obia hr analytics: transform complex data into business decisions

Webinar from Drivestream Academy

March 28th, 2012

Human Resource Analytics: Your weapon in

Transforming Complex Data into Business

Decisions

Welcome to Drivestream

Global management and technology consulting services. Founded in 2002

Focus Areas

PeopleSoft

Oracle Business Intelligence and Data Warehousing

Oracle Fusion Applications

Microsoft Sharepoint Solutions

Custom Application Development and Maintenance

Cloud Migration

Services

Strategic advice and tactical services for developing, implementing, maintaining and upgrading our

customers’ business applications

Drivestream’s leadership team has a very strong entrepreneurial & consulting background with many

years of work experience at PWC, IBM, KPMG and other Fortune 500 companies around the world

Successfully delivered over 400+ projects for some of the world’s largest companies to middle market

customers across industries and geographies

Presenters

Ravi Natarajan has managed multiple successful Data Warehouse implementations at various Fortune 100 companies. A self-proclaimed researcher and academic with heavy industry experience, he is the quintessential architect. He is constantly on the lookout for new ideas and technologies.

Arvind has around 15 years of experience primarily in Data Warehousing and Business Intelligence. In the past, he has worked at PwC, Oracle, Mirant and Merial. Currently, he heads the Information Management practice in Chennai, India.

Ravi Natarajan Executive Vice President, Information Management Drivestream, Inc. (USA)

Arvind Purushothaman Vice President, Information Management Drivestream, Inc. (India)

Agenda

Human Resources – An asset

HR evolution

Common challenges faced by HR executives

What is HR Analytics

How is HR Analytics different from transactional reporting

How HR Analytics address business challenges

Build vs. Buy

What is OBIA?

What is included in OBIA HR Analytics

Who can benefit from OBIA HR Analytics

Comprehensive coverage

HR Analytics – Business case

Q & A

Human Resources: An Asset

In today’s competitive world, organizations tend to rely on their

intangibles like ‘Customer Relationships’ and ‘Organizational Flexibility’

as their source of competitive advantage

The biggest intangible often tends to be “Human Resources”

Many of these intangibles are often viewed as a “Cost” from a

conventional accounting perspective

Many companies recognize the importance of people, but tend to

manage them as an overhead (minimize cost)

The challenge lies in measuring performance in terms of a strategic goal

HR Business Process evolution

Source: www.oracle.com

• HR Best Practices

• Back Office Automation

• Deploy Self Service

• Focus: Cost Reduction

LEVEL 2 Transaction

• HR 101

• Manual execution

• Core HRMS

• Focus: Day-to-day

LEVEL 1 Foundation

• Best-practices

• End-to-End Process Automation

• Human Capital Mgmt implemented

• Focus: Worker Productivity

LEVEL 3 Process

• Metrics Driven

• KPI’s Drive Business Shifts

• HCM central to org. performance

• Focus: Workforce Aligns to Priorities

LEVEL 4 Intelligence

Common HR Challenges

HR evolving from an administrative to strategic function,

needs metrics for tracking

Unable to measure HR programs impact on workforce performance

Difficult to create a historical profile of the workforce

Poor metrics to translate employee performance with compensation

Difficult to understand workforce needs at an enterprise level

Relating compensation, benefits, opportunities with workforce planning

Drive commitment and performance

Too much dependence on management-by-spreadsheet; scattered data across

multiple systems

No single source of the truth

HR as a strategic function

Effectiveness of HR programs

Workforce Planning

Time lag in data gathering and

reporting

What is HR Analytics?

Analytics includes the processes, technologies, and best practices that turns data into information that drives business decisions

HR Analytics refers to the metrics related to HR functions across the

areas of Workforce

Recruitment

Compensation

Absence

Statutory compliance

Learning Management

How is HR Analytics different from Operational reporting?

Operational Reporting Analytical Reporting

Flat – 2 dimensional Multi-dimensional – slice and dice across

dimensions

Individual reports which need to be collated

Metrics go across subject areas

Reactive reporting Pro-active reporting

Need to define “what to see” Pre-defined metrics based on best

practices available

Report is from a single source Reporting can include multiple sources

including 3rd party

Metric definition is not standardized

Metric definition is consistent across the

enterprise

How does HR Analytics address business challenges?

SLIDE 10

HR Analytics provides detailed analysis of HR programs across multiple subject areas –

you can drill down from summary to detailed and across subject areas

Integrates silos of data from other ERP modules and 3rd party applications into relevant,

actionable and timely insight

Information delivered through personalized dashboards, metrics and alerts

All the information is made available in a self-service mode

Build vs. Buy

SLIDE 11

Rollout

Define scorecards, KPI’s

DW design and development

Source system analysis and mapping

Rollout

Define scorecards, KPI’s

DW design and development

Source system analysis and mapping

Quicker deployment

Cost savings

Lower TCO

Pre-built adapters to multiple

sources

Pre-built optimized Data

Model

Uses best practice definitions

Well defined implementation

Build Buy

What is OBIA (Oracle Business Intelligence Applications)?

Pre-built BI application that sources data from transactional systems including Oracle EBS, PeopleSoft, SAP, JD Edwards and Siebel

Data is loaded to the target OBAW tables using Informatica as the ETL tool

Pre-built metadata layer that covers all ERP modules and functions

Developed using Oracle Business Intelligence Enterprise Edition (OBIEE) technology

Web based access to customizable dashboards, KPI’s, reports, alerts

Can be customized to meet unique business needs

Copyright © 2008, Oracle and/or its affiliates. All rights reserved.

1

2

3

1 2 3

OBIA modules

Auto Comms & Media Complex Mfg Consumer Sector Energy Financial Services High Tech Insur.. & Health Life Sciences Public Sector Travel & Trans

Sales Service & Contact Center

Marketing Procurement & Spend

Supply Chain & OM

Financials Human Resources

Pipeline Analysis Churn Propensity Campaign Scorecard

Supplier Performance

Order Linearity A/R & A/P Analysis

Employee Productivity

Triangulated Forecasting

Customer Satisfaction

Response Rates Spend Analysis

Orders vs. Available Inventory

GL / Balance Sheet Analysis

Compensation Analysis

Sales Team Effectiveness

Resolution Rates Product Propensity

Procurement Cycle Times

Backlog Analysis Customer & Product Profitability

HR Compliance Reporting

Up-sell / Cross-sell

Service Rep Effectiveness

Loyalty and Attrition

Employee Expenses

Inventory Availability

P&L Analysis Workforce Profile

Cycle Time Analysis

Service Cost Analysis

Market Basket Analysis

Quality

Performance Fulfillment Status Expense

Management Turnover Trends

Lead Conversion Service Trends Campaign ROI Buyer Productivity

BOM Analysis Cash Flow Analysis

Return on Human Capital

Oracle BI Suite Enterprise Edition Plus

Other Operational & Analytic Sources

Prebuilt adapters:

http://www.siebel.com/

http://www.peoplesoft.com/corp/en/public_index.jsp

Benefits of OBIA HR Analytics - ANALYSIS AND METRICS

Annual Base Salary

Min/Mid/Max Annual

Base Salary

Comp Ratio

Time Since Last Salary Increase (Days)

Total Base Compensation

Overtime Compensation

Average Variable Compensation

Number of Bonuses

Average Bonus

Learning Management

Compensation

BENEFITS

Provide consistent, integrated insight into the entire talent

value chain - attracting, retaining, developing, and rewarding

the workforce

Optimize organization staffing and contingent labor usage

Gain visibility to employee performance and internal mobility

to engage and develop key talents

Lower costs through reduced turnover and more targeted

recruiting

Optimize compensation plans to meet goals while managing

costs

Revenue per employee

Contribution per employee

Return on Human Capital

Contracting expenses

Employee benefit expenses

Average cost per employee

Employee overtime expenses

HR Performance

Enrollment count

Successful completion rate

Enrollment Wait Time

Internal learner count

Learning score

Delivered training hours

Top enrollments

Longest enrollment wait time

Benefits of OBIA HR Analytics - ANALYSIS AND METRICS

Vacancy Aging

Vacancy Rate

Vacancy Fill Rate

Internal hire ratio

External hire ratio

Referral hire ratio

New hire performance

New hire separation

Time to fill

Time to hire

Requisition open to Application start

Application Start to Offer Extended

Absence Duration Days

Notified absence days

Unnotified Absence Hours

Absence Occurrences

Employee Absence Rate

Recruiting Management

Absence Management

BENEFITS

Monitor the efficiency and effectiveness of the entire

recruitment life cycle

Better assess quality of hire by correlating applicant sourcing

with new hire performance and turnover metrics

Proactively mange learning demand and source utilization

Monitor workforce learning participation & learning results

Monitor absence trends as a predictor for employee

engagement

Forecast employee availability based on planned future absence

events

Employee Headcount

Continent Headcount

Contractor Ratio

Headcount % change

Diversity metrics

Turnover Ratio

Mean Performance Rating

Length of Service

Span of Control

Time in Job

Average Contingent Placement

Operations

Role-Based Best Practices Provide Relevant and Actionable Insight for Everyone

Becoming the Strategic Business Partner

HR Analytics – Key Objectives and Questions by Role

HR Business Partners

What are the key business challenges in the organization?

What are the workforce issues that can help resolve the business challenges?

Are we providing line managers with timely information to help them make better people decisions?

Better information for Workforce Plan

What is the total labor spend?

What is the optimal cost structure for the workforce?

What is the projected workforce demand to support the business strategy?

Optimizing Management of Human Capital

VP of HR and CEO

Do I have an agile workforce to meet the demand of the fast-changing world economy?

What is my talent strategy to support both short-term and long-term business strategy?

How do my key HR metrics compare to the industry?

Complete Insight into Historical Workforce Trends

Am I utilizing continent workers effectively?

Are we retaining key talents? Are employees adequately trained?

Have I differentiated the performance of my employees?

How do I engage and motive employees in the turbulent time?

Finance

Line Managers

Comprehensive Coverage – HR Analytics

• Learning • Overview

• Manage Enrollments

• Training Results

• Delivered Training

• Absence • Overview

• Absence Trends

• Absence Details

• Absence Calendar

• Compensation • Overview

• Compensation Analysis

• Trends

• Pay for Performance

• Retention • Overview

• Retention Hotspots

• Top Performers

• Trends

• No. of dashboards 9

• No. of dashboard pages 47

• No. of reports 238

• No. of metrics 325

• Recruitment • Overview

• Requisitions

• Vacancy Analysis

• Recruitment Pipeline

• Offer Analysis

• New Hires

• Applicant Pool

• Quality of Hire

• Recruiter Effectiveness

• Requisition Recruitment Activities

• Recruitment Event Details

• Candidate Sourcing

• US Statutory Compliance • Overview

• EEO Compliance

• EEO Audit

• VETS 100

• AAP

• Human Resource Performance • Corporate Contribution

• Effectiveness

• Trends

• Workforce Profile • Overview

• Staffing

• Demographics

• Trends

• Workforce Development • Overview

• Employee Performance by Supervisor

• Employee Performance

• Supervisor Performance

• Internal Mobility

• Top Performers

• Under Performers


CFO is reviewing the financial metrics of the organization

The CFO reviews the ‘Return on Human capital’

CFO asks the VP of HR to explain this especially since the VP had felt that things were going well in his organization

The VP of HR reviews the metrics ‘Revenue per employee’ and ‘Contribution per employee’

SLIDE 18

0

1

2

3

2011 Q1 2011 Q2 2011 Q3 2011 Q4

Quarter

Return On Human Capital

Return OnHuman Capital

2011Q1

2011Q2

2011Q3

2011Q4

Employee Productivity

Revenue PerEmployee

ContirbutionPer Employee

The metrics seem

contradictory


The VP of HR then decides to review some Financial and HR Analytics

‘Employee Expenses Trend’ and ‘Key Variable cost drivers’

SLIDE 19

2011 Q1 2011 Q2 2011 Q3 2011 Q4

Quarter

Employee Expenses Trend

Payroll Amount

Overtime Amount

Employee BenefitCost

2011 Q1 2011 Q2 2011 Q3 2011 Q4

Quarter

Key Variable Cost Drivers

Payroll Amount

Overtime Amount

Contracting Expenses

2011 Q1 2011 Q2 2011 Q3 2011 Q4

Quarter

Workforce Trends

FTE

ContingentHeadcount

FTE Growth Rate 1%

FTE Count 503

Prior Period FTE Count 500

Contingent Growth Rate 15%

Contingent Headcount 178

Prior Period Contingent Headcount 150


SLIDE 20

BI 4%

Workforce Composition

Java

PL/SQL

Oracle

HR

Finance

BI

Options The metrics seem to indicate that the contracting costs are higher. An option to reduce

contracting expenses is to hire more FTE’s or train more FTE’s in the new technology.

The VP of HR reviews the workforce composition metric and understands if there are sufficient

people in the organization with the required skill set who could be trained.

The VP of HR then looks at the training schedule to see if the seats for the BI course are available in the near future. (Finance + Learning Management metric).

0 10 20 30

BI Tools

Problem Solving and…

New Hire Orientation…

Basic Communication Skills

CPR Training Course

Effective Presentation…

Accounting for…

Longest Average Enrollment Wait time

The % of FTE with some BI skills is low

The waiting time for enrollment is also high


SLIDE 21

Conclusion

The VP of HR sees that they do not have sufficient amount of people with BI experience who could be trained and the wait time for BI course is fairly long. Hence, he decides to look at hiring more FTE from the market.

OBIA HR/Finance Metrics

Return On Human Capital = Contribution per Workforce Headcount/Average Cost per Active Workforce Headcount

SLIDE 22

OBIA Learning/HR Metrics

SLIDE 23

Q & A

Human Resources – An asset

HR evolution

Common challenges faced by HR executives

What is HR Analytics

How is HR Analytics different from transactional reporting

How HR Analytics address business challenges

Build vs. Buy

What is OBIA?

What is included in OBIA HR Analytics

Who can benefit from OBIA HR Analytics

Comprehensive coverage


Speakers

Arvind Purushothaman Vice President, Information Management Drivestream, Inc.

[email protected]

Ravi Natarajan

Executive Vice President, Information Management Drivestream, Inc.

[email protected]

Contact Us

For more information, contact Email: [email protected]

Phone: +1.703.715.0150

Human Resource Analytics: Your weapon in

Transforming Complex Data into Business Decisions

mailto:[email protected]



Thank You

Thank You for attending the webinar

Please register for Part 2 on April 18th and Part 3 on May 9th

Contact: Arvind Purushothaman Email: [email protected] Phone: +1.703.715.0150 x721

Contact: Ravi Natarajan Email: [email protected] Phone: +1.703.715.0150 x535

