Jeff Higgins: Using Talent Market Data to Create Workforce Intelligence
- 1. Using Talent Market Data to Create Workforce Intelligence ©Human Capital Management Institute Tactics, Best Practices and examples
- 2. ©Human Capital Management Institute 2 ✓ Integrates HR, finance and operations data ✓ Applies AI with 100s of predictive machine learning algorithms ✓ Links workforce analytics to financial and business outcomes ✓ Workforce analytics software (SOLVETM) and services firm ✓ Thought leader in linking human capital to financial results ✓ Cost and value driver insights to optimize workforce spend
- 3. 3 Jeff Higgins Founder & CEO, HCMI Jeff is a leading expert with 30 years of experience in human capital analytics and workforce planning, key architect of ISO30414, global standard to measure/report workforce, an adjunct professor of people analytics at USC. A former CFO and HR executive, Jeff and his HCMI team are trusted by clients around the world to make smarter data-driven decisions that quantify workforce ROI. Speaker Jeff can be contacted at jeff.higgins@hcminst.com | https://www.hcmi.co
- 4. Predict & Act - Prescriptive Analytics - Optimization Modeling Source: Gartner Inc. Analytics and Workforce Planning Maturity Model 4 © Human Capital Management Institute The Future is Predictive, Optimized and Prescriptive!
- 5. © Human Capital Management Institute 5 What External Data do we Need, Why and Where to get it? Industry / Market Data Risk Factors Technology Changes External Statistics Bureau of Labor Statistics Location, Labor Costs HR Workforce Demographics Skill Shortages Market Shifts Off-shoring / Outsourcing Globalization Disasters / Health Crisis
- 6. 6 What Everyone Thinks of HR Analytics ©Human Capital Management Institute
- 7. What Can External Talent Data and Tools be Used For 56% of US Citizens think that the country is already in a recession 7 1. MassMutual 2. The U.S. Bureau of Economic Analysis 3. PwC Power dynamics shift back toward employers3 Companies are focused on making sure they’re not just hiring people, but hiring the right people. 83% of CHROs say their companies are considering or have already reduced overall headcount. The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, and state and local government spending, that were partly offset by increases in exports and consumer spending.2 Q3
- 8. Example: Quantifying Manager Effectiveness and $ Impact via Talent Management Index 8
- 9. Example: Using Tools and Data to Quantify Manager Effectiveness 9 Which managers are more effective at managing talent? Manager A Manager B • Exceeds business goals • Hires exp’d employees • No training • High turnover • Low mobility • Mixed performance • Low Engagement • Exceeds business goals • Hires junior employees • Trains the team personally • Low turnover • More transfers/promotions • High employee performance • High engagement
- 10. © Human Capital Management Institute 10 Audience Question Do you utilize external market data to assess talent demand and supply on a local and regional level? If so what kind of external data?
- 11. Types of External Talent Market Data 11 ➢ External Job/Talent Demand Data - Near real time from job boards and Data scraping companies ➢ External Talent Supply Data – Where is the most qualified talent by job and geographic area ➢ External Compensation Benchmark Data – • Can be either recent or older benchmarks • Powerful when matched with Talent Supply Data ➢ Country/State/City level Economic Data (i.e. GDP, Inflation Rate, Unemployment, ..) ➢ HR Metric Benchmark Data • Workforce metrics by location/job type (i.e. hiring, Turnover data) ➢ Customized External Data such as Competitor, Workforce Productivity, Culture
- 12. External Demand Data Example – Top Tech Companies 12 • Sample: Job postings of 41 leading tech companies from each month for the last 3 years • By Company, Location, and Job Use External Competitor Demand Data To… • Predict and Preempt Talent Competition • Identify which roles and locations have the highest demand (Use Job Framework) • Better target recruiting incentives and strategies • Find underutilized talent locations Tech Company Workforce Demand by State Demand by Year and Quarter
- 13. 13 1. Define business questions/issues 2. Data gathering, validation, cleansing & integration 3. Data Analysis 4. Translate data into actionable insights What People Think about HR Analytics vs. Reality Elements of Good Data Storytelling Tips For Good Data Stories ©Human Capital Management Institute #1 Choose Great Visuals for Content, not the Best Looking #2 Avoid Jargon and Technical Terms #3 Avoid Tunnel Vision and Focus on The Big Picture #4 Show Linkage to Business Impact What Makes A Good Story
- 14. 14 What Makes A Good Story – Actionable Having “told” a good story is not enough! In our world, every insight and prescription needs to be actionable. Example: You found out that hiring internally leads to more money save and a higher chance of a new hire is a high performer. Actionable: for every position hired internally, the business can save $10,000 per position and have 3 in 5 new hires turning out to be a high performer ©Human Capital Management Institute
- 15. 15 Example: Cybersecurity Job Demand Analysis By Company – DC Area (Maryland, and Virginia) Demand: CybersecurityAnalyst–428 CybersecurityEngineer–336 CybersecurityManager/Administrator-76 InMay2021,ofallcompetitors,NorthropGrummanhasthehighestnumberofjobdemandpostingsforCybersecurity Analysts Top10Companiesbydemandinalllocations(DCarea–excluding)–Talentcompetitors=IndustryRelated,Other Industries • GeneralDynamics • BoozAllenHamilton • CACI • Raytheon • NorthropGrumman • Peraton • MitreCorp • BAESytems • ManTech • Deloitte TotalJobDemandPostings(Annualized–fortheD.C.Area): CybersecurityAnalyst–15,532 CybersecurityEngineer–10,420 CybersecurityManager/Administrator–2,372
- 16. 16 Example: Cybersecurity Supply Analysis by State/City DC Area, Ohio, Texas, Florida, California, Illinois ©Human Capital Management Institute BLS Detailed Group – Cybersecurity Analyst Equivalent • Information Security Analysts Cyber Security Example Job Description: Plan, implement, upgrade, or monitor security measures for the protection of computer networks and information. Assess system vulnerabilities for security risks and propose and implement risk mitigation strategies. May ensure appropriate security controls are in place that will safeguard digital files and vital electronic infrastructure. May respond to computer security breaches and viruses. Example Job Titles Information Security Analysts, Information Security Engineers, Information Security Officers, Information Security Specialist, Information Systems Security Analyst, Information Systems Security Officer (ISSO), Information Technology Security Analyst (IT Security Analyst), Information Technology Specialist, Network Security Analyst, Security Analyst, Systems Analyst DC Area = (DC, Virginia and Maryland), Texas, Florida, California, Illinois *Salary includes all levels and years of experience for the group Size of bubble is based on total supply available Labor concentration = Concentration of this type of job relative to other jobs in the area, compared to the national average – see appendix for full equation
- 17. ©Human Capital Management Institute Cybersecurity Job Supply Demand Analysis by State • As of May 2021, Supply vs demand (employed talent over annualized posting demand) varies from plentiful (Texas, DC) to average (CA, OH) • Virginia and Maryland have the lowest talent supply in relation to Demand, but is balanced when combined with the DC area talent pool • In the combined DC area, for every posting (annualized), there are 2.2 currently employed in similar fields 17 𝑆𝑢𝑝𝑝𝑙𝑦 𝐴𝑛𝑛𝑢𝑎𝑙𝑖𝑧𝑒𝑑 𝐷𝑒𝑚𝑎𝑛𝑑 Ratio Calculation 9,980 (𝑆𝑢𝑝𝑝𝑙𝑦) 10,348(𝐴𝑛𝑛𝑢𝑎𝑙𝑖𝑧𝑒𝑑 𝐷𝑒𝑚𝑎𝑛𝑑) =.96 Example Calculation: - California Rounded to 1.0 in chart provided to the left: – a 1.0 ratio would indicate a highly competitive market for talent. For each job posting (annualized), there is one cybersecurity professional meaning demand is very strong relative to supply. High supply ratios, like 3.9 for Texas, indicates more plentiful talent (3.9 workers for 1 annualized open job i.e. demand). See exact Supply and Demand below:
- 18. ©Human Capital Management Institute 18 Example: Look at Demand by key Competitors
- 19. © Human Capital Management Institute 19 Example: Find the Best Cities to Hire for any Given Job Where is the best location to expand or relocate?
- 20. 20 Example: Find the Best Cities to Hire Software Programmers What to Consider 1. Talent supply 2. Talent demand 3. Average Salary Goals Rank cities by their abundance of talent supply vs. cost ©Human Capital Management Institute
- 21. 21 VS Tip #1 Choose the Best Chart for Contents, not the Best Looking ©Human Capital Management Institute
- 22. ©2020 WorldatWork Find the Best Talent at the Best Cost (i.e. what we can afford) This is where to find Programmers for 20% less cost Find Locations with Strong Talent Supply for Critical and High Demand Roles 22
- 23. © Human Capital Management Institute 23 What critical job roles / groups are: • A large, high cost or high impact group of jobs, typically “Core” to the organization What critical job roles / groups are not: • A single person or unique individual job Both Are Critical Groups: • Sales • Pilots • Sr. Management • Doctors • Flight Attendants • Engineers • Customer Service • Nurses Strategic Critical Operational Critical • Pilots • Doctors • Sr. Management • Nurses • Customer Service • Flight Attendants Strategic Critical Core Non-Core Operational Critical Support Feeder Roles Managers Engineers Sales Traditional Example Strategic Operational Critical Getting Value from External Data – Job Classification and Critical Roles
- 24. Example Application: Workforce Image Map Visualizing the organization 24 Workforce Image Map The Workforce Image Map (WIM) tool can be utilized to compare the incidence and impact of workforce interventions, analyze workforce categories, model and test alternate scenarios, and ultimately enable fact- based, fair decisions within and across multiple, interdependent variables. Top Use Cases: 1. Top In Demand Jobs 2. Top Labor Supply by Cost 3. Demand and Supply by Location 4. Best Locations for Best Cost 5. Change Rates and Labor Arbitrage Technology Company Demand 2020
- 25. ©Human Capital Management Institute 25 Buildvs BuyCyberAnalystTalentAnalysis Theoverallcybersecurityjobtalentfacesunprecedentedtalent shortagesthat willworsenovertime, acceleratingthe talent warespeciallyinhighdemandlocationsforthe mostqualifiedandexperienced talent. QuestionsaBuildvsBuyAnalysisHelpsto Answer: • Should buy,buildorcontractto fillcybertalent gaps? • Cost-Benefitofexpandingcyberanalysttrainingviaacademy? • Cost-BenefitofaddedTAstaffvs.increasedhires? • Howto winthe cybertalentwarwithoutjustpayingmore? HypotheticalActionsfromInsights: Whileitisimpossibletoevaluate buildvs.buystrategy optionswithout datathebelowhypothetical scenarioisbaseduponHCMIexperiencewithmultiplepeersandcompetitors. Adopta“TrainingGround,BuildTalent”WorkforceStrategy: • maybeableto fill10%to 33%moreofits’CyberAnalysthiringdemandviaarobustinternaltalent development,trainingandpartnernetwork • Organizationsthat leverageabuildfirst,buysecondstrategy typicallyenjoy10%to 15% lowertotallabor costs • Typicalorganizationsindefense,govt.contractingservicesoftenpromoteslowly,increasingvoluntary turnoverrateandloweremployeeengagement • canfillmanyoutsidehirejobsfasterat lowerexperiencelevelsaswellasimproveretentionsourcing morejuniorstaffandtraining Application Sample: Cyber Analyst Talent Options - Build v Buy v Contract
- 26. ©Human Capital Management Institute 26 Career path design and quantification model BuildvsBuyCyberAnalystTalentAnalysis • Theoverallcybersecurityjobtalentfacesunprecedentedtalentshortagesthatwillworsenovertime, acceleratingthetalentwarespeciallyinhighdemandlocationsforthemostqualifiedandexperiencedtalent • 2020 overallcybersecurityjobdemandvs.supplytalentgapis870,000 jobsworseningto -2.6 millionjobsby2023 • TheCybersecurityandCyberAnalystjobfamilyfaceanunprecedentedtalentshortageof -164,000increasingto 2020 CyberAnalystdemandvs.supplytalentgapis164,000jobs,worseningto -502,000 jobsby2023 QuestionsaBuildvsBuyAnalysisHelpstoAnswer: • Should buy,buildorcontractto fillcybertalentgaps? • Cost-Benefitofexpandingcyberanalysttrainingviaacademy? • Cost-BenefitofaddedTAstaffvs.increasedhires? • Howto winthecybertalentwarwithoutjustpayingmore? HypotheticalActionsfromInsights: Whileitisimpossibletoevaluate buildvs.buystrategyoptionswithout datathebelowhypotheticalscenarioisbased uponHCMIexperiencewithmultiplepeersandcompetitors. Adopta“TrainingGroundBuildTalent”strategy • maybeableto fill10%to 33%moreofits’CyberAnalysthiringdemandviaarobustinternaltalentdevelopment, trainingandpartnernetwork • Organizationsthatleverageabuildfirst,buysecondstrategytypicallyenjoy10%to15% lowertotal laborcosts • Typicalorganizationsindefense,govt.contractingservicesoftenpromoteslowly,increasingvoluntaryturnover rateandloweremployeeengagement • canfillmanyoutsidehirejobsfasteratlowerexperiencelevelsaswellasimproveretentionsourcingmorejunior staffandtraining Application Sample: Cyber Analyst Talent Options - Build v Buy v Contract
- 27. Human Capital Management Institute Jeff Higgins, CEO Jeff.higgins@hcminst.com www.hcmi.co Thank you! 27 ©Human Capital Management Institute