remember:
5.  Show (don’t just tell) people what they can achieve
Efficiency: Modernizing your systems
What systems will be sunset (turned off), and what is the savings in fees
or administration costs?
From Gartner’s, Business Intelligence
Platforms User Survey:
“… of the three main components of the cost of
a BI platform – software licenses,
implementation fees and administrative costs –
administration costs make up as much as
75% of the overall BI platform ownership
cost”.
What are your key business and HR objectives and
challenges? How are they connected?
Business growth in a new
product or service area,
without increasing costs
Business Objective/Challenge HR Objective/Challenge
Hiring, retaining,
developing, and
motivating critical talent
Developing an optimal
workforce plan -- the right
talent, in right roles, within
budget
Getting ahead and
proactively addressing
workforce cost changes
Finding new savings
through better talent
decisions
Hiring, retaining, developing, and motivating
critical talent
Hiring Critical Talent More Efficiently, and with Better
Outcomes
Common recruiting metrics, such as “time to fill” and “cost to fill,” do not answer strategic
questions about the quality and value of the people being hired, and do little to improve
recruiting effectiveness
The Hiring Pipeline
Source to Application to Employee
Quality Hire. Efficient Process. Effective Recruiters.
Retaining Critical Talent: From How Many are Leaving, to
Who is at Risk
New Big Data approaches can turn trends, into actionable insight
Retaining Critical Talent: More than measuring turnover
Understanding why:
§  Understand key resignation and retention drivers
§  Understand all aspects of turnover
Retaining Talent: What Action Should We Take?
Actions are often personal, and at the individual level:
§  Good analytics goes from the big to the small – macro to micro
§  Helps business partners and leaders make the right decision in the moment
Savings: Reduced Employee Replacement Costs
At a 5000-employee
company, a 10%
voluntary turnover
rate can convert into
more than $30
million in
replacement costs in
a single year
Savings: Hire, Develop, and Retain more Top Performers
•  Analyze the characteristics, tenure, work experiences, and managerial
connections of your top performers
•  Understand how to grow future top talent. Consider the build or buy
Developing an optimal workforce plan -- the
right talent, in right roles, within budget
The Datafication of HR: Building your Business Case for Workforce Analytics and Planning
To meet our business objective, who, when, and how many
do we need?
Taking into account and optimizing all workforce costs
Considering different workforce scenarios
Continuously forecasting and adjusting plans
§  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
WORKFORCE COSTS
Transforming workforce planning
from a position-oriented process, to
a continuous, cost-driven process
has the ability to drive significant,
more quantifiable cost savings:
Calculate what a small
improvement in planning accuracy
can have on the bottom line
1% of $100 Million in workforce
costs = $1 Million / year
Getting ahead and proactively
addressing workforce cost changes
Getting ahead of workforce costs and how they are
changing
•  How much does our workforce really cost?
•  How can we optimize our workforce costs?
•  How are our costs changing over time?
•  Are we on track with our plan and budget?
•  How can be better map to Finance?
Most HR departments lack a
complete view of workforce
costs
76% of CEOs have cut costs in
the last 12 months.
People are 70% of a
company’s cost – and are the
“final frontier” of savings in
competitive markets
Finding new savings through better
talent decisions
Consider overtime, absenteeism, engagement… for new
savings
Resources available at www.visier.com
Download your copy Download your copy
Subscribe to the
Workforce Intelligence
Blog
Thank you
visier.com
Dave Weisbeck
dave.weisbeck@visier.com
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The Datafication of HR: Building your Business Case for Workforce Analytics and Planning

  • 1. #WFwebinar The presentation will begin at the top of the hour. A dial in number will not be provided. Listen to today’s webinar using your computer’s speakers or headphones. The Datafication of HR: Building your Business Case for Workforce Analytics and Planning
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  • 3. #WFwebinar         Speaker: Dave Weisbeck Chief Strategy Officer Visier Moderator: Lauren Dixon Associate Editor Workforce magazine The Datafication of HR: Building your Business Case for Workforce Analytics and Planning
  • 4. #WFwebinar Tools  You  Can  Use   Speaker Bios Resources Media Player Q&A Slides Twitter Help Post Event EvaluationShare This Group Chat HRCI WF Webinars
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  • 7. #WFwebinar         1. May I receive a copy of the slides? YES! Click on the resource list located on the top left portion of your screen. 2. May I review the webinar recording at a later date? YES! You may log in again using today’s link to review the presentation on-demand. 3. Is this webinar HRCI certified? YES! The HRCI certification code will appear in the box to the right of the slides after the required watch-time has elapsed. Frequently  Asked  Ques6ons  
  • 8. #WFwebinar         Lauren  Dixon   Associate  Editor   Workforce  magazine   The  Datafica6on  of  HR:  Building  your   Business  Case  for  Workforce  Analy6cs  and   Planning  
  • 9. #WFwebinar         Dave  Weisbeck       Chief  Strategy  Officer   Visier   The  Datafica6on  of  HR:  Building  your   Business  Case  for  Workforce  Analy6cs  and   Planning  
  • 10. The Datafication of HR: Building your Business Case for Workforce Analytics and Planning Dave Weisbeck, Chief Strategy Officer JULY, 2015
  • 11. Agenda • The drivers behind the Datafication of HR • How to build a Business Case for Workforce Intelligence • With examples of Workforce Intelligence in action
  • 12. Analyze Go from data to insight Align Go from insight to plans Act Go from plans to outcomes Maximize your Business Outcomes, Through your People
  • 13. Where are our recruiting bottlenecks? How can we retain critical employees? What if? How well did we plan? How do our total workforce costs breakdown in our plan? Should I give my team member a raise? What are our total workforce costs and how are they changing? How can we connect Total Rewards to our bottom line? How will turnover impact our future workforce? Which workforce scenario will best meet our business goals and budget? Where should we allocate people to support the business? Which Critical Talent is at risk of resigning? Who should I promote? Workforce Analytics Workforce Planning Workforce Intelligence
  • 14. Enabling HR and the business with Visier Workforce Intelligence solutions could be the most impactful action you take this year.
  • 16. Q: To capitalize on the top-three global trends which you believe will most transform your business over the next five years, to what extent are you making changes, if any, to the following areas? CEOs Recognize Talent is the Key
  • 17. Great HR Leads to Great Companies “Eight years of research into Watson Wyatt's Human Capital Index® (HCI) has consistently found a strong correlation between effective HR program design and financial performance. Indeed, the link goes beyond correlation: Effective HR programs are a leading indicator of financial performance.” Towers Watson We found that companies that are stronger in people management have a correspondingly higher financial performance. … In contrast, companies with the worst financial per-formance show a greater need for action across virtually all 27 HR subtopics… This has been a consistent finding… it is clear that the most successful people companies consistently outperformed the market, by nearly 100 percent. Boston Consulting Group
  • 19. Evolution from Process-Oriented Talent Management to Data-Driven People Management
  • 20. Analytic Companies Win Source: Sierra-Cedar, 17th Annual HR Systems Survey “… the effect of HR technologies for Top Performers as a competitive advantage has minimized … So we dug deeper…” Quantified Organizations have a 79% greater Return on Equity (ROE)
  • 21. BersinbyDeloitte Operational Reporting Reactive Reporting of Operational & Compliance Measures • Focus on Data Accuracy, Consistency, Timeliness Advanced Reporting Proactive Reporting for Decision-Making • Analysis of Trends & Benchmarks • Customizable, Self-Service Dashboards Advanced Analytics Statistical Analysis to Solve Business Problems • Identification of Issues & Actionable Solutions • Centralized Staffing & Integrated Data Predictive Analytics Development of Predictive Models • Scenario Planning • Integration with Business & Workforce Planning • Data Governance Model Level 1 Level 2 Level 3 Level 4 Source: Bersin by Deloitte, 2014 4% 10% 30% 56% Bersin by Deloitte’s Maturity Model
  • 22. Despite Demand, Organizations are “Stuck in Neutral” 5% 5% 4% 7% 8% 7% Conducting multi-year workforce planning Correlating HR data to business performance Using HR data to predict workforce performance and improvement 2015 2014 % of “excellent” ratings Source: Global Human Capital Trends Study 2015, Deloitte
  • 23. How to Build a Business Case
  • 24. The Challenge What makes creating a business case for Workforce Analytics and Workforce Planning challenging? §  The value in analytics comes in its application – not in, and of, itself §  Planning value is generally long term §  The potential applications are very broad reaching §  Often, the value is only understand after the investment is made §  Often the benefit is reduced risk, but how much? Recommendation: Take a structured approach
  • 25. The 5 Key Aspects of the Workforce Intelligence Business Case Start by: 1.  Creating excitement about the potential opportunity Then determine: 2.  Efficiency gains 3.  Direct workforce benefits 4.  Business benefits And remember: 5.  Show (don’t just tell) people what they can achieve
  • 26. Efficiency: Modernizing your systems What systems will be sunset (turned off), and what is the savings in fees or administration costs? From Gartner’s, Business Intelligence Platforms User Survey: “… of the three main components of the cost of a BI platform – software licenses, implementation fees and administrative costs – administration costs make up as much as 75% of the overall BI platform ownership cost”.
  • 27. What are your key business and HR objectives and challenges? How are they connected? Business growth in a new product or service area, without increasing costs Business Objective/Challenge HR Objective/Challenge Hiring, retaining, developing, and motivating critical talent Developing an optimal workforce plan -- the right talent, in right roles, within budget Getting ahead and proactively addressing workforce cost changes Finding new savings through better talent decisions
  • 28. Hiring, retaining, developing, and motivating critical talent
  • 29. Hiring Critical Talent More Efficiently, and with Better Outcomes Common recruiting metrics, such as “time to fill” and “cost to fill,” do not answer strategic questions about the quality and value of the people being hired, and do little to improve recruiting effectiveness
  • 30. The Hiring Pipeline Source to Application to Employee Quality Hire. Efficient Process. Effective Recruiters.
  • 31. Retaining Critical Talent: From How Many are Leaving, to Who is at Risk New Big Data approaches can turn trends, into actionable insight
  • 32. Retaining Critical Talent: More than measuring turnover Understanding why: §  Understand key resignation and retention drivers §  Understand all aspects of turnover
  • 33. Retaining Talent: What Action Should We Take? Actions are often personal, and at the individual level: §  Good analytics goes from the big to the small – macro to micro §  Helps business partners and leaders make the right decision in the moment
  • 34. Savings: Reduced Employee Replacement Costs At a 5000-employee company, a 10% voluntary turnover rate can convert into more than $30 million in replacement costs in a single year
  • 35. Savings: Hire, Develop, and Retain more Top Performers •  Analyze the characteristics, tenure, work experiences, and managerial connections of your top performers •  Understand how to grow future top talent. Consider the build or buy
  • 36. Developing an optimal workforce plan -- the right talent, in right roles, within budget
  • 38. To meet our business objective, who, when, and how many do we need?
  • 39. Taking into account and optimizing all workforce costs
  • 41. Continuously forecasting and adjusting plans §  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
  • 42. WORKFORCE COSTS Transforming workforce planning from a position-oriented process, to a continuous, cost-driven process has the ability to drive significant, more quantifiable cost savings: Calculate what a small improvement in planning accuracy can have on the bottom line 1% of $100 Million in workforce costs = $1 Million / year
  • 43. Getting ahead and proactively addressing workforce cost changes
  • 44. Getting ahead of workforce costs and how they are changing •  How much does our workforce really cost? •  How can we optimize our workforce costs? •  How are our costs changing over time? •  Are we on track with our plan and budget? •  How can be better map to Finance? Most HR departments lack a complete view of workforce costs 76% of CEOs have cut costs in the last 12 months. People are 70% of a company’s cost – and are the “final frontier” of savings in competitive markets
  • 45. Finding new savings through better talent decisions
  • 46. Consider overtime, absenteeism, engagement… for new savings
  • 47. Resources available at www.visier.com Download your copy Download your copy Subscribe to the Workforce Intelligence Blog
  • 49. #WFwebinar         Please complete the webinar evaluation.
  • 50. #WFwebinar         Join our next Webinar! Making Talent Management Part of the Business Strategy: Creating a Sustainable Pipeline of High- Potentials Wednesday, July 29, 2015 Webinars start at 2 p.m. Eastern / 11 a.m. Pacific Register for all upcoming Workforce Webinars at www.workforce.com/webinars OR click the icon on the widget bar!