Welcome to the British Medical Association in London. I am Giles Slinger, the product director for OrgVue at Concentra Consulting.
It’s a pleasure to see such a strong gathering. Today is only the second CIPD HR analytics conference, and it’s a measure of the relevance of the subject that having organised one such event in 2013, the CIPD will organise two this year. Three questions
- We’re a global bank. Who is accountable for which compliance activities? Would restructuring expose us to risk? How can we reduce the cost of compliance?
- We’re an international insurance company. What would it cost us to bring activity back onshore? What difference would it make to our customers? Can we afford not to?
- We’re a consumer goods company. If we restructure our salesforce from national sales teams to global customer-segments, what difference will that make to our headcount, cost, capability or sales?
It’s exciting to be involved in HR analytics right now because the world is changing. New access to data, new ways of analysing, new skills. Some really interesting questions are being asked, and HR professionals can lead the way in answering them.
But let’s be realistic first – not walk before we can run. After the CIPD’s first HR Analytics conference, last year, the organisers asked attendees what they made of it. People wanted core insights:
- How do we get the building blocks in place?
- How do we build a team with the skills required?
- How do we visualise results for the managers and the board?
- How do we tell stories with the data?
People were brutally honest. They rated themselves at 2-4 out of 10 on the analytical journey. All the sophisticated workforce planning? Strategic talent management and succession planning? A pipedream. Feedback from last year was that there was a long way to go, and a lot of basic steps to get right. Or a lot of opportunity to improve as you might say!
That is what we see in our work. The basic steps are important, and they are a challenge. Multiple legacy systems around the world, multiple excel islands of data on training, compliance, performance, absence and so on and so on. This is level zero – the building blocks.
- Can we get the data in one place?
- Can we clean and merge the data?
- Can we visualise it?
- Do we have people comfortable with analysis?
Level one is single aspect analysis:
- How many people do we have in our organisation?
- What roles do we have?
- What is the gender split?
These are simple enough HR analytics – analysing our people, or analysing our roles. On the lists for the conference today, there are 154 people listed, with 116 different job titles – yes, even within HR. The most popular role is … HR Manager. There are 13 of you here today. You can have as many stats as you like later, but this is just an example of Level 1 analysis.
Level 2 analysis is bringing in data from another data type. Merging the data gives insights.
Today 60% of the attendees are female; 40% male. And interestingly, the female attendees seem much more likely to be CIPD members: 2/3 of the female attendees are CIPD members. Only 1/3 of the male attendees are CIPD members. An opportunity for our organisers!
Level 3 analysis gives a view over time of the changing links between data types. Great if you can maintain the data. You can then view history – an individual’s salary progression. The RAG status per project manager of their cluster of projects over time.
Level 4 analysis models the entire organisation as a system. This is the kind of analytics that lets us ask about the impact of restructuring our salesforce on headcount, cost, capability and sales. Very few organisations are ready to answer these questions yet – but it is where many organisations seek to go.
What’s exciting about today is that we will hear where many of the organisations are on this journey. Standard Chartered Bank is often praised for connecting Employee Engagement initiatives to business outcomes. Andrew Thornton will talk us through the basic analytical infrastructure required.
Laurence Collins, from Deloitte, is using ground-breaking tools and methods in one of Europe’s biggest people & transformation practices. He will take us on a journey from the building blocks along the path that leads to better insight.
Craig Richardson, from HMRC, will lead us through the levels from building blocks up to Level 2 – integrating people data with datasets on sickness and engagement, and looking ahead to more ambitious workforce planning simulations.
Julian Perez Alzueta, from Telefonica, will explain how he applied his skills in physics and PhD in quantitative finance to HR analytics, improving HR delivery, improving recruitment effectiveness and testing the Level 3 and 4 possibilities for workforce planning and prediction.
After lunch, Helen Bingham from Home Retail Group, will explain how she put in place the building blocks and is now rolling out HR analytics within one of the UK’s most exciting and rapidly evolving retail groups.
Jez Langhorn, from Macdonalds, will talk us through packaging the HR data, visualising it at the right time in the right way for front line managers, and will talk us through measurable business impact – showing how getting the people aspects right is strongly correlated with business benefit.
Finally, we will have the pleasure of welcoming Anthony Hesketh of Lancaster University and Peter Cheese, the Chief Executive of the CIPD, on the Valuing Your Talent initiative to develop new metrics that combine people and business performance data.
I mentioned some people analytics on the people here today. The rarest role of all here today is a Senior Professional i-Development specialist. I don’t know what it is but I want to find out – it sounds great! In terms of far flung attendees, there are people here from Iceland, Indonesia, Kuwait and Mars (UK Confectionery). Do get to know your neighbours today – this room is full of ideas and fascinating insights into HR Analytics, both from your fellow attendees and the speakers.
And I’m now delighted to welcome the first of them to the platform, ladies and gentlemen, Andrew Thornton, Head of HR Reporting and Analytics at Standard Chartered Bank.
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