Speaker. Joni Pulido-Ferrier Value Advisor Expert HR Line of Business Value Engineering Australia, Pacific Japan, SAP

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2 Speaker Joni Pulido-Ferrier Value Advisor Expert HR Line of Business Value Engineering Australia, Pacific Japan, SAP 2 SuccessFactors Proprietary and Confidential 2014 SuccessFactors, An SAP Company. All rights reserved.

3 Telling Story with Data People Analytics That Improve Business Results Joni Ferrier, Value Advisor Expert, HR Line of Business SEA

4 Organizations That Embrace Human Capital Analytics Outperform Those That Don t. 30% greater stock returns than average 79% higher return on equity 15X better improvement in customer satisfaction measures Twice as likely to improve leadership pipelines 2X greater talent mobility Source: High-impact Talent Analytics: Building a World-class HR Measurement and Analytics Function. Bersin by Deloitte 2013; Sierra-Cedar 2104 HR Systems Survey, and Human Capital Management Trends, Aberdeen Group

5 Why? Yet, Very Few Do 12% of organizations use human capital analytics solutions workforce analytics, strategic workforce planning, and predictive analytics SuccessFactors Proprietary and Confidential 2014 SuccessFactors, An SAP Company. 5 Source: Sierra-Cedar 2104 HR Systems Survey All rights reserved.

6 Because the Path Is Met with Significant Challenges Capability Analytics has traditionally not been in the domain of HR. Complexity Accessing HR data from multiple sources is difficult and analytics solutions are hard to use for the non-specialist. Criticality There s been a lack of executive ownership and an atmosphere of deferral. 6 SuccessFactors Proprietary and Confidential 2014 SuccessFactors, An SAP Company. All rights reserved.

7 Costs & Productivity Business Case for Human Capital Analysis Wellpoint/Anthem New Hire Turn Over Analysis (Case Study) H Cost vs. Productivity of New Hires Departing employees have not generated productivity gains to offset costs Productivity Costs L 0 12 months 24 months Tenure OVER 30% OF NEW HIRES WERE LEAVING WITHIN THE FIRST 12 MONTHS CONTRIBUTING TO SIGNIFICANT COSTS AND LOSS OF PRODUCTIVITY. 7 SuccessFactors Proprietary and Confidential 2014 SuccessFactors, An SAP Company. All rights reserved.

8 Benchmark: Key Metrics Recruiting and Onboarding Metric Company Value Peer Group Average Top 25% Voluntary Turnover (in %) Manager Voluntary Turnover (in %) Employee Loyalty (in years) Critical Position Vacancies (in %) Employee Referral Rate (% of external hires) Candidates Hired through Social Sourcing (% of new hires) Bad Hires (in %) Time to Hire (in days) Ranking: Below Average Between Average and Top 25% Top 25%

9 Wellpoint/Anthem s New Hire Turnover Analysis Identifies $6 Million cost savings HR generated hypotheses about the cause of high turnover Q. Is there a link between starting salary and turnover rates? Q. Are we providing a realistic preview of the role? Q. Are employees being inducted effectively? Prompting analysis of a range of metrics Statistical Analysis of Pay and Turnover Realistic Job Preview Effectiveness Induction and onboarding leading to actions that result in SIGNIFICANT DECREASES IN TURNOVER AND WORKFORCE COSTS Year 1 Year % reduction in new hire turnover $6 MILLION COST SAVING Source: WellPoint: Early Tenure Turnover Analysis Saves $6 Million

10 What is Human Capital Analytics Reporting VS Analytics What is the demographics ratio? Gender / Age / Ethnicity What is the turnover rate? What is the requisition time to fill? Show my CHRO how employee engagement correlates to revenue, then identify the drivers of engagement. What is our voluntary termination rate for high performers? Who else is at risk of leaving? Who has birthday today? Who has been recently promoted? What is our age profile (by job role) & how has it changed over time? What is the rate of performance improvement? 10 SuccessFactors Proprietary and Confidential 2014 SuccessFactors, An SAP Company. All rights reserved.

11 Visualize the Future of HR Countdown to Success With the right approach to human capital analytics HR gains the deep, real-time insights needed to credibly influence decision-making and improve business results. 11 SuccessFactors Proprietary and Confidential 2014 SuccessFactors, An SAP Company. All rights reserved.

12 6 Critical Practices Rely on one single source of truth Be prepared! Challenge assumptions Leverage standard benchmarks and metrics to ID areas for improvement Take on business challenges Link workforce insights to business outcomes 2015 SAP SE or an SAP affiliate company. All rights reserved.

13 Execution Drivers Transforming business strategies into business outcomes Business Strategies Organic Growth M&A Customer Intimacy Global Expansion Renewal HR Insights What is our voluntary turnover rate among critical roles and top performers? What are the associated costs to the business? What is impact of an increase in voluntary turnover among customer-service representatives to customer retention? What is our revenue per employee? How does it compare to our competitors and industry leaders? How does it vary across lines of business and/or geographic regions? Business Outcomes Top line growth Revenue per employee Profit Shareholder value Customer loyalty

14 5 Steps for Success Source of Standards Maintain data integrity through consistent definitions and measurement of HR metrics. Made to Measure Identify different user groups and address potential points of resistance. Rhythm Distribute regular analytic reports that build awareness, by incorporating HR metrics into business planning and management. Resourcing Create a centre of excellence by providing dedicated resources for HR metrics. Assign accountability and develop analytic capabilities to address all required skill sets. Business Bias Present data with a business perspective to ensure key messages are appropriate, timely and actionable SAP SE or an SAP affiliate company. All rights reserved.

15 4 Tips for Implementing Workforce Analytics Software Think like a business owner Assess internal capabilities Understand IT Landscape Start a pilot project Understand company s current business goals &, challenges and how HR analytics can help drive business decisions. Key success factor is assigning analytics responsibilities to right people. Understand data sources and integration. Choose where to start and create quick wins 2015 SAP SE or an SAP affiliate company. All rights reserved.

16 3 Centre of Excellence Components Effectiveness Efficiency factors Data Integration Data accuracy / validation Metrics & reporting standards Develop expertise internally (educate) Create standards, drive accountability Analytics driven strategy Role functions Financial: Analytics & reporting IT: Technology HR: Interpretation & intervention 2015 SAP SE or an SAP affiliate company. All rights reserved.

17 2 Resourcing Options - Skills, Structure and Training of HR Distributed Concentrated 40 people x 2 hours / week = 80 hours Generalist Driven Support Director, HR Line Support 2 people x 40 hours / week = 80 hours Centre of Excellence Director, Human Capital Analysis Business Partner Business Partner Business Partner Human Capital Analyst Human Capital Analyst 2015 SAP SE or an SAP affiliate company. All rights reserved.

18 1 Option - SuccessFactors Human Capital Analytics Reliable, Actionable Guidance, When and Where You Need It Standard and Compliance Reports Dashboards Headlines Ad Hoc Reports Issue-Focused Predictive, Mobile, Pervasive Metrics Talent Flow Benchmarks Strategy Bank Modeling What-if Scenarios Embedded Analytics Workforce Analytics Workforce Planning Unified with SuccessFactors HCM Suite and Integrated with SAP ERP HCM and 3 rd Party

19 The Future of HR Focus Focus HR resources on talent pools that drive highest business impact Align Align workforce and HR strategy to business strategy by measuring the business impact of your HR programs Value Measure HR activities to provide insight into which adjustments must be made to maximize business impact Confidence Build solid business cases for your HR strategies and program, to win executive support 19 SuccessFactors Proprietary Source: and Sierra-Cedar Confidential 2104 HR 2014 Systems SuccessFactors, Survey An SAP Company. All rights reserved.

20 Q& A Joni Ferrier Value Advisor Expert, HR Line of Business 20 SuccessFactors Proprietary and Confidential 2014 SuccessFactors, An SAP Company. All rights reserved.

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