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                                                        #TMwebinar
HR Analytics – A Pathway
       to Business Impact
Speaker:     Charles Goretsky
             Principal Consultant
             Bersin & Associates

Moderator:   Kellye Whitney
             Managing Editor
             Talent Management magazine




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HR Analytics – A Pathway
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            Kellye Whitney
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            Talent Management magazine




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                                          Copyright © 2012 Bersin & Associates. All rights reserved.   Page 6
HR Analytics – A Pathway
  to Business Impact



        Charles Goretsky
        Principal Consultant
        Bersin & Associates




                               #TMwebinar
HR Analytics – A Pathway to Business
Impact


Charles Goretsky                                                                          Sponsored by:
Principal Consultant

September 18, 2012



      Copyright © 2012 Bersin & Associates. All rights reserved.   Copyright © 2012 Bersin & Associates. All rights reserved.   Page 8
Bersin WhatWorks® Membership Program

                          Learning &         Talent                  Leadership                   Talent                     Human
                         Development       Management               & Succession                Acquisition                 Resources

                                                             Research and Tools
                                      Frameworks, Maturity Models, High Impact® Research Programs, Factbooks®
Member Success Program




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                                          Systems Selection and Roadmap, Measurement Strategy and Programs




                                                                                     Copyright © 2012 Bersin & Associates. All rights reserved.   Page 9
Topics
The importance and impact of quality HR measurement
on talent and business outcomes
How analytics helps address critical talent challenges
organizations face today
How to evolve and mature your analytics capability
How current technologies can be readily leveraged to
build an analytics capability that enhances both the
prioritization and outcome achievement of your human
capital initiatives.




                              Copyright © 2012 Bersin & Associates. All rights reserved.   Page 10
Analytics is a Well-Known Discipline
 Businesses Measure What Matters

                         Finance & Logistics                  Customer & Marketing                        Talent & Leadership

                              Integrated ERP                         Predictive
                               and Financial                                                                      Predictive
                                                                     Customer
The Waves of                      Analytics                                                                     Talent Models
                                                                     Behavior
  Business
  Analytics        Integrated Supply                          Web Behavior                             Business-driven
                         Chain                                 Analytics                               Talent analytics

               1980s                                 Customer                                   Integrated TM
            Financial and                          Segmentation                                 and Workforce
           Budget Analytics                       Shopping Basket                                  Planning
     Logistics and                           Customer                                Recruiting, Learning,
     Supply Chain                         Analytics – CRM                               Performance
       Analytics                          (Data Warehouse)                              Measurement

       The Industrial                 The Financial                The Customer                             The Talent
         Economy                        Economy                  Economy and Web                            Economy
      Steel, Oil, Railroads      Conglomerates, Financials,     Customer segmentation,                 Globalization,
                                       Engineering               Personalized products            Demographics, Leadership
                                                                                                    and Skills Shortages

       Early 1900’s                 1950’s- 60’s                      1970’s-80’s                             Today

                                                                  Copyright © 2012 Bersin & Associates. All rights reserved.   Page 11
HR Organizations are Not Ready
        What percentage of HR
        organizations believe they
        have strong skills in data
        analysis and interpretation?



            6% rate themselves “High”
                     56% - “Poor”
Bersin & Associates
High-Impact HR Organization® 2011 and 2010, n=741 organizations


                                                                  Copyright © 2012 Bersin & Associates. All rights reserved.   Page 12
The Lowest Rated HR Skill
                          Relative Strengths of HR Skills and Capabilities
                    Attracting and selecting the right talent                                                               17%

                               Promoting health and wellness                                                         15%

                                         Onboarding new talent                          7%

                               Fairly allocating compensation                       6%

                        Understanding skills needed by role                  4%

                Encouraging innovation and collaboration            1%

                        Creating a high-performance culture         -4%

                             Enabling a learning organization       -5%
                                                                                          Measurement and analytics
                 Identifying and developing future leaders          -6%                      are the lowest-rated
                                                                                           capabilities for HR teams
                                        Driving internal mobility   -11%
                                                                                                      today
       Developing workforce analytics for management                -12%

                      Measuring HR program effectiveness            -18%
Bersin & Associates
High-Impact HR Organization® 2011 and 2010, n=741 organizations



                                                                     Copyright © 2012 Bersin & Associates. All rights reserved.   Page 13
Impact on HR
           HR Best Practices                                   HR Framework Area                           HR Impact

1.   Implement Governance & Planning *                    HR Strategy & Business Planning                        39%
2.   Invest in Quality Workforce Planning HR Service Models                                                      28%
3.   Create the “Right” HR Philosophy                     HR Strategy & Business Planning                        27%
4.   Reduce HR BP Administrative Work                     HR Service Models                                      25%
5.   Create a Flexible HR Org Structure                   Organization & Governance                              20%
6.   Improve Key Audience Facing Tools                    Technology and Infrastructure                          19%

7.   Measure Workforce & HR Ops *                         Measurement                                            19%
8.   Develop Internal HR Skills *                         Governance & Organization                              13%

9.   Outsource Strategically                              Service Models                                         10%

10. Improve Line Manager Capabilities *                   Audience & Stakeholders                                10%

Source Bersin & Associates HIHR Survey N=720
HR Impact =‘s Opportunity for improved efficiency, effectiveness,
                                                                    •Negative impact if not implemented
and business alignment                                              well

                                                                        Copyright © 2012 Bersin & Associates. All rights reserved.   Page 14
HR Business Partners Activities
# 1 Differentiator of HIHR organizations over 15,000 employees

               What does the HR Business Partner role do?

    Providing Decision Support                                                                                  66%
                                                                           37%
            Employee Relations                                                          48%
                                                                                      45%
            Workforce Strategy                                  28%
                                                     20%
              Manager Inquiries                                 28%
                                                                                41%
Coaching executives & Managers                          22%
                                              16%
             Employe Inquiries                       21%
                                                   18%
           HR Program Training          10%
                                                    19%
     Data Gathering & Reporting        7%
                                            12%
      Performance Management      3%
                                              15%
                                  3%                                    High Impact HR               All Others
                    Orientation    5%




                                                  Copyright © 2012 Bersin & Associates. All rights reserved.   Page 15
Poll:
What does your organization measure
              today?
                   Process Efficiencies
           CPH, TTF, HR headcount/ee, Learning $/ee

                  Process Effectiveness
               % Satisfied with class, 70/20/10 %’s

                     Talent Outcomes
% HiPo’s promoted, % Ready-now successors, speed-to-productivity

               Integrated Talent/Business
  Coached leader revenue increase, # sales staff needed to open
                        Shanghai office



                                     Copyright © 2012 Bersin & Associates. All rights reserved.   Page 16
Talent Processes vs. Talent Outcomes:
  How to Communicate, Prioritize, Execute and Measure

  Talent Processes                      Talent Outcomes
   Succession Management, Leadership        Leadership Pipeline
   Development
                                                    Two-deep+ all key roles*

   Career Development, Internal Job         Talent Mobility
   Postings, Learning & Development                 70% hi-po’s with cross-BU/functional
                                                    assignments/experience*

   Employee Engagement, Performance         Critical Talent Pools
   Management, Learning & Development               Segments identified; High Performer
                                                    retention rate, % with high quality
                                                    development plans

   Talent Planning, Learning &
                                            Skill Gaps Identified, being
   Development, Competency
   Management                               closed
                                                    65% critical skill Partners with necessary
                                                    competency levels*
* Sample goal


                                        Copyright © 2012 Bersin & Associates. All rights reserved.   Page 17
Decision Support:
Focus on Solving Business Problems

 Why is turnover high in some areas?
 What drives sales productivity?
 Why is their fraud in some branches?
 What sales or service processes drive account renewal?
 What is the training of hiring profile we need to drive
 greater revenue per customer?
 How do we assess the “right” candidates for sales?
 What will our talent gaps be next year based on
 retirement rates?



                                 Copyright © 2012 Bersin & Associates. All rights reserved.   Page 18
Cases in Point:
Driving Business Value & Impact with Analytics

 Major Retailer developed integrated “people model” to correlate
 relationship between engagement, rewards, leadership capabilities,
 tenure, skills and revenue

 Major Insurance Company statistically validated 30+ factors in
 recruiting which led to 20%+ improvement in sales performance and
 completely revamped recruiting process

 Major Food Service Company identified key drivers of account
 renewal and upgrade and developed statistically valid measures which
 have been used to create company-wide dashboard which measures
 risk on a weekly basis

 Major Retail Bank correlated dozens of workforce measures against
 engagement and branch financials to develop risk management
 dashboard for small and large branches


                                         Copyright © 2012 Bersin & Associates. All rights reserved.   Page 19
THE EVOLUTION OF AN
ANALYTICS CAPABILITY

             Copyright © 2012 Bersin & Associates. All rights reserved.   Page 20
Progression of HR/TM Measurement
                                                                                                  Business Metrics &
  Develop a TM Measurement                                        Integrated                           Analytics
           Strategy                                               TM Metrics

                                                                   Employee
                                                                  Engagement
                                  Basic Workforce                 Performance
                                      Metrics                      Movement                         HR & Talent Metrics
                                                                                                     analyzed against
                                      Performance                    Talent                          business metrics
                                        Ratings                     Mobility
   Basic HR Metrics                                               Competency                         Drives business
                                        Pipelines
                                                                     Gaps                              decisions &
           Budget                      Enterprise                                                   supports forecasts
                                       Recruiting                 Career Paths
           Hiring
          Turnover                  Learning Plans                Talent Plans

         Employee                       Employee                   Workforce
        Satisfaction                    Diversity                   Plans

Measure Workforce Metrics & HR Operations : Bersin’s HIHR, 2010


                                                                  Copyright © 2012 Bersin & Associates. All rights reserved.   Page 21
HR Measurement Framework
Dashboards and Scorecards

      HR and L&D                    Organizational            Talent Supply             Manager and                     Scenarios
      Effectiveness                   Readiness             Workforce Planning       Employee Dashboards            & Future Planning

                                                       Business Translation & Analysis


                                People Performance & Business Outcomes




                                                                                                                                   External HR Benchmarks
       Internal HR Measures




                                                      Talent and Leadership

                                       Workforce Engagement & Wellness

                                                Workforce Demographics


                                            HR Program and COE Process

                                   Technology Systems – Data Warehouses, Reporting and Analytic Tools



 Workforce Planning            Applicant Tracking |      Performance &           Learning                 Compensation
      System                    Recruiting System        Talent System       Management System              System(s)           Third party
                                                                                                                                   data
                                HRMS’s – Employee Demographic and System of Record Data


                                                                            Copyright © 2012 Bersin & Associates. All rights reserved.                      Page 22
Build an Analytics Function
Not a set of tools

                 Measurement as a              Measurement as an
                     Project                       Process
                                                                                        “Build a
                                                                                   dashboard that
  “Go out and
                                                                                     continuously
   measure &
                       20%                                                            correlates
  analyze the
                                                                                    retention with
  reasons for        Analysis                                                       engagement,
turnover of my
                                                                                     competency
 sales people”
                                                      80%                         scores and other
                                                                                      measures”
                                                    Analysis




                 80% Data Capture              20% Data Capture



                                    Copyright © 2012 Bersin & Associates. All rights reserved.   Page 23
Analytics – a Journey




                  Copyright © 2012 Bersin & Associates. All rights reserved.   Page 24
Keys to Success

 Transparency of business and workforce information

 Analytics as a journey, not an end

 Develop culture of data-driven decision-making

 Empower line leaders, not just HR and L&D



   Myth:   Build an HR Data Warehouse

   Reality: Deliver Actionable Business Information


                                 Copyright © 2012 Bersin & Associates. All rights reserved.   Page 25
Poll:
What are the barriers to quality HR
 measurement and analytics in
       your organization?

            Systems
            Process
           Staff Skills
       Management Support
             Other

                       Copyright © 2012 Bersin & Associates. All rights reserved.   Page 26
SYSTEMS CAPABILITIES


             Copyright © 2012 Bersin & Associates. All rights reserved.   Page 27
Weakness in HR Systems Solutions
 How would you rate your LMS’s ability to obtain the information you
 need to measure training programs?
 3% Excellent   17% Good                 63% Fair or Poor

 How would you rate your Talent Management System’s ability to
 deliver the talent measures you need?

 2% Excellent   17% Good                 72% Fair or Poor



 How would you rate your HRIS system’s ability to deliver the
 measures you need?
 1% Excellent   14% Good                  82% Fair or Poor




                                     Copyright © 2012 Bersin & Associates. All rights reserved.   Page 28
Deliver Tools that Make a Difference

   Percentage of improved HR effectiveness based on tool investments

Web Social Networking Recruiting                                                         19.6%
             Manager Dashboard                                                           19.6%
             Knowledge Sharing                                                        18.6%
        Succession Management                                                    17.3%
      Performance Management                                           14.5%
               Aplicant Tracking                                       14.4%
                 Compensation                                        13.9%
            Eployee Self Service                                    13.7%
            Manager Self Service                                    13.6%
                          HRMS                                    13.2%
          Learning Management                                11.8%




                                           Copyright © 2012 Bersin & Associates. All rights reserved.   Page 29
Systems Support the Reduction of Tactical Workloads

                                                                                                  Positive
                   10.0%                                                                        Impact on HR
                                     Negative
                    8.0%
                                   Impact on HR
                    6.0%
                    4.0%
                    2.0%
                    0.0%
                   -2.0%
                   -4.0%
                   -6.0%
                                                            Data        Workforce
                                            Employee                                Decision
                               Manager                   Gathering      Strategy &              Coaching
                                            Relations                              Support Sr.
                               Inquiries                     &           Mobility              Executives
                                            Resolution                              Managers
                                                         Reporting       Planning
      Efficiency                -4.0%          -2.0%       -2.7%           3.0%       3.1%        5.7%
      Effectiveness             1.3%           -2.5%       -1.0%           5.4%       6.8%        8.2%
      Business alingment        -4.0%          -1.0%       -4.1%           1.0%       2.7%        4.3%


Best Practice 4: Reduce HR BP Administrative Work


                                                             Copyright © 2012 Bersin & Associates. All rights reserved.   Page 30
Progression of Measurement Technology
                                                                                       HCMS with
                                                                                       integrated TMS,
                                                                                       analytic packages,
                                                                                       intuitive user
                                                                                       interface
                                                           Data Warehouses,
                                                           auto-loaded data
                                                           from different
                                        HRIS generates
                                                           systems, “cubes”                        ‘10’s
                                        via Crystal Reports,
                                        Business Objects,

                  PC’s, Excel;
                                        SAS, SPSS                        ‘00’s
                  data transferred
                  manually from files
                  or records to Excel             ‘90’s
Employee files,
hand-written                                               We’re in a new era – one that requires
                                                            new information, integrated data
record keeping
                           ‘80’s
                                                           and leverages new technologies and
                                                                        data sources
       ‘70’s

                                                               Copyright © 2012 Bersin & Associates. All rights reserved.   Page 31
TALENT MANAGEMENT SCORECARD (Q2 2011)
  1                Diversity Representation
                                                                     2                    Pipeline Readiness
                                                                                                                                            3                Manager Effectiveness Index
                       (As of 6/17/2011)                                       (2010 Succession Planning: VPs and Above)
      100%                                                           100%                                                                   VPs/Equivalent by Title                       2.7
       90%
       80%                                                            80%
       70%                                  TBS-Non-Minority                                                                                            SVP and above                     2.7
       60%                                                            60%
       50%                                                            40%
       40%
       30%                                  TBS-Minority              20%                                                                             Mgr/Equiv by Title                              3.0
       20%
       10%                                                             0%
        0%                                                                   Ready  Ready in Ready in Ready in Ready in Ready in Too New    Dirs/Equivalent by Title                                   3.2
                                            DiversityInc-
                                            Minority                          Now      6       12       18      2 years 3 years To Rate 
                                                                                    months months months                          or N/A                                   0.0   1.0     2.0    3.0         4.0    5.0
                                            DiversityInc-Non-
                                            Minority
                                                                            Too New To Rate    Under‐Performing     Well‐Placed                              Average of EE Engagement, Perf. Ratings,
                                                                                                                                                              Promos Out of Hierarchy, and Num. of
                                  Percentages may not add to 100%           Growth Potential   Highly Promotable
                                  due to rounding                                                                                                                         Terminations


  4          Gender/Ethnicity Representation in LDPs                 5          Executive Leadership Development
                                                                                                                                            6          1st Qtr 2011 - Training Expense per FTE
                           (YTD 2011)
                                                                                            Outcomes
  100%                          100%                                                                                                            200
                                 90%
                                                                                           (YTD 2011)
   90%
                                 80%                                                                                                            150
   80%                                                                                                    New
                                                                                                     Promotion
                 51%             70%                                                                    Position
   70%                                           66%                                                    20%                                     100
                                 60%                                                                      4%
   60%                                                                                                             Suspensio                     50
                                 50%
   50%                           40%                                                                                   n
                                                        1%                                                            1%                         0
   40%                           30%             8%
   30%                           20%                                                 No
                 49%                             18%
   20%                           10%                                               Change                          Job Title
                                  0%             6%                                 74%
   10%                                                                                                             Change
    0%                                                                                                               1%
                                    ASIAN     BLACK    HISPA
         Female      Male           PACIF     WHITE                                                                                                        Dollars per FTE             ASTD/Bersin Benchmark


  7                                                                  1.     Disparity in minority population amongst leadership; non-managers and other positions split approximately
                                                                            50/50
                                                                     2.     On average, over half of VP+ talent assessed during 2010’s Succession Planning process are ready to
                                                                            assume a new role within the next 12 months
                                                                     3.     Manager effectiveness: SVP & above below current 3.0 average- most likely due to rating scale difference
                                                                            (VPs and above receive either a 1, 2, or 3 numeric rating value whereas ratings for Directors and below can
                                                                            include a decimal value)
                                                                     4.     Males/females represented almost equally in leadership development programs, however, non-minorities
                                                                            still represent more than half of 2011 YTD participants
                                                                     5.     The majority of leadership development program participants experienced no change in job role after
                                                                            participating in one or more programs
                                                                     6.     Turner overall has spent less on training per employee during Q1 as compared to the ASTD/Bersin
                                                                            combined average benchmark (average $81.94/employee across Turner vs. $147/employee)
                                                                     7.     Turner is currently spending .02% of its YTD profit on learning & development; the ASTD benchmark is
                                                                            approximately .4% of quarterly profits

                                                                                                                   Copyright © 2012 Bersin & Associates. All rights reserved.                                     Page 32
Poll:
Are you currently using a talent
management technology vendor
      for HR Analytics?

              Yes
              No
            Not Sure



                     Copyright © 2012 Bersin & Associates. All rights reserved.   Page 33
Critical Analytics & Technology
Questions
 Is it easy to understand and implement?
 Does it deliver reliable and credible information?
 Does it deliver actionable information?
 Is it inexpensive to operate and maintain?
 Is it flexible to implement and change over time?
 Is it relevant to your organization’s specific strategies?
 What do organizations do with their HCM Metrics?
 How are metrics integrated into HR & Business scorecards?
 Who makes use of the HC metrics in the organization?
 To whom are HR metrics reported?



                                     Copyright © 2012 Bersin & Associates. All rights reserved.   Page 34
Thank You!
Questions or Comments?

                                             email : charles.goretsky@bersin.com
                                                   : charles goretsky




For more information about our WhatWorks® Membership, contact us today at info@bersin.com


      Copyright © 2012 Bersin & Associates. All rights reserved.   Copyright © 2012 Bersin & Associates. All rights reserved.   Page 35
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HR Analytics - A Pathway to Business Impact

  • 1. HR Analytics – A Pathway to Business Impact You can listen to today’s webinar using your computer’s speakers or you may dial into the teleconference. If you would like to join the teleconference, please dial 1.408.600.3600 and enter access code: 921 655 826 # You will be on hold until the seminar begins. #TMwebinar
  • 2. HR Analytics – A Pathway to Business Impact Speaker: Charles Goretsky Principal Consultant Bersin & Associates Moderator: Kellye Whitney Managing Editor Talent Management magazine #TMwebinar
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  • 5. Frequently Asked Questions 1. Will I receive a copy of the slides after the webinar? YES 2. Will I receive a copy of the recording after the webinar? YES Please allow up to 2 business days to receive these materials. #TMwebinar
  • 6. HR Analytics – A Pathway to Business Impact Kellye Whitney Managing Editor Talent Management magazine #TMwebinar
  • 7. Today’s Webinar is Sponsored by: Unified Comprehensive Solution Employees Collaboration Recruit Develop Perform Succeed & Onboard & Connect & Pay & Extend Customers & Candidates Partners Recruiting Learning Performance Extended Cloud Cloud Cloud Enterprise Cloud www.csod.com Copyright © 2012 Bersin & Associates. All rights reserved. Page 6
  • 8. HR Analytics – A Pathway to Business Impact Charles Goretsky Principal Consultant Bersin & Associates #TMwebinar
  • 9. HR Analytics – A Pathway to Business Impact Charles Goretsky Sponsored by: Principal Consultant September 18, 2012 Copyright © 2012 Bersin & Associates. All rights reserved. Copyright © 2012 Bersin & Associates. All rights reserved. Page 8
  • 10. Bersin WhatWorks® Membership Program Learning & Talent Leadership Talent Human Development Management & Succession Acquisition Resources Research and Tools Frameworks, Maturity Models, High Impact® Research Programs, Factbooks® Member Success Program Scorecards, checklists, forms, RFP’s, selection guides, case studies, solution provider library Advisory Services Ask the Experts®, Business Impact Workshops Analyst Advisory Calls, Webinars Networking and Professional Development Member Roundtables, Peer Connection®, IMPACT Conference, Bersin Lexicon®, Analyst Blogs Consulting Services Strategy Development, Executive Alignment, Benchmarking, Systems Selection and Roadmap, Measurement Strategy and Programs Copyright © 2012 Bersin & Associates. All rights reserved. Page 9
  • 11. Topics The importance and impact of quality HR measurement on talent and business outcomes How analytics helps address critical talent challenges organizations face today How to evolve and mature your analytics capability How current technologies can be readily leveraged to build an analytics capability that enhances both the prioritization and outcome achievement of your human capital initiatives. Copyright © 2012 Bersin & Associates. All rights reserved. Page 10
  • 12. Analytics is a Well-Known Discipline Businesses Measure What Matters Finance & Logistics Customer & Marketing Talent & Leadership Integrated ERP Predictive and Financial Predictive Customer The Waves of Analytics Talent Models Behavior Business Analytics Integrated Supply Web Behavior Business-driven Chain Analytics Talent analytics 1980s Customer Integrated TM Financial and Segmentation and Workforce Budget Analytics Shopping Basket Planning Logistics and Customer Recruiting, Learning, Supply Chain Analytics – CRM Performance Analytics (Data Warehouse) Measurement The Industrial The Financial The Customer The Talent Economy Economy Economy and Web Economy Steel, Oil, Railroads Conglomerates, Financials, Customer segmentation, Globalization, Engineering Personalized products Demographics, Leadership and Skills Shortages Early 1900’s 1950’s- 60’s 1970’s-80’s Today Copyright © 2012 Bersin & Associates. All rights reserved. Page 11
  • 13. HR Organizations are Not Ready What percentage of HR organizations believe they have strong skills in data analysis and interpretation? 6% rate themselves “High” 56% - “Poor” Bersin & Associates High-Impact HR Organization® 2011 and 2010, n=741 organizations Copyright © 2012 Bersin & Associates. All rights reserved. Page 12
  • 14. The Lowest Rated HR Skill Relative Strengths of HR Skills and Capabilities Attracting and selecting the right talent 17% Promoting health and wellness 15% Onboarding new talent 7% Fairly allocating compensation 6% Understanding skills needed by role 4% Encouraging innovation and collaboration 1% Creating a high-performance culture -4% Enabling a learning organization -5% Measurement and analytics Identifying and developing future leaders -6% are the lowest-rated capabilities for HR teams Driving internal mobility -11% today Developing workforce analytics for management -12% Measuring HR program effectiveness -18% Bersin & Associates High-Impact HR Organization® 2011 and 2010, n=741 organizations Copyright © 2012 Bersin & Associates. All rights reserved. Page 13
  • 15. Impact on HR HR Best Practices HR Framework Area HR Impact 1. Implement Governance & Planning * HR Strategy & Business Planning 39% 2. Invest in Quality Workforce Planning HR Service Models 28% 3. Create the “Right” HR Philosophy HR Strategy & Business Planning 27% 4. Reduce HR BP Administrative Work HR Service Models 25% 5. Create a Flexible HR Org Structure Organization & Governance 20% 6. Improve Key Audience Facing Tools Technology and Infrastructure 19% 7. Measure Workforce & HR Ops * Measurement 19% 8. Develop Internal HR Skills * Governance & Organization 13% 9. Outsource Strategically Service Models 10% 10. Improve Line Manager Capabilities * Audience & Stakeholders 10% Source Bersin & Associates HIHR Survey N=720 HR Impact =‘s Opportunity for improved efficiency, effectiveness, •Negative impact if not implemented and business alignment well Copyright © 2012 Bersin & Associates. All rights reserved. Page 14
  • 16. HR Business Partners Activities # 1 Differentiator of HIHR organizations over 15,000 employees What does the HR Business Partner role do? Providing Decision Support 66% 37% Employee Relations 48% 45% Workforce Strategy 28% 20% Manager Inquiries 28% 41% Coaching executives & Managers 22% 16% Employe Inquiries 21% 18% HR Program Training 10% 19% Data Gathering & Reporting 7% 12% Performance Management 3% 15% 3% High Impact HR All Others Orientation 5% Copyright © 2012 Bersin & Associates. All rights reserved. Page 15
  • 17. Poll: What does your organization measure today? Process Efficiencies CPH, TTF, HR headcount/ee, Learning $/ee Process Effectiveness % Satisfied with class, 70/20/10 %’s Talent Outcomes % HiPo’s promoted, % Ready-now successors, speed-to-productivity Integrated Talent/Business Coached leader revenue increase, # sales staff needed to open Shanghai office Copyright © 2012 Bersin & Associates. All rights reserved. Page 16
  • 18. Talent Processes vs. Talent Outcomes: How to Communicate, Prioritize, Execute and Measure Talent Processes Talent Outcomes Succession Management, Leadership Leadership Pipeline Development Two-deep+ all key roles* Career Development, Internal Job Talent Mobility Postings, Learning & Development 70% hi-po’s with cross-BU/functional assignments/experience* Employee Engagement, Performance Critical Talent Pools Management, Learning & Development Segments identified; High Performer retention rate, % with high quality development plans Talent Planning, Learning & Skill Gaps Identified, being Development, Competency Management closed 65% critical skill Partners with necessary competency levels* * Sample goal Copyright © 2012 Bersin & Associates. All rights reserved. Page 17
  • 19. Decision Support: Focus on Solving Business Problems Why is turnover high in some areas? What drives sales productivity? Why is their fraud in some branches? What sales or service processes drive account renewal? What is the training of hiring profile we need to drive greater revenue per customer? How do we assess the “right” candidates for sales? What will our talent gaps be next year based on retirement rates? Copyright © 2012 Bersin & Associates. All rights reserved. Page 18
  • 20. Cases in Point: Driving Business Value & Impact with Analytics Major Retailer developed integrated “people model” to correlate relationship between engagement, rewards, leadership capabilities, tenure, skills and revenue Major Insurance Company statistically validated 30+ factors in recruiting which led to 20%+ improvement in sales performance and completely revamped recruiting process Major Food Service Company identified key drivers of account renewal and upgrade and developed statistically valid measures which have been used to create company-wide dashboard which measures risk on a weekly basis Major Retail Bank correlated dozens of workforce measures against engagement and branch financials to develop risk management dashboard for small and large branches Copyright © 2012 Bersin & Associates. All rights reserved. Page 19
  • 21. THE EVOLUTION OF AN ANALYTICS CAPABILITY Copyright © 2012 Bersin & Associates. All rights reserved. Page 20
  • 22. Progression of HR/TM Measurement Business Metrics & Develop a TM Measurement Integrated Analytics Strategy TM Metrics Employee Engagement Basic Workforce Performance Metrics Movement HR & Talent Metrics analyzed against Performance Talent business metrics Ratings Mobility Basic HR Metrics Competency Drives business Pipelines Gaps decisions & Budget Enterprise supports forecasts Recruiting Career Paths Hiring Turnover Learning Plans Talent Plans Employee Employee Workforce Satisfaction Diversity Plans Measure Workforce Metrics & HR Operations : Bersin’s HIHR, 2010 Copyright © 2012 Bersin & Associates. All rights reserved. Page 21
  • 23. HR Measurement Framework Dashboards and Scorecards HR and L&D Organizational Talent Supply Manager and Scenarios Effectiveness Readiness Workforce Planning Employee Dashboards & Future Planning Business Translation & Analysis People Performance & Business Outcomes External HR Benchmarks Internal HR Measures Talent and Leadership Workforce Engagement & Wellness Workforce Demographics HR Program and COE Process Technology Systems – Data Warehouses, Reporting and Analytic Tools Workforce Planning Applicant Tracking | Performance & Learning Compensation System Recruiting System Talent System Management System System(s) Third party data HRMS’s – Employee Demographic and System of Record Data Copyright © 2012 Bersin & Associates. All rights reserved. Page 22
  • 24. Build an Analytics Function Not a set of tools Measurement as a Measurement as an Project Process “Build a dashboard that “Go out and continuously measure & 20% correlates analyze the retention with reasons for Analysis engagement, turnover of my competency sales people” 80% scores and other measures” Analysis 80% Data Capture 20% Data Capture Copyright © 2012 Bersin & Associates. All rights reserved. Page 23
  • 25. Analytics – a Journey Copyright © 2012 Bersin & Associates. All rights reserved. Page 24
  • 26. Keys to Success Transparency of business and workforce information Analytics as a journey, not an end Develop culture of data-driven decision-making Empower line leaders, not just HR and L&D Myth: Build an HR Data Warehouse Reality: Deliver Actionable Business Information Copyright © 2012 Bersin & Associates. All rights reserved. Page 25
  • 27. Poll: What are the barriers to quality HR measurement and analytics in your organization? Systems Process Staff Skills Management Support Other Copyright © 2012 Bersin & Associates. All rights reserved. Page 26
  • 28. SYSTEMS CAPABILITIES Copyright © 2012 Bersin & Associates. All rights reserved. Page 27
  • 29. Weakness in HR Systems Solutions How would you rate your LMS’s ability to obtain the information you need to measure training programs? 3% Excellent 17% Good 63% Fair or Poor How would you rate your Talent Management System’s ability to deliver the talent measures you need? 2% Excellent 17% Good 72% Fair or Poor How would you rate your HRIS system’s ability to deliver the measures you need? 1% Excellent 14% Good 82% Fair or Poor Copyright © 2012 Bersin & Associates. All rights reserved. Page 28
  • 30. Deliver Tools that Make a Difference Percentage of improved HR effectiveness based on tool investments Web Social Networking Recruiting 19.6% Manager Dashboard 19.6% Knowledge Sharing 18.6% Succession Management 17.3% Performance Management 14.5% Aplicant Tracking 14.4% Compensation 13.9% Eployee Self Service 13.7% Manager Self Service 13.6% HRMS 13.2% Learning Management 11.8% Copyright © 2012 Bersin & Associates. All rights reserved. Page 29
  • 31. Systems Support the Reduction of Tactical Workloads Positive 10.0% Impact on HR Negative 8.0% Impact on HR 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% Data Workforce Employee Decision Manager Gathering Strategy & Coaching Relations Support Sr. Inquiries & Mobility Executives Resolution Managers Reporting Planning Efficiency -4.0% -2.0% -2.7% 3.0% 3.1% 5.7% Effectiveness 1.3% -2.5% -1.0% 5.4% 6.8% 8.2% Business alingment -4.0% -1.0% -4.1% 1.0% 2.7% 4.3% Best Practice 4: Reduce HR BP Administrative Work Copyright © 2012 Bersin & Associates. All rights reserved. Page 30
  • 32. Progression of Measurement Technology HCMS with integrated TMS, analytic packages, intuitive user interface Data Warehouses, auto-loaded data from different HRIS generates systems, “cubes” ‘10’s via Crystal Reports, Business Objects, PC’s, Excel; SAS, SPSS ‘00’s data transferred manually from files or records to Excel ‘90’s Employee files, hand-written We’re in a new era – one that requires new information, integrated data record keeping ‘80’s and leverages new technologies and data sources ‘70’s Copyright © 2012 Bersin & Associates. All rights reserved. Page 31
  • 33. TALENT MANAGEMENT SCORECARD (Q2 2011) 1 Diversity Representation 2 Pipeline Readiness 3 Manager Effectiveness Index (As of 6/17/2011) (2010 Succession Planning: VPs and Above) 100% 100% VPs/Equivalent by Title 2.7 90% 80% 80% 70% TBS-Non-Minority SVP and above 2.7 60% 60% 50% 40% 40% 30% TBS-Minority 20% Mgr/Equiv by Title 3.0 20% 10% 0% 0% Ready  Ready in Ready in Ready in Ready in Ready in Too New  Dirs/Equivalent by Title 3.2 DiversityInc- Minority Now 6  12  18  2 years 3 years To Rate  months months months or N/A 0.0 1.0 2.0 3.0 4.0 5.0 DiversityInc-Non- Minority Too New To Rate Under‐Performing Well‐Placed Average of EE Engagement, Perf. Ratings, Promos Out of Hierarchy, and Num. of Percentages may not add to 100%  Growth Potential Highly Promotable due to rounding Terminations 4 Gender/Ethnicity Representation in LDPs 5 Executive Leadership Development 6 1st Qtr 2011 - Training Expense per FTE (YTD 2011) Outcomes 100% 100% 200 90% (YTD 2011) 90% 80% 150 80% New Promotion 51% 70% Position 70% 66% 20% 100 60% 4% 60% Suspensio 50 50% 50% 40% n 1% 1% 0 40% 30% 8% 30% 20% No 49% 18% 20% 10% Change Job Title 0% 6% 74% 10% Change 0% 1% ASIAN BLACK HISPA Female Male PACIF WHITE Dollars per FTE ASTD/Bersin Benchmark 7 1. Disparity in minority population amongst leadership; non-managers and other positions split approximately 50/50 2. On average, over half of VP+ talent assessed during 2010’s Succession Planning process are ready to assume a new role within the next 12 months 3. Manager effectiveness: SVP & above below current 3.0 average- most likely due to rating scale difference (VPs and above receive either a 1, 2, or 3 numeric rating value whereas ratings for Directors and below can include a decimal value) 4. Males/females represented almost equally in leadership development programs, however, non-minorities still represent more than half of 2011 YTD participants 5. The majority of leadership development program participants experienced no change in job role after participating in one or more programs 6. Turner overall has spent less on training per employee during Q1 as compared to the ASTD/Bersin combined average benchmark (average $81.94/employee across Turner vs. $147/employee) 7. Turner is currently spending .02% of its YTD profit on learning & development; the ASTD benchmark is approximately .4% of quarterly profits Copyright © 2012 Bersin & Associates. All rights reserved. Page 32
  • 34. Poll: Are you currently using a talent management technology vendor for HR Analytics? Yes No Not Sure Copyright © 2012 Bersin & Associates. All rights reserved. Page 33
  • 35. Critical Analytics & Technology Questions Is it easy to understand and implement? Does it deliver reliable and credible information? Does it deliver actionable information? Is it inexpensive to operate and maintain? Is it flexible to implement and change over time? Is it relevant to your organization’s specific strategies? What do organizations do with their HCM Metrics? How are metrics integrated into HR & Business scorecards? Who makes use of the HC metrics in the organization? To whom are HR metrics reported? Copyright © 2012 Bersin & Associates. All rights reserved. Page 34
  • 36. Thank You! Questions or Comments? email : charles.goretsky@bersin.com : charles goretsky For more information about our WhatWorks® Membership, contact us today at info@bersin.com Copyright © 2012 Bersin & Associates. All rights reserved. Copyright © 2012 Bersin & Associates. All rights reserved. Page 35
  • 37. Join Our Next TM Webinar Effective Leadership Assessment: Strategies, Tools & Tips for Success Tuesday, September 25, 2012 • TM Webinars start at 2 p.m. Eastern / 11 a.m. Pacific Register for upcoming TM Webinars at www.talentmgt.com/events Join the Talent Management magazine Network http://network.talentmgt.com/ #TMwebinar