Control the Hidden Costs

In Talent ManagementWorkforce Intelligence

PRESENTED BY DANNY A. NELMS

The Work Institute

MEET YOUR SESSION LEADER

Mr. Danny A. Nelms, MBA

SVP & Managing Director

The Work Institute

� Co-author of The Why Factor: Winning With

Workforce Intelligence

� Agent of change, thought leader, and expert in

helping companies forge new directions with 20

years of experience and insight into human capital

dynamics

� Bachelor of Business Administration from Georgia

State University

� Masters of Business Administration from the

Massey School at Belmont University

� Adjunct faculty member at Lipscomb University in

Nashville, Tennessee

KEY TOPICS FOR DISCUSSION

� Overview of Talent Management

� Overview of Talent Analytics

� Making the Case: Workforce Intelligence

� The Next Horizon in HR Analytics

� We Believe Every Word Counts

Overview of Talent

Management

“Talent Intelligence could be a key lever in today’s hyper-competitive

world. As ‘business intelligence’ captures, extracts and analyzes key

data on an organization’s traditional hard assets, ‘talent intelligence’

centers on key data on its people assets to generate insights that can

drive improved decision-making and performance.”

- Human Capital Institute

DEFINING TALENT MANAGEMENT

Talent Management is the science of using strategic HR to

improve business value and make it possible for companies

and organizations to reach their goals.

KEY TALENT MANAGEMENT COMPONENTS

Acquire

Develop

Reward

Retain

TIMING IS EVERYTHING

Employees’ views change

during the employment life-

cycle, so it’s important to

collect valuable intelligence

from employees at varying

times throughout the

employment experience.

Overview of Talent

Analytics

“Not having the right talent in the right place is a leading threat to

growth for many CEOs. One in four CEOs said they were unable to

pursue a market opportunity or have had to cancel or delay a

strategic initiative because of talent constraints.”

- PricewaterhouseCoopers International

MEASUREMENT IS KEY

CURRENT HR ANALYTICS

STATIC VIEW

SNAPSHOT OF METRICS

WORKFORCE ANALYTICS GIVE US A

PICTURE OF THE ORGANIZATION

The metrics we report gauge a function versus a

capturing process. They only allow us to see

trends or measure versus a target.

Typically current HR analytics provide us with

metrics about the HR function and how it

operates, whether it’s efficient, or what it costs.

MISSING A CONNEC TION

We need to turn our lens from a myopic view to

a wider perspective of what these measures

mean to our business.

FUTURE HR ANALYTICS

COMPREHENSIVE VIEW

IDENTIFY TRENDS

WORKFORCE ANALYTICS GIVE US A

PICTURE OF THE ORGANIZATION

Will provide a wide array of metrics and

measures that are comprehensive and business

oriented.

Trends allow us to see what has happened, but

more importantly provide the ability to predict

what will happen.

CONNECTED TO BUSINESS OUTCOMES

When the business understands the impact on

the business, leaders will focus on improving

and impacting employee bahaviors.

LOOKING INSIDE THE ORGANIZATION

MOST CEOs AREN’T GETTING COMPREHENSIVE INFORMATION ON TALENTMOST CEOs AREN’T GETTING COMPREHENSIVE INFORMATION ON TALENT

For those areas important to you, how adequate is the information that you currently receive?

Source: PricewaterhouseCoopers

0 10 20 30 40 50 60 70 80 90 100

Costs of employee turnover

Labor costs

Employees' view and needs

Assessments of internal advancement

Staff productivity

Return on investment on human capital

Comprehensive Adequate but would like more Not adequate Do not receive this information/Don't know

Making the Case:

Workforce Intelligence

in Action

“Leading-edge companies are increasingly adopting sophisticated

methods of analyzing employee data to enhance their competitive

advantage. If you want better performance from your top

employees – who are perhaps your greatest asset and your largest

expense – you’ll do well to favor analytics over your gut instincts.”

- Competing on Talent Analytics, Harvard Business Review, October 2010

WORKFORCE INTELLIGENCE @ 50,000 ft.

� Increased productivity

� Engaged employees

� Improved company performance

� Preferred employer status

THE RESULT:

THE SITUATION

� Fortune 100 technology and

manufacturing company

� Candidates were primarily

engineers in high demand

making six figure incomes

� Acceptance rate for job offers

declined were declining

� Cost of hire increasing

� Time to hire increasing

PRELIMINARY ASSESSMENT

Human Resources felt that

COMPENSATIONwas THE major driver in the increased rate of declined offers.

Proposed salary increase of 10% would equal

over $2 million annually.

INDENTIFYING HUMAN CAPITAL METRICS

� Time to hire

� 120 days

� Historical avg. 100 days =

20% increase

LEVEL 1:

CALCULATING HUMAN CAPITAL FINANCIALS

� Cost of hire

� $50,000

� Historical Avg. $42,000 = 19%

Increase

LEVEL 2:

THE MISSING ELEMENT WORKFORCE RESEARCH

� HR decided to conduct a

recruitment study prior to making

decisions in order to determine

the REAL reasons why candidates

were declining offers

� 200 candidates who had declined

offers were contacted

� 100 candidates responded and

agreed to provide feedback

MAXIMIZING WORKFORCE RESEARCH

� 60% of candidates cited the

interview process as the major

factor in declining the offer

� poor communication

� cancelled interviews

� interviewers being available at

scheduled times

� phone calls not returned in a

timely manner

� overall lack of organization

LEVEL 3:

Only 10% cited

compensation as the most

important reason for

declining the offer

REVISED ASSESSMENT

The

INTERVIEW PROCESSis the major driver in the increased rate of declined offers.

.

Examine and revise the recruitment and

interview process.

THE RESULT

� Acceptance rate for job offers

increased

� Cost of hire decreased

� Time to hire decreased

THE IMPACT OF WORKFORCE INTELLIGENCE

� The cost avoidance to the

company by improving the overall

recruitment process equaled

more than $2 million annually

� HR had established an evidence-

based approach to understanding

workforce issues.

$2,000,000

FUTURE HR ANALYTICS

COMPREHENSIVE VIEW

IDENTIFY TRENDS

WORKFORCE ANALYTICS GIVE US A

PICTURE OF THE ORGANIZATION

Will provide a wide array of metrics and

measures that are comprehensive and business

oriented.

Trends allow us to see what has happened, but

more importantly provide the ability to predict

what will happen.

MISSING A CONNEC TION

We need to turn our lens from a myopic view to

a wider perspective of what these measures

mean to our business.

The Next Horizon in

HR Analytics

“A good spy movie never ends with the agents capturing the

intelligence; it starts with it. Good intelligence makes for a good,

action-filled plot. It should do the same in your workplace.”

- Danny Nelms, The Why Factor: Winning with Workforce Intelligence

TURNING OUR LENS TO A WIDER VIEW

� What are the significant issues going on in your

organization?

� What initiatives do you believe are strategic

imperatives?

� What initiatives have a direct financial impact on the

organization?

� Is there a correlation between our snapshot of the

metrics, employee feedback and the business results

wit the experiences in our organization?

FOCUSING ON WORKFORCE INTELLIGENCE

WINNING WITH WORKFORCE INTELLIGENCE

Typical Approach = Another HR Program

WORKFORCE INTELLIGENCE APPROACH = STRATEGIC BUSINESS IMPERATIVE

� Analytics need to be combined with financial measures and workforce

research to yield intelligence we can use to specifically and intentionally

intervene and impact business practices and results.

� If we don’t consider the employee’s perspective and feedback as well as

the organization’s financial resources, we are limiting our ability to be

effective to assumptions and predictions and leaving out the critical answer

to the question “Why?” – the question only our employees can answer.

Q & A

“Judge a man by his questions rather than by his answers.”

- Voltaire

We Believe Every

Word Counts

“While quantitative surveys may provide you a compass to

understand direction, The Work Institute methodology is a GPS! We

can hone in on the key actionable information so you drive your

organization and achieve your goals with confidence.”

- Danny Nelms, The Why Factor: Winning With Workforce Intelligence

Discover a better approach to gathering and

understanding workforce intelligence, and get results

that give you a competitive advantage.

� proprietary, customized solutions to get to the root of

how people respond to your organization

� emphasis on mixed method research – we get the best

information, so we can give you the best information

� a commitment to meeting clients where they are,

matching research and analysis to the client’s needs,

and asking the right questions

The Work Institute gives your organization the power to

improve overall satisfaction, reduce cost, and promote

growth.

Leading national and international

organizations rely on The Work Institute

to gather actionable data to help

manage talent, improve performance

and mitigate risk.

Stop wondering. Start knowing. Start winning!

ABOUT THE WORK INSTITUTE

UNDERSTAND YOUR EMPLOYEES.

MANAGE MORE EFFECTIVELY.

COMPETE AT THE HIGHEST LEVEL.

The Work Institute | 1620 Westgate Circle, Suite 100 | Brentwood, TN 37027

Toll Free: 1-888-750-9008 | Phone: 615-777-6400

www.WorkInstitute.com