HR Analytics: New approaches, higher returns on human capital investment
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The document outlines strategies for business leaders to leverage data analytics to enhance HR's impact on business performance, highlighting six analytical tools and presenting case studies from India and the West. It emphasizes the need for HR leaders to develop business acumen and utilize consistent metrics to bridge the gap between HR investments and business outcomes. Additionally, a new model for HR analytical capability is introduced, aimed at improving talent management and fostering a data-driven approach in HR practices.
HR Analytics: New approaches, higher returns on human capital investment
- 1. Shanmukha Sreenivas P , DoMS 1
- 2. To show how business function leaders can start mining data to measure and improve HR's contributions to business performance Shanmukha Sreenivas P , DoMS 2
- 3. Identification of 6 analytical tools Exemplification of these tools through case studies both in the Indian & western context A new holistic model for HR analytical capability has been devised Shanmukha Sreenivas P , DoMS 3
- 4. Key tools being used by enterprises to bridge the gap between HR investments & Business returns Shanmukha Sreenivas P , DoMS 4
- 5. As the case studies reveal, tools identified here can help HR leaders actively shape their organization’s future - managing critical talent - directing programs towards the long term needs of the business New model !! Shanmukha Sreenivas P , DoMS 5
- 6. Boards of directors increasingly asking CEOs to measure people results. Personnel Control People Developer Talent Multiplier HR’s primary task: Growing recognition among HR executives that they must develop greater business acumen; HR courses that focus on analytical capabilities are being developed and offered. Shanmukha Sreenivas P , DoMS 6
- 7. Accessible Reliable Metrics must be consistent across units and time HR ‘s Effectiveness : Revenue/Sales pipeline Only 14% of the respondents said they used these business-focused metrics to gauge the impact of HR - CedarCrestone 2010-11 HR systems survey Shanmukha Sreenivas P , DoMS 7
- 8. Talent Supply Chain Workforce Planning Customized EVP Targeted HR Investments Critical Talent Management Employee Database Shanmukha Sreenivas P , DoMS 8
- 9. Accurate, Consistent, Integrated, Accessible and Relevant Comprehensive Database Integrated HR Info Case I Grade Point Average Best Predictors Of Performance IN Q3 of 2007, the company hired 2130 people a 38% increase from the prev Q Shanmukha Sreenivas P , DoMS 9
- 10. Critical talent data points: i)Key recruiting targets ii)High-potential Employees iii)Top performers Case II Case III Shanmukha Sreenivas P , DoMS 10
- 11. Playing techniques Projections based on past performance Game statistics Analysis of video feed Live graphical data streams Gathers 60,000 data points on each player examining both physical & psychological traits Maximizing player’s longevity by customized training regimens Player durability Shanmukha Sreenivas P , DoMS estimates 11
- 12. Sophisticated segmentation enables differentiated action Case IV Metrics being used: Work climate & employee satisfaction Productivity (employees /100,000 cases of food sold) Retention HIGHLY SATISFIED EMPLOYEES • Higher revenues/low costs • Superior customer loyalty • Higher employee retention Shanmukha Sreenivas P , DoMS 12
- 13. To maintain high levels of employee satisfaction, SYSCO manages 7-D’s of the work environment Leadership support of employees Effectiveness of front-line supervisors Rewards for performance Quality of life Employee engagement Diversity Customer focus SYSCO improved the retention rate for delivery associates from 65 percent to 85 percent in six years. With hiring and training costs of $35,000 per head, SYSCO saved nearly $50 million in the process . Shanmukha Sreenivas P , DoMS 13
- 14. Predict and target employee life cycle actions based on calculations of employee value Case V Turned to Conjoint analysis(a marketing technique) -figured out the mix of benefits most likely to improve retention rates. Key result: employees were more likely to stay with the company if they got half their annual pay rises every six months instead of the entire amount only once per year Shanmukha Sreenivas P , DoMS 14
- 15. Starts with the analysis of the strategic position of the business Case VI 2007 : in order to reduce operating costs by $700 million, wanted to reduce headcount by 2000 in two years An analytics group of 20 was formed to perform workforce planning simulations. -Ideal mix -Precise talent requirements -Cost conscious operations Shanmukha Sreenivas P , DoMS 15
- 16. “Real time optimization” Firstly, future needs of talent are projected (planned capital projects) These decisions are continuously optimized using real time, system wide performance data for the entire supply chain Case VII -> Valero continuously monitors ads placed on job portals & internet , to assess Speed , Quality & Reliability of the supplier (Dashboard Scorecards) Supply Chain: Project Managers from the US Engineers from Canada Programmers from India Manufacturing workers China Shanmukha Sreenivas P , DoMS 16
- 17. Shanmukha Sreenivas P , DoMS 17 Data-Centric RIght Questions Analytical tools & metrics Dedicated people: Analysts Targeting Strategic perspective Level 1 •DATA CENTRIC •Accesible,reliable and high quality Level 2 • ASKING THE RIGHT QUESTIONS •Acting on results Level 3 •DEVELOPING ANALYTICAL TOOLS AND METRICS •Consistent across units and over time level 4 • DEDICATED PEOPLE - ANALYSTS • Nurturing analytical talent level 5 •TARGETING •Sophisticated segmentation enables differentiated action level 6 • STRATEGIC PERSPECTIVE •Analytics in tune with the organization's strategies and objectives
- 18. Implementing HR analytics : What Why & How ??? Accurate assessment of the way things really are , one not skewed by emotion or limited to anecdotal evidences. Diagnose the causes of whatever problems exist and create plans to address the underlying causes. Develop forecasting and optimizing capabilities to help them see bumps in the road before they encounter them Shanmukha Sreenivas P , DoMS 18
- 19. Queries Shanmukha Sreenivas P , DoMS 19
Editor's Notes
- #3: As global economic and political conditions continue to concern business leaders, their attention turns to the various levers that can foster success in uncertain times by looking for competitive insights to the massive data they can now capture
- #7: Explanation for I point : Conversations taking place in the business community about quantifying intangible assets such as human capital. HR’s primary task has evolved from PC-> PD -> TM
- #11: An analytical approach can help organisations discover which of the investments generate the biggest performance payoffs.
- #15: The objective of conjoint analysis is to determine what combination of a limited number of attributes is most influential on respondent choice or decision making. Similar to factor analysis. For a serv org like convergys … remember the 7 P’s !!! P=people the primary task of people here is to define for services what it can’t do for itself !!