People Analytics

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sherrie-suski-analyticsPeople Analytics is about using a data-driven approach to inform your people practices, programs and processes. Analytical techniques, ranging from reporting and metrics to predictive analytics to experimental research can help you uncover new insights, solve people problems and direct your HR actions. People analytics can help you to understand how knowledge of social and data sciences can help you make more informed, objective people decisions. The mindset shift that needs to occur is moving from a reporting of lag measures, like employee turnover, to a reporting on lead measures, like employee engagement or satisfaction and eventually to forecasting to being able to predict turnover down to the individual level. 

In a recent Deloitte survey on the topic, they found a mature analytics approach is not possible without data accuracy, security and consistency.  Things that many organizations struggle with. Therefore, your first step has to be to define which data you want to use, ensure that the data is as clean as possible and decide how you will capture that data.   The top drivers of people analytics maturity were:

  • Mature organizations are 2x more likely to have a data council responsible for data governance.
  • Mature organizations are 3x more likely to have strong partnerships with business units and corporate functions.
  • Mature organizations are 3x more likely to have an organizational culture of data-driven decision-making.

The problem is not just “having the data” but “knowing how to use it” and understanding how to explain it, visualize it, and put it into action in front of a business leader. HR leaders and their teams are expected to be knowledgeable enough in the use of statistics to be able to understand the data, determine the trends and make well thought out recommendations to improve the business.

Here is a great example of a trend that HR can be on the forefront of and lead the business!

Consciously Created Culture

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Often times the task of “creating” the culture falls to the HR team.  The team struggles with not only how to architect the culture, but have a difficult time envisioning what that will look like in the context of their own organizations and what day to day actions to take to reinforce and embrace that culture. Should they focus on defining values, creating wrap around programs or instituting perks?  The answer is, as in many situations, it depends.

Perhaps the first place to start is understanding your external branding.  It is important that your internal branding around culture flow directly from your external branding.  It is difficult to create an internal brand exclusive of a complete understanding of an external brand.  Start here with your marketing team to fully understand what the differentiators are in the market and how they brand the company externally.  

Next, think about what is important to your workforce and the culture you want your employees to talk about when describing your company.

Comparably, is a platform to provide anonymous and comprehensive data on compensation, and insights into work culture. They give employees the knowledge they need to take control of their experience at work, to build awareness about workplace transparency, and to make work better.  Some of the categories they focus on are:

Diversity and Inclusion

Diversity and inclusion are important for every organization.  Diverse companies are more innovative. having employees from diverse backgrounds brings different ideas to the table, preventing “groupthink” and promoting innovation. A diverse workforce ensures that some employees will be analytical, while others will have more creative propensities. Diverse approaches to the same problem generate new insights and enhance efficiency. 80 percent of people in a recent Universum https://universumglobal.com/about/ survey (including 85 percent of women) felt it was important that an employer “engages in creating a diverse and inclusive workplace.

Professional Development

Employees today have an expectation of their careers providing not only a paycheck but an opportunity for growth and development as well.  A goal to shoot for “Training is always available, and you have the opportunity to work on projects outside your day to day role and grow your skill set. This is especially highlighted with career progression”.  Companies should shoot for at least 20% of their positions being filled from within as employee promotions. A lofty goal would be 50%.

Work-Life Balance

Flexible schedules, telecommuting and PTO can all contribute to a healthy work life balance.  However, employees need to see that the management team is modeling these behaviors before they are likely comfortable taking advantage of them themselves. Some other ideas include sponsoring events where employees family members are encouraged to join in, offering part time or job share positions.

Perks and Benefits

No conversation on culture would be complete without discussing perks and benefits.  Some of the usual benefits are on the list like company provided health insurance with affordable employee contributions and PTO ( but not unlimited).  Studies routinely show that employees do not like unlimited PTO because very few actually feel like they can use it. Wellness initiatives are another popular perk in 2019.  Most of these platforms provide gamification opportunities for bringing teams and workforces together in fun competition.

The most important aspect of consciously creating a culture is that you create one that is unique to your company and the employees you serve.  

Defensiveness

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sherrie-suski-defensivenessDefensiveness is defined as the quality of being anxious to avoid criticism and/or the behavior intended to defend or protect.  Some have even defined it as reacting with a war mentality to a non-war issue. While none of us relishes criticism, it is a necessary part of growth.  To be able to see ourselves as others see us is a gift that allows us to leave old habits behind and adopt new, healthier ways of having relationships with others.  

An Open Heart

Changing defensive behavior stars with being able to listen with an open heart to what is being said.  Assume the person has your best interests in mind and is sharing something that you need to hear. Try and clear you mind so that you are truly listening and not rehearsing your next defensive statement in your mind while they are speaking.

Express Your Feelings

Being able to openly express your feelings is requisite to becoming less defensive.  Letting people know in a calm manner when they have upset you is not being defensive.  Lashing out with an inflammatory statement is. 

Building Trust

Working through conflict builds trust in any relationship.  It assures both partners that they can trust each other; they can be honest and acknowledge that any relationship is a work in progress, not fixed or defined on just one person’s terms or one moment in time.

Toxic Comments

Bottom line: if we don’t learn how to deal with our grievances head on, inevitably we deal with them indirectly, most often in more toxic forms: by teasing or making snide comments, holding grudges, or by growing more indifferent over time. 

Of course, it’s difficult to give and receive healthy criticism if we’re clinging to a defensive attitude. If you feel yourself become defensive, try to see if you can simply acknowledge it, and work through the conflict as honestly and generously as possible.

Self- esteem

Temperament, history, and, most importantly self-esteem can impact how we respond to criticism.  Some people have so much negative self talk occurring in their heads that they feel they just can’t accept any more from someone else.  Realizing that just because someone is criticizing one issue, does not mean you are a bad person overall is key to building better relationships

People who are more prone to defensiveness may perceive an attack in certain situations in which people with resilient and calm temperaments would perceive none. Experiment with viewing the situation from different vantage points.

Overall, defensiveness in life will hold you back from building better relationships and from growing as an individual

On-Brand Behavior

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sherrie-suski-officePotential candidates are interested not only in what they may bring to a future employer, but in what that future employer may bring to them.  With the majority of millennials believing its management’s responsibility to offer development opportunities, this demographic is looking for employers that will invest in their future. But they’re not alone; training is a top priority for all workers, particularly those who will need to enhance their skills in light of digital disruption. While many companies have training or Learning and Development programs, not enough have specific training that is meant to drive on- brand behavior.

Programs that address this topic are a win-win.  Effectively communicating a brand requires multiple touchpoints and Learning & Development programs are the perfect opportunity to drive this behavior. Learning and development is the clear internal expression of an organization’s external employer brand. These programs should be representative of and demonstrate the company’s value system.

According to Paul Hagen, senior principal at West Monroe Partners San Francisco, customer facing employees represent the company brand with every interaction they have. Yet, most receive little or no training or development to help them understand the actions and mindset that will have the most positive impact on customers’ perceptions of the brand. Good companies understand the drivers of customer and employee experiences and ensure L&D initiatives include guidance on how employees can help deliver on the promises made by an employer’s branding, he explained; “Great companies take it a step further. They understand that happy employees make happy customers.”

Ultimately, it is about connecting your internal culture to your external brand in a way that is meaningful to both your employees and your customers alike.  It should be the natural progression of doing what is right for your employees and having them understand and do what it right for your customers.

2019 Human Resources Initiatives

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Ushering in 2019 means pondering what the new year means in terms of HR initiatives.  Which were successfully put to rest last year, which will continue and carry forward and which are perhaps new initiatives this year based on the economic climate.

Top of the list is the tight labor market and lower retention many companies are experiencing.  We experienced the beginning of this challenge last year as companies struggled to find the talent they needed to fill positions to fuel their growth.  Companies will need to consider:

Flexibility in the workplace– More companies are finding ways to attract and retain workers with key skill sets by offering a combination of flexible work schedules.   Late starts, work from home, shorter in the office hours are all opportunities that will attract a different segment of the population than those able to work from 8:00-5:00p or more likely 7:00am-6:00pm.

Learning opportunities that span the entire workforce- Succession Planning programs are giving way to Talent Planning programs which encompass the whole organization.  Employee are looking for both lattice and ladder training opportunities. IDP’s (Individualized Development Plans) are becoming popular.  Instead of unleashing a plethora of online and webinar-based training opportunities, organizations are spending the time to develop individual training plans for each employee.  These are likely developed around core competencies that have already been established in the organization.

On-Boarding programs– not to be confused with the 1-3 day orientation programs, on-boarding programs will usually span 3-6 months and focus on quickly getting the new employee up to seed and integrated into the organization effectively.  Research links effective onboarding to reduced turnover and increased retention. In one study, employees were 60% more likely to remain with the organization for more than three years when there is a structured onboarding program.

Holistic Wellness Programs– wellness in no longer associated with simply the absence of disease, but has become a term that we associate with multiple forms of wellness.  Is your workforce physically, emotionally, socially and financially well and what can you do to support their efforts? Employee are looking less for balance between personal and work lives and more for integration.  One should not be exclusive of the other. Employees want time and training devoted to helping them learn how to meditate, eat healthy foods, manage their finances and generally live happy lives which, in turn, yield happy and more productive employees.  

Artificial Intelligence– no discussion would be complete without including AI.  HR technology companies are developing and promoting more and more Artificial Intelligence (AI) capabilities. Some of the technologies being developed can help HR professionals track and reveal troubling patterns in real-time to address such issues as employee engagement, turnover, and absenteeism (to name a few).  Automating repetitive tasks and improving workforce productivity are two of the top potential outcomes from implementing AI technology.

Each year brings its own set of challenges and opportunities to the HR profession.  This last year of the decade is no exception!

Human Resources Strategy

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Once you have assessed your Organizational Culture and understand where you stand, you can move on to HR Strategy in support of that strategy.

The journey toward assessing and implementing your HR strategy may follow the same below five stages.

Functional

Minimal overarching strategies direct the HR team’s efforts. The HR team is largely reactive to the business stakeholders with respect to independent processes (talent acquisition, training, succession, compliance, compensation, etc.) The scope of HR’s roles and structure hold the function back from understanding the business and the employees. Several HR systems may still be manual. The team is focused on the day to day activities without understanding their impact on the organization.

Cross- functional

Strategies regarding critical HR functions (talent acquisition, management development and performance management) are project managed and process-driven, but they are not integrated. There may also be differing degrees of maturity. All functions within HR begin to engage more proactively with the business to ensure alignment, but efforts are not consistent, and change tends to happen slowly.  There are no launch plans and programs introduced, while valuable, may seem disjointed.

Building

Key HR processes start to become integrated as the organization recognizes the need for greater adaptability. Better alignment between the HR strategies and the business strategies is starting to take place. The cascading of organizational goals as a way to guide individual and team objectives and development begins to become pervasive.  Employees start to see the alignment between HR programs from various functions.

Enhancing

HR Programs such as talent acquisition, management development, succession, engagement and incentives are connected to one another in order to heighten the output of the organization. The business strategies are routinely translated into HR strategies, so the HR team remains in-step with the company.  There is a path that HR is capable of walking the organization down. An understanding of how each program introduced flows into and builds upon the one before.

Optimized

Sophisticated and integrated near and long-term HR strategies exist, usually in the 3-year range. Strategic objectives, which are typically cross-organizational, require HR leaders to collaborate cross functionally, creating shared goals and actions. Collectively these behaviors drive successful business outcomes. The strategy is continually reviewed to ensure it is on track with the business and averting unnecessary risk. When necessary, the strategy is rapidly altered based on data-driven inputs to stay on course.  Automation and data based decision making are key at this advanced stage.

Not every organization will achieve the optimized state, but it is, nevertheless, a worthy goal.  HR gains their seat at the table by being able to positively impact the business and align their processes to business outcomes.

Tech and Analytics Set Top HR Departments Apart

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According to recent research from The Hackett Group, an IT service management firm, “World-class HR organizations” achieve more than other HR operations by spending 26% less, relying on 32% fewer staff and embracing digital transformation.  The adoption of digital technology could help HR departments reach world-class status in fewer than five years and see progress in less than two years. To be honest, HR departments who fully embrace the use of tech and analytics can see progress in as little as 6 months.  

The study went on to find that top tier HR organizations are better at developing people and moving them into new roles; two-thirds of open managerial positions at these organizations were filled by internal candidates. The Hackett Group said world-class HR departments contain an estimated 33% fewer transactional employees and 34% fewer staff dedicated to employee lifecycle activities.  The old rule of thumb of having 1 HR person per 100 employees is falling by the wayside with the introduction of technology. Technology not only makes the bottom line look better, but offers opportunities to employees, previously solely devoted to administrative work, an option to focus on more meaningful activities and the opportunity for real growth and career path.

Among the study’s takeaways, authors found that world-class organizations use digital technology to improve the customer experience, develop analytics capabilities, transfer resources from low- to high-value initiatives, and provide expertise and insights to business leaders. Use cases include recruiting, compliance, staffing services and outsourcing.  

Imagine:

  • Being able to predict turnover down to the individual level
  • Having zero errors in your administration because all of it is automated
  • Guiding each of your employees through their own personal benefit enrollment process focusing on only the items important to them
  • Creating a flawless candidate experience where each candidate gets a “red carpet” treatment

World-class HR leaders understand the need to provide other business leaders with HR data and insight affecting their individual operations. This technology-based capability demonstrates HR executives’ knowledge of the business and financial sides of an organization, which can seat them alongside other C-suite executives and shore up employee trust in HR program.  Top HR departments around the globe are moving to not only use but embrace these tools. Have you started?

Human Resources Outsourcing

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With more and more focus on driving the business, operating strategically and automating the mundane and repetitive processes that make up the daily existence of many HR departments, the focus has shifted to what, if anything, can be outsourced.  Outsourcing, contemplated and implemented correctly, can be a win win decision from both a cost and efficiency standpoint.  This type of arrangement is not the PEO “Professional Employer Organization” where you outsource all of your employees to another organization in the hopes of saving material sums of money while still being able to deliver exceptional customer service. In my opinion, PEO’s are a poor choice for almost every organization. Here we will explore the primary reasons that HR organizations consider outsourcing.

In a SHRM survey the top reason that companies chose to outsource HR functions are as follows

1) 6% of companies outsource to save money- someone who does just one thing but does it very well is often more efficient.

2)  23% of companies outsource to focus on strategy – spreading yourself too thin with all of the administrative tasks doesn’t leave a lot of time for planning and strategy.

3)  22% of companies outsource to improve compliance – it is increasingly challenging to stay in compliance and increasingly risky to not meet requirements.

4)  18% of companies outsource to improve accuracy – if you’ve got too much on your plate accuracy may suffer.

5)  18% of companies outsource due to a lack of experience in-house – knowing your weaknesses is as important as knowing your strengths, so handing off a task you know you can’t handle properly to someone with expertise is a great business decision.

6)  18% of companies outsource to take advantage of technological advances – with big data worth tapping into, but costly technology needed to really delve into strategic analytics, outsourcing can offer solutions without a significant investment.

 

Almost all HR organizations currently outsource some aspect of their responsibilities, but it has become so common that many don’t even think of it as outsourcing.  Below are some of the functions most typically outsourced:

  1. Temporary Staffing- although the mark ups can be high, sourcing and staffing temps is something many take off their plates
  2. Background checks
  3. Pre-employment Physicals
  4. Payroll 
  5. Providing mandatory training like Sexual Harassment 
  6. Benefits Administration

There are significant benefits to outsourcing if you do your homework upfront, identify your potential cost savings and thoroughly vet your vendors.

 

2018 Canadian HR Trends

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It is always interesting to look at Human Resources Trends from around the world to explore the similarities and differences of varying cultural perspectives.  As our parent company is Canadian, let’s look at a few of the trends that are top of the list for 2018.  Morneau Shepell compiles an annual list of Canadian HR Trends:

Insights on what HR leaders are expecting in the coming year:

 

• Improving employee engagement is a top priority

Employee Engagement is top of mind for companies in the US as well.  Not only for altruistic motives, but for the sheer fact that engagement can be tied to better productivity and bottom line numbers all around.  Trying to tap into the discretionary effort each employee has is big business. http://www.snacknation.com/guides/definitive-guide-employee-engagement/

• Streamlining administration and absence management continue to be focus areas

Streamlining administration is a worthy cause in any country.  Streamlining can take the form of creating new processes or automation.  Robotic process automation has real potential to transform the mundane tasks in HR.

• HR leaders continue to be cautious about salary increases.  Salaries expected to increase by 2.3 per cent in 2018.

While salary increases are trending just slightly higher in the US, there are still concerns about how to differentiate between average and high performers with such small increase budgets.

• Employers are looking at workforce data in silos, with very few looking at data in an integrated way

Data will be THE FOCUS in 2018 whether in silos or a more integrated approach. 

• Complex mental health claims are the top disability management concerns

Large claim management in general is a concern.  A few large claims can turn the loss ratios in the wrong direction.

• Manager training is a focus in managing absence and disability

Manager training is a focus for all companies.  It should encompass the hard skills like managing absenteeism and disability LOA’s, but should also encompass softer skills like having difficult conversations, confrontation and inspiring your employees.

• Organizations are concerned that their employees are not adequately prepared for retirement

This is a growing concern amongst many US employers as well.  Financial wellness training for the workforce is a partial solution.  Other approaches may include automatic enrollment in 401(k) plans and writing plan documents to exclude the popular loan provisions.

Companies around the globe have the same goals, to inspire their workforces, yielding a team of more engaged workers and better profits at the bottom line.

Predictive Analytics in Human Resources

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Data based decision making and predictive analytics are buzz words you are hearing a lot about these days.  However, they are emerging from the dark corners of the developer’s worlds and into the light of mainstream business operations. I was speaking at an Analyst update earlier this week and the question came up “which companies do you follow that are using predictive analytics in Human Resources?”   A great question, but the answer was, unfortunately, no one.  Although it may be some time before this data based approach becomes mainstream in the world of Human Resources, there are a plethora of reasons it should.  

Let’s start with a definition of predictive analytics.  It is basically just a script or a technology that learns from current data and then uses that current data to “predict” or forecast upcoming data or behavior. Think about how your credit score works.  The rating agencies use data, your past history of paying on time, as well as other data points, to “predict” your ability and willingness to pay on time for a new loan.

HR has massive set of data on its employees.  By applying predictive analysis to these data sets, HR moves toward becoming more of a strategic partner at the table.  Decisions become fact and data based instead of depending on someone gut feelings or instincts.  Predictive analytics allows HR to forecast the impact that different policies will have on their workforce and to get ahead of the curve on turnover, candidate success models and employee engagement.

From Deloitte’s 2017 Global Human Capital Trends Survey. While 71 percent of companies see people analytics as a high priority in their organizations (31 percent rate it very important), progress has been slow. The percentage of companies correlating HR data to business outcomes, performing predictive analytics, and deploying enterprise scorecards barely changed from last year.

Analytics is being applied to a wide range of business challenges: Recruiting remains the No. 1 area of focus, followed by performance measurement, compensation, workforce planning, and retention. We see an explosive growth in the use of organizational network analysis (ONA) and the use of “interaction analytics” (studying employee behavior) to better understand opportunities for business improvement.

Staffing and on-boarding tends to be an area that we think of first when it comes to utilizing Predictive Analytics.  We all want to be able to predict the success of the candidate in the role.  Progressive HR organizations are using interview data, careful parsing of job posting language, and candidate screening data to do just that. New tools that look at social and local hiring data can even help companies identify people who are “likely to look for new jobs” much before they are even approached by competitors.

Turnover is another area that could greatly benefit from this approach.  Capturing and reporting on it is nice, but what about getting ahead of it?  What about using data to be able to predict who is likely to submit their resignation within the next 3 months and conducting extensive stay interviews with those employees? Or being able to offer them an Individualized Development Plan to solidify their engagement?

There are a multitude of opportunities to utilize Predictive Analytics to help us make better decisions across the board in each of our organizations.