orgvue making people count infographic
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Organizations are increasingly focused on workforce analytics to address challenges in cost reduction and strategic planning, yet many lack effective collaboration between HR and finance, leading to inefficiencies. While 89% of organizations use workforce analytics, only 10% utilize dedicated software extensively, highlighting a gap in capability and understanding. To become future-ready, companies must invest in developing people skills, technology, and collaborative approaches between HR and finance for effective workforce planning and analysis.
orgvue making people count infographic
- 1. View people in terms of ‘work and value’ instead of ‘role and cost’. The 2 biggest business challenges in the next 12 months are: Cost reduction Governance, risk, and compliance Other top business challenges: 56% 49% Digital transformations45% Market expansion35% Diversity and inclusion32% US UK Total Meet challenges with data-driven capability making people count from workforce analytics to organizational planning Adoption is high, but people, process, and technology confidence lags. Workforce analytics is going mainstream but many organizations don’t have control of their data or a clear understanding of where to start. Organizations find workforce analytics difficult because: HR and Finance are not collaborating Spreadsheets still dominate Organizations need people with analytics skills know their workforce should match their operating model and investment strategy 64% Data-driven decision making leads to: Just 15% of CEOs have changed a business decision as a result of data2 higher productivity1 higher profits1 6% 4% 89% of organizations are already using workforce analytics89% A survey of more than 400 decision makers in Human Resources (HR) and Finance from organizations with 1,000 employees or more 1 MIT Center for Digital Business (2011) Strength in Numbers: How Does Data-Driven Decision-making Aect Firm Performance? 2 Gartner (2018) Leaders Need Talent Analytics and Insights to Drive Change and Improve Organizational Performance 55%62% 28% Our survey shows those that have adopted specialist software for workforce analytics have an advanced capability for workforce planning across the board: Fewer than half of respondents feel well placed to provide answers to key questions asked by the business Are the right employees doing the right work to deliver strategy? Is our top talent focused on the most critical work? As our workforce aligned to our operating model and investment strategy? Where are we inefficient? (e.g. Are senior employees focused on transactional work?) How quickly could we reorganize? Aggregate and cleanse data from multiple sources Produce headcount cost analysis Report on gender pay gap Using in some areas but not in others ConsideringHave adopted extensively Not using Don’t know Running pilots/testing Where do we have risk exposure? (e.g. Gender pay gap) Although workforce analytics is rising in popularity, capability is not keeping pace 44% 44% 38% 45%46%48% better together: collaboration between HR and Finance escaping ‘dreadsheets’: software adoption for workforce analytics but only 10% use workforce analytics software extensively within the business 45% of HR felt they had a good working relationship with Finance, while only 25% of Finance felt the same. When asked about strategic workforce planning, Finance said they should own it (55%), while HR said it should clearly be them (76%). agree HR and Finance have reporting systems that connect HR Finance Analyzing the current workforce 67 76 56 42 33 54 Determining future workforce needs 68 78 63 37 26 49 Identifying gaps between the present workforce and future needs 67 76 56 35 25 45 Getting the right people with the right skills working on the right tasks for the business 72 83 70 29 19 33 Managing workforce costs 43 55 23 71 63 88 62 76 50 45 35 55 Planning the workforce needed to deliver the business’ goals and strategic plan FinanceHR Total 34% 24%10% 7% 2% 21% 45% 41% 53% agree that HR and Finance share data regularly but only... 53% acquiring people skills for mastery of analytics Building analytics capability 49%Process HR professionals in particular see these tasks as their domain, with the possible exception of managing workforce costs. However, finance professionals take a more divergent view of who is responsible for WP&A activity. Developing a strategic workforce planning capability will require systemic collaboration between HR and Finance. Workforce Planning and Analysis (WP&A) activities are seen largely as the responsibility of HR over Finance, especially when it comes to getting the right skills and determining future needs. Technology They’re twice as capable at analyzing headcount costs (73% vs 36%) and 3 times better at matching people with positions (60% vs 20%) 1 They can produce org charts far more quickly than those using office software (58% vs 33%) and are far better at aggregating and cleansing data (48% vs 21%) 2 They’re twice as good at activity analysis (53% vs 28%) 3 They’re clearer on their risk exposure (58% vs 49%), so are in better position to do something about it 4 partner with Finance reskill and hire talent outsource Only 44% can confidently say their workforce is aligned to their operating model 91% agree modelling will be important for planning in the future But only 31% say they can do it well today 91%44% 31% biggest barriers to workforce analytics people skills 92% OP&A: becoming future ready Finance provides a good model for how HR can improve workforce planning, budgeting, and forecasting. HR lacks the equivalent of Financial Planning and Analysis (FP&A). Financial Operations is responsible for accounting and reporting, but it’s FP&A that prepares the business for the future. Compared with an average budget of 25% for FP&A agree organizations (HR) should have an OP&A function Budget on WP&A 53% spent on people and processes but only 25% on technology 13% 10% Start with a small, multi-skilled team. Address skills gaps with support from Finance, other parts of the business, and/or outside experts 1 2 Put analytics at the heart of OP&A, which is data-led with proven methodologies and has a results driven focus 3 Take a collaborative approach and work together with FP&A teams, sometimes with dual reporting lines 4 Use purpose-built platforms for the analysis and modeling of data from any source 5 Budget for the ongoing work of the OP&A team 5 steps to becoming future ready There is a clear appetite for “continual and advanced analytics and planning (48%)”, but most organizations are still in an early stage of development. Having the right people skills is critical to developing workforce analytics capability. People (31) + training (22) 53% Software 25% Outsourcing 18% Others 4% FinanceHR www.orgvue.cominfo@orgvue.com Organizations that use specialist software extensively have stronger workforce analytics capability. Having the right people skills is critical to developing workforce analytics capability. 15%