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Predictive analytics creating actionable insights - ABN AMRO

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Analytics - Day 2 - HR Tech World Congress 2015 Paris

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Predictive analytics creating actionable insights - ABN AMRO

  1. 1. Predictive analytics – creating actionable insights Predictive HR analytics – creating actionable insights Patrick Coolen
  2. 2. 2 Why HR analytics @ ABN AMRO 1. Business is demanding more … • HR Return on investment • Impact (benefits) of HR 2. HR is moving towards fact-based decision making 3. Technology is improving… • HR IT landscape • Analytics on demand Business goals Business impact HR ROI Information TechnologyFact-based HR
  3. 3. HR analytics – maturity model You can start here!
  4. 4. Some of our research Retail – customer satisfaction, quality and revenue Engagement – vision & direction, client focus, fair treatment IT – Long term and short term sick leave Leadership program - Effectiveness Large corporates – Team effectiveness on business IT operations / call centre – Average Handling Time and satisfaction Commercial clients – Net promoter score and ‘trusted advisor’ Private Banking – Client Satisfaction, client acquisition and revenue Vitality program – Effectiveness
  5. 5. 5 Combine HR and Business data Engagement •Total score •Vision & Direction •Client Focus •Training & development •Job Challenge Individual characteristics •Age •Gender •Appraisal score •Potential score •Level •Job title •Competenties HR themes •Gender ratio •Leadership index •Group mobility •Temp ratio Client satisfaction (more then 100k records incl. open questions) Products sold (offerings approved by client) Quality of advice (Independent score by Internal quality desk) Net income growth (individual net growth of client portfolio) Client satisfaction (Net promoter scores) New customers (Individual new customers acquired) Revenue (Individual revenue on customer) Revenue (relative) (Individual revenue on customer corrected for size) Create your own variables!
  6. 6. 6 Some examples Engagement index Net growth Products sold Absenteeism Vision and direction Client focus Gender diversity Trust from immediate manager Discussion on Risk issues Age diversity Part of reorganisation Client satisfaction Involvement Expertise Trusted advisor Client centricity Credibility
  7. 7. 7 Some more examples Client satisfaction Products sold Trusted advisor score Net growth TOP PERFORMERS Age diversity HIGH Credibility HIGH Absenteeism LOW Trust from Immediate mgr HIGH Client focus HIGH LOW PERFORMERS Engamgent MEDIUM Involvement MEDIUM Trust from Immediate mgr LOW Gender diversity LOW Vision & Direction LOW
  8. 8. 10 golden rules for HR analytics 1. Strategic workforce planning and HR analytics 2. Combine analytics and intuition 3. Make analytics business relevant and actionable 4. Involve compliance and legal 5. Think of the skills you need 6. Start small and be realistic 9. Preach analytics 10. Teach analytics 7. Try (when ready) self service analytics 8. Understand the models and its outcomes
  9. 9. It is about a balanced blend of skills HR analytics 5. Think about the skills you need
  10. 10. The next big thing in HR analytics Easy to use Quickly exploring data Methods on demand Insights on demand Visualisation on demand Predictive simulation on demand 7. Try (when ready) self service analytics
  11. 11. 8. Understand your models and its outcome Approach Technique How? Clustering (understanding hidden group patterns) • Cluster analysis Clustering based on multiple employee characteristics Driver Analysis (understandig hidden relationships) • Correlation • Linear Regression • Random Forest • Decision Trees • Structural Equation Modeling • Correlation matrixes showing relationships • Regression, Random Forest & Decision Trees to isolate effects Risk Scoring or Analysis (understanding probabilities) • Logistic Regression • Classification Creating risk scoring tables and Turnover Risk heat maps and assessing the likelihood of occurring events Forecasting (understanding future trends) • Time Series Developing future trend lines, based on historical patterns
  12. 12. www.inostix.com