Leveraging Analytics for Human Capital Management

Aug’14

Shyamsundar Anandhan

Defining Analytics

“Analytics is the discovery and communication of meaningful patterns in data. ” - Definiton

Source: Wikipedia

What is Business Analytics (BA)?

“Business analytics (BA) refers to the skills, technologies, practices for continuous iterative exploration and investigation of past business performance to gain insight and drive business planning”

Source: Wikipedia

The Analytics lifecycle culminates with capabilities that enables business growth

Business Analytics Enablers

Source: Deloitte

The importance of Talent Analytics, a key cog in the BA wheel

– informed talent decisions

– predict employee performance and

– conduct advanced workforce planning

Companies that successfully leverage analytics and big data will be positioned to outperform their peers in executing their talent strategies.

HR is evolving into a data-driven function, with the focus shifting from simply reporting data to enabling the business to make

Value proposition of Talent Analytics

Analytics provides insights

Improved plans

Evidenced actions

Feedback, measurement and continuous improvement

Analytics provides insights

The main firewalls that one has to cross to implement Talent Analytics…

Source: Oracle report on TA

Talent Analytics is an immediate need but needs organisational readiness

Implementation

of talent

analytics is of

high urgency

but low in

readiness

Global trends mapped against urgency (horizontal) and company readiness (vertical)

Source: Deloitte

How can organisations employ Talent Analytics (1/2)

• Look for skilled analysts to lead the team

• Add profiles like econometricians, demographers, computer/applied scientists, and business intelligence specialists.

• Create a community of practice where professionals can share experiences and best practices.

• Equip analysts with HR technology, performance consulting, visualization, and project management skills

How can organisations employ Talent Analytics (2/2)

• Identify specific business challenges to be addressed

• Build capabilities by experimenting

• Make analytics user-friendly for the entire organization

• Do not let the perfect be the enemy of the good

Talent Analytics transforms organisations by creating high value solutions

Understanding the characteristics of high-performing sales people to better select and attract leading candidates

Identifying work-related factors that correlate to fraud and accidents

Enabling managers to dramatically reduce loss by focusing on well-known patterns

Setting up an internal platform for employees to find new positions by matching skills with jobs

Creating models that understand and predict turnover so managers can more rapidly change work conditions to prevent attrition

Understanding the impact of pay increases to make scientific decisions on areas to maximize performance

Imp

licat

ion

s o

f En

d-t

o-e

nd

HR

an

alyt

ics

Analytics will enable alignment of talent and business strategies

Business strategy

Analytics

Leadership Talent

Organisation Culture

HR Strategy

Human capital strategy

Bu

sine

ss resu

lts

What this will establish • A clear line of sight between the human

capital priorities and the business goals • A clear definition of the capabilities and

interdependencies of leadership, talent, culture and organisation to enable the business strategy

• A tangible, multi-year human capital journey plan for how the organisation will get there

• A forum to facilitate boundary-less collaboration across functions and locations

• A foundation for all down-stream HR planning and execution (at the corporate, business, function and geographic levels)

• Greater agility and proactive preparation for organisational and economic changes

Source: Accenture

Case study

Project Oxygen: Google’s success story on People Analytics

Situation

Complication

Google’s reputation was its highly analytical culture and practices

Google had to identify leading people-management practices and confirm them with data and analysis.

Methodology employed

• To achieve it, Google created a people analytics function with its own director and a staff of 30 researchers, analysts, and consultants who study employee- related decisions and issues.

• The People and Innovation Lab (PiLab) conducts focused investigations for internal clients

• Google has analyzed a variety of HR topics and has often moved in new directions as a result.

• Backgrounds and capabilities associated with high performance • Factors are likely to lead to attrition • Ideal number of recruiting interviews • The eight behaviors that characterized good managers and five

behaviors that all managers should avoid.

Results achieved

Source: HBR

Quote from Google VP on Talent Analytics

“It’s not the company-provided lunch that keeps people here. Googlers tell us that there are three reasons they stay: - The mission, - The quality of the people, and - The chance to build the skill set of a better leader or

entrepreneur. And all our analytics are built around these reasons.” – Laszlo Bock, VP- People Operations,

Source: HBR

Finally…

Thank You

Bibliography

• Accenture: The-Relevance-of-Human-Capital-Strategy

• HBR: Competing on TalentAnalytics

• KPMG: HR-Analytics-Taking-the-guesswork-out-of-decision making

• Deloitte: Leveraging Analytics for Human Capital Management

• PWC: Trends in workforce analytics

• IBM: Getting smart about your workforce