Beautiful Minds Best Practices in Workforce Planning

Peter Howes Vice President, Workforce Planning and Analytics SuccessFactors

Talent Management + Talent Analytics

Critical HR Questions

Data-Driven Decision-Making = Future of HR?

Today, Analytics Is the Difference

3X

Top-performing companies are

more likely than low performers to be users of analytics

Five Strategies to Optimize Human Capital

Source: Conference Board, “CEO Challenge 2013”, www.ceochallenge.org.

1.  Grow talent internally

2.  Provide employee training and development

3.  Raise employee engagement

4.  Improve performance management processes and accountability

5.  Increase efforts to retain critical talent

HR Executive Challenges

Source: Bersin & Associates, “The High-Impact HR Organization: Top 10 Best Practices on the Road to Excellence,” January 2011.

35% of HR Executives Biggest Challenge is Measuring Programs in Financial Terms

Business Impact of Best-in-Class Workforce Analytics

Source: Aberdeen Study: Year-Over-Year Improvement in Results

A Minority of CEOs Receive

Comprehensive Data on Their Workforce

Source: PWC 15th Annual Global CEO Survey.

The Reality

Firms Struggle

to Access Data and Apply It to Talent Decisions … How Many Organizations…

Relationship: Workforce Reporting, Analytics, and Planning – Part 1

Workforce Planning Workforce Analytics

Workforce Reporting

Relationship: Workforce Reporting, Analytics, and Planning – Part 2

Workforce Demand Forecasting

Matching Workforce Supply & Demand Forecasting

Strategic Staffing

Human Capital Strategy

Human Capital KPIs

Business Planning Process

Supply Forecasting

HRIS Systems

The Analytics Journey

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Move from Operational to Strategic Decision Making

Workforce Planning

  Risk mitigation   Demand gap   Competencies and Numbers   Planning

Workforce Analytics Key Principles

  Workforce segmentation   Workforce is heterogeneous   What do we not know about the workforce?

Reward Managers Who Are Net Exporters of Talent

Transferred or promoted most individuals OUT by Performance Rating

Transferred or promoted most individuals IN by Performance Rating

Performance Rating

Number of People

1-3 25 4 116 5 36

Performance Rating

Number of People

1-3 16 4 64 5 21

Top 10% of Managers who:

Importance of Labor Turnover By Tenure 25%

Voluntary turnover rating from top performers

Top Performer Replacement Cost

Voluntary Turnover of Sales Reps by Performance Rating by Position Tenure

Position Tenure Performance Rating

<1 Yr 1-2 Yrs 3-5 Yrs 5+ Yrs Total

Not Rated 16% - - - 16% 1 - 32% 55% - 38% 2 - 26% 24% 16% 21% 3 - 9% 11% 5% 12% 4 - 17% 36% 20% 19% 5 - 23% 29% 8% 25% Total 16% 23% 25% 10% 16%

29% Voluntary turnover from top performers with 3-5 years tenure

Revenue by Tenure $685K

Revenue from top performers with 3-5 years tenure

Quantifying Differences in Profit – The Impact of Turnover

In 2012 and 2013, 100%+ Growth in Firms Choosing SuccessFactors for Workforce Planning and Analytics

40to 60%

Your workforce makes up

of your operating expenses

Thank You