advanced people analytics for driving enhanced business ... · advanced people analytics for...

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Advanced People Analytics for Driving Enhanced Business Outcomes

2Advanced People Analytics for Driving Enhanced Business Outcomes

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The world’s largest annual workplace study

8,000 organizations

57 countries

12 million employeesRecognition

ResearchConsulting


Trust Focus

Perf

orm

ance

Foc

us

Culture of Burnout

At Risk Culture of Comfort

Our mission is to build a better world by helping organizations become

Great Places to Work FOR ALL

Trust SustainsPerformance


Dr. Dan Ariely, Duke University


Data


Data Descriptive

Patterns


Data Descriptive Predictive

DecisionsPatterns


Case Studies: Aims

Leverage employee and performance data to predict and drive enhanced business outcomes:

• Pinpointing critical priorities for strengthening KPI results

• Gaining insights for prescribing “performance enhancing” actions

• Sharing empirical business case for inspiring needed change


Advanced Analytics: KPIs

• Sales vs. Budget

• Hourly Sales vs. Prior Year

• Units per Transaction

• Employee Turnover

• Customer Service

• Impact of Culture on KPIs?

• Impact of Change Initiatives?


1. Correlation (r)

2. Variance (r2)

3. Multiple Correlations (R)

4. Statistical Significance Levels (.05, .01, .001)

Stats Refresher


Segmentation Impact Analysis

TI Store Quartile

Average TIScore

Sales vs. Budget

Sales per Hr. vs. Last Year

Top 87% 7% 14%

2nd 79% 9% 12%

3rd 70% -2% 10%

Bottom 60% 0% 10%

High trust stores achieve 7% greater sales and 4% greater sales productivity than low

trust stores


Trust and KPI Correlations

Trust Element Correlation KPI

Overall rating as a great place to work .28 Units per transaction

Opportunity to get special recognition .31 Units per transaction

Striving together to provide best customer experience

.26-.27

Units per transactionEmployee turnover

Management is approachable,easy to talk with

.36*.32.34*

Sales vs. budgetUnits per transaction

Customer service

Management genuinely seeks and responds to ideas and suggestions

.28.46**.28

Sales vs. budgetUnits per transaction

Customer service

All correlations above significant at .05 level or higher


• Management approachability

• Management follow-through on promises

• Management appreciation for good work and extra effort

• Treating people as full members regardless of their positions

• Managers not playing favourites

• Company contributions to the community

• Learning from our mistakes

7 Engagement Drivers


International Restaurant Chain



1. Guest Connect Rate• Food• Cleanliness• Service

2. Guest Defect Rate• Total• Food Quality• Guest Service

3. Sales & Productivity• Y-O-Y Store Sales• Sales Per Man Hr.• Customer Per Man Hr.

4. Financial & Operational• Gross Margin• Food Cost Variance• Wage %• Employee Turnover

5. “Derived” Metrics• Overall Trust Index©• Engagement Index• Climate Index


Segmentation Impact Analysis

Medium PerformingLowest Performing

Higest Performing

STORE SEGMENTS

KEY PERFORMANCE INDICATORS

Overall Segment

Metric

Guest Connect Guest Defect Rates Sales & Productivity Financial & Operational

Food Clean Service Total Food Service Sales CPMH SPMH GM FCV Wage % Turnover

OVERALL TRUST INDEX©

Top Third 87% 88.7% 84.7% 86.8% 0.88 0.22 0.55 9.6% 6.04 $62.19 30.7% 1.45% 22.7% 87.8

Middle 76% 87.6% 82.4% 85.7% 1.13 0.34 0.63 10.2% 5.71 $58.68 28.8% 2.28% 22.9% 71.5

Bottom Third 62% 86.9% 81.3% 84.9% 1.31 0.36 0.84 8.2% 5.64 $58.28 28.0% 2.58% 23.4% 99.7

OVERALL RATING AS GREAT PLACE TO WORK

Top Third 86% 88.7% 84.5% 87.0% 0.90 0.24 0.55 9.5% 6.17 $63.46 30.7% 1.83% 22.0% 80.9

Middle 77% 87.4% 82.3% 85.4% 1.00 0.30 0.55 20.6% 5.72 $58.00 28.9% 1.95% 23.4% 76.4

Bottom Third 64% 87.0% 81.6% 85.1% 1.42 0.34 0.92 9.3% 5.50 $57.66 27.9% 2.49% 23.6% 102.1

ENGAGEMENT INDEX

Top Third 87% 88.7% 84.6% 86.7% 0.91 0.23 0.56 8.9% 5.96 $61.67 30.9% 1.58% 22.4% 83.6

Middle 76% 87.4% 82.3% 85.6% 1.16 0.28 0.72 9.9% 5.80 $59.57 28.5% 2.31% 23.0% 77.1

Bottom Third 63% 87.0% 81.5% 85.1% 1.25 0.37 0.73 9.2% 5.63 $57.88 28.2% 2.44% 23.2% 98.6


Multiple Regression and KPIs

KPI Key Trust Element Beta Multiple R Variance Significance

REVENUEGROWTH

Inspiring .51

.48 23% .0001Listening .45

Hiring .39

CUSTOMERSERVICE

Listening .49

.46 21% .0001Hiring .46

Training & Development .38

GROSS MARGIN

Speaking .47

.42 17% .001Listening .45

Resource Mgt. .35

Listening

Listening

CUSTOMER SERVICE


Predicting KPI Results with Multiple Regression


Key Drivers Analysis

Lower Higher

Low

erIm

port

ance

–Co

rrel

atio

n w

ith K

PI (r

)

Favourability – % Variation from Benchmark

Primary OpportunitiesTop Priorities for Change

Secondary StrengthsEnhance

Secondary OpportunitiesMitigate

Primary StrengthsLeverage and Reinforce

High

er


Key Drivers Analysis

Impa

ct o

n D

efec

t Rat

e –

Serv

ice

(r)

% Difference from Benchmark

1. PRIMARY OPPORTUNITIES 2. PRIMARY STRENGTHS

3. SECONDARY OPPORTUNITIES 4. SECONDARY STRENGTHS

HigherLower

Low

erHi

gher

• CARING

• CELEBRATING • RESOURCE MANAGEMENT

• INSPIRING

• SPEAKING

• LISTENING: Collaborating

• THANKING

• HIRING

• DEVELOPING

• MANAGING PERFORMANCE

• SHARING


Key Drivers Analysis: Summary by KPIs

KEY DRIVERS

KEY PERFORMANCE INDICATORS "Derivative" KPIs Customer Service Defect Rates Sales & Productivity Financial & Operational

TI EEI Overall Rating Food Clean Service Total Food Service Sales CPH SPH GM FCV Wage % TO

Inspiring

Speaking

Listening & Collaborating

Hiring

Celebrating

Sharing

Thanking

Caring

Developing

Managing PerformanceResource Management



1. Staff Turnover• Total Staff Retention• Non-Voluntary Turnover• Voluntary Turnover

2. Diversity• Sex• Visible Minority• Ethno Groups• Religious• Landed Immigrant• Sexual Orientation

3. Promotion Rates

4. Key Survey Metrics• Overall Trust Index (TI)• Employee Engagement Index (EEI)• Overall Company Rating as a Great

Workplace


Predicting KPI Results with Multiple Regression


National Investment Company


eNPS1 (employer):

How likely are you to recommend ABC as a place to work to your friends and family?®

(Please answer 0 - 10 where 0 = not at all likely, and 10 = extremely likely.)

eNPS2 (services/products):

How likely are you to recommend ABC’s products and services to your friends and family?®

(Please answer 0 - 10 where 0 = not at all likely, and 10 = extremely likely.)

Net Promoter® is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

Employee Net Promoter Scores (eNPS)


Promoters

Passives

Detractors

9

7

0

10

8

1 2 3 4 5 6

eNPS Segments


% of Promoters

% of Detractors

eNPSScore

World Class

-100 0 50 70 100

Good

Excellent

eNPS Calculation


eNPS and Trust

Net Promoter® is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.”

-40%

-20%

0%

20%

40%

60%

80%

100%

eNPS1 Score eNPS2 Score Trust Index©


Key Take Aways

• Focus – Pinpoint the most highly leveraged opportunities

• Guidance – Customized vs. “one size fits all” roadmaps

• Inspiration – Empirical business case for inspiring targeted culture change


Accelerating and Sustaining the Journey

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Advanced People Analytics for Driving Enhanced Business Outcomes

For additional Information:[email protected] 730 1281 (Direct)1 866 712 0630 (Office) Copyright© 2018 Great Place to Work® Institute, Inc.

mailto:[email protected]

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