The Insider's Guide to Workforce Analytics

visier l analytic applications for peopleVisier l analytic applications for people
INSIDER’S GUIDE TO WORKFORCE
ANALYTICS
Dave Weisbeck, CSO, Visier
Wednesday, March 5th, 3pm ET / 12pm PT

visier l analytic applications for people
 Founded analytic industry veterans including former Business Objects
CEO, John Schwarz
 Won both HR Executives Top HR Product, and named Awesome New
Technology at HR Technology conference
 The only complete cloud-based workforce analytics and planning solution
that integrates your data, answers best-practice questions and has you
productive in 4-8 weeks
Smart. Intuitive. Complete.
Workforce Analytics & Planning.

TODAY’S AGENDA
1. A framework : key terms and definitions
2. Examples of metrics and analytics
3. How to measure “workforce analytics maturity”
4. Common approaches to workforce analytics
5. Case study examples of analytics in action

POLL QUESTION - WHERE ARE YOU TODAY?
Over the next 12 months, your organization is:
1. Looking at workforce analytics for the first time (just starting)
2. Researching workforce analytics approaches (learning more)
3. Evaluating workforce analytic solutions (considering options)
4. Expanding existing workforce analytics (changing approaches)
5. Implementing a new workforce analytics solution (overhauling)

KEY TERMS

DEFINITIONS
METRIC
ANALYTICS
A system of measurement that seeks to quantify performance.
The systematic computational analysis of data or statistics.

THE TACTICS
Data Discovery – data navigation and guided
exploration that allows for exploring data to find
answers to questions
Monitoring – to provide an at-a-glance way to
see a summarized view of multiple metrics
Publishing – formatted content regularly created
for and consumed by stakeholders
TACTIC
Report
Query &
Analysis
Dashboard
Metric Measuring – A of measurement that seeks to
quantify performance
PURPOSE

TACTICS, STRATEGIES AND GOALS
We create and use:
• Reports
• Dashboards
• Metrics
To enable better
decisions about the
workforce
So that, we can
improve business
outcomes
TACTIC STRATEGY GOAL
A N A L Y T I C S

MOVING BEYOND TACTICS
TACTICS
 Measure single data points
 Provide information - what
 Guide operations
 State past and present
 Tabular outputs of counts and
rates
ANALYTICS
 Connect multiple data points
 Provide insights - why
 Drive strategy
 State past, present, and
predict the future
 Visual outputs of patterns and
trends

EXAMPLES OF ANALYTICS

RECRUITING EFFECTIVENESS
“Recruitment is the HR
function that has the most
positive impact on revenue
creation and profitability…”
Boston Consulting Group
From Capability to Profitability
July 2012

COMMON RECRUITING METRICS
Common Metrics
 Time to Fill
 Open Requisitions
 Cost to Hire
 Quota Attainment
Shortcomings
 Do not answer strategic questions about quality and value
 Do not provide insight into hiring connections to productivity (revenue
creation and profitability)

BEST PRACTICE ANALYTICS

TALENT RETENTION
“Voluntary Resignations
are at a 5-year high.”
Bureau of Labor Statistics
Job Openings and Labor Turnover Survey
October 2013

COMMON TALENT RETENTION METRICS
Common Metrics
 Turnover
 Turnover
and…
 Turnover
Shortcomings
 Does not provide insight into why resignations are occurring
 Does not allow for meaningful preventative action
 Not all turnover is bad!

CONNECTING TO BUSINESS THROUGH COSTSCOST($)
TURNOVER RATE
Cost of Turnover
(replacement)
Cost of Retention
Financial Benefit
of Replacing
Financial Benefit
of Retaining
OptimalTurnover

Analytic Value
Turnover segmentation 1. Break turnover into segments of involuntary, voluntary,
resignations and retirements, but also segment employee
base to understand what is regrettable turnover.
Cost of Turnover 2. Determine the costs associated with turnover so the
organization can determine the appropriate level of turnover,
and properly fund programs to reduce (or increase) turnover.
Predicting the risk of exit 3. Identify employees at risk of leaving, based on analysis of key
characteristics of past resignations, and take action to
prevent top talent from leaving before they are out the door
Resignation drivers 4. Determine what factors increase and decrease resignations,
more effectively targeting and fine tuning retention
strategies
Resignation correlations 5. Correlate resignation with factors such as compa-ratio,
promotion wait time, pay increases, training opportunities,
and so forth, to make better and more cost effective
decisions around changes to pay, benefits, and employee
development

TOTAL COST OF WORKFORCE
“Total workforce costs
average nearly 70% of a
company’s operating
expenses.”
Society for Human Resources Management

COMMON COMPENSATION METRICS
Shortcomings
 Do not support strategic decisions about compensation
 Do not identify areas for optimization
Common Metrics
 Salaries
 Total Direct Compensation
 Market Compensation Ratio
 Compa Ratio

WHERE TO START?
Direct
Compensation
Indirect
Compensation
Deferred
Compensation
Contingent
Labor Costs
Create a Cost Hierarchy:
Total Cost of Workforce (TCoW)
o Total Salaries
o Total Benefits
 Direct Compensation
 Contingent Labor
Costs
Build from the bottom
(right to left on this diagram)
Total Cost of
Workforce
(TCoW)

Total Cost of Workforce 1. Understand the true cost of the workforce which allows
any changes to the workforce in support of the business
strategy to be measured. Provides a basis for comparing
workforce costs to the competition.
Workforce Cost
Segmentation
2. Identify the direct, indirect, contingent, benefits, leave,
equity, etc. costs associated with the workforce so that
the various cost impacts can be compared to determine
where to focus to reduce costs, invest to attract talent,
etc.
Employment movement
impacts on compensation
3. Understand how entries to and exits from an organization
impact the total compensation expenses

BUILD COSTS INTO YOUR PLANS

EMPLOYEE MOVEMENT
 Structure is the organizational hierarchy, distribution of work,
and business units
 Network is the relationships and connections between people
within the organization
 No matter how correct your structure, if the network is missing
your organization will not perform at its best
Structure Network Organization

COMMON MOVEMENT METRICS
Common Metrics
 Headcount and/or FTE
 Turnover
 Internal Moves
 External Hires
Shortcomings
 Do not provide insight into
impact of employee
movement
 Do not correlate movement to
other factors

Analytic Value
Movement in and out of
organizational units
1. Ensure the business units that make the most difference
to your business are increasing in talent quality, and not
experiencing “brain drain”
Build versus buy 2. Track promotions, lateral moves, and the relative
performance of individuals to achieve better results at a
lower overall workforce cost – internal candidates often
perform better more quickly and stay longer than “stars”
who are parachuted in from outside
Leadership and succession
modeling
3. Tracking employee movement, promotions, and key
skills/experience provides insight into the organizational
pathways that have developed your top talent, and allow
you to identify other likely succession candidates –
research by Jac Fitz-Enz found a direct correlation
between better succession management and revenue

MEASURING “WORKFORCE ANALYTICS MATURITY”

BERSIN’S TALENT ANALYTICS MATURITY MODEL
Level 1: Reactive – Operational Reporting
Ad hoc, reactionary
Level 2: Proactive – Advanced Reporting
Routine, benchmarking, dashboards
Level 3: Strategic Analytics
Segmentation, analysis, people models
Level 4: Predictive Analytics
Predictive models, scenario planning
Source: Bersin by Deloitte 2013
56%
4%
10%
30%

A MAP TO WORKFORCE ANALYTICS MATURITY
Self-serve
Analysis
PredictiveDashboardsReporting
Level 1:
Reactive
Level 2:
Standardized
Level 3:
Focused
Level 4:
Strategic
Reach in Data
and Users
Assess Maturity
Model Status
Analytic
Capabilities
Core HRIS
Data
Performance
Data
Compensation All Talent
Data
Business
Data
Recruiting
Executives HR Department Business Leaders All People LeadersAnalysts
Business Impact

WORKFORCE ANALYTICS MASTER PROFILE
Reactive Standardized Focused Strategic
Path to maturity
OperationaltoStrategic
“Get it done”
“Be Consistent”
“Aligned with
the business”
“Drive the
business”

Limited linkage
between various
systems
Multi-system
integration
MATURITY MODEL
• One off
reports
• Highly manual
• Spreadsheet-
based
• Predictive
analytics align
to specific
business
strategy
• Single data
source
• Consistent
scheduled
reports
• Business-
specific
dashboards
and visuals
• On-demand
answers
Get it done.
Drive the
business.
Be consistent.
Align with the
business.
Analytic
Capabilities
Focus
Single System Big Data
Analysts
All People
Leaders
HR & Executive
Leaders
Business & HR
Leaders
Reach in Data
Reach in Users
Reactive StrategicStandardized FocusedLevel

COMMON APPROACHES

ANALYTICS LANDSCAPEHRDomainSpecificity
Analytics Capabilities
HR CORE APPLICATIONS
• Operational / transactional
metrics and reports
• Standardized
• Self-service options
• Application-specific data
SPREADSHEET SOLUTION
• Manually created
• Non-standardized
• Prone to error
• No self-service
BUSINESS INTELLIGENCE SOLUTION
• Expensive and lengthy to
implement and update
• Requires IT expertise
• Requires data warehouse
• Designed for technical user,
rather than business user
WORKFORCE ANALYTICS
• Purpose-built for workforce
analytics
• Short implementation
• Possibly skip data warehouse
• Designed for HR and the business

ANALYTICS LANDSCAPEHRDomainSpecificity
Analytics Capabilities
HR CORE APPLICATIONS
• Operational / transactional
metrics and reports
• Standardized
• Self-service options
• Application-specific data
SPREADSHEET SOLUTION
• Manually created
• Non-standardized
• Prone to error
• No self-service
BUSINESS INTELLIGENCE SOLUTION
• Expensive and lengthy to
implement and update
• Requires IT expertise
• Requires data warehouse
• Designed for technical user,
rather than business user
WORKFORCE ANALYTICS
• Purpose-built for workforce
analytics
• Short implementation
• Possibly skip data warehouse
• Designed for HR and the business
BAD
REACTIVE

Buy & Deploy
ETL Tools
Buy & Deploy
Warehouse
Build
Warehouse
12-36 months
Buy &
Deploy BI
Platform
interview
users
map data
to BI
model
interview
users
build reports
& dashboards
I need a new report,
and new questions! And
how do I plan?
deliver
analytics
START HERE
END HERE
18-40 months
HIGH FAILURE RATES OF BI:
“… More Than 50 Percent of Data
Warehouse Projects Will Have Limited
Acceptance or Will Be Failures”
“Between 70% to 80% of corporate
business intelligence projects fail…”
Gartner
HIGH COST OF BI PROJECTS:
“… survey put average price for a data
warehouse at $2.3M and average
payback at 2.3 years.”
“…time to implement [a data warehouse]
ranges from 12 to 36 months”
IDC
Services for
Analytic
Content
BUSINESS INTELLIGENCE (BI) CHALLENGE

CASE STUDIES: ANALYTICS IN ACTION

CONAGRA FOODS
Challenges
 Numerous, manually-created reports
 Complex HRIS with limited analytics capabilities
 Home-grown analytics solution that could not keep up with
demand
 Changing workforce data that was difficult to access
Solution
 Visier Workforce Analytics
Results
 30 day implementation
 Delivers self-service analytics, with over 300 workforce
answers, out of the box
 Fact-based decision making and initiatives:
– Identified attrition most at risk for people with a specific age,
ethnicity, gender, and tenure profile
– Predicted turnover was at risk of increasing for successor-
level positions
Download at www.visier.com

INFORMATICA
Challenges
 Workforce data in a limited, tabular format
 Difficult to produce workforce analytics,
requiring IT time and expense
 Operational reporting from Workday (vs.
strategic)
Solution
 Visier Workforce Analytics
Results
 Self-service analytics for the whole business
 Removal of dependency on IT
 Actionable insights, based on predictive
analytics
Download at www.visier.com

Plus additional reports and on-
demand videos on:
 Case Studies
 Whitepapers
 From HR Metrics to Analytics
 Big Data for HR
 And others…
Download these reports, on-demand
webinars and more here:
http://www.visier.com/resources/
Where to learn more…
Five Steps to Getting Started with
Workforce Analytics
Find out how you can simplify and
accelerate your journey from HR metrics to
workforce analytics.
Watch the Recorded Webinars and
Hear from ConAgra Foods and
Informatica Directly
Mark Berry, VP People Insights ConAgra
Foods
Kumud Kokal, Sr. Director HR Technology
and Operations Informatica

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