People Analytics: State of the Market - Top Ten List

• State of the Market
Josh Bersin
Principal and Founder
Bersin by Deloitte
October, 2015
People Analytics
State of the Market

The Geeks have arrived … but are we really there yet?

Copyright © 2015 Deloitte Development LLC. All rights reserved.3 People Analytics: State of the Market – Josh Bersin
People Analytics: State of the Market
1. People Analytics is even more important than we thought.
2. The market will grow exponentially, but we are still in the early days.
3. Companies still don’t understand what this “IS” and what it “ISNT”
4. Data Management remains the biggest barrier.
5. Modelling is valuable, but implementing the model is key.
6. Tools and platforms are here, but still no Unicorns or Gorillas.
7. Geeks will rule this world, but not by themselves.
8. Humans have become the “internet of things” and open feedback has arrived
9. Your middle name will become “security and anonymity”
10. It’s still early days, we have to work together.
Ten Things I’ve Learned

Culture and engagement
Leadership gaps
Learning and development
HR Skills and capability
87%
86%
86%
80%
% VERY IMPORTANT
50%
51%
40%
39%
35%
34%
29%
26%
20%
14%
Top Business and HR Trends
Deloitte Human Capital Trends- Culture is #1
Workforce capability
Performance management
HR and people analytics
Simplifying work
Machines as talent
People data everywhere
71%
57%
52%
80%
75%
75%
#1. People Analytics is even more important than we thought.

Copyright © 2015 Deloitte Development LLC. All rights reserved.5 People Analytics: State of the Market – Josh Bersin Copyright © 2015 Deloitte Development LLC. All rights reserved.5 Global Human Capital Trends 2015
Barriers
between
work
and life
dissolve
Talent
in high
demand
Millennials
make up
50% of workforce
Global
transparency
in job
market

Transparency is here
Companies are swimming naked
60% of HR and business leaders do not
have an adequate program to measure and
improve engagement.
Only 12% have a program in place to define
and improve culture.
Only 7% rate themselves excellent and
driving and improving retention

Average
3.1
What are these
companies
doing??
Glassdoor Data
Employee engagement: it’s not easy.

Exploding role of culture
“Culture” is the New Black
<5% of candidates value
compensation over
culture
95% of candidates
believe culture is more
important than
compensation

Culture, Value, Leadership, and Career (The Big Four)
The issues that matter to employees
0.00
0.12
0.13
0.22
0.28
0.30
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35
Year founded (age)
Compensation & benefits
Work life balance
Career opportunities
Senior leadership
Culture and values
Correlation of Employment Factors to Glassdoor Recommendations as Place to Work
Culture and leadership are 3X more
important than salary in your
employment brand.
Career development and learning
are almost 2X more important than
work environment.

HR and people analytics
We appear to be stuck in neutral
No major year-
over-year improvement
in analytics capabilities
Yet, 31% have
increased staff, and
19% are buying new
tools.
of
respondents
rate analytics
important.. but
only 8% are
“strong”
75%
#2. The market will grow exponentially, but we are still in the early days.

People Analytics
Exponential growth starts slow
Maybe we
are about
here

There is historic precedent for this market.
In 1900 Taylor demonstrated the first
“data driven” approach to steel
manufacturing, driving output from 7
to 50 bars per day.

Then we realized people were capable of learning
Personality matters
“Worker Selection”
In 1920s Jung realized that “how
people think” and how they interact
with other creates engagement,
performance, and happiness.
Resulting in MBTI.

WW1: Testing Goes Mainstream

1930s Hawthorne Studies

1950s Assessment Centers

1960s-70s HR Data Warehouse

1970s-80s ATS Parses Candidate Data

2000s: Big Data meets Talent Management

Today: Instrument Everyone and Everything!
Location
Location
Travel
HeartrateLocation
Heartrate
Biology
Location
Team
Mates
Location
Emails
Phone calls
Today: Instrument Everything

Learning from History of Business Analytics
Logistics &
Purchasing
Financial &
Budgeting
ERP &
Supply Chain
Finance & ERP
Customer Analytics
(Data Warehouse)
Customer
Segmentation
Market Basket
Web Buying
Behavior
Consumer & CRM
Recruiting
Learning
Performance
Talent Mgt
Workforce
Planning
Predictive
Models for
Talent / HR
Talent, Leadership, HR
v
Industrial Economy Financial Economy Customer Economy and Web Talent Economy
Early 1900s 1950s–60s 1970s–80s Today
Steel, Oil, Railroads Conglomerates,
Financial Engineering
Customer Segmentation,
Personalized Products
Globalization, Demographics
Skills and Leadership Shortages

The context of people analytics has changed
Recruiting &
Workforce
Planning
Comp and
Benefits,
Rewards
Performance
Succession
Engagement
Learning &
Leadership
HRMS
Employee
Data
Engagement &
Assessment
+
Sales Revenue
Productivity
Customer
Retention
Product Mix
Accidents,
Errors, and Fraud
Quality
Downtime
Losses
Groundbreaking new insights and tools for
managers to make better decisions (not HR)
Data management, Analytics, IT,
and Business Consulting Expertise
+
=
This is NOT HR ANALYTICS!@
#3 Companies still don’t understand what this “IS” and what it “ISNT”.
Location,
Travel,
Meeting Time
Organizational
Network Analysis
Sentiment, Heart
rate, Voice
+

Bersin Talent Analytics Maturity Model
4%
Level 4: Predictive Analytics
• Development of predictive models, scenario planning
• Risk analysis, integration with workforce planning
10%
Level 3: Advanced Analytics
• Segmentation, statistical analysis, development of “people models”
• Analysis of dimensions to understand cause, correlation, dimension
30%
Level 2: Proactive—Advanced Reporting
• Operational reporting for benchmarking and decision-making
• Multi-dimensional analysis and dashboards, data dictionary
56%
Level 1: Reactive—Operational Reporting
• Ad-Hoc operational reporting, lots of running around
• Reactive to business demands, data in isolation and difficult to analyze
#4. Data Management remains the biggest barrier.

The Difficult Tipping Point
Level 2
Strategic Reporting
Level 3
Advanced Analytics
Level 4
Predictive Analytics
Level 1
Operational Reporting
Level of Effort
Level of Value
Choke point for many
organizations

The Ugly Part
Visual
Dashboards
Advanced
Analytics
Predictive
Models
Data
Integration
Data
Dictionary
Data
Quality
Time and
Seasonality
Big Data
Tools
Data Governance
Ownership
Reporting
Tools
Disparate
Systems
Visual
Skills
Stats and
Data Skills
The Ugly Side: Data Management

Today, the 14% of HR Organizations believe they “regularly use data to make talent and
HR strategy decisions” are:
Despite the challenge, the investment pays off…
2X
as likely to believe
they are excellent
at selecting
the right
candidates
2X
they are delivering
a strong
leadership
pipeline
Generating
30%
higher stock
returns than the
S&P 500 over the
last three years
3X
they are efficiently
operating HR
Bersin by Deloitte High-Impact Talent Analytics® 2014

Models can change thinking
Reporting
“What’s happening?”
Analysis
“What’s going on?”
Predictive
“What is likely to happen?”
Prescriptive
“What should we do?”
Product quality
Success behaviors
Retention risk
Sales productivity
Career development
Compliance risk
Future skills gaps
Toxic employees
Fraud
Leadership assignments
Career success
Leadership pipeline
Engagement
Comp strategy
Coaching
Customer Service
Grievances
Learner satisfaction
Headcount
Performance
Ratings
Absence
Turnover
Leadership gaps
Comp budget
Spans and layers
Training compliance
Training compliance
Skills levels
Skills levels
Spans and layers
Engagement
Diversity
Demographics
Development plans
Candidate pool
Prehire assmts
Source quality
Time to fill
Compliance risk
Retention
Leadership gaps
Exit interviews
Mobility
Career progression
Compa ratio
HR Op costs
Service delivery
L&D spending
Unplanned absence
Quality of hire
Leadership pipeline
Skills gaps
L&D waste
Retirement projections
Accident rates
Candidate pools
Cost to hire
Engagement
Advertising
#5. Modelling is valuable, but implementing the model is key

What Will Reduce Fraud?

How Do We Improve Client Retention

How Do We Develop Leaders in China?

How to Manage Unplanned Absences?

Where Should Bankers Spend their Time?

Will platform vendors take over?
#6. Tools and platforms are here, but no Unicorns or Gorillas yet
Clearly Created Data Definitions, Standards, and Validation
Database, Data Store, Hadoop, Analytics Technology, Cloud Services
Clean, Organized Data Flow and Harmonized Processes
Embedded Analytics Tools, Easy to Visualize, User Security
Sophisticated Modeling, Statistics, Mathematics
Many Clients to Learn From, Test, and Validate Models
Engineering Team, Data Scientists, Strong IT Skills1
2
3
4
5
6
7

The role of consultants
Consultants are badly needed.

The Multi-Disciplinary Team – a New COE
Connected
To IT
Connected
to Finance and
Operations
Connected
to Executives
Connected to
External
Data
Know the
business
well
Consultant
with
business
Statistical
rigor
Good with
numbers
Understand
data
privacy
Visual
storytelling
Strong data
management
Process
oriented
The People
Analytics
Team
#7. Geeks will rule this world, but not by themselves

VP Human Capital
Analytics
Director
Org Diagnostics &
Design
Sr. Consultant ODD
Program Manager
Director
Workforce
Analytics &
Research
Manager
Workforce
Planning
Sr. WFA Analyst
Manager
Employee Research
Analyst Employee
Research
Manager
Learning Analytics
Consultant
Learning
Measurement
Analyst
Learning Analytics
Consultants
Business
Operations
Retailer
Evolution of the Function
VP Comp
and Benefits

Years 5-6
Advanced Statistics & Social Research Acumen;
Engineering Degree;
Customer Research Background; Statistics & Data Mining
Critical Thinking;
Story Telling; Data Visualization;
Ability to see data, and decipher insights
Years 3-4
Business Acumen; HR, Finance, Economics Degree;
Quantitative Research Design & Analysis
Passion for Data & Analytics; Strong Technical skills
Consulting & Presentation Skills;
Analytical Curiosity; Problem Solving;
Collaborative; Teamwork; Networking Skills
Years 1-2
Solid Understanding of HR; I/O Psychology Degree;
Employee Research Background;
Qualitative Research Design & Analysis; HRIS; SPSS
Strong Communication & Interpersonal Skills;
Detail Oriented ; Project Management
The Evolution of Data Skills and Competencies
Large Retailer
A Journey of Expertise Development

New types of data, new ways of analyzing it
#8. Humans have become the “internet of things” and open feedback has arrived
Text Analysis | Sentiment Analysis | Organizational Network Analysis | Feedback Systems

Email monitoring: employers own this data
And the market gets “creepier”
“Big Data Doesn’t Mean ‘Big Brother’”, Conference Board, September, 2015
Monitor your
email
metadata
“Analysis of email and Outlook calendar data showed
that managers of high-performing teams spent twice as
much time as other managers coaching their
employees. Their internal and external social networks
were 50% broader, and their sales were 31% higher.
#9. Data security, reliability, and anonymity will become your job

Are people getting spooked? Yes.
“63% of employees lack confidence that their employer is
keeping data about them private…
…and 72% believe their companies are not telling them what
data they are collecting.”
“Big Data Doesn’t Mean ‘Big Brother’”, Conference Board, September, 2015

Do you have the security you need? Probably not.

#10.
This is still early days.
Let’s all work together.
Thank you.. .. and thanks to HiQ for bringing us together.

People Analytics: State of the Market - Top Ten List

People Analytics: State of the Market - Top Ten List

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