Increasing the value of hr through predictive analytics for hr practitioners

Increasing the Value of HR
through Predictive Analytics
- For HR Practitioners

Sharing By:
Louis Chin
Director, HR
Morphos International
Empowering Breakthrough Growth!
All Rights Reserved © Copyright 2013 Morphos International Pte Ltd. (Co Reg. 200813240N) 1
: (+65) 6749 5850 / (+65) 8198 6381 : louis@morphos-intl.com : www.morphos-intl.com

What if you knew that…
• Purchasing $10,000 worth of shares during Microsoft’s IPO
would make you a millionaire today
• Google can make a lot of money from the internet before it
became what it is today
• The liquidity crises in 2008 will cause asset prices to drop
significantly to the benefit of those with surplus cash

You will make quality decisions that will make you and those
around you very rich indeed.


As for HR, what if you knew that…
• Hiring that candidate across the table will lead to the creation
of one of the best selling product lines in your company’s
history
• The high-performing working mum is not looking for more
financial incentive, but would continue working with you if
there were telecommuting options
• The problem lies not in the motivation of the sales team, but
the conflicting directions set by senior managers

You will make quality decisions that will make you and those
around you very rich indeed.


How can we know?

Hindsight Insight Foresight

1. Gain insights from our past (hindsight). Observe patterns
of behaviours and outcomes and uncover areas we might
have missed.

2. Through the insights gained from the understanding of
the past and current situations, we can form predictive
data-driven models, bringing more reliable foresight.


People Analytics

Gather Data Make Sense Develop
of the Data Predictive
Models

The analytics approach is formed on the basis that accurate
people decisions are the most important and impactful
decisions of a company. You cannot build a great business if
your managers are making inaccurate people decisions.


Steps in Analytics
1 Record Documenting Operations
• Involves the HR having to make use of templates to create job descriptions, process payroll and
leave, and other routine paperwork.

2 Relate Linking Operations to Organisation Goals
• Involves the HR having to align both quantitative and qualitative measurements to organisational
objectives.

3 Compare Benchmarking the Metrics
• Involves the HR benchmarking the metrics to competitors and best practices in the industry to
assess competitiveness

4 Understand Analysing the Behaviours and Outcomes for Patterns
• Involves descriptive analysis of the behaviours and outcomes to understand the relationships
and differences between the variables

5 Predict Creating Meaning from Analysis to Develop Strategic Moves
• Involves the prescriptive analysis of the relationships and differences to apply into the strategic
direction of the company


Relative Value of the Steps
High

Relative
Value

Low
Recording about Relating to Comparing to Understanding Predicting future
work organisation benchmarks past behaviours behaviours and
goals and outcomes outcomes


Case in Point:
• Google stock price has since broken the $800 barrier, making
it one of the top 3 most valuable firms in the world.
• Unlike other top companies who could attribute their success
to “reputation”, “established product brand” or
“acquisitions”, Google’s market success can be attributed to
“extraordinary people managed in an extraordinary way”
• The extraordinary efforts have earned Google many notable
awards, including “Fortune Magazine’s #1 on 100 Best
Companies to Work For”, a title which Google held for many
years


Selected Highlights on
People Analytics at Google:
• An effective hiring algorithm – Google developed an algorithm for predicting
which candidates had the highest probability of succeeding after they are hired.
Its research also determined that little value was added beyond four
interviews, dramatically shortening time to hire.
• Calculating the value of top performers – Google executives have calculated the
performance differential between an exceptional technologist and an average one
(as much as 300 times higher). Proving the value of top performers convinces
executives to provide the resources necessary to hire, retain, and develop
extraordinary talent.
• Predictive modeling – People management is forward looking at Google. As a
result, it develops predictive models and use “what if” analysis to continually
improve their forecasts of upcoming people management problems and
opportunities. It also uses analytics to produce more effective workforce
planning, which is essential in a rapidly growing and changing firm.

From: http://www.tlnt.com/2013/02/26/how-google-is-using-people-analytics-to-completely-reinvent-hr/


Know Your People,
Harness Their Potential
“Accurate people decisions are the most important
and impactful decisions of a company.”

We can help you make that happen.
Morphos Transformation Process is specially designed to not only to gather critical data
for effective decision making, but to also support the implementation of the people decision,
with the guidance of our experienced HR consultants.

Alignment and Coaching and Co-creation
Awakening Consultancy Collaboration


Contact us for a non-
obligatory, complementary
consultation
Office: (+65) 6749 5850
Mobile: (+65) 8198 6381
Email: louis@morphos-intl.com

Louis Chin

Coaching Regional Network
Training of Certified
Consulting Practitioners

Morphos
International

Website: www.morphos-intl.com
Facebook: http://on.fb.me/VM7OmV
Email: louis@morphos-intl.com

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