People Analytics Week 6 Lecture Notes PDF

Welcome to People Analytics Week 6 1 Workforce Planning Analytics 2  Workforce planning analytics: definition Workforce planning analytics - process of injecting advanced analytics in order to optimize business outcomes...

Welcome to People Analytics Week 6 1 Workforce Planning Analytics 2  Workforce planning analytics: definition Workforce planning analytics - process of injecting advanced analytics in order to optimize business outcomes and ensure human capital success Based on the analysis of past and present, anticipate future workforce needs People Analytics 3 Purpose of workforce planning analytics Develop predictive custom model helping to anticipate future workforce demand Develop predictive custom model to adjust to internal and external changes ( e.g., political or economic downturns) People Analytics 4 Example of Workforce Planning Analytics https://www.youtube.com/watch?v=h_05rzCqYNM People Analytics 5  Financial benefits of workforce analytics Cost reduction: talent acquisition and retention Optimization of staff needed: right people at the right time, at the right cost Successful execution of business strategy Optimisation of T&D and Comp & Ben Improvement of business operations and decisions Allocation of talent investment: alignment of HR and business strategy Balance for HR supply and demand People Analytics Decreasing hiring costs while improving 6 Cambridge Analytica Cambridge Analytica employed data analytics and psychographic profiling techniques to gather information from various online sources. The data collected was then used to create detailed psychological profiles of individuals, which included their personality traits, preferences, and political beliefs. These profiles were then utilized to target and influence individuals with specific political messages and advertisements, tailored to their psychological inclinations and susceptibilities. By micro-targeting specific demographics with personalized political content, they aimed to sway voters' opinions and behaviors, potentially influencing their voting decisions. The unethical and controversial practices of Cambridge Analytica raised concerns about data privacy, manipulation of democratic processes, and the misuse of personal information for political gains. Components of workforce analytics People Data Technologies and tools Processes Predictive models People Analytics 8 People Skillsets to build workforce planning models Knowledge to transform data into actionable insights Being able to conduct "what- if" analyses Expertise in integrating workforce planning models with existing HR systems and database Transform raw data into easily digestible insights. People Analytics 9 What data might be used for workforce planning analytics? People Analytics 10  Data Business Economic Labour University data/ Talent Data Market data data/Industr statistics graduation Organization y benchmark data data al KPI HRIS data Social media Sales Gross Labour force Graduation Recruitment data Number of domestic Job openings by discipline data Competitive customers product Unemployme Hard-to-fill T&D data intelligence Revenue Consumer nt positions Performance data Revenue per price index Payroll/wages data Voice-of- employee Quits/layoffs Turnover & candidates Average Population retention data order size growth data Payroll data Job attitudes Com&Ben Succession budget planning & retirement People Analytics 11 HR Measures = (Total number of people left the organization in Attrition Rate the period) / (Headcount at the start of the period + Heads recruited during the period) Employee = (Total number of left the organization in the Turnover period) / Average headcount in the period = (Pay + Benefits + Contingent labour cost) / Human Capital Full-time equivalents Cost (This is simply the average pay per regular employee) Human Capital = (Revenue - Nonhuman expenses) / Full-time Value Added equivalents People Analytics 12 HR Operations reporting Salary Costs represent a significant portion of operational expenses and impact financial reporting, statements and company valuation Headcount - count of employees on Payroll: Permanent Employees Part Time Employees Temporary Employees Employees on Leaves Not considered as Headcount: Staff Agency Employees Outsourcing Staff Independent Consultants 13 Pay Equity –Job-to-Job Comparison Comparison of female job classes to their male comparators – male job classes of equal or similar value: Job Old New Male Female Job Job Rate Adjustm Valu Rate Rate Compara Class Value $/hr ent e $/hr $/hr tor Account Manager 30 32 Senior Employee 1 500 30 32 Accounta 497 32 2 Employee 2 27 29 nt Employee 3 23 25 Executive Assistant 25 25 Employee 1 350 25 25 IT 353 24 0 Analyst Employee 2 22 22 Employee 3 20 20 14 Point Method The point factor method of job evaluation is a systematic process used by organizations to determine the relative value of different jobs within the company. It is a quantitative technique that helps in creating an objective and consistent basis for evaluating positions and determining their appropriate compensation levels. Here's how it generally works: Copyright © 2021 by Top Hat 8-15 Using the Point Method (Slide 1 of 2) Identify key characteristics (compensable factors) that differentiate the value of various jobs Develop a measuring scale for each factor (scaling) Weight each factor according to its importance Copyright © 2021 by Top Hat 8-16 Using the Point Method (Slide 2 of 2) Apply the job evaluations system to every job under the JE system, and rank list the jobs Test resulting jobs hierarchy for reliability, validity and market fit, revising where necessary Copyright © 2021 by Top Hat 8-17 Identifying Compensable Factors Compensable factors Characteristics of jobs that are valued by the organization and differentiate jobs from one another Skill Effort Responsibility Working conditions Copyright © 2021 by Top Hat 8-18 Examples of Commonly Used Compensable Factors Working Skill Responsibility Effort Conditions Ability to do Mental effort: detailed or Accountability Attention Bodily fluids routine work demand Mental effort: Concentration Cleaning up Accuracy Accuracy using the five after others senses Mental effort: Budget Effects from Analytical ability Danger responsibility dealing with people Mental effort: Communicating Cash Handling in a second (responsibility Dirtiness complaints or language for) emergencies 8-19 Copyright © 2021 by Top Hat Scaling the Factors After compensable factors have been selected and defined, a number of “degrees” (or "levels”) are established for each factor Degrees represent gradations in the extent to which a certain factor is present in a particular job being rated For example, five possible “degrees” or levels for the factor of “consequences of error” Each degree needs to be defined and arranged so that degree 2 always contains more of that factor than degree 1 Copyright © 2021 by Top Hat 8-20 Figure 8.1: Sample Rating Chart For Point Method Copyright © 2021 by Top Hat 8-21 Applying the Job Evaluation System Job evaluation system is then applied to all the jobs covered A “hierarchy of jobs” is generated Summarize the results of the job evaluation and hierarchy of jobs in a table Copyright © 2021 by Top Hat 8-22 Table 8.3 Benchmark Jobs and Comparators AVERAGE JOB MARKET BENCHMARK TOTAL EVALUATION COMPARATOR JOB COMPENSATIO POINTS JOB N Thoracic 810 Cardiologist $191 346 surgeon Staff physician 735 Family practitioner 125 407 Head ward nurse 675 Nurse supervisor 69 043 Registered nurse 535 Registered nurse 56 056 Medical lab tech. 370 Medical lab tech. 49 692 Nurse’s aide 330 Nurse assistant 33 722 Janitor/cleaner 265 Hospital cleaner 27 267 Admitting clerk 230 Admitting clerk 36 078 Copyright © 2021 by Top Hat 8-23 Job Evaluation System Market line A regression line that relates job evaluation points to market pay (in dollars) for the benchmark jobs Pay policy line The intended pay policy for the organization, generated by adjusting the market line for the intended pay level strategy of the organization Correlation coefficient A statistic that measures the extent to which plots of two variables on a graph fall in a straight line Copyright © 2021 by Top Hat 8-24 Figure 8.2 Sample Market Line for a Canadian Hospital Copyright © 2021 by Top Hat 8-25 Testing for Market Fit Correlation coefficient (also known as regression coefficient) can range from +1 to –1 +1 or –1 occurs when all the plots fall in a straight line +1: Positive relationship between job evaluation points and pay rates –1: Negative or inverse relationship between job evaluation points and pay rates Copyright © 2021 by Top Hat 8-26  Calculate ROI of Human Capital ROI = To calculate the ROI of a particular program, you must first calculate the value of the specific program and divide it by the costs of implementing the program. E.g., if a training program aimed to speed production of a factory line leads to increased amount of product, calculate the value of the additional product and divide it by the costs of direct and indirect training costs. People Analytics 27 Technologies and tools Application tracking systems Learning management systems (LMS) Performance management systems Analytics for data warehouse In-house solutions to facilitate Work Force planning People Analytics 28 Predictive models Resources needed in 2, 5, 10 years Resources leaving in 6, 12, 24, 60 months Top performers to retire Top performers at risk Resources for succession planning High potentials for future promotions Skillsets for successful competition People Analytics 29 Workforce analytics process Identify business challenge 1 Define your current workforce 2 Conduct supply/demand and gap analyses Interpret your findings & provide recommendations 3 Develop action plan Communicate the strategy 4 Track the outcomes 5 Evaluate People Analytics 30 Identify business challenge Identify Defined every year Tied with mission, vision, and business strategy E.g., Increase market share by 33% business Increase customer retention by 10% Increase profitability by 15% Become a leader in your industry goals Outline human Target time for change implementation Management change needed New skillset requirements capital Centralization/ decentralization needs Workload productivity and employee value Required change in FTE and contractors Required changes in headcount, qualifications, diversity, work requiremen status Requirements for external hiring of new skillset Termination or transfer of human capital ts People Analytics 31 Conduct supply/demand and gap analyses Describe current Job title Job category workforce/ Job level Job status (full-time, part-time, contractor) Quantity requires build Quantity to hire Diversity competency Financial implications ( cost per hire, compensation, etc.) plan Conduct Develop a dashboard for each job function Profile each job function by variables Analyse leave, absence by job function considering demographic supply and performance data, job grade, location, occupation, seniority Factor environmental consideration: lateness correlating with commute time analysis Analyse historical acquisition, turnover, and retention ( profile by job functions; consider acquisition sources) Determine strengths and weaknesses, risks and gaps People Analytics 32  Turnover analysis Voluntar Involunta y ry Retirement Downsizing Promotion Performance issues Quit Reason for leaving Turnover by grade and Destination performance Correlation between turnover Turnover by demographics for and acquisition channel each job function Turnover by grade and performance Turnover by demographics for each job function People Analytics 33 Provide Recommendations Develop workforce scenario for specific role, including the key ones Run scenarios based on demand forecast Build statistical models for workload Develop models to balance demand and supply Identify strengths, weaknesses, risks, and gaps Investigate surpluses and shortages of the workforce Identify required skillset for accomplishing the workload People Analytics 34 Develop action plan Plan for new acquisitions for each job Staffing function Evaluate succession planning opportunities shortages Excesses/ Plan for restructuring: positions impacted, when to make transfers, skill gaps Evaluate alternatives for staff reductions: staffing redeployment, early retirement, Proceed with lay-offs , if nothing else surpluses possible: timelines, impact on employee morale, costs/ severance, contingency plan People Analytics 35 Track the outcomes Evaluate business, group , and individual outcomes Track contributions by the new staff People Analytics 36 Workforce Planning Articles Group 1: https://www.mckinsey.com/industries/travel-logistics-and-infra structure/our-insights/ai-can-transform-workforce-planning-for -travel-and-logistics-companies Group 2: https://www.forbes.com/councils/forbeshumanresourcescounc il/2022/09/02/workforce-planning-modeling-the-workforce-of-t omorrow-today/ Group 3: https://www.cipd.org/en/knowledge/guides/strategic-workforc e-planning/#six-stages-to-workforce-planning (particularly the six stages part) People Analytics 37 Group 4:  Group Work Summarize the Key Points: Review the content from the link you’ve provided and summarize the most critical information. Focus on the main ideas, data, or concepts that are emphasized in the source. This could include key findings, theories, or recommendations related to the topic. Include a slide or two that outlines these points succinctly, perhaps with bullet points for clarity. Give Your Opinion: Share your personal take on the information. Do you agree with the conclusions drawn in the source? Why or why not? Highlight any insights or realizations you had while reviewing the material. This adds depth to your presentation and shows critical thinking. You could make a slide that presents your opinions, using visuals or examples to strengthen your points. Provide an Example of How It Could Be Used: Think about a real-world scenario where the concepts from the material could be applied. For instance, if the material is about a business strategy, how have you seen companies use it? You could either relate it to a personal experience or mention a case study or example from another source. Create a slide that uses visuals or diagrams to demonstrate how the material might be applied in a practical setting. Ask a Few Questions to the Class: At the end of your presentation, pose a few open-ended questions to engage the class. Example: What are your thoughts on the practicality of these concepts? These questions can help facilitate a discussion, so ensure they are thought-provoking. People Analytics 38  Homework Online discussion responses Annotated readings chapter 11 People Analytics 39