2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org

Achieving Strategic Influence with HR Analytics 2016 HR FLORIDA CONFERENCE & EXPO Achieving Strategic Influence with HR Analytics Whitney Herrington www.hrflorida.org

Learning objectives 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org Learning objectives This session will help you: Understand why strategic influence by HR is important in organizations Understand what HR analytics are and how they are used successfully in organizations Learn how to use HR analytics to influence strategic decisions

Challenges HR faces 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org Challenges HR faces Historical perception of personnel management -transactional and administrative Lack of credibility to link people management to overall organization strategy and decision making Tendency to base decisions on intuition, past experience, or advice of others than on data and analysis Lack of technical analytical skills Inability to present findings and recommendations in a manner and language convincing to senior executives

Changing the narrative of HR 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org Changing the narrative of HR Human talent is becoming the priority in organizational strategy and driving results Executives are starting to understand the need and benefits of data analytics in HR HR leaders are required to be more strategic and innovative and partners with other leaders in the organization HRIS are more robust at collecting data and collaborative with other business data tools and software

What are HR analytics? 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org What are HR analytics? HR analytics are the process of integrating data into human resource management to optimize organizational efficiency and drive strategy.1 Though it has existed for decades, HR analytics have become a hot topic/trend over the past 5-6 years Include reporting, benchmarking, metric, scorecards, trending, correlations Focus on linking people management with organization-wide strategic planning 1 Definition per the Economic Intelligence Unit

Winning through HR analytics 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org Winning through HR analytics According to research by MIT and IBM, top-performing companies are 3x more likely than lower performers to be users of analytics Source: Oracle – The Next Frontier in HR Analytics 2015

Identify trends and benchmarks 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org Identify trends and benchmarks Be one step ahead – HR will need to know where the organization is heading, what kind of talent is needed, and how to retain, engage, and get the most from that talent: Talent Management – Correlate new hire performance and attrition with recruiting data from applicant tracking systems to better assess quality of hires Development – Combine learning with employee skills and performance to assess the impact of learning investments Attrition and Loyalty – track headcount trends that assess flow of workforce from hires, transfers, terminations, or organization restructures Source: Oracle – The Next Frontier in HR Analytics 2015

How to use HR analytics 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org How to use HR analytics Analytics IMPACT Cycle: Identify the question Master the data Provide the meaning Actionable recommendations Communicate Insights Track outcomes Identify the question: In a nonintrusive way, help your business partner identify the critical business question(s) he or she needs help in answering. Master the data: This is the analyst’s sweet spot — assembling, analyzing, and synthesizing all available information that will help in answering the critical business question Provide the meaning: Articulate clear and concise interpretations of the data and visuals in the context of the critical business questions that were identified. Actionable recommendations: Provide thoughtful business recommendations based on your interpretation of the data. Communicate insights: Focus on a multi-pronged communication strategy that will get your insights as far and as wide into the organization as possible. Track outcomes: Set up a way to track the impact of your insights.

How to use: Identify the question (i) 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org How to use: Identify the question (i) Are we maintaining a diverse workforce? Are we paying our workers competitively? Are we hiring high-performance employees? Are we hiring according to plan? How do we retain talent? What skills do we need? Which recruiting sources provide the highest quality employees? Where are staffing risks in the future? Why are our benefit costs growing so rapidly? What is the make up of our workforce? How do we engage each group the best? Source: Oracle – The Next Frontier in HR Analytics 2015

How to use: Mastering the data (m) 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org How to use: Mastering the data (m) There are several tools available to capture people data and analyze it: HRIS systems (PeopleSoft, ADP, etc.) Financial management systems (SAP, Salesforce, etc.) Microsoft Excel, Tableau, many other analytics visualization tools HR teams need to determine how to acquire analytical skills: Develop skills internally through extensive training Hire skillset from analytical background External assistance through consultants

How to use: Tell the story (p-a-c-t) 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org How to use: Tell the story (p-a-c-t) What is your goal? Identify and know your audience? What do you want your audience to do, or be persuaded about? What is your message? What are the key points? What parts aren’t needed? What do you know about them that suggests a particular story? What will resonate with them? What details will build drama memorability or increase the influence the story provides?

HR analytics: Case studies 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org HR analytics: Case studies Companies are using HR analytics in several different ways: Understanding turnover and the workforce Large technology company YOY turnover percentage increased dramatically Age analysis showed large make-up of workforce under 35 and over 50 Accumulated data on termination reasons through exit interviews Correlated turnover with age to see that younger workforce turned over more Correlated exit interview data with this group to see that organization had lack of development/advancement opportunities and issues with management

HR analytics: Case studies 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org HR analytics: Case studies Companies are using HR analytics in several different ways: Linking high tenure to recruiting efforts Mid-sized law firm Maintained high tenure for attorneys across the organization Tracked data on law school of staff and years of experience in law field Correlated law school and experience with highest tenured attorneys Found common themes in certain law schools and that the most tenured employees had 5-7 year of experience before hire Focusing recruiting efforts on graduates of identified law schools, referrals from network of tenured staff, and candidates with 5-7 years of experience

HR analytics: Case studies 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org HR analytics: Case studies Companies are using HR analytics in several different ways: Managing increasing recruitment costs Consumer-packaged goods company Significant increase in recruitment costs across the board for expanding business unit Tracked details on recruitment expenses Found increase in job board posting for niche industries Utilized applicant-tracking system to see high and low performing sources for hires Discontinued low performing sources for reduction in costs with little impact on time-to-fill

HR Analytics in Practice 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org HR Analytics in Practice

HR Analytics in Practice 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org HR Analytics in Practice

HR analytics: Questions/Follow-up 2016 HR FLORIDA CONFERENCE & EXPO www.hrflorida.org