smarter information for your hr organization · 2010-02-15 · smarter information for your hr...

Smarter Information for Your HR organization

Faster Insight: Smarter DecisionsKaushik Raghunandan, Senior Solutions Architect,

Business Analytics Software, IBM India/SA

2

Agenda

Introduction

Today’s HR Information Challenges

Types of HR Information demands

HR Information Strategy – a key stepping stone

The business imperative for Workforce Analytics

IBM’s offering on Workforce Analytics

3

… Business Change in the Midst of an Info Explosion

1 in 31 in 3spent by knowledge workers each

week just searching for and understanding information

managers frequently make critical decisions without the

information they need

19+ Hours19+ Hours

3 in 43 in 4

“…40 exabytes of data created in 2008…more than created in the previous 5,000 years combined…”

business leaders say more predictive information

would drive better decisions

Source: Various Industry Studies

Growing focus on business outcomes

30% of all project costs are associated with rework. Requirements mistakes

account for up to 70% of this cost

“CIOs are under pressure to enable their teams to become catalysts for change. However, change is outpacing their ability to deliver.

They are reorienting their teams to focus on ROI & quantified business outcomes and to mitigate risk and reduce costs”

– IBM CIO Survey, 2008

“Only 22% of executives felt that their IT and business strategy were tightly

integrated”

“49% of budgets suffer overruns and 62% fail to meet their scheduled”

Managing the Information ExplosionA history of cost overruns, schedule slips and quality issues

“50% of data warehouse projects fail and can take 16-18 months to complete.”

“Requirements activities impact up to 35% of a project effort, and can cause waiting time, and redundant activities that eat up to 10% of your budget”

The Implications for Rework – Poor TCODelays & poor quality

Lost Opportunity

• Late to market by 6 months or more will cost organizations 33% of the 5-year ROI

• 41% of projects fail to deliver expected business ROI

• 49% of projects overrun original estimates

-Standish Group

20

200Re

lati

veCo

st to

Rep

air

AcceptanceQA TestCodingDesignAnalysis

0

Maintenance

105

50

1-2

Cost

• 70-80% of development costs are spent identifying and correcting defects

• More than 40% of IT development budget will be consumed by poor requirements

+

• Packaged Business IntelligenceSelf-serve, ready made reports that reduce ad hoc custom reporting

• Highly AdaptableConfigurable drag-and-drop interface that reduces re-work, ensures continuously relevant content and speeds time to insight

• ExtensibilitySeamless integration with Cognos 8 to gain additional insight using different BI components

Faster Insight: Smarter Decisions

Business Areas

What’s Included?What’s Included?

Over 43,000 Objects including

250+ Dimensions

850+ Metrics

230+ Defined Calculations

Over 43,000 Objects including

250+ Dimensions

850+ Metrics

230+ Defined Calculations

1000+ Report Configurations1000+ Report Configurations

Embedded Data WarehouseEmbedded Data Warehouse Financial AnalyticsFinancial Analytics

Ledger PayablesReceivablesCash ManagementCustomer/Vendor Risk

Workforce AnalyticsWorkforce AnalyticsTalent DevelopmentTalent ManagementTalent RetentionWorkforce StrengthCompensation

Common Decision-Making ModelCommon Decision-Making Model ERP AgnosticERP AgnosticUnified PlatformUnified Platform

Analytics Drill ThroughAnalytics Drill Through Packaged Reporting & AnalysisPackaged Reporting & AnalysisDatabase Agnostic Database Agnostic

What’s in the Box …

7

Adaptive Framework

Unlimited Extensions

Delivered ERP extraction

Unlimited Data Sources

Adaptive Framework

Unlimited Extensions

Delivered ERP extraction

Unlimited Data Sources

Procurement AnalyticsProcurement Analytics

Spend AnalysisVendor AnalysisContract ManagementOperational Efficiency

Sales AnalyticsSales AnalyticsPipeline PerformanceSales force PerformanceSales SegmentationCustomer RelationsPricing and Program Analytics

The Difference – Time to Value

Other Analytic Applications IBM Cognos Analytic Applications

Why We’re Different – Adaptability

Buy Option

Requirements = Rigid

Custom business logic = Hard

Extensibility = Low

Lots of stair climbing

Build Option

Time to insight = Long

Requirements = Outdated

Cost of Maintenance = High

Lots of stair climbing

Our Approach

Business-centric v.s. data centric

Highly configurable drag-and-drop interface for the modifications to reports and addition of new ones

Automated synchronization of core components that eliminates manual work

Seamless extensibility to Cognos BI components

The Benefit for Your Team

Authored BI(Reports, Analysis, Metrics)

Semantic Layer

Data Warehouse

ETL Code

Other Analytic ApplicationsINDIVIDUAL STEPS TO MAKE

CHANGES = COSTLY AND COMPLEX

ERP CustomSource

IBM Cognos Analytic Applications

Authored BI(Reports, Analysis, Metrics)

Semantic Layer

Datamart

ETL Code

CHANGES WITH YOUR BUSINESS = FASTER VALUE

ERP CustomSource

Effectively Manage the Information Explosion

Your Pains Our Approach

• Deliver cross-functional insight on performance that evolves with changes to your business

• Improve your team’s productivity by automating labor-intensive processes – eg. estimated process-led automation yields savings of 4700 hours per project

• Make confident decisions faster to proactively address ever-changing inputs with greater visibility to metrics and dimensions

• Extend the value and lifecycle of your application with continuously relevant content

• Gain better total cost of ownership with automatic upgradeability and manageability

• High project costs: Poor requirements gathering contributes 70% of rework costs, or $1,300 per defect

• Disconnect between business goals and requirements solution: Disconnect results in too much rework, high costs, and poor quality.

• Delays in time to market: Lost cycles and time, arising from lack of collaboration and challenges in coordinating plans, process and resources across teams

• Labour intensive to meet LOB needs: Resource constrained IT departments not meeting simply requests in a timely manner.

Bottom Line

Less Work Better Manageability Faster Time to Value

12

Agenda

Introduction






Business Challenges with HR Reporting & Analytics Solutions

• Delayed decision making – Collecting and relating to fragmented information in

order to form conclusions and drive decisions is labor-intensive

• Complex data administration– Administration of data is people- and time-intensive

– Information analysis requires manual collection and subjective interpretation

• Large number of non-standard reports– Many of these reports have the same purpose, but

different users execute them in different ways

– Reports are transactional and operational in nature (i.e., don’t provide decision-making capability)

– Lack of standardized requirements

Business Expectations from a HR Reporting & Analytics Solution

• Minimize manual effort – No re-entering data to generate reports

• Confidence in the data quality

• Reduce to one point of generation – Eliminate multiple users executing reports

• Allow users to pull their own reports through integrated tools

– Maintaining security policies in a controlled environment (e.g., reporting through the portal)

• Allow users to access reports based on their rolesand authorizations

15

Agenda

Introduction






Tactical/Operational

Detail data that show results of current operations (e.g. employee lists)Information usually required frequently (e.g. daily)Raw data that may be used as a basis for summary analysis and/or to compile metricsData usually real-time coming from the HR transactional system

Analytical

Information analysis over time in comparison to a goal, measurement, or benchmark with decision making capability

Information normally in summary format and may be accompanied by charts and graphs

Data may not be real time

Source for the data maybe from multiple systems

Tactical/Operational vs. Analytical Reporting

17

Agenda

Introduction






HR Information Strategy — A Key Stepping Stone

Information Analysis

Framework

Functionality

HR Information

Strategy

RequirementsanalysisUsability

Technology

Five-Step Process to Create a HR Information Strategy

• Create an aim for your strategy and outline the reporting vision

• Identify the reporting stakeholders (people whom the reporting process affects)

• Identify the reporting tools

• Analyze requirements and map to the reporting tools

• Map tools to the reporting stakeholders

20

Agenda

Introduction






Better Capacity to Manage Your Workforce

Where do you see the greatest potential benefits of workforce analytics?

32%

51%

61%

67%

69%

76%

Higher level of compliance

Improved cost management

Greater ability to justify humancapital investments

Greater return on investmentsin talent management

Improved levels of workforceproductivity

Better capacity tomanage the workforce

0% 10% 20% 30% 40% 50% 60% 70% 80%

APQC Survey, February 2009* Percentages responding ‘4’ and ‘5’ with ‘1’ being “not a challenge” and ‘5’ being a “significant challenge”

Proactive HR Nearly Twice as Likely to Use Analytics

What are your current plans for developing and deploying a workforce analytics capability?

28%

11%

19%

15%

27%

7%

29%

22%22%20%

Currently have asystem in place

Planned in less thatone year

Planned in the next1-2 years

Planned in the next3-5 years

Not planned

HR proactively contributes to strategy All other organizations

0%

5%

10%

15%

20%

25%

30%

35%

APQC Survey, February 2009

23

Agenda

Introduction






WORKFORCE ANALYTICS

IBM Cognos 8 Workforce Performance

Top performers at risk of voluntary

termination

Determine alignment of

employees across divisions

INSIGHT

ManagerExecutive

• Total Head Count• Annualized Turn Over• Total Employee Salary• Workforce Demographics• Head Count Ratios

• Total Head Count• Annualized Turn Over• Total Employee Salary• Workforce Demographics• Head Count Ratios

• Workforce Strength• Talent Acquisition• Talent Development• Talent Retention

• Workforce Strength• Talent Acquisition• Talent Development• Talent Retention

ANALYTICAREA

ROLE

KPI

Offer incentiveto at risk top performers

Alignemployee

activities to contributeto strategy

ACTION

Retain top performers.

Reduce loss of productivity.

Retain top performers.

Reduce loss of productivity.

Increase organizational effectiveness

Increase organizational effectiveness

BENEFIT

SAP

Applications& Blueprints

Access & Interactivity

Universal Capabilities

Business Modeling

PerformanceManagement

Platform

Information Infrastructure

25

Faster Insights; Smarter Decisions

Packaged Business Intelligence

• Standard reports and analysis in minutes

• Self-serve reporting for a broad range of users

Adaptability

• Changes as fast as your business does

• Automates report changes

• Provides continuously relevant content

• Better TCO

Industry-leading BI (IBM Cognos 8)

• Open, enterprise class platform

Insight into Business Drivers

Human Capital Capabilities

WORKFORCE STRENGTHWORKFORCE STRENGTH TALENT ACQUISITION

TALENT ACQUISITION

TALENT DEVELOPMENTTALENT DEVELOPMENT

TALENTRETENTION

TALENTRETENTION

WORKFORCE COMPENSATION

WORKFORCE COMPENSATION

Business Drivers

Analysis DimensionsAnalysis Dimensions

DEMOGRAPHICSDEMOGRAPHICS

DIVERSITYDIVERSITY

EXPERIENCEEXPERIENCE

TOP TALENTTOP TALENT

KEY TALENTKEY TALENT

MANAGEMENT LEVELMANAGEMENT LEVEL

GLOBAL VISIBILITYGLOBAL VISIBILITY

Aging WorkforceAging Workforce Multi-Generational WFMulti-Generational WFWorkforce VisibilityWorkforce Visibility

Strategic DiversityStrategic Diversity And More……And More……Top Talent RetentionTop Talent Retention

Global CompensationDemographic CompensationDiversity CompensationPay for Performance

Global HiringDemographic HiringDiversity Hiring

Global StrengthDemographic StrengthDiversity StrengthTop Talent Strength

Global ProgressionDemographic ProgressionDiversity ProgressionTop Talent ProgressionDiversity Performance

Global TurnoverDemographic TurnoverDiversity TurnoverTop Talent Turnover

Workforce Strength

ANALYSIS PACKAGES INSIGHT TO BUSINESS QUESTIONS METRICS

• What is the global view of our workforce?• Do we have the right mix of people to meet business objectives

optimally?• How has the distribution of headcount in locations varied over

time?• Do we have critical shortages of capacity in key jobs? Where?

Headcount

Active Headcount

Inactive Headcount

Full Time Employee Headcount

Part Time Employee Headcount

Exempt Headcount

Non-Exempt Headcount

Separation Count

Separation Rate

Hire Count

Hire Rate

GLOBALSTRENGTH

• How diverse is our workforce?• Does the diversity in our workforce reflect that of our

customer base?• Does workforce diversity vary by Job? Location?

DIVERSITYSTRENGTH

• What is the age distribution within the workforce?• Do we have the experience required to be successful in key

areas of the business?• What will our workforce age distribution in key jobs look in

3 years? 5 years?• Are we at risk of losing critical capacity in key jobs due to aging

workforce/retirement?

DEMOGRAPHICANALYSIS

• Do we have top talent spread across the organization to support our business strategy?

• Do we have an optimal mix of top talent within key jobs?

TOP TALENTSTRENGTH

Aging Workforce Insight


Talent Acquisition

• Do our hiring practices match our strategy for workforce composition and mix of employment types?

• Are we hiring a significant number of former employees?• How are we doing at hiring new talent for key jobs?• What Employee Level is New Talent coming into

the organization?• Have I increased or decreased my hiring based on

workforce demands?

Hire Count

New Hire Count

Re-Hire Count

Hire Rate

New Hire Rate

Re-Hire Rate

Headcount

Separation Count

Separation Rate

GLOBALHIRING

• How do recent hires impact workforce diversity?• What is our new talent diversity breakdown by age group?• How has our ability to attract a diverse workforce changed over

time?

DIVERSEHIRING

• Are we hiring Talent with the right experience levels?• What is the generation make-up of our new talent?• How has the demographic mix of our talent changed

over time?

DEMOGRAPHICHIRING

Talent Acquisition: Example Insight

How are we doing at Acquiring Key Talent ?


Talent Development

• How are we doing at Promoting Talent throughout the organization?

• How are we doing at promoting talent into key jobs to fill talent gaps? Promotion Count

Promotion Rate

Performance Rating

High Performer Count

Steady Performer Count

Low Performer Count

• Are we promoting talent throughout experience levels?• Are we promoting our new hires?• How have we been increasing or decreasing our progression

based on tenure?

• How are we doing at promoting our diverse workforce?

• What percentage of top performers receive a promotion?

• How do performance ratings vary by location, organization, and jobs?

• How does performance vary over time?

GLOBALPROGRESSION

DEMOGRAPHICPROGRESSION

DIVERSITYPROGRESSION

TOP TALENTPROGRESSION

GLOBAL PERFORMANCE

Talent Development: Example Insight

How are we doing at Promoting Talent?

Talent RetentionANALYSIS PACKAGES

INSIGHT TO BUSINESS QUESTIONS METRICS

Separation Count

Separation Rate

VoluntarySeparation Count

VoluntarySeparation Rate

InvoluntarySeparation Count

InvoluntarySeparation Rate

Headcount

• What is our global workforce turnover?• Are there certain jobs where we have a turnover problem?• Are there certain locations/organizations where we have a

turnover problem?• Have our separations been increasing or decreasing?• Is turnover increasing or decreasing in key jobs?• What is the impact of involuntary terminations on follow-on

termination rates?

GLOBALTURNOVER

• How does our workforce turnover vary by age range? Has our turnover been increasing or decreasing?

• Are there tenure points when talent leaves the Organization? How does this vary by job?

• How are we doing at Retaining New Talent?• What is the reason our talent is leaving? Are we terminating

New Talent or is our New Talent choosing to leave?

DEMOGRAPHICTURNOVER

• How are we doing at retaining our diverse workforce?• Is our ability to retain our diverse workforce getting

better or worse?

DIVERSITYTURNOVER

• How are we doing at retaining Top Talent? How are we doing at retaining Talent at all Performance Levels?

• How are we doing at retaining Top Talent across different Jobs, Locations, and Organizations?

• Why are we losing Top Talent?• Are we retaining Top Talent with experience?• Are we getting better or worse at retaining top talent?

TOP TALENTTURNOVER

Talent Retention: Example Insight

How are we doing at Retaining Key Talent ?

ANALYSIS PACKAGES


Workforce Compensation

• What is our total base compensation?• How does total compensation across locations,

departments and jobs compare to headcount?• How has our compensation changed in

Key Market Locations?• Are changes in compensation due to changes in headcount or

employment type?• How has total base compensation changed over time?

Annual Rate

Compa-Ration

Compensation Change %

Headcount

Hire Rate

GLOBALCOMPENSATION

• Are we providing compensation increases in-line with experience for key jobs?

• Are we providing compensation increases in-line with experience based on Market Locations?

• What is the compensation distribution by experience?• Are we paying higher compensation to attract new hires?

DEMOGRAPHICCOMPENSATION

• Are we providing compensation increase in-linewith performance?

• What is the compensation across diversity groups?• Does compensation across diversity groups vary

by location?• What is the compensation increase across diversity groups?

TOP TALENTCOMPENSATION

DIVERSITYCOMPENSATION

Workforce Compensation: Example Insight

How has our compensation changed in Key Market Locations?

Workforce Performance - Talent Analytics

Business Drivers

Analysis DimensionsAnalysis Dimensions

LEARNING TYPELEARNING TYPE

KEY POSITIONSKEY POSITIONS

SKILL CATEGORYSKILL CATEGORY

LOCATIONSLOCATIONS

ORGANIZATIONORGANIZATION

SOURCE & CHANNELSOURCE & CHANNEL

Acquiring Top TalentAcquiring Top Talent Learning and GrowthLearning and GrowthRetaining Key TalentRetaining Key Talent

Talent Pool ReadinessTalent Pool Readiness ……

SUCCESSIONSUCCESSION

Key Position Analysis

Succession Pipeline

Succession Readiness

TALENT DEVELOPMENTTALENT DEVELOPMENT

Global LearningDevelopment ProgramsLearning CostLearning EffectivenessSkills and Competencies

TALENT ACQUISITIONTALENT ACQUISITION

Talent SourcingTalent Pool AvailabilityCost to AcquireTime to AcquireAcquisition Effectiveness

TALENT RETENTIONTALENT RETENTION

Source & Channel TurnoverSkills & Competency Turnover

Talent Acquisition – Expanding InsightANALYSIS PACKAGES


Global Talent Sourcing

Time to Acquire Talent

Talent Pool Availability

Cost to Acquire Talent

• What is the pipeline for hard to fill positions?• What does my applicant pipeline look like?• How many qualified candidates are available? • Do we have the diversity required to ensure diversity in our hires

and overall workforce?

• What is our recruiting channel & source distribution? How does this vary by Job? By Location?

• How is the mix of recruiting channel & source changing over time?• What is our referral rate? How has this changed over time?• What is the mix of internal vs. external sources for talent?

• Which jobs are taking the longest time to fill?• What is the average time to fill by channel, source and market

location?

Acquisition Effectiveness

• What is our cost per hire?• How does our cost vary by channel and source?• How does this vary by Job and Location?

Acquisition Efficiency

• What is our Conversion Rate by Channel and Source? How does thisvary by Job and Location? Employee Referrals?

• What % of offers are accepted? What are the rejection reasons?• Are we able to hire our first choice candidates?

• What is the average number of requisitions handled by our recruiters?

• Where are the bottlenecks in the requisition process?

Hire Count

Hire Rate

Time to Fill

Time to Start

Open Position Count

Cost per Hire

Conversion Ratio

Offer Acceptance Rate

Requisition Count

Applicant Count

Candidate Count

Time to Acquire TalentWhat’s My Top Ten Recruiting Channels By Time?

Drill down and drill through by channel

and time

Gap analysis of recruiting channels – time to fill and time to start

Compare years and channels

Learn what’s working and what’s not

Email report to LOB or other HR professionals

Talent Development – Expand InsightANALYSIS PACKAGES


Global Learning

Learning Cost

40

• What is the average training and development cost per employee?• What is our annual training cost? By Job, Location, Training Type?

• What is the learning hours taken per FTE? How is this trending?• What is the training delivery distribution (ie. Classroom,

eLearning, etc)? How does this vary by Job and Location?• What is the training type distribution (ie. Technical, Soft Skills,

etc)? How is this changing over time?

Training Hours Taken

Course Success Rate

Training Hours Planned

Program Enrollment

Abandonment Rate

% Trained

Certification Count

Avg. Courses Per Employee

Learning Expense

Training Investment Factor

Learning Test Score

Learning Type Count

Skill CountLearning Effectiveness

Skills & Competencies

Development Programs

• Who is enrolled in a Development Program?• What percentage of managers have completed Leadership

Development training? • What % of employees have development plans?

• What skills do we have in our organization?• How many learners have received certifications? • Where are we increasing skill proficiency? How is this changing

over time?• How many employees have a specific competency and at what

level?

• What is our course success rate? How is this trending?• What is our average proficiency?• What is our learner satisfaction?• What is the average learner test score?• What is out training abandonment rate?

Learning CostsWhat Are My Top Ten Job Positions for Training Costs?

Easy to use prompt process

Drill down into functional areas or provide a corporate view

What are my training costs by department

Easy to use prompt process

Export to different formats – PDF, Excel and more

Talent Development – Expand Insight

ANALYSIS PACKAGES


Performance Impact -Learning

• What are the performance ratings per learner? • Does Learning Impact employee performance

Performance Impact -Recruiting

Progression Impact -Learning • How does training affect employee promotions?

Progression Impact -Recruiting

• What recruiting sources provide the highest performing employees?

• What is the average performance at specific tenure periods (6 months, 1 year) by Recruiting Channel and Source.

• Do Referred Hires perform better, worse or the same as non-referred Hires?

• What Channels and Sources provide talent that progresses quickly in the organization?

• How has the progression changed over time?• How does progression vary by location and job?


Course Success Rate

Training Hours Planned

Program Enrollment

Abandonment Rate

% Trained

Certification Count

Avg. Courses Per Employee

Learning Expense

Training Investment Factor

Learning Test Score

Learning Type Count

Skill Count

Promotions by JobWhat Are the Top Ten Promotion Counts by Department?

Variance analysis by time and department

Time variance by actuals and percentage

Insight into different promotions within departments

Drill down into specific departments

Email report to LOB

Succession – Expand Insight

ANALYSIS PACKAGES


Key Position Analysis

Succession Pipeline • What % of key positions have successors identified?• How many successors have multiple successors?

• What are our key positions?

• What % of key positions are currently filled

Succession Readiness • How much training have identified successors taken?• Have successors completed required development programs?

Key Position Count

Successor Count

Headcount

Course Completion Count

Development Program Completion

Count


Talent Retention – Expand Insight

ANALYSIS PACKAGES


Source and Channel Turnover

Skills and Competency Turnover

• Does Development Program enrollment impact retention?• What skills/certifications/competencies are we losing as a result

of turnover?• Does training impact retention?• What is the impact of certifications achieved on Turnover?

• What recruiting sources provide talent that stays the longest?

• What is our first year turnover by Recruiter?

• How are we retaining talent based on Internal / External hiring?

• Do Referred Hires stay with the organization longer, shorter or the same as non-referred Hires?

Separation Count

Separation Rate

Voluntary Separation Count

Voluntary Separation Rate

Involuntary Separation Count

Involuntary Separation Rate

Headcount

Talent RetentionWhat Are My Separation Rates by Service Ranges?

Drill down in the year and service ranges Assess departmental separation rate by

length of service

Gain insight into time separation trends and trajectory

Drill down and through via service ranges

What is different?

Ad-hoc Query

Analysis

Dashboards

Scorecards

GeneratedInteractive Operational and

Analytic Reports

Generated Warehouse

Generated ETL Code

HR BUSINESS ANALYST

HR BUSINESS ANALYST

EXECUTIVES & MGMT

HR SPECIALIST EXECUTIVES & MGMT

HR SPECIALIST

PREBUILT CONNECTORS

CONFIGURABLESOURCES

CONFIGURABLESOURCES

And More…CompensationAnd More…Recruiting &

StaffingSAP

Generated Semantic Layer

Thank You

smarter information for your hr organization · 2010-02-15 · smarter information for your hr...

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