Mastering Talent Analytics Winning the War for Talent

Mastering Talent Analytics Winning the War for Talent Amid Workplace Disruption FAHR International Conference 16 -17 th April 2018 Dubai Jeremie Brecheisen, Partner and Senior Subject Matter Expert Gallup

Hearts, Minds, and Voice of the World 65+ MILLION EMPLOYEES 40 M+ CUSTOMERS HEARD 5 M+ Students and Alumni 34 M 16 M 14 M 2. 5 M Employee Engagement Strengths Assessments Talent-Based Hiring Well-Being CITIZENS GALLUP NIGH TLY POLL CALL WO RLD POLL SAMPLES FROM 500, 000 Gallup-Purdue Index 4, 969, 400 1, 000 U. S. citizens each day 100, 000+ 96% of the world population (130 countries & territories) Panel Gallup Student Poll [K-12] ASSESSMENTS CONDUCTED IN CLIENTS IN: 2, 000+ Organizations 20+ Industries 80+ YEARS OF EXPERIENCE 3 Copyright © 2018 Gallup, Inc. All rights reserved. more than and more than 60 30 COU NTRIES LAN GUAGES

15% 67% ENGAGED NOT ENGAGED 18% ACTIVELY DISENGAGED The Majority of Worldwide Employees Are Not Engaged Data from 2014 -2016 across 154 countries 4 Copyright © 2018 Gallup, Inc. All rights reserved.

The War for Talent Needs to be a Way of Life Performance management: 21% are motivated 5 Hyperconnected and aware: 75+% of Millennials and Gen Xers Copyright © 2018 Gallup, Inc. All rights reserved. Actively looking for a new job: 51% Would change jobs for flextime: 51% Leaving company when they change jobs: 91% Executives and managers: 45% vs. 29% engaged

The Culture and Capability Challenge 60% big data projects that fail due to culture issues. Gartner, 2015 Business Intelligence & Analytics Summit 14% companies that are gaining benefits from using talent analytics/data science. Big Data in Human Resources: A World of Haves And Have-Nots, Forbes 6% HR Leaders view Analytics Skills as ‘High’. Majority (56%) consider them Poor. Talent Analytics: From Small Data to Big Data, Bersin 6 Copyright © 2018 Gallup, Inc. All rights reserved.

Predicting Performance Talent is the best predictor of future performance. It can be assessed in a scientific manner and can be applied across roles. Transferable The most important factor: The candidate’s talents Skill s Not Transferable l w no ge d e K Talent nce Copyright © 2018 Gallup, Inc. All rights reserved. Valu e Belie s/ fs In te lli g erie Exp 7 n catio Edu en ce

Talent Naturally recurring patterns of thought, feeling and behaviour that can be productively applied. Capacity for excellence. Talent is the most powerful predictor of performance. 8 Copyright © 2018 Gallup, Inc. All rights reserved.

The Power of Gallup’s Questions Gallup has a database of questions that sort potential high and low performers and ultimately aid in reducing the variance in performance in organisations. Strongly Disagree Strongly Agree Poor Question: “Are you competitive? ” Great Question: “Do you hate to lose? ” High-performing individuals 9 Copyright © 2018 Gallup, Inc. All rights reserved. Low-performing individuals

When Companies Select the Top 20% Most Talented Candidates for a Role Based on Our Assessments… 17% 20% increase in productivity increase in sales 21% 24% 41% increase in profitability decrease in turnover decrease in absences Source: Gallup Meta-Analysis 10 Copyright © 2018 Gallup, Inc. All rights reserved.

Case In Point • • Fortune 500 company with more than 30 manufacturing and research and development facilities in over 25 countries to consistently yield double-digit organic sales growth annually. The company overall has relied on a talent-based selection approach to help recruit and hire more than 5, 000 of its sales associates to fuel business expansion. Sales Growth (7 -year period) 31% Recommend 11 Copyright © 2018 Gallup, Inc. All rights reserved. 25% Conditional Recommend 10% Not Recommend

Why Talent Selection is Weak – Cognitive Biases 12 • Confirmation Bias • Automation Bias • In-Group Bias • Availability Heuristic • Hindsight Bias • Backfire Effect • Clustering Illusion • Choice-Supportive Bias • Bandwagon Effect • Congruence Bias • Recency Effect • Contrast Effect • Projection Bias • Framing Effect • Anchoring Bias • Hot-Handed Fallacy • Overconfidence Effect • “IKEA” Effect • Fundamental Attribution Error • Irrational Escalation Copyright © 2018 Gallup, Inc. All rights reserved.

Measuring Leadership Talent “Desirable Leadership Behaviours” Humility DIRECTION DRIVE NETWORKS INFLUENCE EXECUTION Resilience Caring Inspiring Agility 13 Copyright © 2018 Gallup, Inc. All rights reserved. GALLUP’S TALENT RESEARCH

Challenge No. 1 – Who is my Successor? A 14 Direction 35 Drive 45 Influence 44 Networks 41 Execution 56 Candidate Total 42 Copyright © 2018 Gallup, Inc. All rights reserved.

Challenge No. 1 – Who is my Successor? B 15 Direction 38 Drive 45 Influence 78 Networks 50 Execution 33 Candidate Total 44 Copyright © 2018 Gallup, Inc. All rights reserved.

Challenge No. 1 – Who is my Successor? C 16 Direction 8 Drive 20 Influence 22 Networks 32 Execution 33 Candidate Total 21 Copyright © 2018 Gallup, Inc. All rights reserved.

Challenge No. 2 – How Strong are our Leaders? 17 Copyright © 2018 Gallup, Inc. All rights reserved.

Challenge No. 2 – How Strong are our Leaders? Manages 18 Copyright © 2018 Gallup, Inc. All rights reserved.

The Additive Effect on Revenue per Person +59% +8% +18% Copyright © 2015 Gallup, Inc. All rights reserved. 19 Copyright © 2018 Gallup, Inc. All rights reserved. IDENTIFYING AND FEEDBACK ON STRENGTHS HAVING A HIGHLY ENGAGED WORKFORCE +6% SELECTING TALENTED EMPLOYEES +27% SELECTING TALENTED MANAGERS

The Organisational Impact Less than 1% of teams utilise all four strategies. Making incremental improvements will create significant impact. % Increase in revenue per employee 59% 44% 30% 15% 6% 10 25 50 % of work teams leveraging all four strategies 20 Copyright © 2018 Gallup, Inc. All rights reserved. 75 100

Where to Begin Study your best 21 Copyright © 2018 Gallup, Inc. All rights reserved. Know how they are wired Know what attracted them Know where to find more of them

Talent Thrives With Strengths EXECUTING INFLUENCING RELATIONSHIP BUILDING STRATEGIC THINKING People with dominant Executing themes know how to make things happen. People with dominant Influencing themes know how to take charge, speak up, and make sure the team is heard. People with dominant Relationship Building themes have the ability to build strong relationships that can hold a team together and make the team greater than the sum of its parts. People with dominant Strategic Thinking themes help teams consider what could be. They absorb and analyze information that can inform better decisions. Achiever® Arranger® Belief® Consistency® Deliberative® Discipline® Focus® Responsibility® Restorative® Activator® Command® Communication® Competition® Maximizer® Self-Assurance® Significance® Woo® Adaptability® Connectedness® Developer® Empathy® Harmony® Includer® Individualization® Positivity® Relator® Analytical® Context® Futuristic® Ideation® Input® Intellection® Learner® Strategic® 22 Copyright © 2000 Gallup, Inc. All rights reserved. The Gallup Clifton Strengths. Finder items are Gallup proprietary information and are protected by law. You may not administer a survey with the Clifton Strengths. Finder items or reproduce them without written consent from Gallup.

Key Takeaways – Mastering Talent Analytics 1. Talent is an objective, leading indicator of future performance. 2. Developing strengths is critical to talent growth – Employees perform best when they focus on developing their strengths versus focusing on their weaknesses. 3. Companies need to transform hiring and development and HR need to play the key role of “strategic translators”. 4. Mastering talent requires building a team with comprehensive skills, analytical as well as behavioral design. 5. Getting the most out of talent data isn’t just about new hardware, software, or building interesting models. It means also focusing on the human side of analytics. 23 Copyright © 2018 Gallup, Inc. All rights reserved.

Learn More www. gallup. com jb@gallup. com Mohamed_Ebrahim@gallup. com 24 Copyright © 2018 Gallup, Inc. All rights reserved.