talent insights ...how to proactively bring them into your business
TRANSCRIPT
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 2
Faster, better, more accurate decisions on
investing in talent.
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 3
The talent landscape is changing...
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 4
Talent is a critical risk area for organisations today
1
2 3 4
6 7
8 9 10
Damage to
reputation/brand
Economic
slowdown/slow
recovery
Regulatory/
legislative changes
Increasing
competition
Failure to
innovate/meet
customer needs
Business
interruption
Property
damage
Cyber
crime
Third-party
liability
The Global Talent Index Report : Economist Intelligence Unit
“...there remain today
serious shortages of
recruits with the critical
soft skills companies
require most.”
5 Failure to
attract or
retain top
talent
Source : Aon Global Risk Management Report : 2015
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 5
6 megatrends that impact talent as a critical risk
Globalisation Social, mobile &
cloud
computing
Demographic
shifts
Shifts in social
and political
awareness
Technology
changing how
we work and
learn
Analytics
Increased mobility of talent
and competition for talent.
Talent cares more now
than ever about social
responsibility.
Workforces simultaneously
becoming younger and
older.
Major shift towards using
data to align talent strategy
with business strategy.
Increased automation of
rote tasks, greater
emphasis on
collaboration and
learning.
Creating the extended
enterprise and converging
value-chains.
5
Failure to
attract or retain
top talent
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 6
Data & Analytics is fast becoming a key talent enabler...
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 8
High performance firms use analytics to gain an advantage
Financial management and budgeting
Operations and production
Strategy and business development
Sales and marketing
Customer service
Product research and development
General management
Risk management
Customer experience management
Brand or market management
Workforce planning and allocation
1 0 2 3 4 5 6 7 8
Tendency to apply
Analytics Tendency to apply
Intuition
22
Top performing organisations Lower performing organisations
Source: MIT Sloan Management Review, in collaboration with the IBM Institute for Business Value
Note: A likelihood of 1.0 indicates an equal likelihood that the organisations will use either analytics or intuition.
Workforce planning and allocation
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 9
Data Analytics Matter...
46% of CEOs say they have already
implemented dedicated “people
analytics”
but that’s only part of the story…
Source: PwC’s Trends in People Analytics 2015
86% of CEOs say that creating or
improving “people analytics”
is a strategic priority for the
next 1-3 years
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 10
Prescriptive Analytics Matter…
78% of US CEOs are concerned
over the availability of key
skills
Executives are increasingly pressuring HR to produce
evidence-based insight on critical talent to drive
business outcomes
Source: PwC’s 18th Annual CEO Survey
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 11
Unifying for better talent outcomes...
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 12
Assessing and selecting for engagement
Leaders Who Drive Engagement
Drive >
< Cooperativeness,
Sensitivity
< Composure,
Positivity
< Liveliness
rxy = .70
People Who Are Engaged
rxy = .30
< Cooperativeness,
Sensitivity
< Positivity
Drive >
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 13
Starting with the basics – integrating leadership competencies
70%
85%
90%
80%
80%
75%
90%
80%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Recruiting leaders from outside the company
Selecting leaders from within the company
High potential (or equivalent) identification
Performance planning and reviews
360-degree feedback for development
Promotion decisions
Leadership development
Leadership assessment
% of organisations integrating competency frameworks with other talent practices
Top Companies for Leaders
Other companies
Source: Aon Hewitt Top Companies for Leaders
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 14
Starting with the basics – integrating leadership competencies
70%
85%
90%
80%
80%
75%
90%
80%
39%
48%
61%
42%
61%
55%
68%
52%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Recruiting leaders from outside the company
Selecting leaders from within the company
High potential (or equivalent) identification
Performance planning and reviews
360-degree feedback for development
Promotion decisions
Leadership development
Leadership assessment
% of organisations integrating competency frameworks with other talent practices
Top Companies for Leaders
Other companies
Source: Aon Hewitt Top Companies for Leaders
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 15
148% Increase
.103 CAGR EBIT
98% Increase
-.004 CAGR EBIT
...and it pays off
Low Medium High
Degree of Integration of
Competencies
-.216 CAGR EBIT
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 16
Aligning leadership and engagement interventions
20%
No Engaging Leader
Interventions
Nothing
30%
1.5x
Select Leaders Based
on Ability to Engage
Others
Select
50% 2.5x
Coach Leaders to
Engage Others
Coach Is a Top
Company
Not a Top
Company
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 17
A curious mind, a bit of data and some simple math creates big impact
“Curiosity was framed. Ignorance killed the cat.”
Anon.
Having the intellectual curiosity to ask “why?” and
“what?” is as important as knowing the “how.” As the
architect of the HR strategy and HR service delivery
model, the CHRO is expected to be open to
learning and understand the contemporary trends in
the field. He/she cannot have a static mindset or
constantly fall back only on prior experience. Source : Developing the next generation of HR leaders. Key findings from the ‘Learning to fly’ study
(Aon Hewitt 2015)
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 18
No longer look at the past and guess about the future.
Predict it.
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 19
Cloud Computing
(Multi-tenancy)
Mobile &
Consumerisation (iOS, HTML5)
Big Data (Hadoop)
86% of CEOs expect tech to transform business over the
next 5 years.
39% believe HR is well-prepared.2
Technology Advances
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 20
What is Big Data? Our apps are collecting
data all the time.
Define the question. Use the data to unlock
the answer.
Big Data
How does it work? The power of analysing all this data with a state-of-the-art
machine learning platform.
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 21
What Happened?
Why did it
happen?
What will happen?
What should I do?
Types of Data Analytics
DESCRIPTIVE
DIAGNOSTIC
PREDICTIVE
PRESCRIPTIVE
Description of what has already
happened
Exploration of meaningful
information
Prediction of future outcome
based on historical data
Recommendations based on
predictive model output
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 22
Example: Weather Data
Severe chill and snowstorm
What Happened?
El Niño
Why did it happen?
Forecast travel conditions due to weather
What will happen?
Recommend rerouting travel either to…
What should I do?
DESCRIPTIVE
DIAGNOSTIC
PREDICTIVE
PRESCRIPTIVE
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 23
Talent Management is Changing
1995
2005
2015
PROCESS-CENTRIC
INTEGRATED
DATA-DRIVEN
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 24
Example: Descriptive Talent Analytics
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 25
Predicting the “Talent” Future
RECRUITING How can I predict who will stay longer?
Do teams that collaborate more get better results?
ONBOARDING How can we ramp up new hires more effectively?
CONNECT
LEARNING How can I predict who will be out of compliance?
Which pay structures improve performance?
PERFORMANCE Which factors predict higher performance?
COMPENSATION
Which skills or competencies drive promotions? SUCCESSION
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 26
Succession Planning
Predictive Succession
Predict employees with
high potential to succeed in
a new role in the near term
See which factors drive
success predictions
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 28
Career Mobility
Career Planning
Understand mobility
throughout your
organisation
Create career paths &
development plans
automatically using
your own data
Note: Designs and features may or may not be different than illustrated.
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 29
Flight Risk
Flight Guide
Retain high performers for longer
Reduce replacement costs &
knowledge loss
Lower attrition & delayed
projects
Uncover flight risk predictive
factors
Enact policies to reduce future
risk
Note: Designs and features may or may not be different than illustrated.
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 30
Compliance Risk
Compliance Guide
Reduce risk for regulatory fines
Help prevent employee downtime
Uncover non-compliance predictive
factors
Get policy change
recommendations to increase
compliance
Understand the factors that drive
compliance
Note: Designs and features may or may not be different than illustrated.
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 32
Introducing Cornerstone
One solution to recruit, train,
connect and manage your employees and extended enterprise
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 33
Unified Matters
One Solution Single Support Organisation
Consistent UX and Administration Common Data Model
Single data model, single repository and Big Data analytics Same experience and configuration across products
Rapid deployment, fast adoption and ongoing optimisation Only one call to make, one app to support
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 34
Position
Previous Position
Education
Skills
Certifications
Accomplishments
Languages
Organisation
Preferences
User Collaboration Connections
Live Feed (Status)
Feedback
Actions
Snapshot
Teams
Discussions
Badges
Likes
Comments
Talent Organisation Transcript
Performance
Skills
Goals
Assessments
Development Plans
Succession
Compensation
Applicants
Applicant Status
Industry
Business Unit
Department
Division
Region
Groups
Hierarchies
Cost Center
Grade
Location
22.2M USERS | 191 COUNTRIES | DECADE OF DATA
Cornerstone has “Massive Data”
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 35
Cornerstone Analytics
REPORT DISCOVER PREDICT PLAN
Cornerstone
Reporting Standard & custom reports
embedded with
Cornerstone
Cornerstone
View Highly visual dashboards
that can easily slice/dice
talent information
Cornerstone
Insights Predictive analytics for
managing talent decisions
Cornerstone
Planning Big data solution for
workforce planning
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 36
Table conversations Where are you on the talent insights continuum “descriptive diagnostic predictive prescriptive”
Of all your talent challenges, where would predictive / prescriptive insights have the biggest impact?
Aon Hewitt | Talent, Reward & Performance
Proprietary & Confidential | 4 December 2015 37
Where are you?