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BigData in HR
Creating a New Science of Human Resources




Josh Bersin
President and CEO
October, 2012



   Copyright © 2012 Bersin & Associates. All rights reserved.
About Us
 Who We Are
   •   Delivering the proven people strategies that
       leaders and their organizations need to deliver
       exceptional business results.

 Practices                                                                           Human
   •   Enterprise Learning                                                            Resources
   •   Human Resources
   •   Talent Acquisition                                                             Leadership
   •   Talent Management                                                              Development

   •   Leadership & Succession
                                                                                      Learning &
 Services                                                                            Development

   •   WhatWorks® Membership
   •   Research-based consulting services                                             Talent
                                                                                      Acquisition
   •   IMPACT: The industry’s premiere conference
       on the Business of Talent, April 22-24, 2013
   •   BersinInsights®                                                                Talent
   •   BersinBasics®                                                                  Management




                                                         Copyright © 2012 Bersin & Associates. All rights reserved.   Page 2
Serving the World’s Most Successful Organizations




                            Copyright © 2012 Bersin & Associates. All rights reserved.   Page 3
Our Research
 8 years of research into the
  measurement, operations of L&D,
  leadership, recruiting and HR

 Education and best-practices on “how
  to build an analytics function”

 Detailed information on tools and
  vendors

 Assessment services and consulting
  to help you understand where you are
  and how to advance your program

 Delivered through our WhatWorks®
  Membership

                                         http://www.bersin.com/hrbigdata2012

                                          Copyright © 2012 Bersin & Associates. All rights reserved.   Page 4
Agenda

   The Talent Analytics Priority
   Defining BigData in HR
   Guidelines for Success
   The Four Stages
   Preparing Your Team




                                    Copyright © 2012 Bersin & Associates. All rights reserved.   Page 5
BigData in US Business
                                     14 Exabytes of Data in US
  6 billion photos uploaded to       Corporations (1 Exabyte is
  Facebook every month               40,000X the library of congress)

                                 YouTube uploads more content
                                 each day than all networks combined

                 We are at an inflexion point:
                         Organizations
US Businesses will be short
140,000-190,000 analytic positions
          whichyears to leverage big data will far
in the next three
                  learn
                                   1.5 million more data-savvy
                 outperform those who do needed to leverage
                                   managers not.
                                          big
                                  - McKinsey     data in the United States



                                        Copyright © 2012 Bersin & Associates. All rights reserved.   Page 6
The Global Talent Imbalance




Copyright © 2012 Bersin & Associates. All rights reserved.   Page 7
2012 Business Environment
Globalization, Innovation, Cost Containment


              What Are Your Organization’s Top Business Challenges for 2012?



                     35% of organizations see the need to                                  +60% Increase


                       accelerate growth and globalize – +10% Increase
                                                         the
                        highest level in four years…. yet…

                       51% struggle to hire the right talent,
                                 despite high unemployment…
                                                                                           +70% Increase



 © Bersin & Associates, Corporate TalentWatch®
 Research, Senior HR and Business Executives,                  ■ Dec. 2011               ■   Aug. 2012




                                                  Copyright © 2012 Bersin & Associates. All rights reserved.   Page 8
#1 Risk
   Loss of Customers


   #2 Risk
   Talent and Skill
   Shortages




Copyright © 2012 Bersin & Associates. All rights reserved.   Page 9
Increasing Specialization
 Expertise drives competitive
                                                                Top
  advantage                                                  Management

 Specialization improves                                         Senior
  quality and reduces cost                                      Management
                                                     The
 Deep skills developed                            Experts              Middle
                                                                      Management
  through “deliberate practice”
  and reinforcement                           Senior Specialists
                                                                            First Line
                                                                           Management
 Deep skills come from a range
                                            Functional Specialists / Front-Line Employees
  of developmental experiences
 We need career development               Back Office, Operational, Contingent Employees
  in all critical job roles


                  High Performing Organizations Understand This




                                             Copyright © 2012 Bersin & Associates. All rights reserved.   Page 10
How the Workforce has Changed




                 Copyright © 2012 Bersin & Associates. All rights reserved.   Page 11
Young, Diverse Workforce ….
Has Created Challenges in Engagement


    In 2012, 32% of employees are “planning on leaving”
           their employers, vs. 19% two years ago

  Only 55% of employees believe their employer is a sound
   “long term” place to work vs. 65% over last three years.

  People under the age of 35 are twice as likely to be looking
               for new work as older workers.
                 - Mercer October 2011, Towers Watson July 2012




  “By 2013, 47% of employees will be those born after 1977.
                        -- US Census Bureau


                                             Copyright © 2012 Bersin & Associates. All rights reserved.   Page 12
Analytics is Definitely Coming to HR
 The Evolution of Business Analytics in other Functions


                                             Finance & Logistics           Customer & Marketing                Talent & Leadership
The Waves of
                                                 Integrated ERP                 Predictive                          Predictive
Business Analytics                                and Financial                 Customer                          Talent Models
                                                    Analytics                 Behavior - CRM                      HR Analytics

                                     Integrated                          Web Behavior                     Business-driven
                                    Supply Chain                          Analytics                       Talent analytics

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

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

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

                                                                       Copyright © 2012 Bersin & Associates. All rights reserved.   Page 13
Agenda

   The Talent Analytics Priority
   Defining BigData in HR
   Guidelines for Success
   The Four Stages
   Preparing Your Team




                                    Copyright © 2012 Bersin & Associates. All rights reserved.   Page 14
What is Predictive Analytics?




                    Copyright © 2012 Bersin & Associates. All rights reserved.   Page 15
Typical People Decision-Making

 How do baseball teams find great
  players?

 They look for “traditional performance
  characteristics”
   • Speed and athleticism
   • Ability to hit, home runs
   • Appearance, confidence
   • Batting average (ie. GPA)




                                     Copyright © 2012 Bersin & Associates. All rights reserved.   Page 16
Data Proves Different Factors Matter
 What is the most important baseball
  statistic that drives a winning team?
   • Team batting average?
   • Runs batted in (RBI)?
   • Pitcher’s earn run average (ERA)?




 On Base Percentage (OBP)
 Not a Characteristic of the Player
  (candidate)
 It is a characteristic of how they
  actually perform




                                         Copyright © 2012 Bersin & Associates. All rights reserved.   Page 17
How do Companies Hire People?
2/3 of hiring done without any significant assessment


% of Organizations Which Regularly Use Following Assessment Practices



   Background checking:                                   79%
                                                                                    2/3 use no real
   Managerial interviews:                                 64%                   assessment process
   Interview training:                                    47%                     at all … leaving
                                                                                    the process to
   Behavioral assessments:                                34%                     hiring managers
                                                                                     or recruiters
   Reference calls:                                       32%
   Skills-based assessments:                              25%


Bersin & Associates High-Impact Talent Acquisition
Study, Fall 2010, 158 organizations responded



                                                        Copyright © 2012 Bersin & Associates. All rights reserved.   Page 18
This Science is Coming to HR

 Definition of “Science”:

“Systematic knowledge of the world
gained through observation
and experimentation.”

 What is Not Science

Making talent decisions on the basis of
“gut feel,” “beliefs,” or “philosophies.”



                                 Copyright © 2012 Bersin & Associates. All rights reserved.   Page 19
Insurance
                                                                                  Company
Big Insurance

 A $33 billion insurance company has developed a
  behavioral assessment based on a set of beliefs held by
  the top executives

 Top sales people need college degrees from top rated
  schools, they should have good grades, and they should
  have experience selling high value products.

 But the data proves otherwise.




                               Copyright © 2012 Bersin & Associates. All rights reserved.   Page 20
Insurance
                                                                      Company
Results of Data Analysis




                                               21
                   Copyright © 2012 Bersin & Associates. All rights reserved.   Page 21
Insurance
                                                                                                   Company
Data Showed Six Things Matter:
Very Highly Correlated with Success

1.   No typos, errors, grammatical mistakes on resume.                     The Belief
2.   Did not quit school before obtaining some degree
3.   Had experience selling real-estate or autos                            System
4.   Demonstrated success in prior jobs
5.   Ability to succeed with vague instruction                             Was Wrong
6.   Experience planning time and managing lots of tasks
                                                                          Within six months
                                                                          of implementing a
What Did NOT Matter                                                         new screening
                                                                               process
•    Where they went to school                                              revenues went
•    What grades they had                                                  up by $4 million
•    The quality of their references




                                                Copyright © 2012 Bersin & Associates. All rights reserved.   Page 22
What is Measured Today




Source: Bersin & Associates 2012
High-Impact Learning Organization® (HILO)



                                            Copyright © 2012 Bersin & Associates. All rights reserved.   Page 23
Business Value



                                                             Beliefs




                                                                                       Gut Feel
                                                              Reactive
                                                              Checks



                                                                 Ad-Hoc and
                                                               Ongoing Reports



                                                                Dashboards and
                                                                                                  Reporting




                                                                  Benchmarks



                                                                       Correlations




                                                                         Simulations
                                                                                                              Analytics




                                                                          Predictions
                                                                         Causal Modeling
Copyright © 2012 Bersin & Associates. All rights reserved.
                                                                                                                          Journey into Data-Driven Decisions




       Page 24
Agenda

   The BigData Priority
   Why Talent Analytics
   Guidelines for Success
   The Four Stages
   Final Thoughts




                             Copyright © 2012 Bersin & Associates. All rights reserved.   Page 25
Focus on Business Problem, not Data
Business problem first, then focus on arranging and using the data




                Business
                                                                 Data
                Problem


        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 impact of training on long term productivity?
        How do we assess the “right” candidates for sales?
        What will our talent gaps be next year based on retirement?



                                                Copyright © 2012 Bersin & Associates. All rights reserved.   Page 26
Measurement as a Process
Why you must build an analytics function, not a set of tools

                 Measurement as Process, not a Project




                                           Copyright © 2012 Bersin & Associates. All rights reserved.   Page 27
Four Keys to Success
1. Reliable
   •   Data must be “true” and validated over time
   •   Seasonal changes, organization changes, must be handled
2. Actionable
   •   Reports must be detailed enough to let managers take action
   •   Drill, filter, group data so it is relevant and meaningful
   •   Goal is a “business-driven” dashboard (red/yellow/green)
3. Scalable
   •   The process of collecting and analyzing data must scale
   •   Your outputs must be useful for people at all levels
4. Understandable
   •   People must be able to visualize and understand what you find
   •   Line managers, executives, and employees must use the data




                                                          Copyright © 2012 Bersin & Associates. All rights reserved.   Page 28
But What do you Measure?
  Supply,        Talent         Workforce Plan                Open                        Internal
  Demand       Demand Plan       Scenarios                   Positions                    Mobility
 Recruiting      Employer       Time and Cost              Onboarding
 Onboarding                                                                              Turnover
               Brand, Alumni       To Hire                Effectiveness
Performance       Ratings        Managerial               Development                       9-box
Succession       Rankings        Grievances                  Plans                          Grids
                  Skills         Succession                Promotional                  Seniority
 Readiness
               Certifications      Depth                   Readiness                   Skills Depth
                Succession      360 and Other               Successor                Proficiency vs.
 Leadership
                  Depth         Assessments                 Readiness              Leadership Comp.
                Budget by         Comp by                   Perf-Pay                      Compa
Compensation
                 Group            level/perf               differentials                  Ratios
                Employee          Employee                  Innovation                  Employee
Engagement
                 Opinion         Engagement                 Programs                    Value Prop
                Retirement         Tenure               Age, geography,                   Span of
Demographics
                Projections     Education, etc.            Skill level                    control
                 HR/L&D            HR/L&D                    Systems                   Satisfaction
  Spending
                 Spending       Staff Allocation             Usage/$                   With HR svc.


                                                  Copyright © 2012 Bersin & Associates. All rights reserved.   Page 29
Types of Measures you Need
Why the analytics team must understand all areas of talent management…



   Workplace                                     Leadership                          Individual
                     Management
  Environment                                     & Culture                        Characteristics



 Compensation       Clarity of goals             Leadership                           Education
 Benefits           Coaching                     values                               Personality
 Safety             Job fit                      Clarity of mission                   Skills
 Tools              Team structure               Type of leader                       Training
 Information        Span of control              Style of leader                      Experience
 Physical comfort   Personal                                                          Values
 Location           relationship                                                      Life situation
                    Availability                 ….
 Org design                                                                           ….
 Org “culture”      ….
 Org “vision”                          “engagement” is often a surrogate
 ….
                                             for all this complexity


                                               Copyright © 2012 Bersin & Associates. All rights reserved.   Page 30
Bersin & Associates HR Measurement Framework
         HR, Recruiting, and L&D                                                                                                             Organizational                    Talent & Leadership Supply                                Scenario                                  Manager and
              Effectiveness                                                                                                                    Readiness                           Workforce Planning                                & Future Planning                          Employee Dashboards


                                                                                                                                                                     Workforce Performance
                                                                                                                                                                            (How people impact the business)
                                                                                                                         Financial results by person and unit I Net Promoter scores I Performance and Goal attainment I Innovation/Patents | Product measures
                               Statistical and Data Analysis Skills, Collaboration with other Analytics Teams




                                                                                                                                                                                                                                                                                                                                                        External Data and Benchmarks
Measurement Process & Skills




                                                                                                                                                                        Talent Acquisition




                                                                                                                                                                                                                                                                                                Workforce Measures I TM Measures I People Performance
                                            Data Cleansing | Data Dictionary | Analytic Measures




                                                                                                                                                                      (How well you are reaching candidate audiences)




                                                                                                                                                                                                                                                                                                  Internal HR Measures I HR Program Effectiveness I
                                                                                                                                                            Employment Brand | Talent Pipeline | Time and Cost to Fill | Quality of Hire




                                                                                                                                                                                                                                                                                                     (External Benchmarking of all HR Measures)
                                                  Integration of new sources and systems
                                                     Data governance and stewardship




                                                                                                                                                 Capabilities, Talent, & Leadership
                                                                                                                                                                     (Capabilities, leadership, progression, career, talent.)
                                                                                                                  Leadership Pipeline | HiPOs I Stack Rankings I Pivotal Role Pools I Mobility | Compa Ratios I Rewards I Skill gaps I Certifications | Readiness I Turn-
                                                                                                                                       over I 360’s I Technical Skill Pools I Career Progression | Development Plans | Succession Depth and Pools


                                                                                                                                                                     Engagement & Culture
                                                                                                                                                 (Employee engagement, wellness, and satisfaction – including external view)
                                                                                                                           Engagement I Management Grievances I Turn-Over I Referral Rates I Exit Interviews I Development Plans | Diversity and Inclusion



                                                                                                                                                             HR Programs & Processes
                                                                                                                                                                       (Status and maturity of HR Processes )
                                                                                                                Learning Program Effectiveness I Total Rewards Effectiveness I Performance Management Effectiveness I On-Boarding Time to Productivity I Recruiting
                                                                                                                                                          Effectiveness and Effieicney I Candidate Pipeline I Total Rewards


                                                                                                                                                              Workforce Demographics
                                                                                                                                                             (Facts and statistics about employees, alumni, and contractors)
                                                                                                                                   Payroll and Benefits | Demographics I Background I Experience I Tenure I Organization Structure I Spans of Control I



     Workforce Planning                                                                                                                                                 Performance & Talent                 Learning Management                              Compensation                     Third party
                                                                                                                                Applicant Tracking |
          System                                                                                                                                                               System                               System                                      System(s)                         data:
  Scenarios, talent supply, demand
                                                                                                                                 Recruiting System                     Performance, development planning,    Learning, certification, skills delivery,   Salary, benefits, budget, bonus and    assessments,
                                                                                                                                Applicant, source, recruiting data                                                                                                                                employee
            org charting                                                                                                                                                   succession, talent pool data       content, learning organization data         comp related data, payroll feeds
                                                                                                                                                                                                                                                                                                engagement,
                                                                                                                                                                                                                                                                                               external brand,
                                                                                                                                            HRMS’s – Payroll and Employee Demographic and System of Record Data                                                                                social networks




                                                                                                                                                                                                            Copyright © 2012 Bersin & Associates. All rights reserved.                                                                                         Page 31
Traditional Data Architectures

                                                                                         •   Dynamic Aggregation
                                                                                         •   Drill up, down
                                                                                         •   Ad Hoc Filtering
                                                                                         •   Sorting and Subtotaling
                          All this complexity is now moving to                           •   Graphing
                           “Cloud-Based” analytics systems.                              •
                                                                                         •
                                                                                             Subject Area Analytics
                                                                                             Very fast response
                  Operational Reports                                                    •   Updated nightly
                                                     Dashboards and
                       (Crystal)
                         These new solutions capture data
                                                    Advanced Reports

                                  from your systems
                       and deliver reporting and analysis tools
                        to you without significant IT support.


                                                                                                               OLAP
                  Operational                                Data Warehouse                                    Multi
                   HRMS or                                    Or Analytics                                  Dimensional
                     LMS                                       Application                                   Database
                                   Turnkey ETL Process                                      Cube
Database Server                  (Extract/Transform/Load)                                 Generation       OLAP Database Server




                                                                       Copyright © 2012 Bersin & Associates. All rights reserved.   Page 32
Integrated Systems Now a Top Priority
BigData Projects Demand It



    Are you willing to sacrifice features for an integrated HR solution?

                    2011                                                            2012

                                                                                             Not
                          Not
                                                                                          Sure, 19%
                       Sure, 21%
         Yes, 33%                                                  Yes, 45%


                                                                                               No, 36%
                       No, 46%




                        Bersin & Associates Talent and HR Systems Study, 2012 and 2011




                                                             Copyright © 2012 Bersin & Associates. All rights reserved.   Page 33
Huge Market for Solution Providers




                   Copyright © 2012 Bersin & Associates. All rights reserved.   Page 34
Agenda

   The BigData Priority
   Why Talent Analytics
   Guidelines for Success
   The Four Stages
   Final Thoughts




                             Copyright © 2012 Bersin & Associates. All rights reserved.   Page 35
Talent Analytics Maturity Model®

                                    Level 4: Predictive Analytics
                                  Development of predictive models, scenario planning               <5%
                         Risk analysis and mitigation, integration with strategic planning



                                      Level 3: Strategic Analytics
                     Segmentation, statistical analysis, development of “people models”;           <10%
        Analysis of dimensions to understand cause and delivery of actionable solutions



             Level 2: Proactive – Advanced Reporting
                           Operational reporting for benchmarking and decision making              >20%
                                            Multi-dimensional analysis and dashboards



            Level 1: Reactive – Operational Reporting
                   Operational reporting for measurement of efficiency and compliance              >60%
                     Data exploration and integration, Development of data dictionary




                                            Copyright © 2012 Bersin & Associates. All rights reserved.   Page 36
How HR Data is Likely Organized

   Recruiting and                                                     Performance
                                   Comp and
    Workforce                                                         Succession
                                    Benefits
     Planning                                                         Engagement



                                    HRMS                                   HR
     Learning
                                   Employee                             Operations
   & Leadership
                                     Data




             Your goal is to integrate this information, over time,
                into a credible, actionable, scalable, understandable
               Talent Analytics function… one which delivers relevant
           Information, models, and tools to line leaders and executives



                                               Copyright © 2012 Bersin & Associates. All rights reserved.   Page 37
Key to Success: WhatWorks®

   Developing Credibility
   Strong Relationship with IT
   Sharing Experience across analytics teams
   Patience to validate data before it is shared
   Multi-year analysis to experience seasonal trends
   Need to present findings in an understandable way
   Skills in visual design and presentation
   Focus on business solutions, not HR solutions




                                 Copyright © 2012 Bersin & Associates. All rights reserved.   Page 38
Examples of Breakthrough Solutions

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

 Major Payroll Provider 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 measure
  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 39
Agenda

   The BigData Priority
   Why Talent Analytics
   Guidelines for Success
   The Four Stages
   Keys to Success




                             Copyright © 2012 Bersin & Associates. All rights reserved.   Page 40
Data Analysis Skills Important to HR
 Top HR Skills | Capabilities                                                    Correlation
 Business Partner relationship management                                                 .52

 Managing and leading people                                                              .51

 Coaching and Mentoring                                                                   .49

 Change management and communications                                                     .48

 Analyzing and interpreting data                                                          .47

 Knowledge Sharing and expertise directories                                              .47

 Managing your Personal Development                                                       .45

 Top Organizational | Managerial Capabilities
 Developing a high performance culture                                                    .77

 Developing a strong learning culture                                                     .77

 Developing strong talent segmentation                                                    .74

 Developing high levels of career development and mobility                                .73

 Attracting and selecting the right talent                                                .64

 Measuring business impact of HR                                                          .64

 Developing high levels of engagement                                                     .54

 Giving people honest feedback                                                            .49

                                                    Copyright © 2012 Bersin & Associates. All rights reserved.   Page 41
HR Organizations are Not Ready
        What percentage of HR
        organizations do you believe
        feel 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 42
Large Retailer
The Evolution of Data Skills and Competencies

                                                  2007 - 2008
     Solid Understanding of HR; I/O Psychology Degree;
                                                             Strong Communication & Interpersonal Skills;
               Employee Research Background;
                                                                 Detail Oriented ; Project Management
     Qualitative Research Design & Analysis; HRIS; SPSS




                                                  2009 - 2010
     Business Acumen; HR, Finance, Economics Degree;               Consulting & Presentation Skills;
          Quantitative Research Design & Analysis               Analytical Curiosity; Problem Solving;
     Passion for Data & Analytics; Strong Technical skills    Collaborative; Teamwork; Networking Skills




                                                  2011 - 2012
       Advanced Statistics & Social Research Acumen;                      Critical Thinking;
                   Engineering Degree;                           Story Telling; Data Visualization;
   Customer Research Background; Statistics & Data Mining    Ability to see data, and decipher insights


                                                             Copyright © 2012 Bersin & Associates. All rights reserved.   Page 43
Retailer


   An Evolved Organization

                                   VP Human Capital
                                       Analytics




     Director                                            Director
                                                        Workforce                     Manager HR Brand
Org Diagnostics &
                                                        Analytics &                       Content
     Design
                                                         Research


            (2)        Manager              Manager                      Manager                    Business
      Sr. Consultant   Workforce            Employee                     Learning                   Operations
           ODD         Analytics            Research                     Analytics                  Specialist



    Program Manager                                                              Consultant
                             (2)             Analyst Employee
                                                                                  Learning
                       Sr. WFA Analyst           Research
                                                                                Measurement


                                                                                 Analyst
                                                                            Learning Analytics



                                                      Copyright © 2012 Bersin & Associates. All rights reserved.   Page 44
Retailer
The Modeling Journey…
           Employee       Employee
 2008     Engagement
            Model
                         Segmentation
                             LVI
                                                      Learning




 2009      Diversity &
            Inclusion
                          Leadership




           Learning &     Employee
 2010     Professional
          Development
                          Lifecycle
                          Research
                                                       HR
                                                    Scorecards
                                                                                  Reactive
                                                                                  Analytics



                                                      Human
           Company        Employee                                               Proactive &
 2011        Health
           Pentagram
                          Research
                           Cohorts
                                                      Capital
                                                     Executive
                                                     Dashboard
                                                                                 Exploratory
                                                                                  Analytics



           Enterprise
 2012     Measures of
            Success
                            Talent
                                                      Change
                                                      Adoption
                                                                                  Predictive
                                                                                  Analytics




                                     Copyright © 2012 Bersin & Associates. All rights reserved.   Page 45
Conclusion
 BigData in HR is has become a
  business imperative
 Tools are not the answer, but
  integrated data is needed
 Analytics is a journey, it is a process
  not a project
 Talent analytics will integrate all the
  functions within HR, and also across
  the business
 Expertise and patience is key, but
  focus on key business problems first
                                            http://www.bersin.com/hrbigdata2012


                                            Copyright © 2012 Bersin & Associates. All rights reserved.   Page 46
BigData in Human Resources - Making it Happen
BigData in Human Resources - Making it Happen

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BigData in Human Resources - Making it Happen

  • 1. BigData in HR Creating a New Science of Human Resources Josh Bersin President and CEO October, 2012 Copyright © 2012 Bersin & Associates. All rights reserved.
  • 2. About Us  Who We Are • Delivering the proven people strategies that leaders and their organizations need to deliver exceptional business results.  Practices Human • Enterprise Learning Resources • Human Resources • Talent Acquisition Leadership • Talent Management Development • Leadership & Succession Learning &  Services Development • WhatWorks® Membership • Research-based consulting services Talent Acquisition • IMPACT: The industry’s premiere conference on the Business of Talent, April 22-24, 2013 • BersinInsights® Talent • BersinBasics® Management Copyright © 2012 Bersin & Associates. All rights reserved. Page 2
  • 3. Serving the World’s Most Successful Organizations Copyright © 2012 Bersin & Associates. All rights reserved. Page 3
  • 4. Our Research  8 years of research into the measurement, operations of L&D, leadership, recruiting and HR  Education and best-practices on “how to build an analytics function”  Detailed information on tools and vendors  Assessment services and consulting to help you understand where you are and how to advance your program  Delivered through our WhatWorks® Membership http://www.bersin.com/hrbigdata2012 Copyright © 2012 Bersin & Associates. All rights reserved. Page 4
  • 5. Agenda  The Talent Analytics Priority  Defining BigData in HR  Guidelines for Success  The Four Stages  Preparing Your Team Copyright © 2012 Bersin & Associates. All rights reserved. Page 5
  • 6. BigData in US Business 14 Exabytes of Data in US 6 billion photos uploaded to Corporations (1 Exabyte is Facebook every month 40,000X the library of congress) YouTube uploads more content each day than all networks combined We are at an inflexion point: Organizations US Businesses will be short 140,000-190,000 analytic positions whichyears to leverage big data will far in the next three learn 1.5 million more data-savvy outperform those who do needed to leverage managers not. big - McKinsey data in the United States Copyright © 2012 Bersin & Associates. All rights reserved. Page 6
  • 7. The Global Talent Imbalance Copyright © 2012 Bersin & Associates. All rights reserved. Page 7
  • 8. 2012 Business Environment Globalization, Innovation, Cost Containment What Are Your Organization’s Top Business Challenges for 2012? 35% of organizations see the need to +60% Increase accelerate growth and globalize – +10% Increase the highest level in four years…. yet… 51% struggle to hire the right talent, despite high unemployment… +70% Increase © Bersin & Associates, Corporate TalentWatch® Research, Senior HR and Business Executives, ■ Dec. 2011 ■ Aug. 2012 Copyright © 2012 Bersin & Associates. All rights reserved. Page 8
  • 9. #1 Risk Loss of Customers #2 Risk Talent and Skill Shortages Copyright © 2012 Bersin & Associates. All rights reserved. Page 9
  • 10. Increasing Specialization  Expertise drives competitive Top advantage Management  Specialization improves Senior quality and reduces cost Management The  Deep skills developed Experts Middle Management through “deliberate practice” and reinforcement Senior Specialists First Line Management  Deep skills come from a range Functional Specialists / Front-Line Employees of developmental experiences  We need career development Back Office, Operational, Contingent Employees in all critical job roles High Performing Organizations Understand This Copyright © 2012 Bersin & Associates. All rights reserved. Page 10
  • 11. How the Workforce has Changed Copyright © 2012 Bersin & Associates. All rights reserved. Page 11
  • 12. Young, Diverse Workforce …. Has Created Challenges in Engagement In 2012, 32% of employees are “planning on leaving” their employers, vs. 19% two years ago Only 55% of employees believe their employer is a sound “long term” place to work vs. 65% over last three years. People under the age of 35 are twice as likely to be looking for new work as older workers. - Mercer October 2011, Towers Watson July 2012 “By 2013, 47% of employees will be those born after 1977. -- US Census Bureau Copyright © 2012 Bersin & Associates. All rights reserved. Page 12
  • 13. Analytics is Definitely Coming to HR The Evolution of Business Analytics in other Functions Finance & Logistics Customer & Marketing Talent & Leadership The Waves of Integrated ERP Predictive Predictive Business Analytics and Financial Customer Talent Models Analytics Behavior - CRM HR Analytics Integrated Web Behavior Business-driven Supply Chain Analytics Talent analytics 1980s Customer Integrated Financial and Segmentation Talent Management Budget Analytics Shopping Basket Workforce Planning Recruiting, Logistics and Customer Learning, Supply Chain Analytics – CRM Performance analytics (Data Warehouse) Measurement The Industrial The Financial The Customer The Talent Economy Economy Economy and Web Economy Conglomerates Customer Segmentation Globalization, Demographics Steel, Oil, Railroads Financial Engineering Personalized Products Skills and Leadership Shortages Early 1900s 1950s-60s 1970s-80s Today Copyright © 2012 Bersin & Associates. All rights reserved. Page 13
  • 14. Agenda  The Talent Analytics Priority  Defining BigData in HR  Guidelines for Success  The Four Stages  Preparing Your Team Copyright © 2012 Bersin & Associates. All rights reserved. Page 14
  • 15. What is Predictive Analytics? Copyright © 2012 Bersin & Associates. All rights reserved. Page 15
  • 16. Typical People Decision-Making  How do baseball teams find great players?  They look for “traditional performance characteristics” • Speed and athleticism • Ability to hit, home runs • Appearance, confidence • Batting average (ie. GPA) Copyright © 2012 Bersin & Associates. All rights reserved. Page 16
  • 17. Data Proves Different Factors Matter  What is the most important baseball statistic that drives a winning team? • Team batting average? • Runs batted in (RBI)? • Pitcher’s earn run average (ERA)?  On Base Percentage (OBP)  Not a Characteristic of the Player (candidate)  It is a characteristic of how they actually perform Copyright © 2012 Bersin & Associates. All rights reserved. Page 17
  • 18. How do Companies Hire People? 2/3 of hiring done without any significant assessment % of Organizations Which Regularly Use Following Assessment Practices  Background checking: 79% 2/3 use no real  Managerial interviews: 64% assessment process  Interview training: 47% at all … leaving the process to  Behavioral assessments: 34% hiring managers or recruiters  Reference calls: 32%  Skills-based assessments: 25% Bersin & Associates High-Impact Talent Acquisition Study, Fall 2010, 158 organizations responded Copyright © 2012 Bersin & Associates. All rights reserved. Page 18
  • 19. This Science is Coming to HR  Definition of “Science”: “Systematic knowledge of the world gained through observation and experimentation.”  What is Not Science Making talent decisions on the basis of “gut feel,” “beliefs,” or “philosophies.” Copyright © 2012 Bersin & Associates. All rights reserved. Page 19
  • 20. Insurance Company Big Insurance  A $33 billion insurance company has developed a behavioral assessment based on a set of beliefs held by the top executives  Top sales people need college degrees from top rated schools, they should have good grades, and they should have experience selling high value products.  But the data proves otherwise. Copyright © 2012 Bersin & Associates. All rights reserved. Page 20
  • 21. Insurance Company Results of Data Analysis 21 Copyright © 2012 Bersin & Associates. All rights reserved. Page 21
  • 22. Insurance Company Data Showed Six Things Matter: Very Highly Correlated with Success 1. No typos, errors, grammatical mistakes on resume. The Belief 2. Did not quit school before obtaining some degree 3. Had experience selling real-estate or autos System 4. Demonstrated success in prior jobs 5. Ability to succeed with vague instruction Was Wrong 6. Experience planning time and managing lots of tasks Within six months of implementing a What Did NOT Matter new screening process • Where they went to school revenues went • What grades they had up by $4 million • The quality of their references Copyright © 2012 Bersin & Associates. All rights reserved. Page 22
  • 23. What is Measured Today Source: Bersin & Associates 2012 High-Impact Learning Organization® (HILO) Copyright © 2012 Bersin & Associates. All rights reserved. Page 23
  • 24. Business Value Beliefs Gut Feel Reactive Checks Ad-Hoc and Ongoing Reports Dashboards and Reporting Benchmarks Correlations Simulations Analytics Predictions Causal Modeling Copyright © 2012 Bersin & Associates. All rights reserved. Journey into Data-Driven Decisions Page 24
  • 25. Agenda  The BigData Priority  Why Talent Analytics  Guidelines for Success  The Four Stages  Final Thoughts Copyright © 2012 Bersin & Associates. All rights reserved. Page 25
  • 26. Focus on Business Problem, not Data Business problem first, then focus on arranging and using the data Business Data Problem  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 impact of training on long term productivity?  How do we assess the “right” candidates for sales?  What will our talent gaps be next year based on retirement? Copyright © 2012 Bersin & Associates. All rights reserved. Page 26
  • 27. Measurement as a Process Why you must build an analytics function, not a set of tools Measurement as Process, not a Project Copyright © 2012 Bersin & Associates. All rights reserved. Page 27
  • 28. Four Keys to Success 1. Reliable • Data must be “true” and validated over time • Seasonal changes, organization changes, must be handled 2. Actionable • Reports must be detailed enough to let managers take action • Drill, filter, group data so it is relevant and meaningful • Goal is a “business-driven” dashboard (red/yellow/green) 3. Scalable • The process of collecting and analyzing data must scale • Your outputs must be useful for people at all levels 4. Understandable • People must be able to visualize and understand what you find • Line managers, executives, and employees must use the data Copyright © 2012 Bersin & Associates. All rights reserved. Page 28
  • 29. But What do you Measure? Supply, Talent Workforce Plan Open Internal Demand Demand Plan Scenarios Positions Mobility Recruiting Employer Time and Cost Onboarding Onboarding Turnover Brand, Alumni To Hire Effectiveness Performance Ratings Managerial Development 9-box Succession Rankings Grievances Plans Grids Skills Succession Promotional Seniority Readiness Certifications Depth Readiness Skills Depth Succession 360 and Other Successor Proficiency vs. Leadership Depth Assessments Readiness Leadership Comp. Budget by Comp by Perf-Pay Compa Compensation Group level/perf differentials Ratios Employee Employee Innovation Employee Engagement Opinion Engagement Programs Value Prop Retirement Tenure Age, geography, Span of Demographics Projections Education, etc. Skill level control HR/L&D HR/L&D Systems Satisfaction Spending Spending Staff Allocation Usage/$ With HR svc. Copyright © 2012 Bersin & Associates. All rights reserved. Page 29
  • 30. Types of Measures you Need Why the analytics team must understand all areas of talent management… Workplace Leadership Individual Management Environment & Culture Characteristics Compensation Clarity of goals Leadership Education Benefits Coaching values Personality Safety Job fit Clarity of mission Skills Tools Team structure Type of leader Training Information Span of control Style of leader Experience Physical comfort Personal Values Location relationship Life situation Availability …. Org design …. Org “culture” …. Org “vision” “engagement” is often a surrogate …. for all this complexity Copyright © 2012 Bersin & Associates. All rights reserved. Page 30
  • 31. Bersin & Associates HR Measurement Framework HR, Recruiting, and L&D Organizational Talent & Leadership Supply Scenario Manager and Effectiveness Readiness Workforce Planning & Future Planning Employee Dashboards Workforce Performance (How people impact the business) Financial results by person and unit I Net Promoter scores I Performance and Goal attainment I Innovation/Patents | Product measures Statistical and Data Analysis Skills, Collaboration with other Analytics Teams External Data and Benchmarks Measurement Process & Skills Talent Acquisition Workforce Measures I TM Measures I People Performance Data Cleansing | Data Dictionary | Analytic Measures (How well you are reaching candidate audiences) Internal HR Measures I HR Program Effectiveness I Employment Brand | Talent Pipeline | Time and Cost to Fill | Quality of Hire (External Benchmarking of all HR Measures) Integration of new sources and systems Data governance and stewardship Capabilities, Talent, & Leadership (Capabilities, leadership, progression, career, talent.) Leadership Pipeline | HiPOs I Stack Rankings I Pivotal Role Pools I Mobility | Compa Ratios I Rewards I Skill gaps I Certifications | Readiness I Turn- over I 360’s I Technical Skill Pools I Career Progression | Development Plans | Succession Depth and Pools Engagement & Culture (Employee engagement, wellness, and satisfaction – including external view) Engagement I Management Grievances I Turn-Over I Referral Rates I Exit Interviews I Development Plans | Diversity and Inclusion HR Programs & Processes (Status and maturity of HR Processes ) Learning Program Effectiveness I Total Rewards Effectiveness I Performance Management Effectiveness I On-Boarding Time to Productivity I Recruiting Effectiveness and Effieicney I Candidate Pipeline I Total Rewards Workforce Demographics (Facts and statistics about employees, alumni, and contractors) Payroll and Benefits | Demographics I Background I Experience I Tenure I Organization Structure I Spans of Control I Workforce Planning Performance & Talent Learning Management Compensation Third party Applicant Tracking | System System System System(s) data: Scenarios, talent supply, demand Recruiting System Performance, development planning, Learning, certification, skills delivery, Salary, benefits, budget, bonus and assessments, Applicant, source, recruiting data employee org charting succession, talent pool data content, learning organization data comp related data, payroll feeds engagement, external brand, HRMS’s – Payroll and Employee Demographic and System of Record Data social networks Copyright © 2012 Bersin & Associates. All rights reserved. Page 31
  • 32. Traditional Data Architectures • Dynamic Aggregation • Drill up, down • Ad Hoc Filtering • Sorting and Subtotaling All this complexity is now moving to • Graphing “Cloud-Based” analytics systems. • • Subject Area Analytics Very fast response Operational Reports • Updated nightly Dashboards and (Crystal) These new solutions capture data Advanced Reports from your systems and deliver reporting and analysis tools to you without significant IT support. OLAP Operational Data Warehouse Multi HRMS or Or Analytics Dimensional LMS Application Database Turnkey ETL Process Cube Database Server (Extract/Transform/Load) Generation OLAP Database Server Copyright © 2012 Bersin & Associates. All rights reserved. Page 32
  • 33. Integrated Systems Now a Top Priority BigData Projects Demand It Are you willing to sacrifice features for an integrated HR solution? 2011 2012 Not Not Sure, 19% Sure, 21% Yes, 33% Yes, 45% No, 36% No, 46% Bersin & Associates Talent and HR Systems Study, 2012 and 2011 Copyright © 2012 Bersin & Associates. All rights reserved. Page 33
  • 34. Huge Market for Solution Providers Copyright © 2012 Bersin & Associates. All rights reserved. Page 34
  • 35. Agenda  The BigData Priority  Why Talent Analytics  Guidelines for Success  The Four Stages  Final Thoughts Copyright © 2012 Bersin & Associates. All rights reserved. Page 35
  • 36. Talent Analytics Maturity Model® Level 4: Predictive Analytics Development of predictive models, scenario planning <5% Risk analysis and mitigation, integration with strategic planning Level 3: Strategic Analytics Segmentation, statistical analysis, development of “people models”; <10% Analysis of dimensions to understand cause and delivery of actionable solutions Level 2: Proactive – Advanced Reporting Operational reporting for benchmarking and decision making >20% Multi-dimensional analysis and dashboards Level 1: Reactive – Operational Reporting Operational reporting for measurement of efficiency and compliance >60% Data exploration and integration, Development of data dictionary Copyright © 2012 Bersin & Associates. All rights reserved. Page 36
  • 37. How HR Data is Likely Organized Recruiting and Performance Comp and Workforce Succession Benefits Planning Engagement HRMS HR Learning Employee Operations & Leadership Data Your goal is to integrate this information, over time, into a credible, actionable, scalable, understandable Talent Analytics function… one which delivers relevant Information, models, and tools to line leaders and executives Copyright © 2012 Bersin & Associates. All rights reserved. Page 37
  • 38. Key to Success: WhatWorks®  Developing Credibility  Strong Relationship with IT  Sharing Experience across analytics teams  Patience to validate data before it is shared  Multi-year analysis to experience seasonal trends  Need to present findings in an understandable way  Skills in visual design and presentation  Focus on business solutions, not HR solutions Copyright © 2012 Bersin & Associates. All rights reserved. Page 38
  • 39. Examples of Breakthrough Solutions  Major Retailer developed integrated “people model” to correlate relationship between engagement, rewards, leadership capabilities, tenure, skills and revenue.  Major Payroll Provider 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 measure 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 39
  • 40. Agenda  The BigData Priority  Why Talent Analytics  Guidelines for Success  The Four Stages  Keys to Success Copyright © 2012 Bersin & Associates. All rights reserved. Page 40
  • 41. Data Analysis Skills Important to HR Top HR Skills | Capabilities Correlation Business Partner relationship management .52 Managing and leading people .51 Coaching and Mentoring .49 Change management and communications .48 Analyzing and interpreting data .47 Knowledge Sharing and expertise directories .47 Managing your Personal Development .45 Top Organizational | Managerial Capabilities Developing a high performance culture .77 Developing a strong learning culture .77 Developing strong talent segmentation .74 Developing high levels of career development and mobility .73 Attracting and selecting the right talent .64 Measuring business impact of HR .64 Developing high levels of engagement .54 Giving people honest feedback .49 Copyright © 2012 Bersin & Associates. All rights reserved. Page 41
  • 42. HR Organizations are Not Ready What percentage of HR organizations do you believe feel 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 42
  • 43. Large Retailer The Evolution of Data Skills and Competencies 2007 - 2008 Solid Understanding of HR; I/O Psychology Degree; Strong Communication & Interpersonal Skills; Employee Research Background; Detail Oriented ; Project Management Qualitative Research Design & Analysis; HRIS; SPSS 2009 - 2010 Business Acumen; HR, Finance, Economics Degree; Consulting & Presentation Skills; Quantitative Research Design & Analysis Analytical Curiosity; Problem Solving; Passion for Data & Analytics; Strong Technical skills Collaborative; Teamwork; Networking Skills 2011 - 2012 Advanced Statistics & Social Research Acumen; Critical Thinking; Engineering Degree; Story Telling; Data Visualization; Customer Research Background; Statistics & Data Mining Ability to see data, and decipher insights Copyright © 2012 Bersin & Associates. All rights reserved. Page 43
  • 44. Retailer An Evolved Organization VP Human Capital Analytics Director Director Workforce Manager HR Brand Org Diagnostics & Analytics & Content Design Research (2) Manager Manager Manager Business Sr. Consultant Workforce Employee Learning Operations ODD Analytics Research Analytics Specialist Program Manager Consultant (2) Analyst Employee Learning Sr. WFA Analyst Research Measurement Analyst Learning Analytics Copyright © 2012 Bersin & Associates. All rights reserved. Page 44
  • 45. Retailer The Modeling Journey… Employee Employee 2008 Engagement Model Segmentation LVI Learning 2009 Diversity & Inclusion Leadership Learning & Employee 2010 Professional Development Lifecycle Research HR Scorecards Reactive Analytics Human Company Employee Proactive & 2011 Health Pentagram Research Cohorts Capital Executive Dashboard Exploratory Analytics Enterprise 2012 Measures of Success Talent Change Adoption Predictive Analytics Copyright © 2012 Bersin & Associates. All rights reserved. Page 45
  • 46. Conclusion  BigData in HR is has become a business imperative  Tools are not the answer, but integrated data is needed  Analytics is a journey, it is a process not a project  Talent analytics will integrate all the functions within HR, and also across the business  Expertise and patience is key, but focus on key business problems first http://www.bersin.com/hrbigdata2012 Copyright © 2012 Bersin & Associates. All rights reserved. Page 46

Notes de l'éditeur

  1. So we’ve talked about globalization, specialization, youth, and engagement. How are these workforce changes affecting top business leaders? The answer is, they are very worried.Late last year Lloyds of London asked 500 CEO’s to rank their top 100 business risks for the coming year.The #1 risk they stated is loss of customers, which I will explain in a few minutes. But the #2 risk they state is talent and skills shortages.This means skills shortages are a larger risk than sovereign debt, currency devaluation, cyber terrorism, flood, earthquake, raw material shortages, and 90 other areas of risk. We really are in a global skills and talent crisis, and it appears to be getting worse.
  2. And the world has also become much younger. By the end of 2017, nearly half the workforce will be under the age of 35. This alone is transforming our organizations.Young people not only bring new ideas, but they also bring a whole new way of communicating. IDC now believes that Text Messaging, Facebook, and Twitter have already replaced email as the #1 way people communicate. We can expect this shift to move much faster into the future.And… young people also bring new expectations and a different set of demands from employers. They want meaningful work, and they are not afraid to switch jobs. Nearly a third of young people are planning on switching jobs once the recession is over, and only 55% think that their employers are a good long term place to work.So now we have to focus on engaging people in work, to drive both job satisfaction and what we call discretionary effort. Discretionary effort is what makes you competitive.Brenda Kowske and Charlie Goretskiwill be launching our new engagement research this week. Our research shows that there are many models for engagement, but ultimately it is one of the most important assets you have.Two sessions I want to point out: ManonKebodeaux from Baker Hughes is going to talk about the power of building diversity, and LauriKwilos from Sage, Peter Jones from Bristol Myers Squbb, and Carol Robinette from the Red Cross are going to talk about managing contingent workers.
  3. EE Engagement Model – talk about the metrics modelling linkage analysis that we startedEmployee Lifecycle Research – onboarding, engagement, exitHR Scorecards – business unit transactional metrics – one storyReactive analytics – on requestCompany Health – engagement, job sat, leadership, team, strategic direction, culture – see next slideProactive &amp; Exploratory Analytics – turnover, reorg, employee lifecycleMoS – Engagement, Culture, Leadership – People Productivity MetricTalent – talent acquisition, quality of hire, employee readiness, succession, talent inventory (gaps vs talent pool), HiPo, etcPredictive Analytics -