OBIA HR Analytics: Transform complex data into business decisions
7 likes3,962 views
Here are 3 options the VP of HR could consider based on the analytics reviewed: 1. Train existing FTEs in BI to replace contractors and reduce costs, since training wait times are reasonable. 2. Hire more permanent FTEs with BI skills instead of contractors to lower expenses in the long run. 3. Explore rescheduling training courses to quickly build internal BI capacity and minimize reliance on contractors.
OBIA HR Analytics: Transform complex data into business decisions
- 1. Human Resource Analytics: Your weapon in Transforming Complex Data into Business Decisions Webinar from Drivestream Academy March 28th, 2012
- 2. Welcome to Drivestream Global management and technology consulting services. Founded in 2002 Focus Areas PeopleSoft Oracle Business Intelligence and Data Warehousing Oracle Fusion Applications Microsoft Sharepoint Solutions Custom Application Development and Maintenance Cloud Migration Services Strategic advice and tactical services for developing, implementing, maintaining and upgrading our customers’ business applications Drivestream’s leadership team has a very strong entrepreneurial & consulting background with many years of work experience at PWC, IBM, KPMG and other Fortune 500 companies around the world Successfully delivered over 400+ projects for some of the world’s largest companies to middle market customers across industries and geographies
- 3. Presenters Arvind has around 15 years of experience primarily in Data Warehousing and Business Intelligence. In the past, he has worked at PwC, Oracle, Mirant and Merial. Currently, he heads the Information Management practice in Chennai, India. Arvind Purushothaman Vice President, Information Management Drivestream, Inc. (India) Ravi Natarajan has managed multiple successful Data Warehouse implementations at various Fortune 100 companies. A self-proclaimed researcher and academic with heavy industry experience, he is the quintessential architect. He is constantly on the lookout for new ideas and technologies. Ravi Natarajan Executive Vice President, Information Management Drivestream, Inc. (USA)
- 4. Agenda Human Resources – An asset HR evolution Common challenges faced by HR executives What is HR Analytics How is HR Analytics different from transactional reporting How HR Analytics address business challenges Build vs. Buy What is OBIA? What is included in OBIA HR Analytics Who can benefit from OBIA HR Analytics Comprehensive coverage HR Analytics – Business case Q&A
- 5. Human Resources: An Asset In today’s competitive world, organizations tend to rely on their intangibles like ‘Customer Relationships’ and ‘Organizational Flexibility’ as their source of competitive advantage The biggest intangible often tends to be “Human Resources” Many of these intangibles are often viewed as a “Cost” from a conventional accounting perspective Many companies recognize the importance of people, but tend to manage them as an overhead (minimize cost) The challenge lies in measuring performance in terms of a strategic goal SLIDE 5
- 6. HR Business Process evolution LEVEL 4 Intelligence LEVEL 3 Process • Metrics Driven • KPI’s Drive Business LEVEL 2 Transaction • Best-practices Shifts • End-to-End Process • HCM central to org. LEVEL 1 Foundation • HR Best Practices Automation performance • Back Office • Human Capital Mgmt • HR 101 • Focus: Workforce Automation implemented Aligns to Priorities • Manual execution • Deploy Self Service • Focus: Worker • Core HRMS • Focus: Cost Reduction Productivity • Focus: Day-to-day Source: www.oracle.com
- 7. Common HR Challenges HR evolving from an administrative to strategic function, HR as a strategic needs metrics for tracking function Unable to measure HR programs impact on workforce performance Effectiveness of HR programs Difficult to create a historical profile of the workforce Poor metrics to translate employee performance with compensation Difficult to understand workforce needs at an enterprise level Workforce Planning Relating compensation, benefits, opportunities with workforce planning Drive commitment and performance Too much dependence on management-by-spreadsheet; scattered data across Time lag in data gathering and multiple systems reporting No single source of the truth
- 8. What is HR Analytics? Analytics includes the processes, technologies, and best practices that turns data into information that drives business decisions HR Analytics refers to the metrics related to HR functions across the areas of Workforce Recruitment Compensation Absence Statutory compliance Learning Management
- 9. How is HR Analytics different from Operational reporting? Operational Reporting Analytical Reporting Flat – 2 dimensional Multi-dimensional – slice and dice across dimensions Individual reports which need to be Metrics go across subject areas collated Reactive reporting Pro-active reporting Need to define “what to see” Pre-defined metrics based on best practices available Report is from a single source Reporting can include multiple sources including 3rd party Metric definition is not Metric definition is consistent across the standardized enterprise
- 10. How does HR Analytics address business challenges? HR Analytics provides detailed analysis of HR programs across multiple subject areas – you can drill down from summary to detailed and across subject areas Integrates silos of data from other ERP modules and 3rd party applications into relevant, actionable and timely insight Information delivered through personalized dashboards, metrics and alerts All the information is made available in a self-service mode SLIDE 10
- 11. Build vs. Buy Build Buy Rollout Define scorecards, KPI’s Quicker deployment Cost savings DW design and Lower TCO development Rollout Well defined implementation Define scorecards, KPI’s Uses best practice definitions Source system analysis DW design and Pre-built optimized Data and mapping development Model Source system analysis Pre-built adapters to multiple and mapping sources SLIDE 11
- 12. What is OBIA (Oracle Business Intelligence Applications)? Pre-built BI application that sources data from transactional systems including Oracle EBS, PeopleSoft, 1 SAP, JD Edwards and Siebel Data is loaded to the target OBAW tables using Informatica as the ETL tool Pre-built metadata layer that covers all ERP modules and functions 2 Developed using Oracle Business Intelligence Enterprise Edition (OBIEE) technology Web based access to customizable dashboards, KPI’s, reports, alerts 3 Can be customized to meet unique business needs 1 2 3 Copyright © 2008, Oracle and/or its affiliates. All rights reserved.
- 13. OBIA modules Auto Comms & Media Complex Mfg Consumer Sector Energy Financial Services High Tech Insur.. & Health Life Sciences Public Sector Travel & Trans Service & Procurement & Supply Chain & Human Sales Marketing Financials Contact Center Spend OM Resources Pipeline Analysis Churn Propensity Campaign Supplier Order Linearity A/R & A/P Employee Scorecard Performance Analysis Productivity Triangulated Customer Response Rates Spend Orders vs. Available GL / Balance Compensation Forecasting Satisfaction Analysis Inventory Sheet Analysis Analysis Sales Team Resolution Rates Product Procurement Backlog Analysis Customer & HR Compliance Effectiveness Propensity Cycle Times Product Reporting Profitability Up-sell / Service Rep Loyalty and Employee Inventory P&L Analysis Workforce Cross-sell Effectiveness Attrition Expenses Availability Profile Cycle Time Service Cost Market Basket Quality Fulfillment Status Expense Turnover Analysis Analysis Analysis Performance Management Trends Lead Conversion Service Trends Campaign ROI Buyer BOM Analysis Cash Flow Return on Productivity Analysis Human Capital Other Operational Prebuilt adapters: & Analytic Sources Oracle BI Suite Enterprise Edition Plus
- 14. Benefits of OBIA HR Analytics - ANALYSIS AND METRICS Learning Management BENEFITS Enrollment count Learning score Provide consistent, integrated insight into the entire talent Successful completion rate Delivered training hours value chain - attracting, retaining, developing, and rewarding Enrollment Wait Time Top enrollments the workforce Internal learner count Longest enrollment wait time Optimize organization staffing and contingent labor usage HR Performance Gain visibility to employee performance and internal mobility to engage and develop key talents Revenue per employee Employee benefit expenses Contribution per employee Average cost per employee Lower costs through reduced turnover and more targeted recruiting Return on Human Capital Employee overtime expenses Contracting expenses Optimize compensation plans to meet goals while managing costs Compensation Annual Base Salary Total Base Compensation Min/Mid/Max Annual Overtime Compensation Base Salary Average Variable Comp Ratio Compensation Time Since Last Salary Number of Bonuses Increase (Days) Average Bonus
- 15. Benefits of OBIA HR Analytics - ANALYSIS AND METRICS Recruiting Management BENEFITS Vacancy Aging New hire separation Monitor the efficiency and effectiveness of the entire Vacancy Rate Time to fill recruitment life cycle Vacancy Fill Rate Time to hire Internal hire ratio Requisition open to Application Better assess quality of hire by correlating applicant sourcing External hire ratio start with new hire performance and turnover metrics Referral hire ratio Application Start to Offer Extended New hire performance Proactively mange learning demand and source utilization Operations Monitor workforce learning participation & learning results Employee Headcount Mean Performance Rating Monitor absence trends as a predictor for employee Continent Headcount Length of Service engagement Contractor Ratio Span of Control Headcount % change Time in Job Forecast employee availability based on planned future absence Diversity metrics Average Contingent events Turnover Ratio Placement Absence Management Absence Duration Days Absence Occurrences Notified absence days Employee Absence Rate Unnotified Absence Hours
- 16. Role-Based Best Practices Provide Relevant and Actionable Insight for Everyone HR Analytics – Key Objectives and Questions by Role Becoming the Strategic Business Partner What are the key business challenges in the organization? What are the workforce issues that can help resolve the business challenges? Are we providing line managers with timely information to help them make better people decisions? HR Business Partners Better information for Workforce Plan What is the total labor spend? What is the optimal cost structure for the workforce? What is the projected workforce demand to support the business strategy? Finance Optimizing Management of Human Capital Do I have an agile workforce to meet the demand of the fast-changing world economy? What is my talent strategy to support both short-term and long-term business strategy? How do my key HR metrics compare to the industry? VP of HR and CEO Complete Insight into Historical Workforce Trends Am I utilizing continent workers effectively? Are we retaining key talents? Are employees adequately trained? Have I differentiated the performance of my employees? Line Managers How do I engage and motive employees in the turbulent time?
- 17. Comprehensive Coverage – HR Analytics • No. of dashboards 9 • No. of dashboard pages 47 • No. of reports 238 • No. of metrics 325 • Human Resource • Learning • Recruitment Performance • Overview • Overview • Corporate Contribution • Manage Enrollments • Requisitions • Effectiveness • Training Results • Vacancy Analysis • Trends • Delivered Training • Recruitment Pipeline • Workforce Profile • Absence • Offer Analysis • Overview • Overview • New Hires • Staffing • Absence Trends • Applicant Pool • Demographics • Absence Details • Quality of Hire • Trends • Absence Calendar • Recruiter Effectiveness • Workforce Development • Compensation • Requisition Recruitment • Overview Activities • Overview • Recruitment Event Details • Employee Performance • Compensation Analysis by Supervisor • Candidate Sourcing • Trends • Employee Performance • Pay for Performance • Supervisor Performance • US Statutory Compliance • • Retention Internal Mobility • Overview • • Overview Top Performers • EEO Compliance • • Retention Hotspots Under Performers • EEO Audit • Top Performers • VETS 100 • Trends • AAP
- 18. HR Analytics – Business case CFO is reviewing the financial metrics of the organization The CFO reviews the ‘Return on Human capital’ Return On Human Capital 3 2 Return On 1 Human Capital 0 2011 Q1 2011 Q2 2011 Q3 2011 Q4 Quarter CFO asks the VP of HR to explain this especially since the VP had felt that things were going well in his organization The VP of HR reviews the metrics ‘Revenue per employee’ and ‘Contribution per employee’ Employee Productivity Revenue Per The metrics seem Employee contradictory Contirbution Per Employee 2011 2011 2011 2011 Q1 Q2 Q3 Q4 SLIDE 18
- 19. HR Analytics – Business case The VP of HR then decides to review some Financial and HR Analytics ‘Employee Expenses Trend’ and ‘Key Variable cost drivers’ Employee Expenses Trend Key Variable Cost Drivers Payroll Amount Payroll Amount Overtime Amount Overtime Amount Contracting Expenses Employee Benefit Cost 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 Quarter Quarter Workforce Trends FTE Growth Rate 1% FTE FTE Count 503 Prior Period FTE Count 500 Contingent Contingent Growth Rate 15% Headcount Contingent Headcount 178 Prior Period Contingent Headcount 150 2011 Q1 2011 Q2 2011 Q3 2011 Q4 Quarter SLIDE 19
- 20. HR Analytics – Business case Options The metrics seem to indicate that the contracting costs are higher. An option to reduce contracting expenses is to hire more FTE’s or train more FTE’s in the new technology. The VP of HR reviews the workforce composition metric and understands if there are sufficient people in the organization with the required skill set who could be trained. The VP of HR then looks at the training schedule to see if the seats for the BI course are available in the near future. (Finance + Learning Management metric). Longest Average Enrollment Wait time Workforce Composition BI Accounting for… 4% Effective Presentation… Java CPR Training Course PL/SQL Oracle Basic Communication Skills HR New Hire Orientation… Finance Problem Solving and… BI BI Tools 0 10 20 30 The % of FTE with some BI The waiting time for enrollment skills is low is also high SLIDE 20
- 21. HR Analytics – Business case Conclusion The VP of HR sees that they do not have sufficient amount of people with BI experience who could be trained and the wait time for BI course is fairly long. Hence, he decides to look at hiring more FTE from the market. SLIDE 21
- 22. OBIA HR/Finance Metrics Return On Human Capital = Contribution per Workforce Headcount/Average Cost per Active Workforce Headcount SLIDE 22
- 23. OBIA Learning/HR Metrics SLIDE 23
- 24. Q&A Human Resource Analytics: Your weapon in Transforming Complex Data into Business Decisions Human Resources – An asset Speakers HR evolution Arvind Purushothaman Vice President, Common challenges faced by HR executives Information Management What is HR Analytics Drivestream, Inc. [email protected] How is HR Analytics different from transactional reporting Ravi Natarajan How HR Analytics address business Executive Vice President, challenges Information Management Build vs. Buy Drivestream, Inc. [email protected] What is OBIA? What is included in OBIA HR Analytics Contact Us Who can benefit from OBIA HR Analytics For more information, contact Email: Comprehensive coverage [email protected] HR Analytics – Business case Phone: +1.703.715.0150
- 25. Thank You Thank You for attending the webinar Please register for Part 2 on April 18th and Part 3 on May 9th Contact: Arvind Purushothaman Contact: Ravi Natarajan Email: [email protected] Email: [email protected] Phone: +1.703.715.0150 x721 Phone: +1.703.715.0150 x535