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The Evolution of People & Workforce Analytics
July 2019
Matthew MeeDirector, Workforce Intelligence - EmsiCIPD Gloucestershire Branch Treasurer
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Agenda
• Setting the scene
• Business context & drivers
• Measures & Standards
• Models & Approaches
• TechStack
• Skills & CPD
• Case Studies & Resources
Plus a couple of practical breakout sessions as time allows
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Setting the SceneThe Journey so far
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The Rise of Intangible Assets
What drives value & shareholder returns?
• IP
• Brand
• Data
• Workforce
• Research
• Quality Systems
• Customer Advocacy
• Knowledge
Approx 85% of Company value based on intangibles
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3 Waves of Evolution
1. Early Thinkers &
Shapers
1980’s through early 2000’s
• If you don’t measure it, you can’t
manage it – Drucker school
• Rise of Psychometrics
• Jac Fitz Enz – How to measure
HRM (1984), ROI Human
Capital (2000)
• Ulrich 3 Box HR Transformation
• Saratoga Institute
• Sears Model – CSPC
• Roberts, Boudreau, McBassie
• OLAP tools
• SaaS Best of Breed – Data Silos
2. Analysts & Early
Adopters
2005 to 2016
• Bersin & Associates, Inostix,
HCMI
• OLAP Mass adoption – Cognos,
Business objects etc.
• Gartner, Fosway – The Analysts
• Value after ERP and CRM?
• Rise of ‘Intangible’ MarCap
• Adopters: Google,Facebook
Merck, ABN Amro, Shell, ING
• People Analytics born
• Launch of AI – Watson
3. Innovators & the
Future
2016 to today & Beyond
• Mainstream People Analytics
• Specialist Tech:
• ONA – Org net analysis
• SLP – semantic lang proc
• People BI 2.0
• Engagement 3.0
(Listening)
• Rise of DS, ML and AI
• Specialist Consultancies
• Today’s Thought Leaders
• IoT, Blockchain – coming soon
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The People Analytics Industry 2019
• Predicted to become a US$2.5bn dollar industry by 2020
• CAGR of 16% per annum – 4 key industry segments
Technology & Innovation
Management Consulting
Training & Education
Research & Thought
Leadership
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Ever Changing Business Context
Thinking like a CEO
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Wh
at ke
ep
s y
ou
r C
EO
Aw
ake
? CEO mindset• Regulation
• Terrorism
• Political uncertainty
• Cyber threats
• Availability of Key Skills
• Speed of Change
• Populism
Workforce Insights Lens• Workforce ROI & Productivity
• Skills & Talent
• Change & Agility
• Risk & Regulation
• Value creation – Customer and Commercial
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What is Driving People Analytics?
• People Analytics strategies need to reflect your organisational culture & context – defining what information is needed, when and for what purpose.
• Typically, insights will be designed around 3 key drivers:
Creating Value
• Workforce ROI
• Shareholder returns
• Revenue per Employee
• Improving Productivity
• Improving Service
• Competitive Advantage
• Customer Advocacy
• Enabling Scale & Growth
Monitoring Compliance
• Legislative Compliance
• Regulatory requirements
• Policy compliance
• Audit
• Ethics• Code of Conduct
• Transparency
• GDPR
Mitigating Risk
• Manage costs
• Risk Register
• Due diligence
• Litigation & Tribunals
• Brand & Reputation
• Employee turnover
• Customer Retention
• Protecting Revenue
• Protecting Market Share
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Value, Risk & Compliance
• Let’s explore some tangle examples of these insights:
• Historically organisations have been more focused on Risk and Compliance reporting –but with the advent of new technology this is evolving rapidly
Creating Value
• Revenue per Employee
• Profit per Employee
• Return on Human Capital
Investment $
• Customer Advocacy levels
by Employee Groups
• Productivity levels by
Employee Groups
• Most influential &
impactful employees
• Leadership Trust rating
Monitoring Compliance
• Living Wage compliance
• Gender Pay status
• GDPR Compliance
• Modern Slavery Act
Compliance
• CEO Pay Ratio
Mitigating Risk
• HR Expenditure as a %
total revenue
• Employee tribunals #
• Glassdoor rating #
• Turnover rate for High
Performing employees or
Business Critical roles
• Customer Retention rates
by Employee segment
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Le
gis
latio
n &
Tra
nsp
are
ncy
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Metrics & StandardsWhat should we measure?
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Hu
ma
n C
ap
ita
l M
etr
ics
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Inte
rna
tio
na
l S
tan
da
rds
ISO
/DIS
30414
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Business Critical Measures – Fitz-Enz
Space left here for presenter
From industry research and members of the People Analytics Program we have also crowd sourced the Top 5 People Measures used by organisations globally
#1 Business Critical Turnover
#2 Total cost of Workforce as a % Revenue & Profit
#3 Expenditure & ROI on L&D
#4 Impact of Engagement on Productivity
#5 Perceptions of Leadership & Culture by Employees
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Models & ApproachesWhere and how to start
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Ma
turity
Mo
de
ls:
WA
RN
ING
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Still relatively low maturity levels – but adoption is increasing as business benefits are being realised
In general sector experts discourage use of these models. Space left here for
presenter
Ma
turity
Mo
de
ls
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Ma
turity
Le
ve
ls
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Insight222 – 9D-EiPA
3 KEY QUESTIONS: How can we:
IMPROVE IMPACT | CREATE VALUE | WHAT SHOULD WE DO???
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Managing effective change
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Nation Market2018
Population
Mid-Range
Labor
Supply
Global
Occupation
Profiles
Skill-
Specific
Profiles
Skill-
Specific %
of Profiles
GBR London 14,756,705 307,082 216,947 413 0.19%
GBR Manchester 2,814,751 38,930 28,370 28 0.10%
GBR Reading 913,121 28,933 21,594 27 0.13%
GBR Birmingham 2,551,484 30,962 26,042 19 0.07%
GBR Kirklees 991,202 9,600 10,891 15 0.14%
People & Talent Analytics UK job market
Online ProfilesJob Postings
Rising demand for People Analytics skills across the UK
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Te
rmin
olo
gy T
ren
ds
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ImpactIs People Analytics getting results?
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Busin
ess Im
pact of
Pe
ople
An
aly
tics
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Fin
an
cia
l Im
pa
ct
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Wo
rkfo
rce
In
sig
hts
#1 WORKFORCE
PLANNING
#2 ORGANISATION
DESIGN
#4 EMPLOYEE
ENGAGEMENT &
EXPERIENCE
#3 RECRUITMENT &
SELECTION
#5 WORKFORCE
PRODUCTIVITY /
DIVERSITY & INCLUSION
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CIPD Hidden Figures Research
2018
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Breakout:1. What is the most important business challenge (or opportunity) where you think improved workforce insight can add value / reduce risk / or improve compliance?
2. What are the top 3-5 Workforce metrics that might help impact or inform this problem?
3. What Analytics ‘Projects’ could we build to test our hypotheses?
4. Who in the business Executive team would be engaged to sponsor and support this work?
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TechStackSeriously Disruptive Marketplace
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Dis
rup
tive
Te
ch
no
log
y
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Tech & Events you should know about
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Te
ch
no
log
y A
do
ptio
n
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Skills & CPDA New Era of HR Skills
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Skill
s f
or
Su
cce
ss
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Insight222 – Keys to success
• Code of Conduct in place for ethical People Analytics
• Group of people who meet to prioritise Analytics projects
• Executive sponsorship from the business
• A CHRO who is passionate and invests in Analytics
• An Analytics leader who has the skills to drive value
• Analytics Projects measure ROI
• HRBP’s who are data literate and use data to drive value
Clean Data | Business Aligned Metrics | ROI & Value mindset
Build | Buy | Borrow | Bind
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Breakout:
1. What technology would enable the greatest impact on our People Analytics journey?
2. What capability gaps would I need to fill to undertake this project? How would I approach this – build, buy or borrow?
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Thought Leaders & Resources
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Tra
inin
g &
To
ols
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Case studies
• Experian – Predictive Attrition model - $14m saved over 2 years
• Hitachi – Mental health to Absence model
• ISS – Linking Engagement to business performance
• Shell – Cyber security profiling
• Clarks – Engagement and business performance
• 15 hr-analytics-case-studies
• Unleash case studies
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Problem: Absence within the sales force due to lack of engagement.
Solution:
• Identified the group most ‘at risk of leaving’ or ‘taking leave’ using our platform.
• Ingested both absence data and historical Employee Engagement verbatim
questions/free text results for that population
• Analysed weather pattern data to validated patterns we were seeing in language
• Using our market-leading Natural Language Processing tool we identified that group
were talking about the “poor weather” & the “cold & wet” making it hard to serve
customers.
Results:
• Virgin invested in rain coats & umbrellas, creating £1.8m per annum of Value for
Customer.
44
Reducing attrition through rain jackets & umbrellas
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Problem: Female population suffering with high absence rates in a particular high-
population firm, causes unclear.
Solution:
• Targeted pulse survey to the female population, including open text questions to be
used in NLP analysis.
• Analysed associated quantitative absence metrics
Results:
• The population in question talked significantly around “work life balance” and
“childcare”
• Women specifically complained about the lack of ability or willingness to
accommodate childcare issues, and therefore absence from work was the only
option.
• The customer implemented a flexible working option for workers in this region to
accommodate for childcare challenges.
• Insights achieved a 42% reduction in absence, and significant financial savings.
45
Improving Female attrition through NLP
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Resources
Online
• people-analytics-starter-kit-richard-rosenow
• ISO 30414 Standards
• Patrick Coolen
• David Green – Digital HR Leaders podcast
Books
WorkRules – Bock | Power of People – Ferrar | Data Driven HR –Marr | People Analytics for Dummies – West | Competitive People Strategies – Green | Human Capital Metrics Handbook - Higgins
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Thank youQuestions & discussion