Building HR Analytics

@ Puratos

Ingredients for bakery, patisserie & chocolate

BAKERY PATISSERIE CHOCOLATE

Key company data

Products

100 countries

7.700 employees

Since 1919

Family owned

430 in R&D

2.600 Operator

Our way of acting

Artisans Industry Retail Foodservice Chocolatiers

Our mission develop their business Helping our customers

The customer’s finished good as a starting point

Providing additional consumers insights

TRENDS, BEHAVIOUR & ATTITUDES

IDENTIFY CONSUMER PREFERENCES TEST PRODUCTS & CONCEPTS

SUPPORT TO INTERPRET INSIGHTS

Customer expectations at the center

Margin & efficiency

Peace of mind differentiation

Innovation &

We continuously invest in R&D

INNOVATION IS IN OUR DNA

the first complete improver

Inventor of T500

2,2% of group’s revenue

R&D

6.000m2 Inspirience Center

International R&D

69 Local centres

in the world

R&D CENTRES INNOVATION PURAMID

Our commitments

Nutrition

Next Generation

1 Single Integrated Source of Truth

Acquire

Engage

Develop

Lead

Retain

Evaluate

Farewell

VISION

GROWTH

ESTABLISHMENT

EXTENSION

REBOOTING Organization Life Cycle

Employee Life Cycle

From Ineffiencies… To Resolution

PARTNERSHIPS START UP

HR

Finance ICT

Scattered Group &

Local Applications

Poor Data

Quality

Limited Reporting

Functionalities

Renaissance Program

AS WAS

What we promised in 2013

1 Global template for - Employee data - Organization data (based on Position Mgmt) Simplified, standardized, better controlled people mgmt processes Reporting & Metrics Added value activities

Reduce the nr of systems & complexity Easy implementation Self speaking Self service Connected data Effective date User & Authorization Mgmt Integration platform

HR point of view System point of view Finance point of view

1 tool 1 common language 1 set of info Align people cost & people data

Global & Local - Budgeting - Forecasting - Strategic LT-planning

Who? What?

Where? When?

2014 : CORE HR DATA ‘Get the basics right’ Global Template

HR Core Data

Compensation & Benefits

Learning & Development

Performance & Goals

Staffing

Succession

Workforce Analytics

Workforce Planning

Talent Management

Build talented teams with

great leaders

Career Management

> 2015

What we promised in 2013

Numbers

Movie

Business Metrics

Business Decision

Who? What?

Where? When?

The New Context : The New Employee Relationship/Experience

Employee Intimacy

Integrated Operational

Excellence Data automation

Emotional Experiences

Empathy Creativity

Passion

Eliminating routine work Increasing added value activities

The Digital Relationship The Human Relationship

It’s not about how to do digital HR, …… but how to do HR in a digital world

Where we are today

2014

2015

2014 2015 2016 2017 2018

Employee & Organization Core Data

Public & Talent Profile

Performance Review

Talent Review

Recruiting Mgmt

Learning & Development

Salary Review

Onboarding

Design

Implementation

Languages

White Collar

Employee Self Service

Workforce Planning

Workforce Analytics

Mobile

TBD

White Collar

BE Pilot

Blue Collar

Fr, Nl, Sp? Port, Rus, Ch

Position & Hiring Request

BE Pilot

2019

Full long term roadmap

Collaboration Tool

Position Management in everything we do

Position Architecture Structure (PAS)

Connections between Position & Employee

• Organization Structure • Direct & Functional reporting lines

• Employee Move • Career Development • People Development • Succession Planning

• Grading • Pay Structures • Geographical scope

• Job Taxonomy

• Competency level • Expert and Manager

• People Cost Allocation

• Position & Employee Life Cycle • Vacancy & Hiring management • Confidentiality & Authorization

Job Family

Job Sub Family

Job Category

Job Taxonomy

Job Taxonomy

Position Management in everything we do

Group Headcount, Productivity and Attrition Analysis

Align People Cost & People Data

4/28/2017, Page 20

6.500

6.750

7.000

7.250

7.500

7.750

8.000

Act Dec PY Act Oct YTD Bud Dec Y FC Dec Y Bud Dec Y+1

Headcount Budget & Forecast Accuracy

+2,0% in 10 months

-2,4% by year-end

+3,5% in 2 months

65% of yearly hiring in Nov/Dec

+5,9% in 14 months

Budget Accuracy – HC/FTE

Do we consider the impact of … ?

• Attrition

“Adding 100 HC means hiring 110 HC”

• Monthly phasing & timing of hiring

• Recruitment effort & planning

What is the impact on …?

• Productivity

• Non-hiring

• Contingency workforce

4/28/2017, Page 22

88%

90%

92%

94%

96%

98%

100%

102%

104%

2011 2012 2013 2014 2015

Budget Accuracy

Sales Accuracy FTE Accuracy

4/28/2017, Page 23

41,0%

42,0%

43,0%

44,0%

45,0%

46,0%

0

50.000

100.000

150.000

200.000

250.000

300.000

PY B A

Consolidated GM

Consolidated Salary

Consolidated Productivity

Budget Accuracy – Is Productivity (Salary / GM) considered?

What if budgeted…

• Gross Margin increase > Net Sales increase

• Salary increase > Gross Margin increase

• Salary/FTE decreases

• % of HC in Mgr-level increases

• Recruitment cost is “no where”

What if by year-end…

• Bud FTE > Act FTE

• Bud Salaries = Act Salaries

4/28/2017, Page 24

Business Growth Ambitions

39,0%

39,5%

40,0%

40,5%

41,0%

41,5%

42,0%

42,5%

43,0%

43,5%

44,0%

44,5%

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Salary GM Sal/GM %

3000

4000

5000

6000

7000

8000

9000

Headcount evolution

We continue !!!

Realistic – Achievable ?

Main driver for productivity is always Gross Margin

IF Gross Margin is not on target

THAN the Salary mass should be monitored

Can we predict the year-end hiring; based on history / budget / attrition ?

What is the impact of non-hiring?

Can we predict a potential saving if we don’t deliver the monthly HC budget?

What is the impact of non-budgeted contingency workforce?

Would we overspend in case we exceed our HC budgets?

Can we define hiring priorities?

Can we define how many FTE we can afford?

What if budgeted job levels are underestimated?

What is the impact of the cost of attrition? The cost of recruitment?

Can we postpone hiring's? What is the impact of carry-over next year?

…

How to monitor productivity during the year?

HC/FTE evolutions as value driver

4/28/2017, Page 26

How to connect people data with people cost?

Data Governance Program • “CAT”-reporting • Data verification model • Iterative data cleaning & training • Data dictionary & criticality index • Internal Audit assessment • Renaissance Steerco

Job Taxonomy Implementation • Aligning Job contents & Job cost allocation

People

Process

Data

Systems

New way of working

Definitions Governance

Global / Local / “Glocal”

Budget process – CI • Base: Active positions HR-master system • Reconciliation with P&L • Productivity focus • Additional positions vs replacements • FTE phasing • Salary benchmarks

During the year 1 “SISOT” • Position Request • Hiring Request • Monitoring Productivity Actuals vs Targets

Position based WorkForce Planning; integrated with LRP

HR = Finance

Thank you for

Your attention Q&A?