1. 2016 HR FLORIDA CONFERENCE & EXPO

2. Achieving Strategic Influence with HR Analytics
2016 HR FLORIDA CONFERENCE & EXPO
Achieving Strategic Influence with HR Analytics
Whitney Herrington

3. Learning objectives 2016 HR FLORIDA CONFERENCE & EXPO
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

4. Challenges HR faces 2016 HR FLORIDA CONFERENCE & EXPO
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

5. Changing the narrative of HR
2016 HR FLORIDA CONFERENCE & EXPO
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

6. What are HR analytics? 2016 HR FLORIDA CONFERENCE & EXPO
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

7. Winning through HR analytics
2016 HR FLORIDA CONFERENCE & EXPO
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

8. Identify trends and benchmarks
2016 HR FLORIDA CONFERENCE & EXPO
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

9. How to use HR analytics 2016 HR FLORIDA CONFERENCE & EXPO
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.

10. How to use: Identify the question (i)
2016 HR FLORIDA CONFERENCE & EXPO
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

11. How to use: Mastering the data (m)
2016 HR FLORIDA CONFERENCE & EXPO
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

12. How to use: Tell the story (p-a-c-t)
2016 HR FLORIDA CONFERENCE & EXPO
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?

13. HR analytics: Case studies
2016 HR FLORIDA CONFERENCE & EXPO
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

14. HR analytics: Case studies
2016 HR FLORIDA CONFERENCE & EXPO
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

15. HR analytics: Case studies
2016 HR FLORIDA CONFERENCE & EXPO
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

16. HR Analytics in Practice
2016 HR FLORIDA CONFERENCE & EXPO
HR Analytics in Practice

17. HR Analytics in Practice
2016 HR FLORIDA CONFERENCE & EXPO
HR Analytics in Practice

18. HR analytics: Questions/Follow-up
2016 HR FLORIDA CONFERENCE & EXPO