HR Analytics Re Volution Panel Challenges and Opportunities

HR Analytics (R)e. Volution Panel: Challenges and Opportunities for I-O Practitioners 15 Mar 2016

Analytics: How did we get here? • Slide rules to menus • Analytics and optics • Begging for data to big data • Job satisfaction to engagement • Selection to adaptive testing and machine scoring • Beaches to sand • Moneyball • All the world’s a stage

Analytics: How did we get here? • Moneyball • • • https: //www. youtube. com/watch? v=_5 PY 1 swc. EEs https: //www. youtube. com/watch? v=Jjf 1 O 4 j. Mqe. M&ebc=ANy. Px. Ko 66 Iwj. Z 0 UGY_4 Ti 49 Trf. Dvra. Mm. RLADc. Vf. Id_Zu 2 jv. Lrjn 8 Dza. O_sbp 3 s. XGAECq. UCn. H 3 o. Gbuxhi. Y 1 c 9 Kqg. Lt. Zd. Gn. HWzw https: //www. youtube. com/watch? v=p. Wgyy_rlmag

Analytics: Possibilities • Creating a better user experience • What-if scenario testing on steroids • The case for evidence-based decision making is easier to make • Converging data, structured and unstructured

Analytics: Challenges • Privacy, by design • The relevance of statistical significance • Even a population is a sample of something else • Testing, training, and validation holdout samples • The criterion problem has only gotten worse

HR Analytics (R)e. Volution Panel: Challenges and Opportunities for I-O Practitioners 15 Mar 2016

John Steele, Ph. D • John Steele SR Manager Human Capital Analytics • Dr. Steele is the Senior Manager of Human Capital Analytics for Best Buy, responsible for leading a team of data scientists to drive data-driven talent decisions. Specifically, Dr. Steele’s team has enterprise responsibility (140 k+ employees; 400 k+ applicants) for everyday employee engagement including the annual Employee Engagement survey, pre-employment selection assessments, performance management tables, 360 -degree feedback, exit surveys, HR reporting and analytics, and adhoc surveys.

Analytics-- Intro to Best Buy • Best Buy generates nearly $40 billion annually. • “The company offers expert service at an unbeatable price more than 1. 5 billion times a year to the consumers, small business owners and educators who visit our stores, engage with Geek Squad Agents or use Best. Buy. com or the Best Buy app. Seventy percent of the U. S. population lives within 15 minutes of a Best Buy store, and the company also has operations in Canada and Mexico. ” • Nationwide, Best Buy has more than 1, 400 stores and locations, including large-format and Best Buy Mobile stores, and employs more than 125, 000 people.

Analytics-- Sample Activities: Day in the Life Performance = Engagement X Talent • Business Reviews • HRBP Expertise • ROI • Compensation • Engagement Survey • Exit Insights • Employee Value Proposition • 360 -degree feedback • Selection Assessments • Diversity • Competency Models Reporting and Efficiency X Opportunity • Stay Interviews • Talent Maps • Inclusion • Restructuring

Analytics--Capability Creation / Career Transition • Do you value recurring • I-O Psychologist with “ownership” or adhoc client(s) and one tool is discovery? analytics? Simulations & Forecasting • Data Scientist who can Causation provide insights from I-O Correlations Psychology lens? Ongoing Reporting Reactive Checks Benchmarking Anecdotes

Analytics—Action > Sophistication • Problem: Frequent store General Manager (GM) movement that negatively impacts store business results. • Approach: Extract GM moves and additional information (e. g. , movement type, tenure, PA). Send to local HR Director provides reasoning (e. g. , an opportunity to make good on a promise to lessen a commute). In parallel, Officer team shares GM moves they expect. • Deliverable: CHRO receives full narrative (initial data + director information + leader dialogue) along with overall churn data. • Result: 15% reduction in GM Churn. We were asked to extend to Assistant Managers (partnering with the HR Managers) and also observed a 15% reduction. This year, we are working to take it to frontline supervisors.

Analytics-- Grad School Preparation • Access to data • Exceptions • Validity Generalization & Literature Review • Sophisticated and complicated analyses • Interesting/Insight • Executive Presence

HR Analytics (R)e. Volution Panel: Challenges and Opportunities for I-O Practitioners 15 Mar 2016

Valerie Brophy, M. A. • B. S. Psychology & B. A. Advertising from Iowa State University • Masters from Minnesota State • Interned with Kenexa’s High Performance Institute (now Smarter Workforce Institute) • Senior Smarter Workforce Consultant • Consulting areas: Employee Survey, Assessment, Talent Insights, Competencies

Talent Analytics © 2015 IBM Corporation

Talent Analytics Should Be Part Of a Broader Talent Management Strategy

Labor market trends • More flexible, transient workforce • Perceived skills shortages • Continued globalization of work Regulatory & compliance issues • Legal requirements • Risk management • Increasing desire for transparency Emerging data sources • External labor market data • Partner data • Social business & collaboration Shifts in strategic direction • Ongoing business transformation • Mergers, acquisitions, & divestitures • Changing leadership requirements Pressing workforce challenges • Retaining top talent • Addressing employee engagement • Increasing employee productivity Organization-wide analytics mandate & maturity • Creating data governance • Extending overall data know-how • Leveraging existing investments Internal Drivers External Drivers Primary Drivers of Talent Analytics Adoption Source: IBM Institute for Business Value.

How are organizations using analytics? Top 5 Workforce Challenges Employee engagement & commitment Performance management evaluation Talent retention 13% 9% 12% Workforce productivity 16% Sourcing & recruiting 16% Do not use Produce Reports 29% 50% 36% 48% 35% 34% 39% Identify historical trends & patterns 9% 8% 40% 13% 35% 16% 38% 7% Predict future outcomes Source: IBM Institute for Business Value. “New expectations for a new era: CHRO insights from the Global C-suite Study. ” 2014.

Example Business Outcome Metrics Healthcare Quality of Care • Error Rates • Mortality Rates • Infection Rates • Re-admissions • Length of Stay Patient Satisfaction • Wait Time • Patient Complaints Financial Predictors/ Employees • Staff Turnover • Sick Time • Overtime Pay • Travel Nurse Costs Financial # of Customers/Accounts Client Assets Personal Loan Performance Card Payments Average Balance Charge Offs Cost of Funds # of Withdrawals by Type (ATM or Branch) # of Checking Exceptions Food Service Mystery Shoppers Food Costs Labor Costs Same Store Sales Speed of Service % of Plan Ticket Size # of Complaints Staff Turnover Drive Thru Speed to Service Manufacturing Safety Workers Comp Claims Utilization Efficiency Productivity/Widgets per Shift/Hour Waste Output Variability Quality Defects Retail Mystery Shoppers Shrink Receipts (Ticket Size) Same Store Sales Traffic (Conversions) Repeat Purchase Staff Turnover Comparable Store Sales per Square Foot Life Sciences Delivery Performance/Sales • Total Prescriptions • % of Plan • Inventory Requests • Physician Satisfaction Yield Pipeline / R&D # of Exploratory Studies Clinical Trial Metrics § Drug Effectiveness § Side Effects § Retention of Scientific Advisory Boards Call Center Call (Contact) Quality First-Call Resolution Errors and Rework Response Time Average Speed of Answer Abandoned/Blocked Calls Forecasted Call Load vs. Actual Scheduled Staff vs. Actual Average Call Time Average Call Value/Upsell Revenue Customer Satisfaction Staff Turnover Technology Time to Market Developer Throughput Rework Labor Costs Cost of Duplication Staff Turnover Length of Development Lifecycle

Business Impact of Talent Analytics © 2015 IBM Corporation

$3 M SALES INCREASE IN TOP PERFORMING STORES 9. 3% SALES INCREASE IN TOP PERFORMING SALES ASSOCIATES DEVELOPED MENTOR PROGRAM ACROSS STORES 5% INCREASE IN ENGAGEMENT AFTER CULTURE ROLLOUT Taking the perfect shot with your workforce. (North American outdoors retailer) Solutions: Employment Branding, Brass. Ring, Assessments, Employee Survey, Recruitment Services NEW CAREER SITE, RECRUITMENT MARKETING & INTERNAL MARKETING

$300 K SALES INCREASE IN TOP PERFORMING UNITS DECREASED 200% TURNOVER to 90% 23% DECREASED TRAINING COSTS INCREASE IN GUEST SATISFACTION Mission-critical roles drive more than just popcorn sales (North American theater company) Solutions: Brass. Ring, Predictive Hiring, Employee Survey INCREASED ENGAGEMENT FROM 58% to 70%

“Companies that implement true business-oriented talent analytics can double their engagement, improve revenue, and dramatically increase almost every business measure by making better people decisions. ” Deloitte: Talent analytics in practice: Move from talking to delivering on big data “Analytics pays back $13. 01 for every dollar spent. ” Nucleus Research Note 2014