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Human Capital Analytics

- Stop guessing, start knowing

FORELÆSNING

Peter V.W. Hartmann

Head of People Performance

and Analytics, Getinge Group Dana Minbaeva,

Professor in Strategic

and Global HRM, CBS

Esther Bongenaar

VP HR Data & Analytics

Royal Dutch Shell Henrik Gjesing Antvor

Senior Specialist Analytics

Vestas Wind Systems

Jacob Jeppesen,

Strategic Workforce Planning,

Novo Nordisk A/S

Competencies for the future

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Competencies for the future

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Available for download at www.saxo.com

The majority of Danish companies have experienced an acute skills gap.

The skills gap will remain and may grow, especially in professional, scientific, and technical activities industries.

Regardless of the workforce segment, the more specialized the position, the harder it is to find the right employee.

Competencies for the future

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Available for download at www.cbs.dk/hc-analytics

Cluster of skills: ◦ I know how to utilize Big Data (e.g. sales data, Social Media

data etc.) to learn about the customers

◦ I can use analytics to gain insights into employee performance.

◦ I have relevant digital knowledge that I apply

◦ I have skills to integrate customer insights into the decision-making

◦ I keep up to date by monitoring organizational developments

◦ I can use business intelligence to inform my decision-making.

"I am comfortable in navigating unclear and ambiguous situations“ – 36% strongly agree and agree

Competencies for the future Are we prepared for the future?

Talent: buy, build or borrow?

How do we close skills gap?

What do we do to upskill and reskill?

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Company name appears here 7

HR Analytics competencies for the future

Esther Bongenaar

VP HR Data & Analytics @ Shell

June 2017 Shell HR Analytics Copyright of Shell International

Copyright of Shell International

Definitions & Cautionary Note

June 2017 8 Shell HR Analytics

Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves.

Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with the Society of Petroleum Engineers (SPE) 2P + 2C definitions.

Discovered and prospective resources: Our use of the term “discovered and prospective resources” are consistent with SPE 2P + 2C + 2U definitions.

Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact.

Shales: Our use of the term ‘shales’ refers to tight, shale and coal bed methane oil and gas acreage.

Underlying operating cost is defined as operating cost less identified items. A reconciliation can be found in the quarterly results announcement.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made

to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by

identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and

unincorporated arrangements over which Shell has joint control are generally referred to “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as

“associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-

looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results,

performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and

statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’,

‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of

Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this [report], including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in

demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of

suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and

regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of

contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or

exceed previous dividend payments. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance

on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2016 (available at www.shell.com/investor and www.sec.gov ). These risk factors also

expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, [DATE]. Neither Royal Dutch Shell plc nor any of

its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or

inferred from the forward-looking statements contained in this presentation. This presentation may contain references to Shell’s website. These references are for the readers’ convenience only. Shell is not incorporating by reference any information

posted on www.shell.com. We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are

urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

Copyright of Shell International

Transition from Beliefs to Evidence

June 2017 9 Shell HR Analytics

Many HR practices are currently based

on experience, intuition and beliefs.

Analytics supports a transition

towards evidence based HR.

Evidence does not replace but

supplements intuition,

experience, and beliefs.

Evidence strengthens but puts

boundaries on the narrative.

Copyright of Shell International

Evidence Beliefs

Experience

Intuition

Copyright of Shell International

Secondary Data

Surveys

Assessments

HR Data

& Analytics

June 2017 10 Shell HR Analytics

HR Policies, Practices & Procedures

Primary Data

Demographics

Systems

Management Information & Reporting

Analytics

Copyright of Shell International

Digital enabled Recruitment process

Overall concept: 100,000 applicants per year for Shell’s Graduate Programme. Our digital enabled recruitment process

provides increased predictability of candidate success in future jobs, reduced cycle times and improved candidate

experience

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APPLY • Mobile enabled application form

• Candidate data pulled from

LinkedIn

• Candidate receives request to

take online assessment

ASSESS • Cognitive assessment: verbal,

numerical, abstract reasoning

Personality assessment: five

factor model

• Pre-recorded candidate video

INTERVIEW

• Recruiter selects best

candidates based on

Assessment scores and

video

• Live video assessment with

two assessors consisting of

Case study and Behavioral

interview

OFFER AND INSPIRE

• Candidate gets to know Shell

more intimately by visiting the

office and meet future team

• Offer presentation

June 2017 Shell HR Analytics

Copyright of Shell International

Enabling people and organisational performance

Skilled People

High Motivation

Opportunity to

contribute

27% Financial outcomes &

22% Operational outcomes

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How does human resource management influence organizational outcomes?

A meta-analytic investigation of mediating mechanisms

Academy of Management Journal, 2012, Vol. 55, No. 6, 1264–1294

June 2017 Shell HR Analytics

Strategic Workforce

Planning (SWP)

in Novo Nordisk Jacob Jeppesen

1. June 2017

Presentation title Date 15

22 September 2014

Median Time-to-fill for critical talent increased by 32 days

Critical positions unfilled for avg. 6 months

Gut feeling: Not enough talent supply for the future – internal and external?

A missing link

Presentation title Date 17

Resource Allocation

Strategic Workforce Planning

Performance Development

Career & Succession Planning

Functional level

Individual level

Strategic Operational

Analytics integrated with SWP

Model Analyse

Simulate Scan

Identify critical segment supply and demand

Make scenarios for different talent strategies

Follow up with hypothesis testing

What is external talent availability?

Workforce Gap analysis – 5 year plan Gap closing?

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Gross Personnel

Demand

Current

Workforce

Portfolio

Exits Workforce

portfolio after

losses

Net personnel

Demand

Model

Simulate

Presentation title Date 20

Supply (baseline) Demand Supply (incl. Scenario)

Strategy timing Bind Buy Build

Short term strategy Decrease by 2% now

Hire 12 in 2017

Create ‘talent pool’ of 30 employees with potential

Long term strategy Decrease 1% annually

CAGR = 12% Increase with size 10% annually

Promote 20% into role

Analyse 32,000+ publications crawled

Presentation title Date 21

0

500

1000

1500

2000

2011 2012 2013 2014 2015

Accessible Talent Pool - Diabetes

Unique authors and publication impact identified

Scan – external environment

Presentation title Date 22

45

240

3,600

Level 1 : Total Process Engineering talent across industries

Level 2 : Process Engineers within Pharmaceutical, medical devices or biotechnology industry

Level 3 : Talent with API skills within the Level 2 talent group

Creation of Critical Talent

Search Team and added talent

search specialist in line of business

Better data to track progress and

insights

FTE projection for critical segments added with only a

1% error

Business Outcome

Segment time to fill decreased and quality of hire

increase

Resources available for you “How I Did It” stories

Executive summaries

HCA Publications

IMPACT Project – hands on knowledge about how to design your pay system

HCA Method Seminars

HCA Network – One Year Competence Development Network for HR analysts

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Tak for i dag! Contact Us Human Capital Analytics Group Copenhagen Business School Kilevej 14, Office 2.74, 2000 Frederiksberg Founder and director: Dana Minbaeva, dm.smg@cbs.dk www.cbs.dk/hc-analytics LinkedIn Human Capital Analytics Group