W2: Using HR technology and data to drive decisions Fiona Ewins Brown Director at Catena Media
Fiona Ewins Brown - Catena Media Using HR technology & data to drive decisions
What’s going to happen over the next hour… • Why is data important • How can data be used in HR • What technology and data is used at Catena Media • How does this technology help us make decisions
Why is data important? Back in 2013, a Harvard Business Review study found that businesses which “most effectively managed their workforce using analytics” improved company profit by as much as 65%.
Why is data important? Although 83% of HR leaders agree that all people decisions should be based on data and analytics, just 37% use data to solve people management problems, according to Becoming a People Company, a survey report from software company Sage People .
Why is data important? So who here uses HR data…?
Let’s test the stats… Who knows what their annualised turnover rate is?
Let’s test the stats… Who knows what their offer acceptance rate is?
Let’s test the stats… Who has measured engagement by calculating the proportion of sick leave used?
Let’s test the stats… Who has asked their CFO or CEO for money for a HR project or initiative and had it rejected?
Let’s test the stats… Who wants to use data but doesn’t have it available?
Let’s test the stats… Who needs to use excel spreadsheets to gather and calculate their HR data?
Why is data important? Transformation of the HR function through technology can help HR: • Provide the business with insights, which are data-driven thus enabling management decisions which drive business results • Enable HR personnel to spend time on more value adding processes rather than administrative ones
Why is HR data important to CEO’s? CEOs and Boards will pay specific attention anywhere that headcount and people dynamics can be linked to cost or revenue outcomes. Some examples: • Talent – and ensuring the right people are in place to drive the business • Turnover – relating to critical roles or high performers • Leadership bench strength/Senior level succession
How can data be used in HR? There are 3 main levels of HR analytics capability according to the CIPD: • Basic analytics • Multidimensional analytics • Predictive analytics
How can data be used in HR? There are 3 main types of talent-related data that can be analysed: • People data – such as demographics, skills, and engagement • Program data – such as attendance, adoption, participation in training and development and leadership programs, and outcomes of key projects • Performance data – such as performance ratings and data captured from the use of instruments like 360 assessments and succession programs
How can data be used in HR? More specifically, in terms of how HR uses big data, this breaks down as: • 71% — sourcing, recruitment or selection • 63% — identifying causes of turnover and/or employee retention strategies or trends • 61% — managing talent and performance
How can data be used in HR? Yet the potential of analytics to help HR add strategic value and drive informed decisions is huge. From measuring happiness to enhance employee morale, to anticipating areas with specific issues and tailoring compensation models to curb attrition.
How does Catena Media use HR data? • Reducing recruiting timelines and costs • Predicting future hiring needs • Retaining talent • Improving leadership and changing manager behaviours • Increasing engagement • Improving culture • Measure ROI of HR and HR initiatives
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BambooHR Age Profile Report
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LEVER
What does Catena Media use HR data for? • Talent Acquisition • Engagement • Retention • Development And in 2018: • Leadership effectiveness • Pay for performance
Talent Acquisition Candidate source: which one is the most successful? • Which source gives us the highest volume of candidates? • Which source gives us the highest performing, most engaged employees? • Which source gives us employees with the highest retention?
Talent Acquisition Quality of offers: • What is our offer acceptance rate? Forecast future hiring needs: • Estimate hiring needs due to expected employee churn
Engagement • Who are our most engaged employees? Why? • What initiatives, benefits, activities should we implement to impact engagement? • Where should we focus our efforts and money to increase engagement? • Are employees using their sick leave balance?
Retention High turnover generally leads to high recruitment costs and lost revenue due to productivity loss and onboarding. Additionally, leaving employees take their knowledge and network with them, and sometimes even customers. It is estimated that the cost of replacing mid-level employees is upwards of 150% of their annual salary. This can cost a company millions of dollar
Retention • Which teams have the highest turnover? • Which managers have the highest turnover? • Are there patterns with the length of service and turnover? • Are there patterns in the time of year people resign?
Turnover Involuntary vs Voluntary Non regretted vs Regretted
Turnover Let’s look at an example: 117 hires YTD 60 terminations YTD 207 employees at 1 st Jan 2017 =18.5% annualised turnover YTD Meanwhile only 7.1% are regretted And 10.8% were voluntary
Leadership Effectiveness Employee turnover statistics per manager Engagement ratings Performance ratings Officevibe ratings Officevibe feedback
Where to start? • Encourage a culture of data-based decision making • Identify a question you want to answer • Collect the data • Interpret the results and take action And keep it simple! It’s better to focus on a couple of data points with strong accurate data.
To conclude… Essentially, it’s all about adopting a data-driven, analytical and insight-led approach to link people-based decisions with business outcomes.
Remember… “The quality of your insight is only as good as the quality of your data.”
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