Using analytics for beter Human Capital decision-making

1. Gail Sturgess
CSSA Human Capital Strategy Seminar
23rd February 2012
Human Capital Analytics

2. © TalentAlign (2012)2
Human Capital Analytics
The Last Frontier for Business Intelligence

3. Questions
 What % of your total budget is “people”
related?
 What is the value contribution of your workforce
to organisational value?
 On what category of employee do you get the
highest return on investment?
 Which Talent Management processes are the
most cost effective and effective?
 Are we improving?
© TalentAlign (2012)3

4. Balanced Score Card
© TalentAlign (2012)4

5. Workforce Measures
© TalentAlign (2012)5
 Headcount
 Span of Control
 Turnover
 Termination Reason
 Employee Engagement
 Time to Fill
 Cost per Hire
 Internal Mobility
 Internal Hiring Rate

6. Workforce Measures
© TalentAlign (2012)6
 Headcount
 Span of Control
 Turnover
 Termination Reason
 Employee Engagement
 Time to Fill
 Cost per Hire
 Internal Mobility
 Internal Hiring Rate
South
Africa have
scored 58!
Who’s out?

7. Human Capital Financial Statement
© TalentAlign (2012)7

8. Human Capital Flow Statements?
© TalentAlign (2012)8

9. Human Capital Asset Statement
© TalentAlign (2012)9

10. Human Capital Asset Statements
© TalentAlign (2012)10

11. Human Capital Impact Statement
© TalentAlign (2012)11

12. Pictures vs Words
© TalentAlign (2012)12
Management & Sr.
Leadership
Professional Staff
Sales Staff
Specialists
Laborers & Helpers
Operations
Staff
Service
Staff
Adminstrative
Support Staff
Skilled Trade Staff
Contingent Staff
R² = 0.2786
0.00
0.50
1.00
1.50
2.00
2.50
- 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000
HumanCapitalValueAdd"ROI"
Average Total Compensation Cost
Human Capital ROI Ratio by Job Family

13. Comparison of Financial Institutions
© TalentAlign (2012)13
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Revenue per FTE
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
Net Operating Profit per FTE
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Human Capital ROI Ratio
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Return on Human Capital Investment

14. Comparison of Financial Institutions
© TalentAlign (2012)14
0.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.36
TCOW as Percentage of Revenue
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
TCOW as Percentage of Net Operating Profit
0.45
0.46
0.47
0.48
0.49
0.50
0.51
0.52
0.53
0.54
TCOW as Percentage of Operating Expenses

15. Talent Management Impact
© TalentAlign (2012)15

16. Talent Management Impact
© TalentAlign (2012)16

17. Talent Management Impact
© TalentAlign (2012)17

18. Workforce Image Map
© TalentAlign (2012)18

19. Core vs “Value Add” Jobs
© TalentAlign (2012)19

20. Workforce Image Map
© TalentAlign (2012)20

21. Workforce Image Map
© TalentAlign (2012)21
Management and Senior leadership
Professional
Sales
Specialists and Technicians
Skilled Trade
Service
Operations
Administrative
Labourers
Management and Senior leadership
Professional
Sales
Specialists and Technicians
Skilled Trade
Service
Operations
Administrative
Labourers

22. Human Capital -The Last BI Frontier
© TalentAlign (2012)22
HCF$™

23. To Answer these Questions
Contact us
Gail Sturgess
gails@talentalign.com
083 654 6480
www.talentalign.com
Gail Sturgess @gailsturgess© TalentAlign (2012)23
 How can we model our workforce to optimise
productivity and profitability?
 What is the marginal ROI for every Rand spent on
Human Capital costs?
 Is there a correlation between Manager effectiveness
and workforce Performance and Retention?