SHL Talent Analytics™ has published a white paper that you need to read if you are involved with acquiring, developing or managing talent. And that would be everyone in HR. The SHL Talent Report: Big Data Insight and Analysis of the Global Workforce is a thorough review of the state of talent – especially leadership talent – around the world. Using their vast global supply of data from organizational surveys, almost 4 million assessments from almost 200 countries, and the work of 300+ occupational psychologists, authors Eugene Burke and Ray Glennon provide compelling insights into the state of today’s talent as well as opportunities to prepare tomorrow’s talent for success.
The white paper covers the following talent issues with data that is deep and makes it easily understandable:
- Organizational Risk
- Global Distribution of Critical Skills
Each section is compelling and could stand alone in its organizational usefulness. At 72 pages long, though, it’s a not a tough read.
I was particularly taken with the section on Diversity. Its discussion of gender and leadership should be required reading for all those involved in the acquisition and development of talent headed to the C-Suite. (I wrote about that here recently.)
But even more interesting was the discussion of generational differences. This is a topic that won’t go away for those in the talent management business –for good reason! Burke and Glennon believe “it’s not really about gender and generations…it’s about the best person for the job and having managers who know how to leverage differences effectively.”
Right. How many times have we heard this? But the data they share are compelling.
I’ve seen a great deal of analysis that show that, while the values differences between generations are more a difference in order of importance than a complete difference in values, these data show the impact of the difference in order of importance in a pretty dramatic visual:
Think about the beleaguered manager in your organization who has all three generations represented on their team. Do you think they understand these motivational and values differences? Do you think they interact and communicate differently with their team members in order to engage their team? Do you think they have the skills to leverage these generational differences in ways that motivate their team to greater productivity and efficiency? Do you think they could use these insights to become a more effective leader?
What would be the impact on turnover, engagement and performance if all the managers in your organization had these insights and knew how to leverage them?
And, oh by the way, what gets you up in the morning?
The highly anticipated CedarCrestone 2012-2013 HR Systems Survey White Paper, 15th Annual Edition was released at the HR Technology Conference in Chicago last week.
If you have any thought of adding HRM technology to your budget next year, the data in this report can be the foundation of your business case for the investment request. Even if you aren’t going to ask for technology investment money for FY2013 this report will give you important data for managing your technology in new ways.
In analyzing the more than 1200 survey responses to identify key common practices, the CedarCrestone team (led by Lexi Martin) used these four independently validated key financial metrics to identify the highly successful organizations:
- Revenue per employee: Top performers is $681,903 vs. $352,576 for all others
- Profit per employee: Top performers is $317,508 vs. $131,157 for all others
- Operating income growth (EBIT): Top performers is 61% vs. 11% for all others
- Return on Equity: Top performers is 23% vs. 10%
Once the pool of top performing organizations was created, the analysis for common practices began and resulted in identifying the following Seven Practices of Top Performing Organizations:
- Top Performers have standardized processes and sophisticated change management processes.
- Top Performers are more likely to already have, or be planning a move to, a SaaS HRMS.
- Top Performers avoid extensive customizations of their HRMS.
- Top Performers have higher user adoption of employees, and manager self service, and shared services.
- Top Performers are more likely to have an integrated Talent Management system on the same platform as their HRMS solution.
- Top Performers have more sophisticated business intelligence solutions in place and more often put these tools in the hands of managers.
- Top Performers have more HR technologies in use and spent less on HR technology per employee.
The CedarCrestone 2012-2013 Survey White Paper goes into great detail about each of the seven best practices with quick characteristic overviews as well as deep data dives. Well written and easily understood, this report is full of really useful information – whether you’re an HR department of one or one hundred.
The best practice that caught my eye was #7: Top Performers have more HR technologies in use and spend less on HR technology per employee.
Regardless of the application category, Top Performers have more technology in place than the others. We place each respondent in a technology application adoption quartile: 62% of Top Performers are in the top quarter of application adoption vs. 35% of the other publicly traded organizations; the categories of BI (Business Intelligence) and social applications both had 20%+ differences in adoption between Top Performers and non-top performers. And all of that technology still comes at a 12% lower cost per employee!
It may seem counter-intuitive that more technology means less cost, or that more technology means less humane-ness. But what’s more humane than the organizational stability that comes with success? What’s more humane than a highly profitable business that’s able to invest in talent? What’s more humane than the organizational growth and longevity that higher levels of productivity produce?
Download the CedarCrestone report here, get a cup of coffee and spend an hour on the data and conclusions. You won’t be sorry because these dots connect.
It’s budget season. You need the business case to invest in HRM technology and this report will give you most of the firepower you’ll need. You could be a hero at this time next year!
Visier, named one of the “2012 Awesome New Technologies for HR” by Bill Kutik, the founding conference co-chair of the upcoming HR Technology Conference in Chicago, is changing the face of HR analytics. And by changing the face, I mean, putting a beautiful, incredibly interactive and astonishingly useful face on the workforce data collected by the many and disparate systems inside organizations.
All vendors in the HCM space commission research and surveys by credible third party organizations and write what they hope are useful white papers to ensure an educated prospect and customer base. These white papers, while clearly biased, have some powerful data and insights that any HR practitioner – generalist, specialist or leader – can use to educate themselves. Trolling through the Resources tabs of HCM solutions providers when you have some downtime can be worthwhile.
As I was browsing through the white papers at the Visier site, I came upon some great stuff. Since Visier is in the workforce analytics business the subject matter is all tied to workforce analytics. And they’ve got some great survey and research data for you. But in this survey report, 2012 Survey of Employers: Workforce Analytics Practices, Preferences & Plans, tucked in at the very end, was a chart showing what more than 150 U.S.-based employers (presumably through the voice of HR professionals taking the survey) thought their top workforce concerns were for 2012:
This is the first survey that I’ve read in which performance was ranked as the top workforce concern of HR professionals. These top concerns lists are everywhere and none of them rank performance at the top.
- Llloyd’s annual Risk Index (most recent 2011) lists Talent and Skills Shortages as Risk #2 (Loss of Customers is Risk #1)
- Deloitte’s 2012 Human Capital Trends lists Growth as #1
- The HR Policy Association (most recent list is 2011) lists Executive Development and Succession at the top of CHRO concerns
- The WFPMA & Boston Consulting Group survey (most recent is 2010) of global HR leaders lists Managing Talent as the most critical global HR issue
- Human Resource Executive’s annual “What’s Keeping You Up Now” survey (most recent is September 2011) lists “Ensuring employees remain engaged and productive” as #1 (note that the 4th concern in the Visier survey was engagement. Performance and engagement are not the same thing.)
I’m happy to see a survey of HR professionals identifying workforce performance as their top concern because performance is about business. Performance is quantifiable. Performance isn’t touchy feely. Performance is not the language of professionals who chose HR because they “like to work with people.” Performance is the language of professionals who are comfortable with measurements, analytics, data, accountability, business success. In short, performance is the language of business people. And I cheer when HR people speak the language of business rather than the language of HR.
Mercer and WorldatWork have collaborated again on a survey and report about current total rewards/compensation trends in metrics and analytics. The focus of the research was to understand what types of analytics are currently being conducted and what technologies are being used to conduct them.
It’s an interesting report – especially from the vantage point of what it says about the relationship between HR and data and HR and analytics. The survey was fielded in February, 2012 to compensation leaders who are WorldatWork members (the dataset held 560 scrubbed responses , a final 10.9% response rate), so they all have more than a passing knowledge of the total rewards function.
The big takeaways of the survey data are that:
- Rather than use sophisticated analytical approaches like projections, simulations and predictive modeling to support decision making, organizations are more likely to use ongoing reports and benchmarking from internal and external peer groups.
- Survey respondents report lack of access to and confidence in data regarding education competencies/capabilities and training investments – critical to workforce analytics.
- Compensation professionals may be falling behind their colleagues in other HR functional areas in their adoption of more sophisticated analytics methodologies.
The report discusses why adoption of more powerful analytics is low despite 67% of respondents indicating adequate skill levels to engage in higher level analytics and almost half (47%) having 1 -2 FTEs tasked with HR-related analytics. More important, 75% of the respondents reported that C-suite executives in their organizations have asked for workforce projections, simulations or predictive modeling.
Mercer and WorldatWork point out that while respondents report that some data is not available or of poor quality, 75% of respondents say their organizations are working to improve the consistency of their data. Paradoxically, 52% are unclear where responsibility for data integrity lies.
I found it interesting that the researchers suggest that “unavailable” data may result from a lack of interest in the data rather than an ability to access it. A compelling point.
From the responses outlined in the exhibit above, one could readily agree with the researchers that critical workforce information about education, competencies, prior work experience and investments in training aren’t top of mind for compensation professionals. It could easily be that compensation professionals believe these datasets and their analysis more naturally belong to other HR functions: learning/development and talent management/acquisition.
The writers argue that rewards/compensation professionals have a preoccupation with the behavioral side of rewards and overlook the “asset side” – the impact of rewards on the ability of the organization to acquire appropriate talent.
The bottom line for the researchers is to encourage rewards/compensation professionals to begin to think more expansively – and use higher levels of analytics – on the role of rewards in driving human capital development and business success and focus a little less on salary competitiveness and pay-performance sensitivity as performance drivers.
A very interesting report and very useful data as you begin to plan your 2013 budget. Stepping up your workforce analytics sophistication could be a game changer for your organization.
Filed under C-suite, China Gorman, Employee Benefits, Engagement, HR Analytics, HR Data, HR Technology, Mercer, Rewards & Recognition, Talent Management, Total Rewards, WorldatWork