The slides from my keynote at Social Recruiting Days in Berlin in September 2017. The speech covered: - What is people analytics and why is it growing in importance - 'Best' practices of companies that are leading the way with people analytics - Case studies from the likes of IBM, Cisco, LinkedIn and Virgin Media - Trends in people analytics and digital HR - Ethics, privacy and trust There is also a video recording of the speech, which can be accessed here: https://www.youtube.com/watch?v=lk6ZK5vHdE0

1. 1
THE ROLE OF PEOPLE ANALYTICS IN RECRUITING
David Green | #SRD17 | Berlin | 12 September 2017
linkedin.com/in/davidrgreen @david_green_uk
#SRD17

2. 2
“Analytics is no longer a
‘good idea’ for HR
- it is now mandatory”
Josh Bersin
#SRD17@david_green_uk

3. AGENDA
THE WHAT
WHAT IS PEOPLE
ANALYTICS?
THE WHY
WHY IS PEOPLE
ANALYTICS GROWING
IN IMPORTANCE?
WHY IS RECRUITING
AT THE FOREFRONT?
THE HOW
WHAT IS BEST
PRACTICE IN
PEOPLE ANALYTICS?
EXAMPLES
THE FUTURE
WHY IS PEOPLE
ANALYTICS CENTRAL
TO THE FUTURE OF
HR?
3#SRD17@david_green_uk

4. 4
“…the use of data and analytic
tools to identify insights on
people that enable faster, more
accurate, and more confident
business decision-making”
Sources: 1. Wharton School, People Analytics Coursera online course; 2. IBM Smarter Workforce Institute white paper ‘Starting the Workforce Analytics Journey
PEOPLE ANALYTICS IS…
4#SRD17@david_green_uk

5. Level 4: Predictive Analytics
• Development of predictive models, scenario planning
• Risk analysis; integration with workforce planning
Level 3: Advanced Analytics
• Segmentation; statistical analysis; development of ‘people models’
• Analysis of dimensions to understand cause, correlation, dimensions
Level 2: Proactive - Advanced Reporting
• Operational reporting for benchmarking and decision-making
• Multi-dimensional analysis and dashboards; data dictionary
Level 1: Reactive - Operational Reporting
• Ad-hoc operational reporting; lots of running around
• Reactive to business demands; data in isolation and difficult to analyze
Can we predict
which candidates
will stay / perform?
Why did they
leave?
How many of our
2016 hires left
within six months?
86%14% REPORTING IS NOT ANALYTICS
Source – Bersin by Deloitte
5 #SRD17@david_green_uk

6. AGENDA
THE WHAT
WHAT IS PEOPLE
ANALYTICS?
THE WHY
WHY IS PEOPLE
ANALYTICS GROWING
IN IMPORTANCE?
WHY IS RECRUITING
AT THE FOREFRONT?
THE HOW
WHAT IS BEST
PRACTICE IN
PEOPLE ANALYTICS?
EXAMPLES
THE FUTURE
WHY IS PEOPLE
ANALYTICS CENTRAL
TO THE FUTURE OF
HR?
6#SRD17@david_green_uk

7. 2005 2013
7 #SRD17@david_green_uk

8. 2005
Change has never
happened this fast
before, and will never be
this slow again
8 #SRD17@david_green_uk

9. 70%of Fortune 1000
companies in 2004
do not exist today
9xgreater data collected
in last two years than
previously collected in
all of humanity
90%of organisations believe
their industries will be
totally disrupted by
digital trends
Sources: (l-r), Gartner, Bersin by Deloitte, MIT/Deloitte
DIGITAL HAS CHANGED EVERY
SINGLE BUSINESS MODEL
9 #SRD17@david_green_uk

10. $439m
$1.29b
2015 2022
THE GLOBAL MARKET FOR PEOPLE ANALYTICS IS SET TO
TRIPLE BY 2022
Source: Stratistics MRC (http://www.strategymrc.com/report/workforce-analytics-market)10 #SRD17@david_green_uk

11. 11
Workforce productivity
Performance management and evaluation
Employee engagement and commitment
Sourcing and recruiting
Talent retention
2013 2015
19%
16%
8%
15%
9% 14%
7% 14%
13%13%
“With predictive analytics, we’ll be able to explore ‘what might happen’
rather than looking at ‘what has happened”
Lucien Alziari, CHRO, A.P.Moller Maersk, Denmark
Source: IBM CHRO Study
@david_green_uk #SRD17
ADOPTION OF PEOPLE ANALYTICS BY CHROs IS RISING

12. Analytics pays
back $13.01 for
every Dollar spent
Source: Nucleus Research #SRD17@david_green_uk

13. Source: Bersin by Deloitte
higher employee engagement
2x
2x
3x
2.5x
more likely to improve their
recruiting efforts
more likely to realise cost
reductions /efficiency gains
more likely to improve mobility -
right people, right jobs
The share prices of
organisations with
mature people
analytics capability
outpaced the S&P 500
by 30% over a three
year period
2x
more likely to improve
their leadership pipelines
CHARACTERISTICS OF ORGANISATIONS WITH
MATURE PEOPLE ANALYTICS CAPABILITIES
13 #SRD17@david_green_uk

14. 2008 2009 2010 2011 2012 2013 2014
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Source: Glassdoor / WSJ.com
$3,185
$2,210
S&P 500 Best Places to Work
Good Place to Work = Good Place to Invest
Value of $1,000 invested in the S&P 500 Index and invested in companies that were rated the “Best Places to Work” by Glassdoor
WHY ARE INVESTORS INTERESTED IN PEOPLE ANALYTICS?
14 #SRD17@david_green_uk

15. Source: BCG
RECRUITING HAS THE BIGGEST BUSINESS IMPACT OF ALL HR TOPICS
#SRD17@david_green_uk
1
2
3
4
5
6
Delivering on recruiting
Onboarding of new hires and retention
Managing talent
Improving employer branding
Performance management and reward
Developing leadership
3.5x 2.0x
Revenue growth Profit margin
2.5x 1.9x
2.2x 2.1x
2.4x 1.8x
2.1x 2.0x
2.1x 1.8x
Other Topics: Mastering HR Process; Global people management and international expansion; Enhancing employee engagement; Providing shared services and outsourcing HR;
Managing diversity and inclusion; Managing change and cultural transformation; Actively using web 2.0 for HR and managing associated risks; Strategic workforce planning;
Delivering critical learning programs; Managing corporate social responsibility; Transforming HR into a strategic partner; Health and security management; Managing flexibility and
labor costs; Restructuring the organization; Managing work-life balance; Managing an aging workforce

16. AGENDA
THE WHAT
WHAT IS PEOPLE
ANALYTICS?
THE WHY
WHY IS PEOPLE
ANALYTICS GROWING
IN IMPORTANCE?
WHY IS RECRUITING
AT THE FOREFRONT?
THE HOW
WHAT IS BEST
PRACTICE IN
PEOPLE ANALYTICS?
EXAMPLES
THE FUTURE
WHY IS PEOPLE
ANALYTICS CENTRAL
TO THE FUTURE OF
HR?
16#SRD17@david_green_uk

17. © David Green 2017
They focus on the business
They have a CHRO who is fully
involved
They have an inspirational leader
They have a balanced set of skills
and capabilities
They leverage resources from
outside HR
They have a clearly defined
strategy & vision
They get the basics right
They have a methodology designed on
producing actionable insights
They use stories and visualisation
to compel action
They know analytics is a long-term
investment
They put the employee at the centre
They make analytics part of the DNA
They communicate their successes
They seek to continually learn and
aren’t afraid to fail
They keep one eye on the future
They don’t forget the ‘H’ in HR
WHAT DO COMPANIES THAT EXCEL AT PEOPLE ANALYTICS DO?
#SRD17@david_green_uk

18. SIX SKILLS NEEDED FOR PEOPLE ANALYTICS
#SRD17@david_green_uk Source: The Power of People: Sheri Feinzig, Nigel Guenole and Jonathan Ferrar (Pearson FT Press – 2017)
BUSINESS ACUMEN
§ Financial literacy
§ Political astuteness
§ Internal awareness
§ External awareness
CONSULTING
§ Problem definition
§ Hypothesis building
§ Project management
§ Solution development
§ Change management
§ Stakeholder management
HUMAN RESOURCES
• HR sub-functions
• HR interdependencies
• International HR
• Privacy and ethics
• HR “sixth sense”
WORK PSYCHOLOGY
§ Industrial psychology
§ Organisational psychology
§ Research design and analysis
DATA SCIENCE
§ Quantitative: mathematics and
statistics
§ Computer Science: databases
and programming
§ Data awareness
COMMUNICATIONS
§ Storytelling
§ Visualisation
§ Writing
§ Presenting
§ Marketing

19. 1/3
+ =
1/3 1/3 Out of 100
DocuLove ScoreHiring manager
experience
Candidate
experience
+
Leaderboard
@david_green_uk #SRD17
Source: Tony Truong, ex-DocuSign
CASE STUDY: UNDERSTAND & MEASURE RECRUITER METRICS THAT MATTER
Deliver results
Provide a great
experience
Be a trusted
business partner
Make the recruiter
better

20. @david_green_uk #SRD17
$$$
$$
$
$
$$$
Boston
(4,818)
NYC
(6,731)
Raleigh
(2,201)
Atlanta
(2,465)
Austin
(3,062)
Source: Ian Bailie | Cisco
Dallas
(4,557)
Bay Area
(16,092)
Seattle
(9,727)
CASE STUDY: USING EXTERNAL DATA TO SUPPORT HIRING & SITE STRATEGY
NB: Illustrative data only
Using external talent supply, demand and compensation data…

21. Compensation
Investment
Attrition
Cost
Labour Market
~200%
ROI
~$300M
Net benefits
OBJECTIVE:
Proactively identify top talent at risk of voluntarily leaving the organisation and take
appropriate action in time to actually affect such employee departures, avoiding
financial and knowledge losses.
~25%
Reduced attrition
CASE STUDY: PREDICTING REGRETTABLE ATTRITION
21 #SRD17@david_green_uk

22. CASE STUDY: QUANTIFYING CANDIDATE EXPERIENCE
7,500
Customers left Virgin
Media as a result of a
poor candidate
experience
18%
of candidates are
also Virgin Media
customers
$6m
lost revenue from
poor candidate
experience
$7.7m
potential new customer
revenue stream by
getting candidate
experience right
22 #SRD17@david_green_uk
Source: hros.co

23. 2014 2015 2016 2017
Source: LinkedIn (https://www.linkedin.com/pulse/roi-talent-analytics-lorenzo-canlas?trk=prof-post
5X
Cost of
team
Impact on Operating
Margin
Investment vs. Return of People Analytics Team
7X
10X
CASE STUDY: WHAT IS THE ROI OF PEOPLE ANALYTICS?
23 #SRD17@david_green_uk

24. AGENDA
THE WHAT
WHAT IS PEOPLE
ANALYTICS?
THE WHY
WHY IS PEOPLE
ANALYTICS GROWING
IN IMPORTANCE?
WHY IS RECRUITING
AT THE FOREFRONT?
THE HOW
WHAT IS BEST
PRACTICE IN
PEOPLE ANALYTICS?
EXAMPLES
THE FUTURE
WHY IS PEOPLE
ANALYTICS CENTRAL
TO THE FUTURE OF
HR?
24#SRD17@david_green_uk

25. PEOPLE ANALYTICS IS THE CENTREPIECE OF A DIGITAL AGENDA FOR HR
25#SRD17@david_green_uk

26. Digital transformation
AI | Machine learning
Personalisation
New organisation of work
New / emerging data sources
New ways to analyse data
Democratisation of data
Ethics, privacy & trust
TRENDS IN PEOPLE ANALYTICS = THE FUTURE OF HR
26#SRD17@david_green_uk

27. of people analytics
projects are jeopardised
by ethics and privacy
concerns
81%
TRUST IS THE MOST IMPORTANT ELEMENT OF PEOPLE ANALYTICS
27 #SRD17@david_green_uk
19%
Often or
sometimes
Rarely or
never
Q: To what extent do privacy and/or ethical concerns hinder or
delay people analytics projects?
81%
Source: Insight222

28. 28
Don’t forget the ‘H’
in ‘HR’
28#SRD17@david_green_uk
DATA + JUDGEMENT = BETTER DECISIONS

29. 29
danke schön
Enjoy the rest of the conference
linkedin.com/in/davidrgreen @david_green_uk
#SRD17
green.dr@gmail.com