applying predictive analytics to improve talent retention...applying predictive analytics to improve...

Applying Predictive Analytics to Improve Talent Retention

Thomas Daglis Associate Data Scientist: Ultimate Software

Goals for today

Focus on solving problems through a data driven

approach

Hone your skills as an analytical storyteller

Motivate you to act on your analytics

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Ever purchased a Car?

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Judgment vs. Data Predictions

Gut-level input

Planned Periodically Manually Updated Highly Subjective

Employee records

Always Available Always Up-to-date

Unbiased

Judgment Data

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A simple philosophy to become data-driven

Data Knowledge Action

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Workshop #1 Practice Data Identification

How might you measure employee engagement?

Source: SHRM – “Employee Job Satisfaction and Engagement Report” - 2015

Team Dynamics Meaningful work

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“If we have data, let’s look at data. If all we have are opinions, then let’s start with mine.” Jim Barksdale, Former CEO, Netscape

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Successful CHROs are assertive and data-driven

80% of executives agree that their company can’t succeed without an assertive, data-driven CHRO, who takes a strong stance on talent issues and uses relevant facts to deliver an informed point of view.

Source: Februrary 2015 Harris poll survey of 301 corporate executives across America

4%

28%

52%

16%

Strongly Agree

Somewhat Agree

Strongly Disagree

Somewhat Disagree

80%

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Current State of Analytics

11% 20%

24% 26%

27% 38%

44%

HRSupply chainSocial media

CollaborationMobility

User productivityCRM/ERP

What new analytics and big data solutions are you most focused on? ?

Source: Gatepoint Research / IBM – “Strategies for Integrating Analytics” – May 2014

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Employee retention is #1 problem for CHRO’s

Source: SHRM/Globoforce – “2015 Employee Recognition Survey”

4% 10%

10% 19%

18% 18%

31% 35%

26% 39%

47% 33%

4% 7%

9% 9%

11% 12%

14% 22% 22%

24% 29%

35% 39%

40%

OtherRevenue per FTE

*Employee brand*Employee happiness

ProductivityEmployee enablement - providing

Relieving employee frustrationEmployee satisfaction

Performance managementCulture management

RecruitmentSuccession planning

Employee engagementEmpoyee retention/turnover

20152013

Top organizational challenges cited by HR professionals

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Replacing Employees Is Expensive

Entry Level Employees

Mid-Level Employees

High-Level or Highly Specialized Employees

Source: TLNT – “What Was Management Thinking? The High Cost of Employee Turnover”, 2015

30-50% Annual Salary

1.5x Annual Salary

4x Annual Salary

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Predictive and Prescriptive Talent Analytics

Predictive vs Prescriptive

Suggesting the best action to take to influence a different outcome

Predictive Analytics

Prescriptive Actions

The power to use what happened yesterday to accurately predict what

will happen tomorrow

“An analytic without action is useless”

– Steve VanWieren

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16 million data points of

workforce data

only 4% successfully

executed data-driven HCM programs

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Com

pens

atio

n Hi

stor

y

Identify Retention

Risks

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There are drivers in your HR data

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Each Employee Gets a Score

99.9 99.2 98.7

18.4

59.7

64.5

80.3

25.7 36.7

48.1

60.4

42.5

72.8

87.0

96.9 94.7 90.3

10.3

HPI

HPI

HPI

HPI

HIGH RISK LOW RISK

MEDIUM RISK

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Retention Predictor™ Results HIGH RISK

10% MED RISK 40%

LOW RISK 50%

0%

10%

20%

30%

40%

50%

60%

10.3 - 59.7 59.7 - 93.1 93.1 - 99.9% o

f Em

ploy

ees

/ Ex

pect

ed S

ucce

ss

Rate

Retention Predictor Historical Score Ranges # Terminated # Retained

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Retention Use Case – Financial Services

10% lowest scores tagged 61% actually left

47 employees correctly identified

Judgment Analytics 4.3% tagged

43% actually left

16 employees correctly identified

Analytics identified 3X more ‘at risk’ employees than manager assessment alone

152 terminated

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HIGH PERFORMER

High Risk of Leaving

Save the most valuable employees

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HIGH PERFORMER

Low Risk of Leaving

Optimize investment in employees

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High Performer Predictor™ Results HIGH CHANCE

10% of employees

MED CHANCE 40% of

employees

LOW CHANCE 50% of

employees

0%

5%

10%

15%

20%

25%

30%

35%

40%

21.4 - 80.3 9.6 - 21.4 0.2 - 15.3

% o

f Em

ploy

ees

/ Ex

pect

ed S

ucce

ss

Rate

High Performer Predictor Historical Score Ranges High Perf Not High Perf

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High Performer Use Case – Financial Services

~9% tagged 28% received >5% raise

Judgment Data ~27% tagged 13% received >5% raise

Analytics was 2X more effective at identifying current high

Best practice = 5-10% of talent pool

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A simple philosophy to become data-driven

Data Knowledge Action

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31% don’t like their boss Aberdeen Group 31% do not feel empowered Aberdeen Group 35% due to internal politics/turf Aberdeen Group 43% for lack of recognition Aberdeen Group

Why do people leave?

89% of managers believe that most employees are pulled away by better pay…but 88% of voluntary resignations happen for reasons other than pay Leigh Branham, “The Seven Hidden Reasons Employees Leave”

>60% do not feel like they get enough feedback Gallup Poll 75% of people leave because of work relationship issues Saratoga Institute 75% of people who leave voluntarily don’t quit their jobs; they quit their boss Roger Herman

#1 reason is lack of recognition Bersin #1 reason for millennials: not learning enough Business Insider

79% of those who quit their job cite lack of appreciation as primary reason SHRM

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A SCARY STATISTIC 3 in 4 full-time workers are open to or actively looking for new job opportunities

Source: CareerBuilder - http://careerbuildercommunications.com/candidatebehavior

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What makes people STAY?

POWER

GROWTH Receive Special Training

RECOGNITION

MONEY

AUTONOMY

Issue Cash Award

Become A Mentor

Send Handwritten note

Offer Flex Hours

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My Leadership Actions

Prescriptive Analytics

UltiPro prescriptive actions provide practical advice

and inspirational messages about effective leadership.

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The groups receiving actions have up to

50% lower turnover

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FOR EXAMPLE: SUPPOSE YOU SAVE 10 MID-LEVEL PEOPLE

AVERAGE SALARY: $75,000

10 employees X $75,000 X 1.5 (replacement factor) = $1,125,000 in savings

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Workshop #2 – Practice 6 Great Traits of Leaders

Vision Conviction Humility

Integrity Credibility Collaboration

How would you measure these things? What actions could you plan and take?

Source: “Follow Your Conscience” – Frank Sonnenberg

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YOU NEED TO BE THE GAME CHANGER

Waiting is not an option

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Game Changer

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YOUR PEOPLE are YOUR BUSINESS

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