tarnoff - analytics

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2013 HR FLORIDA

Usin HR Anal tics to Ali n Your Workforce

with the Business Strategy

August 19 21, 2013

Hilton Bonnet Creek, Orlando, Florida

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www.hrfloridaconference.org


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Howard Tarnoff

Senior Vice President, Customer Success,

Ceridian

Joined Ceridian in March 2011

Ceridians customer success program for

North America

30-year veteran of the HR Technology

industry with companies including Workforce

Software Workbrain RedPrairie and Kronos

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Agenda

HR Analytics Defined

esearc - ase ew o na y cs

Aberdeen Group Study

1/3 Line of business (primarily VP/C-suite roles)

70% North American, 30% EMEA or APAC

A Case Study

Some Critical Takeaways

www.hrfloridaconference.org3


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HR Analytics Defined

Tools used in finding, retrieving and analyzing HR data.

oa s o u ma e y prov e s n e gence o managers

enabling them to make better decisions that impact HRstrategy and business objectives.

Applications Workforce optimization (short term)

Talent management / Workforce planning (long term)

Compensation



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Challenges

'initiatives?

Economic uncertainty forcing the organization to operate more

Organic growth (into new geographies, new channels, etc.) and

achieving organizational growth goals

Scarcity of key skills in the marketplace (domain/industry specific)

Changing employee needs and expectations (generational gaps,, , .

forcing new people management techniques

Regulatory compliance and reporting issues (employment law,

, . Changing customer needs and expectations


ource: er an e nar o , pr

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Barriers to HCM Investments

Percentage of


respondents

N = 439


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High-Level Strategies

Percenta e of


respondents

N = 439


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Impact of Analytics on Business Metrics

Average reported


performance

N = 103


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Impact of Analytics on HR Metrics


respondents

N = 439


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Satisfaction with Solution

Percentage of


Respondents

N = 439


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Key Organizational Capabilities

Percentage of


N = 103


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Polling Question

a) Not practicing and have no plans to

b) Not practicing but plan to

c) In the process of defining metrics

d) Metrics defined; using Excel/manual tracking

- -

f) I dont know

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Adoption By Company Size


Respondents

N = 449

Source: Aberdeen Group, December 2010 February 2011


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Polling Question

make a key operating decision. Which statement best represents

how you approach capturing the information?

a) Run a series of reports, download to Excel, and merge data to then completedetailed analysis

b) Make a quick decision based on your previous experiences due to limited

availability of technical resources to gather data needed for analysis

c e wor w your peers o un ers an w a ey ave one w en ace w

similar issues and limited time to complete detailed analysis

the findings of the data to gain insights; consider the pros and cons of solutions

and incorporate the best option into a plan



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A Case Study

Company profi le:

2,000 employeesBusiness strategy:

Human capital strategy:

Grow direct sales force

- ,

Business challenges:

Slowing revenue growth

HR Analytics can impact business performance



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HR Analytics Three Step Process

To provide real value, identify the issues related to your human capital that

impact your companys ability to execute on its strategic initiatives

Identify andAnal ze and Incor orate the

Step #1 Step #2 Step #3

ga er e a a o

gain visibility to

the issue

correlate data to

gain insights

findings into a

plan of action

Execute on the plan and monitor ongoing



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Step 1: Identify

a are our curren ea coun ren s

(headcount) is shrinking

Manufacturing capacity is

steady

Most terminations are voluntary



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Step 1: Identify

at can earn oo ng at term nat on rates y

job class?

oncen ra on o g

termination rates in salesforce (both straight

commission PG1 and salary

p us onus

Sales force shrinking while

increasing



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Step 1: Identify

terminations and hiring?

sales force terminations

Sales force termination rate

has increased

Most sales force

terminations are voluntary



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Summary of Step 1: Identify

Capacity and turnover issues with sales force

Rates are increasing over time

High voluntary termination

Current hiring campaigns are not keeping pace with terminations

Lack of sales force capacity inhibits revenue growth [assumption]

Identify and Anal ze and Incor orate the

gain visibility to

the issue

correlate data to

gain insights

findings into a

plan of action




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Step 2: Analyze

What is the tenure of our terminatin sales force?

Terminations are

hi hl concentrated

in the first years of

service

More than 75% term

in their first 2 years



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Step 2: Analyze

How does new hire experience levels relate to

terminations?

Experienced

hires are less

terminate



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Step 2: Analyze

What is the relationship between term rates and

comp plans?

Straight commissionreps (PG1) terminate

at a greater rate than

salary and bonus

plan reps (PG2)



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Summary of Step 2: Analyze

na yze corre at ons to ga n ns g t:

Terminations are highest in the first years of service.

Termination rates var considerabl b source of hire. Some sources actuall

produce a negative growth in capacity.

Experienced hires are more likely to stay. Majority of terminations are of entrylevel new hires.

commission salary plan.

Identify and Analyze and Incorporate the

gain visibility to

the issue

correlate data to

gain insights

findings into a

plan of action




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Some Critical Takeaways

HR must evolve

- Employee focused HR service

- Manage by the numbers

- Run HR like a business

-

- Prove our value to the bottom line

c on s eps

- Ensure clean data

- Work with Operations to define 3-5 key metrics

- Get buy-in from senior executives

- Roll-out to ensure alignment


-


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How Analytics Tools Can Help

Eliminates inaccurate, time-consuming consolidation processes

Allows trending and comparisons on a consistent basis

Drives effective decision-making

-

measures

Helps managers make informed decisions

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Brings all HR and Payroll data into a secure data source



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owar . arno cer an.com

Twitter: @htarnoff


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