Tag Archives: Big Data and HR

Are HR And Finance Finally Going To Be Friends?

How on earth can it be August 1st? For that matter, how on earth can it be 2017? After taking off three weeks for vacation and business travel commitments, it’s time to be back considering new research and data of interest to the HR community. And here’s an interesting report from Oracle and MIT Technology Review.

My friends at Oracle sent it to me, and I’m glad they did. The report might signal the start of a new era of respect, cooperation, and, dare we say, organizational friendship between HR and Finance. Finance and HR: The Cloud’s New Power Partnership is a recent publication providing interesting data, analysis, and commentary about the Cloud’s opportunity to drive greater partnership, cost savings and actionable data through a strong HR and Finance relationship. It’s a quick read at 14 pages, and it’s based on survey data collected from 700 respondents that included senior managers and their mid-level management counterparts from Finance, HR, and IT, as well as more holistically inclined C-level executives. Organizations participating were from the Americas, Europe, the Middle East and Africa, and Asia. About 75% of the participating companies generate annual revenue between $250 million and $1 billion from a range or industries. So a global sample of large employers. Just the segment that would be wrestling with the Cloud opportunities. And just the segment that would see value in a closer relationship between HR and Finance.

Among businesses that participated in the survey, 35% plan to create a shared finance and HR function within a year… 42% of respondents say they are motivated by improvements in productivity and performance. Respondents view closer finance and HR collaboration in the cloud as a strategic necessity, promoting operation excellence and accelerating innovation.

Wait a minute. I think I felt the ground move! Shared Finance and HR function? Within a year? That’s an eye popper right there. Not because it doesn’t make sense:  it really does. HR is becoming more data driven every day. And Finance has been data driven for years. Getting them together to analyze people data’s impact on the business and its growth plans is critical. And getting HR and Finance together through a technology bridge makes sense. Both HR and Finance need more and more data to manage the business. More and more analytics capabilities. More and more ability to predict the future based on today’s data. It’s fascinating to me that technology may be the puzzle piece that finally brings HR and Finance together. And the results – so far – look substantial:

These outcomes, though pretty generic, show an enormous upside opportunity for HR and Finance to migrate jointly to the Cloud. When do we ever get these kinds of outcome ratings on large-scale organization change initiatives? Or just on HR projects? Or just on Finance projects? It seems as if organizations are succeeding in generating real benefits from moving to the Cloud by creating teams from natural adversaries. And how interesting it is that the IT team is the attractor beam bringing HR and Finance together.

The report shares a few short case studies – from the education, energy, and financial services sectors – that underscore the benefits of integrated ERP-HCM Cloud systems deployments. (Note: this is a white paper. Underwritten by Oracle.) There are a number of interesting graphs in the report all underscoring these benefits. And they’re interesting to think about.

This is a quick read and it could help inform your thoughts about moving more HR functions to the Cloud. And to get you thinking about the inevitability of working more closely with your colleagues over in Finance. Better to have some informed opinions before your CEO, CHRO, CFO, or CTO starts asking questions…

 

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Filed under Analytics, Big Data and HR, China Gorman, Cloud Migration, Data Point Tuesday, HR Data, HR Technology, MIT Technology Review, Oracle, Technology Implementation, Workforce Management

One Internet Trend To Watch

As I’ve written in the past, Mary Meeker’s annual Internet Trends report is a treasure trove of data that most HR professionals miss. That’s because the report isn’t about HR trends, it’s about internet trends. But almost any way you look at it, HR is impacted significantly by the trends she presents. I wrote about her take on the U.S. Income Statement in the Macro Thoughts section of the report a couple of weeks ago. This week, I’m going to start at the beginning.

It’s simple, really. In the first section on Global Internet Trends = Solid User Growth, Slowing Smartphone Growth, this chart appears:

This looks to me like adults spend 5.6 hours per day on the Internet:

  • 1 hours on devices (smartphones and tablets)
  • 2 hours on desktop/laptop computers
  • 20 minutes on other connected devices

Now to be clear, this is a mixture of work and personal time. But, Holy Moly, the average adult spends almost 6 hours per day connected to the Internet! Even if half of it isn’t at work, that still means that half of it is at work! That’s 3 hours a day. 3 hours a work day.

Tell me this doesn’t impact HR. Tell me this doesn’t impact productivity on the job. Tell me this doesn’t create less collaboration, less teamwork, less effectiveness on the job. And my first question is, how much of that time is spent researching and applying for new jobs? Yikes!

This is one data point. Just one. But if it’s true, and your productivity numbers are slipping, maybe this is an area to explore. Or if your turnover is rising, maybe other employers are making it super easy to learn about their businesses, their cultures, and their job openings — all on the Internet. And making it super easy to apply via smartphone.

I’m not saying that the Internet is evil or that Smartphones are the devil’s work (although I did hear an investor at a huge business conference opine both of those points of view a year ago…). I’m merely pointing out that it is unlikely that all that time being spent on the Internet is work-related, or project-related, or business-related, or customer-related.

What are you doing to re-harness this time and energy?

 

 

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Filed under Big Data and HR, China Gorman, Data Point Tuesday, Internet Trends, Internet Usage at Work, Mary Meeker

Internet Trends and the USA’s Income Statement

Every year, I look forward to two reports:  The Deloitte Human Capital Trends report and the Kleiner Perkins Internet Trends report. I’ve written about the Deloitte report here and here; and the Internet Trends report here and here. The 2017 Internet Trends report was published last week and it’s a doozy!

Ever year Mary Meeker, from Kleiner Perkins, takes a vast look at what the Internet is doing to the world. How it is changing everything. While it’s never about HR, per se, HR is in most nooks and crannies of the data that are shared. And it really should be required reading for all business leaders. Including HR. This year, at 355 pages, the report is a blockbuster. And worthy of more than one Data Point Tuesday post.

This year’s report looks at these areas:

  • Global internet trends
  • Online advertising (and commerce)
  • Interactive games
  • Media
  • The cloud
  • China Internet
  • India Internet
  • Healthcare
  • Global public/private Internet companies
  • Some macro thoughts
  • Closing thoughts

To be honest, I always start with the macro thoughts section. This is where she drops the aha! moments. Well, at least for me. And this year was no different. Part of the macro thoughts are about USA, Inc. and she leads off with the USA’s income statement comparing F1986 through F2016. If you think of the USA as a business, this is eye popping.

What does this have to do with HR? Well, nothing and everything. Understanding income statements is a requirement for any business leader today. Including those in HR. Understanding how our businesses spend and make money is key to being able to successfully lead and invest in people.

Understanding our nation’s income statement should be a requirement for every citizen. Knowing how the taxes we pay are used, where our money is being invested, and the state of our debt are all important things for us to know. Be honest:  have you ever really thought about our nation’s finances from an income statement perspective? Even if you have, this ought to be under a magnet on your refrigerator door!

Knowing the state of our nation’s finances will put into perspective the state of your employer’s finances – and the choices that are being made nationally as well as at work. This is called perspective and it’s a valuable thing to have.

Next week, we’ll take a look at another aspect of the Internet Trends Report for 2017 that may have a more direct connection to the world of HR. In the meantime, you might take a look at it here. (And the 355 pages are PowerPoint pages, so they’re pretty easy to move through.)

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Filed under Analytics, Big Data and HR, China Gorman, Data Point Tuesday, Deloitte, Demographics, HR Trends, Internet Trends, KPCB, Mary Meeker

The Workforce: Not As Simple as Red or Blue, Male or Female, or Generation

Jobvite’s annual Job Seeker Nation Study was published a couple of weeks ago. They took a whole new approach, given the current political environment in the U.S., and it’s fascinating. Subtitled, Finding the Fault Lines in the American Workforce, it looks at how divided our nation really is when it comes to attitudes and actions related to changing jobs.

“If the past year taught us anything, it’s that we live in a divided nation. In fact, nearly 80% of Americans – an all-time high – believe the country is split in two. With this year’s Job Seeker Nation Survey of 2,000 Americans, we sought to define that split:  who are the two groups and what does the job seeking experience look like for each? The answer surprised us:  ‘Divided America’ is a myth. Sure, from 30,000 feet you see Blue vs. Red. Coast vs. Coast. But dig a couple layers deeper and you don’t find a neatly divided population… What we found is many different versions of the American job seeker.”

And then we’re off to the races with fascinating data points covering the workforce, job seekers, men, women, quitters, stayers, generations – different slices of workforce data that are sure to make you stop and think about what’s really happening with your employees.

The finding that I found most interesting had to do with job sampling. For example, more than half of the respondents are satisfied at work (64%) – but 81% of them are open to new job opportunities. Additionally, 50% had at least one interview this year to explore options – with no intention of leaving their current position! Additionally, job seekers are not as happy as they used to be. In the last year, the percentage of workers satisfied at work has plummeted 10 percentage points to 64% (from 74%). But more concerning is that 82% are open to new job opportunities. That’s a tough message for employers.

Another fascinating data point – despite greater transparency around pay, performance and the like – is that workers routinely “sample” their options by interviewing for new jobs.

The dynamics of the workforce in 2017 are clearly not cut and dried – and certainly not as simple as Generation vs. Generation or Male vs. Female. Of course, we knew that. But this report shines a light on some more nuanced slices of the data and provides some surprising results.

I look forward to this report each year. (Here’s my take on last year’s report.) The Jobvite folks always serve up a different set of data points that add depth to the planning and conversations employers are having about their workforces. This year is no different. Take a look here. You’ll find some useful insights.

 

 

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Filed under Big Data and HR, China Gorman, Data Point Tuesday, Employee Demographics, Employment Data, Generations at work, HR Data, Human Capital

The Future Is Now

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Deloitte’s annual human capital report was just published. I look forward to this one every year because it’s backed by a massive amount of data collection and analysis, it’s easy to read, it always throws at least one curve ball, and there’s a TON of useful information. This may be the most on point, useful research report published for leaders each year. At 144 pages, Rewriting the Rules for the Digital Age is not a quick read, but it’s a must read for every HR professional – regardless of the size of your organization. Whether you’re a department of one, a depart of 10, or a department of hundreds of thousands, the trends captured by Deloitte’s survey and discussions need to be on your radar. Period.

Each year the survey identifies the top 10 human capital trends that should be shaping organizational decision- and policy-making, investments, budgets and leadership behavior. This year they are:

Trend 1           The Organization of the Future:  Arriving Now

Trend 2           Careers and Learning:  Real Tim, All the Time

Trend 3           Talent Acquisition:  Enter the Cognitive Recruiter

Trend 4           The Employee Experience:  Culture, Engagement, and Beyond

Trend 5           Performance Management:  Play a Winning Hand

Trend 6           Leadership Disrupted:  Pushing the Boundaries

Trend 7           Digital HR:  Platforms, People, and Work

Trend 8           People Analytics:  Recalculating the Route

Trend 9           Diversity and Inclusion:  The Reality Gap

Trend 10         The Future of Work:  The Augmented Workforce

As you look at these trends, don’t you think to yourself, “you could write a whole book on each topic!”? Well, I did. But the good news is, after the introduction, there is a whole chapter on each trend with data, analysis, heat maps, graphs – all the goodies you’d expect.

But here are two graphs from the Introduction, Rewriting the Rules for the Digital Age, that sets the context for everything that follows. If you’re like me, you’ll do a bit of a head smack when you see these and say to yourself, “Yep. That’s exactly how it’s working. Or not.”

deloitte-hcm-trends-2017-fig-1And,

deloitte-hcm-trends-2017-fig-2

These make so much sense and really underscore HR’s role in leading all organizational leaders to consider the broader context of what technology can – and must – mean in the coming years.

I don’t want to give away the store here, so I won’t share more of the research and conclusions. Read the trends analysis yourself. See how you would prioritize the 10 trends and make a plan. Time to roll up your sleeves! Remember that old saying, that the future is now? Well, in this context, it’s true.

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Filed under Big Data and HR, China Gorman, Data Point Tuesday, Deloitte, Future of Work, Global Human Capital, HR Data, HR Trends, Human Capital, Workforce Management

Got Culture?

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Gallup’s State of the American Workplace report is out. It’s a lot of information (214 pages!). But it’s important information and you’ll enjoy the most current data from this global collector and analyzer of work related data.

We talk about employee engagement – or some other euphemism for connecting with employees in a human, caring way – all the time. We get at our data through the famous surveys from organizations like Gallup, Great Place to Work™, Quantum Workplace, or Workplace Dynamics – or any of a hundred other providers of culture measurement and strengthening solutions. And we compete in geographical and industry competitions all over the world to claim one of the top spots in great organizational culture lists. All of this to attract and retain world class employees.

I’m a big believer that culture trumps most every other organizational dynamic in the war for talent, innovation, profitability, top line growth, competitiveness and any other thing you might measure. I’ve been quoted frequently as saying that “strong, positive  cultures improve everything we measure that we want to go up, as well as reducing everything we measure that we want to go down.” And it’s true. But intentionally creating and managing the right kind of culture is getting more difficult as the world gets more and more complex: 4 or 5 generations in the workplace; Big Data and Artificial Intelligence; globalization; nationalism; terrorism; population growth; global warming – the list of external dynamics – some might say threats – impact  our organizations’ success as well as how we relate with our employees seems to grow every day.

So, I appreciate organizations that collect data, make sense of it, and then make it available to all of us. I appreciate them a lot. And Gallup does a better job than most. This report, State of the American Workplace, has a ton of interesting data in it. You probably don’t want to read it in one sitting, but you do want to read it all.

In the executive summary, the report lays out the roadmap for leaders to follow in creating organization sustainability:

  • design and deliver a compelling and authentic employer brand
  • take employee engagement from a survey to a cultural pillar that improves performance
  • approach performance management in ways that motivate employees
  • offer benefits and perks that influence attraction and retention
  • enable people to work successfully from locations besides the office
  • construct office environments that honor privacy while encouraging collaboration
  • improve clarity and communication for employees who work on multiple teams

Sounds simple, I know; but any leader who has tried to create a stronger culture knows that this is hard stuff. It’s 3 steps forward, 2 steps back stuff. And Gallup has the data to back it up.

The executive summary ends with this:

“The one thing leaders cannot do is nothing. They cannot wait for trends to pass them by, and they cannot wait for millennials to get older and start behaving like baby boomers.”

The chapters are mini culture theses in themselves:

  1. U.S. workers: increasingly confident and ready to leave
  2. Do employees want what your workplace is selling?
  3. The real truth about benefits and perks
  4. The competitive advantage of engaging your employees
  5. A shift in managing performance
  6. A closer look at the 12 elements of engagement
  7. Making sense of matrixed teams
  8. The changing place and space of work

I encourage you to delve into these chapters and consider the data, the analysis and the conclusions in each. In chapter 2, data are shared that might motivate you to reconsider how you think your employment candidates are evaluating your organization as a potential employer:

gallup-american-workplace-2017-1

Increase in income potential and a well-known brand are not as important as they once were. Did you know that?

There are a number of similar “ah-ha” data points in this report. They are easily accessible, simply constructed and are potential game changers as you think about your organization’s culture and its impact on your ability to retain and acquire the talent you need.

Download it here. I think you’ll gain surprising new insights.

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Filed under Big Data and HR, China Gorman, Company Culture, Data Point Tuesday, Employee Engagement, Employee Satisfaction, Gallup, Generations at work, HR Analytics, HR Data, HR Trends, Human Capital, Talent Analytics, Talent Management, Workplace Culture

Is “HR Analytics” an Oxymoron?

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As we head full-on into 2017, a friend sent me the link to a survey analysis that is extremely eye-opening. Still Under Construction:  The State of HR Analytics 2016, conducted and published by the New Talent Management Network, has some compelling data about how HR functions are deploying higher level analytics and how successful they are in deriving actionable insights. I was somewhat surprised at the findings. Maybe you will be, too.

According to the report, the perceived revolution in human resources inspired by the promise of relevance through data-driven insights is largely unrealized. No surprise, right? It’s a quick read, with reader-friendly graphs and charts that should make you feel more normal if your HR analytics investment and programs aren’t moving ahead as quickly as you’d like – or as quickly as you perceive your competitors’ are!

There are three primary findings:

  1. Big Promise; Small Reality

Essentially, there’s lots of talk and very little action. “…most organizations are using the same tools that existed years ago to produce the same analyses companies have always produced.”

  1. Backstabbing Data

“It turns out that the data is dirty – inconsistent, scattered, unreliable and sometimes just plain inaccurate.”

  1. Lean, Green and Unloved

Surprisingly, the HR data analytics push doesn’t seem to be helping: “more companies said their people analytics team hinders their analytics work than helps it.”

All three points above are discussed with interesting data points to support the conclusions. Point three is explained with the following:

still-under-construction-1

The takeaway here is that when there are dedicated people analytics teams in place, they are relatively small, relatively inexperienced, and not being very successful in changing the people practices of the organization. And therefore, confidence in these teams’ output remains low.

Perhaps experience and longevity will help. Or perhaps we’ve gotten the cart before the horse. This paragraph from the report really struck home for me:

“Only basic people analytics are being performed by most organizations, undercutting the popular narrative that companies are rapidly advancing in this space. The only rapid advancement seems to be in adding an HR analytics function, not getting deeper, more meaningful insights from it.”

This report generates real food for thought. I think you’ll find it interesting.

 

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Filed under Analytics, Big Data and HR, China Gorman, Data Point Tuesday, HR Analytics, New Talent Management Network, Talent Analytics