The Analytical HR Professional: A Look at Data-Driven Talent Management

The Analytical HR Professional: A Look at
Data-Driven Talent Management
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Speaker: Lisa Rowan
Program Director, HR and Talent
Management Services
IDC

Moderator: Daniel Margolis
Managing Editor
Talent Management magazine

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Daniel Margolis
Managing Editor
Talent Management magazine

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Lisa Rowan
Program Director, HR and Talent
Management Services
IDC

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The Analytical HR
Professional
A look at the future of data-driven
talent management

Lisa Rowan
Program Director, HR, Learning, and
Talent Strategies
May 2011

Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Who is IDC?

• IDC is the premier global market
intelligence, events, and advisory firm

• We analyze and predict technology
trends so that our clients can make
strategic, fact-based strategic decisions

• Now with 1000+ analysts covering 90
countries, we have been delivering IT
intelligence, industry analysis, market
data, and strategic guidance since 1964

• IDC is a division of IDG, the world's
leading technology media, research, and
event company

© IDC Visit us at IDC.com and follow us on Twitter: @IDC May-11

Agenda

 Why analytics now?

 Where have we gone wrong?

 Brief taxonomy and history

 How to think about HR analytics for your organization

 Getting started

© IDC Visit us at IDC.com and follow us on Twitter: @IDC May-11 9

Setting the Stage


Talent Imperative: Situation


U.S. Workforce State of Mind

Over 50% are willing or looking to move
Plan to retire
7%
Have plans to leave
3%
Actively looking
9%

No plans to leave
44%

Not looking but open
37%

Source: Tower Watson 2010 Global Workforce Study – U.S.


Talent Initiatives - Importance
For each of the following talent initiatives, please indicate the level of IMPORTANCE of each to your organization

Recruiting - attracting top talent 3.9
Aligning corporate goals with group and individual goals Very
3.8
Performance management
Important
3.8
Compensation planning and pay-for-performance 3.7
Leadership development Less
3.5
Employee development
Important
3.2
Workforce planning 3.2
Reducing turnover Least
3.2
Important
Succession planning

Source: IDC's CMO Survey, 2010


Workforce of the Future – my Hypothesis

2009 2012

Permanent on-premise Home-based Permanent on-premise Home-based
Contingent Freelance Contingent Freelance


Rich Areas for Capitalizing on Data
Convergence
Multiple Strong
Linkages
Compensation Recruiting
• Distinguish • Attributes of
rewards for high achievers
top performers

Performance
(Reward and
Retain)

Career and
Learning Succession
Measure • Identify and
• Prescribe develop

Develop
Source: IDC, 2011

Summing up „why now?‟

 Volatility in workforce engagement

 More and varied types of workers getting the job done

 Unprecedented focus on talent

 Richer sources of data to mine for highlighting risk and improving
workforce agility


Where have we gone wrong?


Where have we gone wrong?

It‟s not so much that we‟ve gone wrong as other factors have
come into play:

 The „snowflake effect‟ – no two organizations measure the same
things and even if some overlap, they may not measure similarly

 Workforce analytics in a vacuum are insufficient to influence
business decisions. Your own data only tells part of the story

 Frequently need data outside of HR's direct ownership

 HR metrics are just part of the picture

 The HR organization frequently doesn‟t have an analytical
orientation


Analytics Taxonomy


Business Analytics Industry Evolution

Data/
Predictive Content
Technology Analytics
End-Users

Collaboration
Alerting
Number of people

& Workflow
Analysts
UI and Process Dashboards & Process
Templates Visualization Awareness IT Staff

Ad-hoc Query, Unified Access
Data Models Scorecards
OLAP & Analysis

Knowledge
Reporting Data
Appliances Capture &
Statistics Warehousing Data Quality
Learning

1975–1989 1990–2004 2005–2020

Query, Reporting, OLAP, Data Mining, Statistical analysis

Business intelligence Suites and Analytic Applications

Decision Management
Solutions


Workforce Analytics: Part of A Bigger
Picture
Performance Management & Analytic Applications Business Intelligence Tools

Financial Performance CRM Analytic Applications Query, Reporting, and
& Strategy Management Sales -, Customer Service -, Contact Analysis Tools
Budgeting, Planning, Consolidation, Center -, Marketing -, Web Site Dashboards, production reporting,
Profitability, Strategy Management Analytics, Price Optimization OLAP, ad-hoc query

Services Operations Advanced Analytics Tools
Supply Chain Data mining and statistics
Analytic Applications Financial
Analytic Applications
services, education, government,
Procurement, logistics, inventory,
healthcare, communications services,
manufacturing.
etc.
Content Analysis Tools
Production Planning
Analytic Applications Workforce Analytic
Demand, supply, and Applications
production planning Spatial Information
Analytics Tools

Data Warehouse Management Platform

Data Warehouse Management

Data Warehouse Generation
Data extraction, transformation, loading; data quality


Why is this a good time?
1. Innovation at the intersections with
 Collaboration
 Knowledge capture & learning & sharing
 Content analysis
 Business process management (incl. complex event
processing)
2. Technology & Deployment
 In-memory processing, in-database analytics, search-based
applications, non-row databases, non-SQL analytics

 Mobile, Cloud, Outsourced, On-Premise
Source: IDC, Market Analysis Perspective: Worldwide Business Analytics Solutions 2010 - The Emerging
Mass Market for Business Intelligence, Analytics, and Data Warehousing Mar 2011 Doc # 227397

Anatomy of HR Analytics


Dimensionality of Decisions:
Decision Management Model
Highest level
HIGH Degree of Automation LOW corporate
Collaborative Planning, Advanced Analytics objective

Strategic
Level of Collaboration

Number of Decisions
Dimensions:
• # of decisions
• Scope/Degree of risk
• Level of collaboration (# of
stakeholders?)
Operational
(Policy Hub)
• Degree of automation

Tactical

Intelligent Process Automation
LOW HIGH
Scope of Decision


Workforce Examples in Motion

HIGH Degree of Automation LOW

Increase profitability

Maximize workforce
productivity

Retain top performers Strategic

Number of Decisions
Increase quality of
hire

Reduce time-
to-fill Speed time to
Operational productivity
Lower cost
(Policy Hub)
of talent
acquisition Fill key skills gaps

Match learning to the
job

Tactical Lower cost of training

LOW HIGH
Scope of Decision

Level of uncertainty

Workforce Example Questions
To Ask Yourselves

 Do we need to improve processes to reduce manual check production? Strategic

General HR


Number of Decisions
 Do we have sufficient labor to meet next quarter's demand?
Administration
Operational

 Do we need to reduce payroll costs to be in alignment with the industry?
(Policy Hub)

Tactical

LOW HIGH
Scope of Decision


 Do we need to open any job requisitions in light of demand? Strategic


Number of Decisions
Recruiting  Is time-to-fill positions impacting company performance? Operational
(Policy Hub)

 Do we need to improve the quality of hire? Tactical

LOW HIGH
Scope of Decision


 Are our people prepared for emerging technology? Strategic


Number of Decisions
Learning  Is training reaching those that need it the most? Operational
(Policy Hub)

 Are learning programs having the needed impact on performance? Tactical

LOW HIGH
Scope of Decision


 Do we need to raise the budget for annual merit increases?
Strategic


Number of Decisions
Compensation  How do we determine who will be eligible for a pay increase?
Operational
(Policy Hub)

 Do compensation policies for top performers impact retention?
Tactical

LOW HIGH
Scope of Decision


 Do we need to incentivize managers to complete performance appraisals on time? Strategic


Number of Decisions
 Is our current performance rating scale appropriate? Operational

Performance (Policy Hub)

 Should we appraise workers in high visibility jobs differently? Tactical

LOW HIGH
Scope of Decision


 Do we need to address turnover in any region, division, department? Strategic


Number of Decisions
Succession/career  Are there key skills gaps in high visibility jobs? Operational
(Policy Hub)

Planning  What is our strategy for back filling for the high flight risk employees? Tactical

LOW HIGH
Scope of Decision


Getting Started
 Examine your organization‟s talent culture – learning-focused,
performance-focused, etc and determine organizational
readiness

 What keeps your senior executives awake at night? Helping
them get to the people-related data behind those concerns will
help you justify analytics efforts

 Choose 2 to 3 things that drive results in your organization and
put each at the top of your matrix to determine how to get there:
– Customer service?
– Faster time-to-market?
– Lower cost of sale?

 Don‟t „boil the ocean‟

 No out-of-the-box solution meets everyone‟s needs

Questions and Answers

Compensation Recruiting

• Email me at lrowan@idc.com
Performance
• Follow me on twitter: lisarowan

Learning Career
& Succession


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The Analytical HR Professional: A Look at Data-Driven Talent Management

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