its the analytics, stupid! - ceb

© 2015 CEB. All rights reserved

HR Tech World Congress Paris

CONFIDENTIAL

It’s The Analytics,

Stupid!

A CEB Research Snap-Shot

HR Tech World Congress

28 October 2015

Volker Jacobs



CONFIDENTIAL 2

Companies spend

more on workforce

data and technology

– with business

benefits being

the critical and

emerging ROI

driver.

The New HRIS Business Case Built on Business Benefits

40% 39% 28%

45% 43%

40%

15% 18% 32%

3 years ago Today In 3 years

IT Benefits HR Process Benefits Business Benefits

ROI Drivers of HR Technology % of relative ROI coming from IT, HR process and business benefits in recent

HR technology business cases



CONFIDENTIAL 3

Today, HR is

ineffective at

informing strategic

decisions through

workforce data.

HR Is Not Ready to Deliver

0

20

40

60

80

100

StaffProductivity

EmployeesViews and

Needs

Labor Costs Assessmentof Internal

Advancement

Return onInvestment in

HumanCapital

Cost ofEmployeeTurnover

% o

f C

EO

s

Information is important Receive sufficient information

Importance and Sufficiency of Workforce Data Is this workforce information important for taking strategic business decisions

and do you receive sufficient information to do so?

‘



CONFIDENTIAL 4

Within 3 years,

companies strive

to increase their

analytics maturity

by 2.4 levels.

High Aspiration To Grow Analytics Maturity

Level 1 - Ad-hoc reporting extension

Level 2 - Standalone analytics

Level 3 - Cause and effect analytics

Level 4 - Business-led analytics

Level 5 - Actionable analytics

Maturity Levels of Workforce Analytics

Aspired Maturity (+ 3 yrs.) As-Is Maturity

1.9

4.3

As-Is Maturity Aspired Maturity (+ 3 yrs.)

Average Maturity Level of Workforce Analytics



CONFIDENTIAL 5

Companies are

only effective

at managing

structured,

quantitative data.

Current Master Data Focus

90%

31%

0%

Structuredquantitative data

Structured qualitativedata

Unstructured data

Effectiveness of Managing Data % of companies perceiving themselves as being effective or very effective at

managing workforce data



CONFIDENTIAL 6

55%

41%

11%

76%

90%

39%

Structured quantitativedata

Structured qualitativedata

Unstructured data

Today 3 Years From Now

The value of

qualitative and

unstructured

data will grow

disproportionally.

Not Effective At What Will Be Most Important In The Future

Future Value of Data Categories % of companies receiving or expecting to receive high or very high business value from

workforce data



CONFIDENTIAL 7

2016 workforce

analytics roadmaps

of large European

companies focus

on building the IT

infrastructure and

showcasing the

value of analytics.

Strategic Initiatives 2016: Infrastructure and Showcases



CONFIDENTIAL 8

Within the STEM*

workforce segment

the portion of “un-

badged” contingent

workers will grow

significantly.

Expansion is driven

by company and

worker requirements

and by enabling

technology.

A Potential Black Swan: How We Will Organize Work (1/2)

Contingent

Workforce

Expansion

Enabling

Technology

Worker

Requirements

Company

Requirements

• Quick deployment of critical skills

• Flexibility in workforce deployment

• Improved cost and productivity

• Flexibility & work-life balance

• Personal career control

• Unique experience

• Representation & discoverability of capabilities

• Fulfillment of labor services (collaboration)

• Acquisition & consumption of labor services

30% 40%

2015 2025

Portion of Contingent Workers in Total STEM * Workforce

* STEM = science, technology, engineering,

mathematics



CONFIDENTIAL 9

Managing

“packetized” and

“re-applied”

individuals of a

total workforce

will disrupt the

management of the

entire employee

lifecycle – and thus

workforce

analytics.

A Potential Black Swan: How We Will Organize Work (2/2)

Packetization

of Joe

In some time slot (could be for seconds)

In some location (Joe needs not be there)

Use specific skills

in some context

Joe Re-Application

of Joe

Implications for workforce analytics

• Skill discovery will be crucial - inside and outside of organizations

• Disruptive change in employee lifecycle management, hence in

headcount reporting, HR KPI reporting, cost planning, staffing, etc.

• New data sources needed (freelance marketplaces, crowdsourcing

platforms, co-creation and collaboration platforms, etc.) Source: Andrew Karpie,

TheResearchPlatform, CEB Research



CONFIDENTIAL 10

Anticipating

change in data

management and

organization of

work will differ

among companies.

Tomorrow’s Today – Premise:

Structured workforce data will

deliver business value with new

data sources, sophisticated

models and innovative

technology to analyze it.

Big Data Bet – Premise:

Analytics will only deliver

sufficient value to the business

when mastering unstructured

(“big”) workforce data and

building “machine learning” into

making people decisions.

A New Universe – Premise:

In the near future, work will be

organized primarily by the skill

required – regardless the

source; hence HR will focus on

structuring work by skills and

internal and external skill

detection and deployment.

Scenario Model For The Future of Workforce Analytics

Level of change in organizing work

Le

ve

l o

f ch

an

ge

in m

an

ag

ing

wo

rkfo

rce

da

ta

Tomorrow’s

Today

Big Data

Bet

A New

Universe

Rich set of

structured workforce data.

Unstructured data

of labor markets and

individuals

Data on

work

and

skills



CONFIDENTIAL 11

Recommended Next Steps and How CEB Can Help

What you need to do How CEB can help

CEB International

HRIS Excellence

Circle

CEB HR Strategy

Roadmap

Give “business value from workforce data” a high priority

in your HR transformation and technology business case 1

Define your future-state scenario of workforce analytics

and the roadmap to get there 2

Consider “packetized Joe” as a potential “black swan” –

a new way of organizing work in specific segments 3



CONFIDENTIAL

Thank You

Volker Jacobs

Managing Director

+49.172.3444.359

[email protected]

Learn more: www.cebglobal.com/HRTech2015

its the analytics, stupid! - ceb

Recruiting & HR