Competitive Advantage through Predictive Talent Analytics

Next Generation Analytics

Prepared by Paul Lalovich 1

Introduction
Big data is your big opportunity for efficient, more effective or simply better way of managing your greatest asset
Competitive Advantage through Predictive Talent Analytics is a comprehensive learning opportunity designed specifically for Human Resources professionals from across functional backgrounds that are currently using or interested in using Predictive Talent Analytics in their planning and forecasting process. Biography

Paul has a broad range of expertise in the areas of Talent Acquisition and Talent Management, HR technology solutions and development of talent programs supporting business efforts in fast-growing organizations. He worked extensively in the emerging markets of Europe and The Middle East for large public and private companies (du, Emirates Integrated Telecommunications Co, Gazprom NEFT NIS and Norconsult). Prior to this, during his consulting career in Canada he worked with many companies on the Fortunes list Global 500.
His current work relates to implementation of new HR services driving efficiency, effectiveness, and compliance through HR Center of Excellence supporting large holding company headquartered in Abu Dhabi (Global HR, LCC - a member of Emirates Advanced Investments Group).

Prepared by Paul Lalovich

Agenda
Key takeaways Next Generation Analytics - Predictive Talent Analytics How to build predictive models Segmenting your Human Capital by utilizing Big Data Practical examples of Predictive Talent Analytics in Recruitment and Employee Engagement Technology behind Predictive Talent Analytics Developing a Human Resources Analytics Team

Prepared by Paul Lalovich

What is Big Data?!?

Ways in which using big data can create value
Every hour, enough information is consumed by internet traffic to fill 7 million DVDs. Side by side, theyd scale Mount Everest 95 times

We can expect a 40-60 per cent projected annual growth in the volume of data generated, while media intensive sectors, including financial services, will see year on year data growth rates of over 120 per cent

There are nearly as many bits of information in the digital universe as there are stars in our actual universe

Big Data is a collection of data sets, so large and complex that it becomes awkward to work with

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Big Data and HR

High-powered data analysis used by Human Resources

HR is relatively new to Big Data analytics but the need is there. HR is under constant pressure to gain better understanding of talent models and how predict future performance based on Segmentation current and past behavior
Performance

Improved decision making

Predictive analytics

Transparency

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Big Data key metrics

Using Big Data to Accelerate Time-to-Answer

The goal of advanced data analytics efforts is aimed to answer our most critical questions, and how do we get these answers so that we can respond quicker than our competitors? The metric which describes the ability of an organization to obtain timely answers to inform critical decisions is commonly referred to as time-to-answer or data-to-decision.

Time-to-Answer
Clarify Identify Source Cleanse Analyze Validate Apply

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Insuring ROI on Big Data

Managing huge repositories of data may come at a cost but offers a tremendous payback

Companies that failed to achieve high levels of ROI typically had not taken advantage of the collaborative, contextual and predictive benefits of big data. Instead, they were simply automating big data processing for standard reports and workflows.

ROI 12

Investment

10

Larger user base

Sponsor
0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

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Next Generation Analytics

Leverage enhanced methodology supported by advanced tools and techniques

What if you could predict which high performers were at risk of leaving six months before they walked out the door? What if you could merge external data with your own business metrics to project workforce demand six, nine or even eighteen months from now? What if you could triage incoming resumes overnight to predict employee success and tenure before you hire? These are key questions that we believe you should consider addressing with Workforce Analytics.

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Predictive Talent Analytics

Predictive Analytics is the next step in BI one that gives you the ability to predict, one that gives you added operational and strategic value from your data

Analysis Why did it happen?

Monitoring What's happening now?

Reporting What happened?

*Level 0

Predictive analytics - What might happen?

- Unaware - Total Lack of Awareness. Spreadsheet and Information Anarchy.

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Predictive Talent Analytics areas of impact

Concentrate on the business outcomes

Recruiting

Operations

Leave & Absence

Compensation

Succession

HR Performance

Learning Management

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Make sure you understand the modeling objective

When a model looks too good to be true, it usually is.

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How to build predictive models

Predict future performance based on current and past behavior
Dependent Variable or Outcome Variable

Modeling Methodology

Time-line

Sampling

Independent Variables

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The Pitfalls of Predictive Analytics

Like any endeavor with rich rewards, there are often numerous risks, barriers and pitfalls that stand in the way

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Segmenting your Human Capital by utilizing Big Data

Big data allows ever-narrower segmentation of your talent and therefore much more precisely tailored approach in managing related initiatives
The social student

Practical individualist Transitional college graduate Community builder Career enthusiast

Take a cue from marketing: Create a differentiated approach to different talent segments within the workforce. Starbucks identified five employee segments the social student (single, no kids), practical individualist (work is just a job to support other pursuits), transitional college graduate, community builder (inspired by Starbucks charitable work) and the career enthusiast (a lifelong Starbucks employee). Segmenting employees allows Starbucks HR leaders to adjust talent management tactics and processes to deliver the best results.

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Examples of Predictive Talent Analytics

AC Milan
Associazione Calcio Milan, commonly referred to as A.C. Milan or simply Milan (Italian pronunciation: *milan+), is a professional Italian football club based in Milan, Lombardy, that plays in Serie A. Milan was founded in 1899 by English lace-maker Herbert Kilpin and businessman Alfred Edwards among others

AT&T
AT&T Inc. (also stylized as ATT and at&t; NYSE: T, for "telephone") is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the second[citation needed] largest provider of mobile telephony and largest fixed telephony provider[4] in the United States, and is also a provider of broadband subscription television services.

To protect its investments, the soccer team AC Milan created its own biomedical research unit. Drawing on some 60,000 data points for each player, the unit helps the team gauge players health and fitness and make contract decisions.

Best Buy
Best Buy Co., Inc. (NYSE: BBY) is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Puerto Rico, Mexico, Canada and China.

Many companies favor job candidates with stellar academic records from prestigious schoolsbut AT&T established through quantitative analysis that a demonstrated ability to take initiative is a far better predictor of high performance on the job.

Sprint Nextel
Sprint Nextel Corporation, also referred to as Sprint (NYSE: S), is a wireless and wireline voice and data telecommunications company serving customers in the United States, Puerto Rico and the U.S. Virgin Islands.

Best Buycan precisely identify the value of a 0.1% increase in engagement among employees at a particular store. At Best Buy, for example, that value is more than $100,000 in the stores annual operating income.

Employee attrition can be less of a problem when managers see it coming. Sprint has identified the factors that best foretell which employees will leave after a relatively short time.

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Technology behind Predictive Talent Analytics

Use each element as a stand-alone application or leverage the entire suite
As employees spend more and more of their work on technology platforms, they are going to leave digital trails about what they do and how they perform. Prescriptive Analytics
While predictive analytics helps you model and forecast what might happen in the future, prescriptive analytics helps you decide the best course of action to take given your objectives, requirements and constraints. It seeks to find the optimal solution given a variety of choices, alternatives and influences that might affect the outcome.

The activity stream of the social intranet will meet the traditional talent management suite, and unless all aspects of an Employees Life Cycle can be represented in it, the dollars spent on it would be a waste.

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Organization needs champions for this HR capability

HR professionals must know how to collect, analyze, and interpret data HR teams are not filled with business intelligence experts, research shows that percentage of Human Resources professionals who feel they are highly skilled at data analysis is in single digits. Deloitte and McKinsey: There will be a shortage of talent necessary for organizations to take advantage of big data. By 2018, the United States alone could face a shortage of 140,000 to 190,000 people with deep analytical skills as well as 1.5 million managers and analysts with the know-how to use the analysis of big data to make effective decisions.
Analytical Organization
Whether your company aspires to compete on analytics or simply to become more analytical, you must recognize the quant jocks, math brainiacs, excel ninjas and other people who regularly work with data as a distinct and valuable workforce that is pivotal to the organizations success.

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Breakdown of analytical talent

Deploying analytical talent across the organization
Champions and pros are vitally important. They coordinate analytical strategy and build complex models. However, its important to understand and recognize the role played by semi-pros and amateurs, who are responsible for executing an analytics strategy.

Analytical Champions Lead analytical initiatives

1%

Analytical Professionals Build analytical models and algorithms Analytical Semi-Professionals Apply analytical models to business problems
Analytical Amateurs Act on output of analytical models

5-10% 15-20% 70-80%

Developing a Human Resources Analytics Team

Understand your organization Develop a plan for the HR analytics team Assess the analytical ability of the members of your current HR analytics team Learn how to work well with all departments within the organization Work with your HR analytics team to understand the model development process

HR Analysts
Research indicates that top notch HR analytics teams can help organizations cut costs, identify opportunities for improvement and achieve higher and quicker returns on investments. Metrics derived from the business intelligence process help organizations understand customers as well as competitors, and are generally used to affect the bottom line.

Be a problem solver

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Thank you
Please do not hesitate with questions

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