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58 Quotes, Facts, Benchmarks, and Best Practices on People and Analytics
This document provides 58 quotes, facts, benchmarks, and best practices related to people analytics. It is intended to support organizations in creating great places to work. The quotes and facts are grouped under headings such as "The Case for HR Analytics", "HR Analytics in Practice", "14 Thoughts on Analytics for Talent Management", "10 Best Practices and Benchmarks for HR Shared Services", and "12 Reasons to Upgrade Your HR Analytics Toolset". The document contains insights from various sources on using data and analytics to improve talent management, demonstrate the value of HR, increase the effectiveness of shared services, and address challenges with current HR systems and tools.
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58 Quotes, Facts, Benchmarks, and Best Practices on People and Analytics
- 1. 58 Quotes, Facts,Benchmarks, and Best Practices on People and Analytics For the last 18 months, the consulting team at Media 1 has read tens of thousands of pages of research, presentations, and white papers on analytics as it relates to people and performance. When we came across especially interesting content, we added it to a master list of resources. The following 58 items where curated from that list in the hopes that people will use them in support of creating great places to work. Edited by Harrison Cates Withers III
- 2. 58 Quotes, Facts,Benchmarks, and Best Practices on People and Analytics edited by Harrison Cates Withers III Copyright © 2013 Media 1. All Rights Reserved. Harrison is the Vice President at Media 1 and a principal business operations consultant. He has over 20 years of experience in the performance improvement space including managing learning and development activities on an international scale. Prior to Joining Media 1 he was the Director of Training and Technology at the Domino’s Pizza chain, giving him the unique perspective of both the business and advisor sides of the equation. He regularly writes on the intersection of people, process, and technology, including in-depth perspectives on metrics and measurement, use of social media in business, knowledge management, and the proliferation of mobile technology. Harrison has a particular passion and talent for challenging the way things have “always been” and seeking the unvarnished truth. Despite being an early adopter of new technology, Harrison is brutally honest with clients and their expectations regarding “flavor of the day” trends. He insists on clear measurements that are linked directly to metrics that align to business strategy, and driving behavior-based change to yield measurable financial results. With contributions from the Media 1 ROP consulting team: Scott Byers Jordan McClure L. Michael Wykes, Cover and information design by James Barnes This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-nd/3.0/ or send a letter to Creative Commons, 444 Castro Street, Suite 900, Mountain View, California, 94041, USA. Please share this eBook freely with leaders, innovators, and champions. Thank you! Media1 delivers a unique process and technology that engages users, aligning them with strategy, enabling measurable progress against critical business goals, leveraging customer-specific Human Capital Analytics, and delivering more than a return on the technology investment. Media1 delivers a Return on People and empowers the customer to build a more engaged workforce. www.media1.us
- 3. The Case ForHR Analytics 4 HR Analytics in Practice 18 14 Thoughts on Analytics for Talent Management 30 10 Best Practices and Benchmarks for HR Shared Services 46 12 Reasons to Upgrade Your HR Analytics Toolset 58 www.media1.us
- 4. The Case ForHR Analytics
- 5. You are readingthis because you have already decided that HR Analytics are critical to your organization. However, you are likely facing the daunting task of explaining to your organization why they should follow your lead. Often, an outside perspective goes a long way towards helping you make the case. The following 12 quotes and facts come from a variety of well-respected sources and can be used to start critical conversations and reinforce key points in your initiatives. www.media1.us
- 6. “The real catalystsfor meaningful workforce analytics are generally not day-to-day operations, nor IT cost savings, nor academic/theoretical requirements. Rather, they are often the significant disruptions that occur to businesses, but not on a schedule.” Source: Deloitte Workforce Analytics and Visualization: Practical Approaches, Tools, and Tips www.media1.us
- 7. “Without the appropriatelevel of analysis and tools, there can be a continuing wake of destructive activity as organizations move from one extreme in over-hiring to the other of recurring layoffs and reductions...” Source: Human Capital Management Institute Managing an Organization's Biggest Cost: The Workforce www.media1.us
- 8. HR has notyet reached the level where it can consistently and quantitatively demonstrate linkage to value creation, causing many CEOs and CFOs to view HR skeptically as simply a necessary expense. Source: SHRM - Human Capital Analytics and Metrics www.media1.us
- 9. Executives who saidHR capabilities are adequate but need to improve. Source: Deloitte www.media1.us
- 10. Most HR leadershave bought in to HR analytics. The question is how to allow its use to thrive throughout the organization. Source: Cornell University CAHR The State of HR Analytics www.media1.us
- 11. Many leading companiesare slowly evolving their practice of HR Analytics, using data to model and predict capabilities. Source: Cornell University CAHR The State of HR Analytics www.media1.us
- 12. Only 1 outof 5 business leaders strongly agree that they trust the reliability and accuracy of their organizational data. Source: Cornell University CAHR The State of HR Analytics www.media1.us
- 13. Even basic headcountreporting practices can be widely inaccurate. Source: HCMI via CFO magazine www.media1.us
- 14. Business leaders whofeel they have the support of their senior leaders for HR Analytics projects and initiatives. Source: Cornell University CAHR The State of HR Analytics www.media1.us
- 15. Business leaders whofeel they have a strong team of analytical talent that can execute HR Analytics projects. Source: Cornell University CAHR The State of HR Analytics www.media1.us
- 16. Top corporate barriers tousing HR Analytics Source: CIO.com www.media1.us
- 17. HR Reporting andAnalytics are part of a journey; you don’t get from “basics” to “sophisticated” in a single step. Source: Deloitte Workforce Analytics and Visualization: Practical Approaches, Tools, and Tips www.media1.us
- 18. HR Analytics inPractice
- 19. Not quite surewhere to start with HR Analytics or what you should expect to get out of it? The following 10 quotes and facts give insight into how leading companies are using analytics and research on the returns they are realizing. Some of this data even comes from the CFO perspective and will be useful when making the case to your financial stakeholders. www.media1.us
- 20. HR Analytics inPractice There are 3 types of measurement: Efficiency Effectiveness Predictive Source: SHRM - Human Capital Analytics and Metrics www.media1.us
- 21. HR Analytics inPractice How much the typical Fortune 500 company can net through good Human Capital Analytics. Source: The Hacket Group www.media1.us
- 22. HR Analytics inPractice What is the most significant metric in predicting stock price changes across sectors? Return on Human Capital Investment CFO Magazine: Linking Human Capital to Business Performance www.media1.us
- 23. HR Analytics inPractice A $1 investment in employees can equal $11 in returns. These returns aren’t felt just by HR, but by the entire company. Source: Sage Employer Solutions Return on Employee Investment www.media1.us
- 24. HR Analytics inPractice Human capital metrics are significant in all sectors, explaining 35% to 65% rate of change in stock prices, far more than the average 1% explained by net income. CFO Magazine: Linking Human Capital to Business Performance www.media1.us
- 25. HR Analytics inPractice CFO Magazine: Linking Human Capital to Business Performance www.media1.us
- 26. HR Analytics inPractice 78% of the leading Human Capital Performance companies are able to quantitatively demonstrate the impact of their top 3 workforces on overall financial performance. Source: Accenture The New Generation of Human Capital Analytics www.media1.us
- 27. HR Analytics inPractice 56% of HR functions report an increase in using data analytics compared to 3 years ago. Source: KPMG People are the real numbers www.media1.us
- 28. HR Analytics inPractice 36%: Companies using workforce analytics to identify historical trends. 13%: Companies developing future scenarios based on this data. Source: Kronos Applying Analytics to the Workforce www.media1.us
- 29. HR Analytics inPractice The most popular investments made in people to minimize turnover. Source: Talent Management Magazine “What to do when turnover turns up.” www.media1.us
- 30. 14 Thoughts onAnalytics for Talent Management
- 31. HR Analytics areabout people—how they engage with your company and the measurable results that their behavior makes to your business. Talent Management can utilize good analytics to select the right people, provide the right training, and show measurable results to the business. The following 14 thoughts, curated from research from a variety of studies, address the criticality of talent analytics and the results that can be shown from a well-selected and engaged workforce. www.media1.us
- 32. 14 Thoughts onAnalytics for Talent Management More and more leaders recognize that people—not products—create sustainable competitive advantage, but they are unsure about what to do differently and how to get started. Source: The Human Capital Institute Stuck In Neutral www.media1.us
- 33. 14 Thoughts onAnalytics for Talent Management The most valuable assets of a 20th-century company were its production equipment. The most valuable asset of a 21st-century institution, whether business or non-business, will be its knowledge workers and their productivity. Source: Peter Drucker www.media1.us
- 34. 14 Thoughts onAnalytics for Talent Management Organizations that invest in talent management outperform their competition significantly. Harvard Business Review 2007 Return on Employee Investment - Sage www.media1.us
- 35. 14 Thoughts onAnalytics for Talent Management According to HP leaders, the most critical issues in people management are: • Leadership development and pipeline • Talent management • Creating a high-performance culture • Training and development Source: Deloitte Taking HR to the next level www.media1.us
- 36. 14 Thoughts onAnalytics for Talent Management Employees who will determine the length of their stay during the first 30 days Aberdeen Group: Onboarding Benchmark Report, 2006 www.media1.us
- 37. 14 Thoughts onAnalytics for Talent Management Aberdeen Group: Onboarding Benchmark Report, 2006 www.media1.us
- 38. 14 Thoughts onAnalytics for Talent Management Best Buy stores in which employee engagement increased by a tenth of a point (on a 5-point scale) experienced a $100,000 increase in annual sales. Return on Employee Investment (Sage): http://www.youtube.com/watch?v=8lJNzOALdzw&noredirect=1 www.media1.us
- 39. 14 Thoughts onAnalytics for Talent Management Return on Employee Investment (Sage): http://www.youtube.com/watch?v=8lJNzOALdzw&noredirect=1 www.media1.us
- 40. 14 Thoughts onAnalytics for Talent Management Public organizations with high employee engagement had Earnings per Share growth more than 2.5 times greater than low engagement companies. Return on Employee Investment (Sage): http://www.youtube.com/watch?v=8lJNzOALdzw&noredirect=1 www.media1.us
- 41. 14 Thoughts onAnalytics for Talent Management JC Penney stores with high engagement of employees generated 10% more sales per square foot than average stores. Return on Employee Investment (Sage): http://www.youtube.com/watch?v=8lJNzOALdzw&noredirect=1 www.media1.us
- 42. 14 Thoughts onAnalytics for Talent Management MetLife agents hired for a positive mental mindset outsold more pessimistic counterparts by 21% in the first year and by 57% the following year. Workforce Magazine, September, 2013 The Power of Positive Thinking www.media1.us
- 43. 14 Thoughts onAnalytics for Talent Management Top performers spend 12% more on internal talent management. SSON: Big Data and Shared Services www.media1.us
- 44. 14 Thoughts onAnalytics for Talent Management 72% of senior executives believe people and talent are critical to company results. Deloitte: Taking HR to the Next Level www.media1.us
- 45. 14 Thoughts onAnalytics for Talent Management Only 27% of companies feel they have a strong team of analytical talent who can execute HR Analytics projects. Source: Cornell University CAHR The State of HR Analytics www.media1.us
- 46. 10 Best Practicesand Benchmarks for HR Shared Services
- 47. HR is definedby both the strategic value it offers and the services it provides to the business. In order to highlight and reinforce the strategic value, the services offered must not only meet the needs of the organization, they must be provided efficiently. HR Shared Services is something that many large companies have struggled to implement. The following 10 best practices and benchmarks highlight how the best of the best approach HR Shared Services and how they have realized results. www.media1.us
- 48. 10 Best Practicesand Benchmarks for HR Shared Services The HR Shared Services best practices model… • Achieves economies of scale • Enhances consistency and standardization across the organization • Improves quality • Leverages technology investments • Manages labor costs Source: Bersin & Associates The High-Impact HR Organization www.media1.us
- 49. 10 Best Practicesand Benchmarks for HR Shared Services Companies that adopt an HR Shared Services model reduce process costs by as much as 80%. 60% of these companies report process savings of 21%–80%. Source: The Hacket Group via Business Week Research Services The New Era for Shared Services
- 50. 10 Best Practicesand Benchmarks for HR Shared Services Source: Media 1 2012 Fortune 50 Companies Operating with HR Shared Services
- 51. 10 Best Practicesand Benchmarks for HR Shared Services Source: SSON Big Data and Shared Services
- 52. 10 Best Practicesand Benchmarks for HR Shared Services Companies with multi-function global business service organizations vs. single-function Shared Services. Source: SSON Big Data and Shared Services
- 53. 10 Best Practicesand Benchmarks for HR Shared Services Top performers’ activity inside global business Shared Service organizations Procurement Source: SSON Big Data and Shared Services Finance
- 54. 10 Best Practicesand Benchmarks for HR Shared Services “World-class organizations spent 13% less on human resources costs per employee than their peer groups in 2006.” The Hacket Group via Business Week Research Services: The New Era for HR Shared Services
- 55. 10 Best Practicesand Benchmarks for HR Shared Services Aberdeen Group: Building the Case for HR Shared Services
- 56. 10 Best Practicesand Benchmarks for HR Shared Services Institute of Management Accountants: Implementing Shared Services Centers
- 57. 10 Best Practicesand Benchmarks for HR Shared Services The quality of the workforce ultimately determines Shared Services success. Accenture: Achieving high performance through Shared Services Lessons from the masters
- 58. 12 Reasons toUpgrade Your HR Analytics Toolset
- 59. The vast majorityof companies that decide to step up their HR analytics efforts face serious challenges with the amount of effort it takes to collect, store, and analyze good consolidated data about people. It’s not long before new systems and tools need to be leveraged. The following 12 curated musings paint a picture of the current state of analytics technology and what big companies are going to do about it. www.media1.us
- 60. 12 Reasons toUpgrade Your HR Analytics Toolset Most organizations’ human capital management activities are bogged down by spreadsheets and other methods that take time and increase errors. Nearly half of all organizations are dissatisfied with such processes, which require 2/3 of the time just to extract the data. Source: Mark Smith via Kronos & Associates “Applying Analytics to the Workforce” www.media1.us
- 61. 12 Reasons toUpgrade Your HR Analytics Toolset HR functions with user-friendly client systems are 2X more effective and efficient than their counterparts. Source: Bersin & Associates The High-Impact HR Organization www.media1.us
- 62. 12 Reasons toUpgrade Your HR Analytics Toolset “The average large company has a core HR system that is more than 6 years old with more than 10 different HR applications, most of which are not even integrated within HR.” Source: Bersin by Deloitte www.media1.us
- 63. 12 Reasons toUpgrade Your HR Analytics Toolset Besides core HR management systems, how many systems are in place for HR processes like recruitment, performance management, compensation, benefits, and time & attendance? Source: Forrester Research HR Market Overview, 2011 www.media1.us
- 64. 12 Reasons toUpgrade Your HR Analytics Toolset Many HR leaders view centralized data as a critical enabler of advanced analytics. Source: CAHRS The State of HR Analytics www.media1.us
- 65. 12 Reasons toUpgrade Your HR Analytics Toolset HR departments that say adopting new technologies such as data analytics will be their main focus in the next 3 years. Source: KPMG People Are the Real Numbers www.media1.us
- 66. 12 Reasons toUpgrade Your HR Analytics Toolset HR functional areas that plan to implement new technology to support the use of data analytics. Source: KPMG People Are the Real Numbers www.media1.us
- 67. 12 Reasons toUpgrade Your HR Analytics Toolset Fortune 500 companies that have some kind of Big Data project on the way. Source: SSON Big Data and Shared Services www.media1.us
- 68. 12 Reasons toUpgrade Your HR Analytics Toolset “New technologies and skills in HR data management have provided an opportunity for HR functions to develop new methods of measuring activities and results, proving out people and HR performance.” Source: Deloitte The Top Best Practices for the High-Impact HR Organization www.media1.us
- 69. 12 Reasons toUpgrade Your HR Analytics Toolset “Growth in global markets, rapid proliferation of new technologies, and increasing productivity demands are transforming the overall business environment. HR must hustle to keep up with that transformation—or better, stay one step ahead of it—to ensure alignment with business needs.” Source: Deloitte The Top Best Practices for the High-Impact HR Organization www.media1.us
- 70. 12 Reasons toUpgrade Your HR Analytics Toolset “New HR technologies and skills in HR data analysis have provided an opportunity for HR organizations to become more data-driven. HR data is now systematically gathered and analyzed, so that it can be translated into actionable insights and measures of impact. These measurement approaches provide clear connections between the efforts of both the HR function and individual people in the performance of a company.” Source: Deloitte The Top Best Practices for the High-Impact HR Organization www.media1.us
- 71. 12 Reasons toUpgrade Your HR Analytics Toolset “Organizations that integrate workforce and business performance data into analytics tools are 3x as likely to achieve Best-in-Class (top 20%) performance results as those who do not.” Source: Aberdeen Group via Kronos Applying Analytics to the Workforce www.media1.us
- 72. 12 Reasons toUpgrade Your HR Analytics Toolset For companies understanding that user adoption is the key to the success of their enterprise technology investments, Media1 is a transformational firm that goes beyond training and communication strategies delivered by consultants and trainers. Media1 delivers a unique process and technology that engages users, aligning them with strategy, enabling measurable progress against critical business goals, leveraging customer-specific Human Capital Analytics, and delivering more than a return on the technology investment. Media1 delivers a Return on People and empowers the customer to build a more engaged workforce. www.media1.us
- 73.